My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship
This case study examines Fabio Middlestaedt and his conception, proposal, and implementation of My Chevrolet. The Brazilian automotive market is explored in relation to the American and other global markets, as is General Motors and General Motors Brazil. An appendix outlining the outcome of the case is offered, as are teaching notes for classroom use.
Swot Analysis of "My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship" written by Marcos Hashimoto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chevrolet Brazilian facing as an external strategic factors. Some of the topics covered in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship case study are - Strategic Management Strategies, Customers, Innovation and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship casestudy better are - – challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy,
supply chains are disrupted by pandemic , there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chevrolet Brazilian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chevrolet Brazilian operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship can be done for the following purposes –
1. Strategic planning using facts provided in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship case study
2. Improving business portfolio management of Chevrolet Brazilian
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chevrolet Brazilian
Strengths My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chevrolet Brazilian in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship Harvard Business Review case study are -
Training and development
– Chevrolet Brazilian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Leadership & Managing People field
– Chevrolet Brazilian is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Chevrolet Brazilian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Chevrolet Brazilian is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Chevrolet Brazilian is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Chevrolet Brazilian
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Chevrolet Brazilian does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Chevrolet Brazilian is present in almost all the verticals within the industry. This has provided firm in My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Chevrolet Brazilian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chevrolet Brazilian has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Cross disciplinary teams
– Horizontal connected teams at the Chevrolet Brazilian are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Chevrolet Brazilian has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Analytics focus
– Chevrolet Brazilian is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Marcos Hashimoto can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Chevrolet Brazilian in the sector have low bargaining power. My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chevrolet Brazilian to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Chevrolet Brazilian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chevrolet Brazilian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship are -
High bargaining power of channel partners
– Because of the regulatory requirements, Marcos Hashimoto suggests that, Chevrolet Brazilian is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Capital Spending Reduction
– Even during the low interest decade, Chevrolet Brazilian has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship, it seems that the employees of Chevrolet Brazilian don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship, in the dynamic environment Chevrolet Brazilian has struggled to respond to the nimble upstart competition. Chevrolet Brazilian has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship, is just above the industry average. Chevrolet Brazilian needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Skills based hiring
– The stress on hiring functional specialists at Chevrolet Brazilian has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High cash cycle compare to competitors
Chevrolet Brazilian has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Chevrolet Brazilian has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Chevrolet Brazilian has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship HBR case study mentions - Chevrolet Brazilian takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chevrolet Brazilian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship are -
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Chevrolet Brazilian in the consumer business. Now Chevrolet Brazilian can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Chevrolet Brazilian has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chevrolet Brazilian to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Chevrolet Brazilian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Chevrolet Brazilian has opened avenues for new revenue streams for the organization in the industry. This can help Chevrolet Brazilian to build a more holistic ecosystem as suggested in the My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship case study. Chevrolet Brazilian can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chevrolet Brazilian can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Chevrolet Brazilian to increase its market reach. Chevrolet Brazilian will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Chevrolet Brazilian can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Learning at scale
– Online learning technologies has now opened space for Chevrolet Brazilian to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Chevrolet Brazilian can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Chevrolet Brazilian can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Loyalty marketing
– Chevrolet Brazilian has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chevrolet Brazilian can use these opportunities to build new business models that can help the communities that Chevrolet Brazilian operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chevrolet Brazilian in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Threats My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chevrolet Brazilian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chevrolet Brazilian can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship .
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chevrolet Brazilian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Chevrolet Brazilian in the Leadership & Managing People sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Chevrolet Brazilian needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chevrolet Brazilian in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Chevrolet Brazilian business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Chevrolet Brazilian needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Chevrolet Brazilian high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Environmental challenges
– Chevrolet Brazilian needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Chevrolet Brazilian can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Chevrolet Brazilian will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of My Chevrolet: A Case Study of Brazilian Innovation and Entrepreneurship is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Chevrolet Brazilian needs to make to build a sustainable competitive advantage.
