SWOT Analysis / TOWS Matrix for TV18 Broadcast (India)
Based on various researches at Oak Spring University , TV18 Broadcast is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing commodity prices, there is backlash against globalization, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, technology disruption,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that TV18 Broadcast can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the TV18 Broadcast, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which TV18 Broadcast 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 TV18 Broadcast can be done for the following purposes –
1. Strategic planning of TV18 Broadcast
2. Improving business portfolio management of TV18 Broadcast
3. Assessing feasibility of the new initiative in India
4. Making a Broadcasting & Cable TV sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of TV18 Broadcast
Strengths of TV18 Broadcast | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of TV18 Broadcast are -
Strong track record of project management in the Broadcasting & Cable TV industry
– TV18 Broadcast is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– TV18 Broadcast is one of the most innovative firm in Broadcasting & Cable TV sector.
High brand equity
– TV18 Broadcast has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled TV18 Broadcast to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Broadcasting & Cable TV industry
- digital transformation varies from industry to industry. For TV18 Broadcast digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. TV18 Broadcast has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of TV18 Broadcast in the Services sector have low bargaining power. TV18 Broadcast has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps TV18 Broadcast to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Broadcasting & Cable TV
– TV18 Broadcast is one of the leading players in the Broadcasting & Cable TV industry in India. Over the years it has not only transformed the business landscape in the Broadcasting & Cable TV industry in India but also across the existing markets. The ability to lead change has enabled TV18 Broadcast in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy of TV18 Broadcast comprises – understanding the underlying the factors in the Broadcasting & Cable TV 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.
Training and development
– TV18 Broadcast has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– TV18 Broadcast 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 Broadcasting & Cable TV industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Broadcasting & Cable TV industry
– TV18 Broadcast has clearly differentiated products in the market place. This has enabled TV18 Broadcast to fetch slight price premium compare to the competitors in the Broadcasting & Cable TV industry. The sustainable margins have also helped TV18 Broadcast to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– TV18 Broadcast has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Broadcasting & Cable TV industry. Secondly the value chain collaborators of TV18 Broadcast have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of TV18 Broadcast
– The covid-19 pandemic has put organizational resilience at the centre of everthing TV18 Broadcast does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of TV18 Broadcast | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TV18 Broadcast are -
Slow decision making process
– As mentioned earlier in the report, TV18 Broadcast has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Broadcasting & Cable TV industry over the last five years. TV18 Broadcast even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– From the 10K / annual statement of TV18 Broadcast, it seems that company is thinking out the frontier risks that can impact Broadcasting & Cable TV industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of TV18 Broadcast products
– To increase the profitability and margins on the products, TV18 Broadcast needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the Broadcasting & Cable TV industry, TV18 Broadcast needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of TV18 Broadcast supply chain. Even after few cautionary changes, TV18 Broadcast is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left TV18 Broadcast vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though TV18 Broadcast has some of the most successful models in the Broadcasting & Cable TV industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. TV18 Broadcast should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of India, TV18 Broadcast needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– TV18 Broadcast 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.
High operating costs
– Compare to the competitors, TV18 Broadcast has high operating costs in the Broadcasting & Cable TV industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract TV18 Broadcast lucrative customers.
Interest costs
– Compare to the competition, TV18 Broadcast 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 TV18 Broadcast is one of the leading players in the Broadcasting & Cable TV industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Broadcasting & Cable TV industry in last five years.
TV18 Broadcast Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of TV18 Broadcast are -
Low interest rates
– Even though inflation is raising its head in most developed economies, TV18 Broadcast can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Creating value in data economy
– The success of analytics program of TV18 Broadcast has opened avenues for new revenue streams for the organization in Broadcasting & Cable TV industry. This can help TV18 Broadcast to build a more holistic ecosystem for TV18 Broadcast products in the Broadcasting & Cable TV industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– TV18 Broadcast can improve the customer journey of consumers in the Broadcasting & Cable TV industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Use of Bitcoin and other crypto currencies for transactions in Broadcasting & Cable TV industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for TV18 Broadcast in the Broadcasting & Cable TV industry. Now TV18 Broadcast can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– TV18 Broadcast 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for TV18 Broadcast to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for TV18 Broadcast to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for TV18 Broadcast in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Broadcasting & Cable TV industry, and it will provide faster access to the consumers.
Developing new processes and practices
– TV18 Broadcast can develop new processes and procedures in Broadcasting & Cable TV industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, TV18 Broadcast can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help TV18 Broadcast to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– TV18 Broadcast can use the latest technology developments to improve its manufacturing and designing process in Broadcasting & Cable TV sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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. TV18 Broadcast can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, TV18 Broadcast is facing challenges because of the dominance of functional experts in the organization. TV18 Broadcast can utilize new technology in the field of Broadcasting & Cable TV industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– TV18 Broadcast has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Broadcasting & Cable TV sector. This continuous investment in analytics has enabled TV18 Broadcast to build a competitive advantage using analytics. The analytics driven competitive advantage can help TV18 Broadcast to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats TV18 Broadcast External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of TV18 Broadcast are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for TV18 Broadcast in Broadcasting & Cable TV industry. The Broadcasting & Cable TV 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.
Stagnating economy with rate increase
– TV18 Broadcast can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Broadcasting & Cable TV industry.
Environmental challenges
– TV18 Broadcast 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. TV18 Broadcast can take advantage of this fund but it will also bring new competitors in the Broadcasting & Cable TV industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, TV18 Broadcast 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 TV18 Broadcast prominent markets.
Consumer confidence and its impact on TV18 Broadcast demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Broadcasting & Cable TV industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of TV18 Broadcast.
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 TV18 Broadcast in the Broadcasting & Cable TV sector and impact the bottomline of the organization.
Regulatory challenges
– TV18 Broadcast 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 Broadcasting & Cable TV 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, TV18 Broadcast may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Broadcasting & Cable TV sector.
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. TV18 Broadcast needs to understand the core reasons impacting the Broadcasting & Cable TV industry. This will help it in building a better workplace.
Increasing wage structure of TV18 Broadcast
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of TV18 Broadcast.
Weighted SWOT Analysis of TV18 Broadcast Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at TV18 Broadcast 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 TV18 Broadcast 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 TV18 Broadcast 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 TV18 Broadcast 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 TV18 Broadcast needs to make to build a sustainable competitive advantage.