Kaushalya Infrastructure Dev (KAUS) SWOT Analysis / TOWS Matrix / MBA Resources
Construction Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Kaushalya Infrastructure Dev (India)
Based on various researches at Oak Spring University , Kaushalya Infrastructure Dev is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Kaushalya Infrastructure Dev
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Kaushalya Infrastructure Dev can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kaushalya Infrastructure Dev, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev can be done for the following purposes –
1. Strategic planning of Kaushalya Infrastructure Dev
2. Improving business portfolio management of Kaushalya Infrastructure Dev
3. Assessing feasibility of the new initiative in India
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kaushalya Infrastructure Dev
Strengths of Kaushalya Infrastructure Dev | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kaushalya Infrastructure Dev are -
Learning organization
- Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Kaushalya Infrastructure Dev emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Kaushalya Infrastructure Dev has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Kaushalya Infrastructure Dev staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Kaushalya Infrastructure Dev 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 Construction Services 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.
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Kaushalya Infrastructure Dev digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kaushalya Infrastructure Dev 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.
Superior customer experience
– The customer experience strategy of Kaushalya Infrastructure Dev in Construction Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Kaushalya Infrastructure Dev is one of the most innovative firm in Construction Services sector.
Training and development
– Kaushalya Infrastructure Dev has one of the best training and development program in Capital Goods 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.
Ability to lead change in Construction Services
– Kaushalya Infrastructure Dev is one of the leading players in the Construction Services industry in India. Over the years it has not only transformed the business landscape in the Construction Services industry in India but also across the existing markets. The ability to lead change has enabled Kaushalya Infrastructure Dev in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Kaushalya Infrastructure Dev is present in almost all the verticals within the Construction Services industry. This has provided Kaushalya Infrastructure Dev 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.
Highly skilled collaborators
– Kaushalya Infrastructure Dev has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Construction Services industry. Secondly the value chain collaborators of Kaushalya Infrastructure Dev have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Kaushalya Infrastructure Dev is one of the leading players in the Construction Services industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Construction Services industry
– Kaushalya Infrastructure Dev has clearly differentiated products in the market place. This has enabled Kaushalya Infrastructure Dev to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Kaushalya Infrastructure Dev to invest into research and development (R&D) and innovation.
Weaknesses of Kaushalya Infrastructure Dev | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kaushalya Infrastructure Dev are -
Slow to strategic competitive environment developments
– As Kaushalya Infrastructure Dev is one of the leading players in the Construction Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Construction Services industry in last five years.
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 Kaushalya Infrastructure Dev supply chain. Even after few cautionary changes, Kaushalya Infrastructure Dev is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kaushalya Infrastructure Dev vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that Kaushalya Infrastructure Dev needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Kaushalya Infrastructure Dev can leverage the sales team experience to cultivate customer relationships as Kaushalya Infrastructure Dev is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Kaushalya Infrastructure Dev is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Kaushalya Infrastructure Dev needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kaushalya Infrastructure Dev to focus more on services in the Construction Services industry rather than just following the product oriented approach.
Products dominated business model
– Even though Kaushalya Infrastructure Dev has some of the most successful models in the Construction Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Kaushalya Infrastructure Dev should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Kaushalya Infrastructure Dev has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Kaushalya Infrastructure Dev lucrative customers.
Low market penetration in new markets
– Outside its home market of India, Kaushalya Infrastructure Dev needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on Kaushalya Infrastructure Dev ‘s star products
– The top 2 products and services of Kaushalya Infrastructure Dev still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Kaushalya Infrastructure Dev has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Kaushalya Infrastructure Dev, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Kaushalya Infrastructure Dev has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Kaushalya Infrastructure Dev has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Kaushalya Infrastructure Dev 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.
Interest costs
– Compare to the competition, Kaushalya Infrastructure Dev 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.
Kaushalya Infrastructure Dev Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Kaushalya Infrastructure Dev are -
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. Kaushalya Infrastructure Dev can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kaushalya Infrastructure Dev 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kaushalya Infrastructure Dev can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Kaushalya Infrastructure Dev can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Kaushalya Infrastructure Dev can develop new processes and procedures in Construction Services 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kaushalya Infrastructure Dev is facing challenges because of the dominance of functional experts in the organization. Kaushalya Infrastructure Dev can utilize new technology in the field of Construction Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kaushalya Infrastructure Dev can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Kaushalya Infrastructure Dev 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 Construction Services industry.
Better consumer reach
– The expansion of the 5G network will help Kaushalya Infrastructure Dev to increase its market reach. Kaushalya Infrastructure Dev 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.
Using analytics as competitive advantage
– Kaushalya Infrastructure Dev has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Construction Services sector. This continuous investment in analytics has enabled Kaushalya Infrastructure Dev to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kaushalya Infrastructure Dev to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Kaushalya Infrastructure Dev 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.
Loyalty marketing
– Kaushalya Infrastructure Dev 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Kaushalya Infrastructure Dev External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Kaushalya Infrastructure Dev are -
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.
Consumer confidence and its impact on Kaushalya Infrastructure Dev 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 Construction Services industry and other sectors.
Increasing wage structure of Kaushalya Infrastructure Dev
– 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 Kaushalya Infrastructure Dev.
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.
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 Kaushalya Infrastructure Dev.
Environmental challenges
– Kaushalya Infrastructure Dev 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. Kaushalya Infrastructure Dev can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Kaushalya Infrastructure Dev with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kaushalya Infrastructure Dev in Construction Services industry. The Construction Services 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.
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. Kaushalya Infrastructure Dev needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Kaushalya Infrastructure Dev is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Kaushalya Infrastructure Dev 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 Construction Services industry.
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 Kaushalya Infrastructure Dev in the Construction Services sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Kaushalya Infrastructure Dev Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev 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 Kaushalya Infrastructure Dev needs to make to build a sustainable competitive advantage.