Based on various researches at Oak Spring University , Mahanagar Telephone Nigam PK is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, wage bills are increasing, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, supply chains are disrupted by pandemic , increasing commodity prices,
geopolitical disruptions, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Mahanagar Telephone Nigam PK
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mahanagar Telephone Nigam PK can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mahanagar Telephone Nigam PK, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK can be done for the following purposes –
1. Strategic planning of Mahanagar Telephone Nigam PK
2. Improving business portfolio management of Mahanagar Telephone Nigam PK
3. Assessing feasibility of the new initiative in United States
4. Making a Communications Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mahanagar Telephone Nigam PK
Strengths of Mahanagar Telephone Nigam PK | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mahanagar Telephone Nigam PK are -
Training and development
– Mahanagar Telephone Nigam PK 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.
Effective Research and Development (R&D)
– Mahanagar Telephone Nigam PK has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Mahanagar Telephone Nigam PK staying ahead in the Communications Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Mahanagar Telephone Nigam PK is present in almost all the verticals within the Communications Services industry. This has provided Mahanagar Telephone Nigam PK 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.
Superior customer experience
– The customer experience strategy of Mahanagar Telephone Nigam PK in Communications Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Mahanagar Telephone Nigam PK
– The covid-19 pandemic has put organizational resilience at the centre of everthing Mahanagar Telephone Nigam PK does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Mahanagar Telephone Nigam PK has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mahanagar Telephone Nigam PK to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Communications Services industry
- digital transformation varies from industry to industry. For Mahanagar Telephone Nigam PK digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mahanagar Telephone Nigam PK 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.
Successful track record of launching new products
– Mahanagar Telephone Nigam PK has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mahanagar Telephone Nigam PK 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.
High switching costs
– The high switching costs that Mahanagar Telephone Nigam PK 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.
Innovation driven organization
– Mahanagar Telephone Nigam PK is one of the most innovative firm in Communications Services sector.
Strong track record of project management in the Communications Services industry
– Mahanagar Telephone Nigam PK is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Mahanagar Telephone Nigam PK emphasize – knowledge, initiative, and innovation.
Weaknesses of Mahanagar Telephone Nigam PK | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mahanagar Telephone Nigam PK are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mahanagar Telephone Nigam PK is slow explore the new channels of communication. These new channels of communication can help Mahanagar Telephone Nigam PK to provide better information regarding Communications Services products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Mahanagar Telephone Nigam PK, in the dynamic environment of Communications Services industry it has struggled to respond to the nimble upstart competition. Mahanagar Telephone Nigam PK has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, Mahanagar Telephone Nigam PK has high operating costs in the Communications Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mahanagar Telephone Nigam PK lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the Communications Services industry, Mahanagar Telephone Nigam PK 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.
Increasing silos among functional specialists
– The organizational structure of Mahanagar Telephone Nigam PK is dominated by functional specialists. It is not different from other players in the Communications Services industry, but Mahanagar Telephone Nigam PK needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mahanagar Telephone Nigam PK to focus more on services in the Communications Services industry rather than just following the product oriented approach.
High dependence on Mahanagar Telephone Nigam PK ‘s star products
– The top 2 products and services of Mahanagar Telephone Nigam PK still accounts for major business revenue. This dependence on star products in Communications Services industry has resulted into insufficient focus on developing new products, even though Mahanagar Telephone Nigam PK has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of Mahanagar Telephone Nigam PK is just above the Communications Services industry average. It 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.
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 Mahanagar Telephone Nigam PK supply chain. Even after few cautionary changes, Mahanagar Telephone Nigam PK is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mahanagar Telephone Nigam PK vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of United States, Mahanagar Telephone Nigam PK needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Mahanagar Telephone Nigam PK products
– To increase the profitability and margins on the products, Mahanagar Telephone Nigam PK needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners in Communications Services industry
– because of the regulatory requirements in United States, Mahanagar Telephone Nigam PK 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 Communications Services industry.
Mahanagar Telephone Nigam PK Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Mahanagar Telephone Nigam PK are -
Better consumer reach
– The expansion of the 5G network will help Mahanagar Telephone Nigam PK to increase its market reach. Mahanagar Telephone Nigam PK 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Communications Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mahanagar Telephone Nigam PK 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. Mahanagar Telephone Nigam PK 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mahanagar Telephone Nigam PK to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Manufacturing automation
– Mahanagar Telephone Nigam PK can use the latest technology developments to improve its manufacturing and designing process in Communications Services 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Mahanagar Telephone Nigam PK can develop new processes and procedures in Communications 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mahanagar Telephone Nigam PK is facing challenges because of the dominance of functional experts in the organization. Mahanagar Telephone Nigam PK can utilize new technology in the field of Communications Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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. Mahanagar Telephone Nigam PK can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Mahanagar Telephone Nigam PK 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 Communications Services industry.
Loyalty marketing
– Mahanagar Telephone Nigam PK 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.
Using analytics as competitive advantage
– Mahanagar Telephone Nigam PK has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Communications Services sector. This continuous investment in analytics has enabled Mahanagar Telephone Nigam PK to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mahanagar Telephone Nigam PK to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Mahanagar Telephone Nigam PK 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.
Threats Mahanagar Telephone Nigam PK External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Mahanagar Telephone Nigam PK are -
Technology acceleration in Forth Industrial Revolution
– Mahanagar Telephone Nigam PK has witnessed rapid integration of technology during Covid-19 in the Communications Services industry. As one of the leading players in the industry, Mahanagar Telephone Nigam PK needs to keep up with the evolution of technology in the Communications Services sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Mahanagar Telephone Nigam PK may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communications Services sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mahanagar Telephone Nigam PK in Communications Services industry. The Communications 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.
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 Mahanagar Telephone Nigam PK in the Communications Services sector and impact the bottomline of the organization.
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 Mahanagar Telephone Nigam PK business can come under increasing regulations regarding data privacy, data security, etc.
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. Mahanagar Telephone Nigam PK needs to understand the core reasons impacting the Communications Services industry. This will help it in building a better workplace.
Increasing wage structure of Mahanagar Telephone Nigam PK
– 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 Mahanagar Telephone Nigam PK.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Communications Services industry are lowering. It can presents Mahanagar Telephone Nigam PK with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Communications Services sector.
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
– Mahanagar Telephone Nigam PK 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.
Stagnating economy with rate increase
– Mahanagar Telephone Nigam PK 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 Communications Services industry.
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. Mahanagar Telephone Nigam PK 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.
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 Mahanagar Telephone Nigam PK.
Weighted SWOT Analysis of Mahanagar Telephone Nigam PK Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK 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 Mahanagar Telephone Nigam PK needs to make to build a sustainable competitive advantage.