MGT302 – Strategic Management Assignment 1 Details in addition to requirements given in Subject Outline. ASSESSMENT 1 – Case Study about Otis elevator XXXXXXXXXX% word Report Weight 20% marks DUE...

MGT302 – STRATEGIC MANAGEMENT ASSIGNMENT 1
CASE STUDY ABOUT OTIS ELEVATOR
 
Table of Contents
Introduction    3
The Company— Otis    3
Its Industry    3
Challenges faced by Otis    3
Macro Environment Analysis    4
Industry Analysis    4
Product Life Cycle    4
Porters 5 Force Analysis    5
Company Analysis: Resources and Capabilities    5
Competitor Analysis    5
Strategy Analysis    6
Conclusion    6
Recommendations    6
References    7
Introduction
The Company— Otis
Elisha Otis founded the company in Yonkers, New York. The Otis Elevator Company develops, produces and sells elevators, escalators and related equipment. Otis holds a dominant position in the global elevator industry. It is part of United Technologies, a diversified American firm. United Technologies revenue in 2014 was approx. US$65 billion and there were around 200000 employees spread all over the world. It has several well-known business sectors, including Black Hawk helicopters, Chubb security, a range of aerospace products and Pratt & Whitney (Schonell, 2016).
Otis was the first company to come up with the elevator, operated by a person to raise the cab up and down between floors. As mentioned by Norman (2016), the economy is becoming more, vertical than ever before, hence the demand for the elevator is rising day by day. It is said that the elevators needed are as per 1000 people. Still, the current number of elevators per population is low in China and India; with urbanisation and large populations, demand is focused on Asia. In 1852, Elisha Otis came up with the concept of a safety elevator.
Its Industry
Otis Elevator operates in the global elevator industry. India holds the second largest market for elevators and escalators in the world. The estimation says that the sector will cross $2 billion by 2023. The reason behind this includes increasing urbanisation, development of the real estate sector and an increasing number of floors in apartments and commercial buildings across the globe. The focus has shifted to the development of properties so that they look attractive and people should find it easy to travel and walk through, for example, modernising of airports and metros, redevelopment of railway stations, construction of malls.
As mentioned by Gichane et al. (2020), the industry is putting efforts to develop techniques that will help field employees be more efficient, develop stronger ties with the clients and solve the problem as soon as possible. The focus is laid on customer satisfaction. Through more networks and connectivity, customers get more transparency, information and a streamlined process to reach out to their maintenance company. In today’s scenario, the demand for elevators is increasing and the number of competitors exists in the market. Few prominent players in the elevator industry are Otis, Kone, Schindler and ThyssenKrupp. The industry's activities include the manufacture and sale of elevators and the second is maintenance at regular intervals. 
Challenges faced by Otis
Otis has faced difficult business decisions. It is becoming tough for companies to survive in this hyper-competitive world. Technology lies the main reason behind it. Every company is coming with new technology, new ideas making it difficult for small companies to survive and become self-reliant. The upward pressure in the global market place and easy entry due to low entry barriers caused Otis to make aggressive IT enhancements.
Along with Otis, a few other significant players in the elevator industry are Kone, Schindler and ThyssenKrupp. The company's technology improvements were a challenge, as the expenses were high and the time needed is enormous. The expertise and resources were also a significant problem. The opportunities to capitalise on new business and meet the goals, vision, mission and direction of the company, however, seemed to outweigh the risk and costs associated with moving forward with the new IT strategies.
Resolving customer problems was a hurdle in companies operation. It was determined that most customers did not renew their service contracts when they expired. Otis tried to find a solution for retaining its customers and adopted a digital platform to reduce repair time. There exists an urgent need to work on service excellence. The customer expected fast resolution and cost-effectiveness, but the company was lacking behind. Another major challenge was that Otis's employees had to embrace the change in management philosophy to achieve the broader corporate vision.
The employees should be self-motivated to cater to customers' needs and feel the need to provide excellent service to build a reputation and gain considerable market share. One of the risks of embracing the new information technology...