Harvard Case - Parsons Brinckerhoff: The Second Avenue Subway (A)
"Parsons Brinckerhoff: The Second Avenue Subway (A)" Harvard business case study is written by Ronald T Wilcox, Carlos Michael Santos. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : May 31, 2011
At Fern Fort University, we recommend Parsons Brinckerhoff (PB) adopt a comprehensive marketing strategy to position itself as a leading player in the New York City transit construction market. This strategy should focus on building brand awareness, establishing expertise in complex urban infrastructure projects, and leveraging its role in the Second Avenue Subway project as a springboard for future opportunities.
2. Background
This case study focuses on Parsons Brinckerhoff, a leading engineering and construction firm, as it embarks on the Second Avenue Subway project in New York City. The project is a complex undertaking, requiring extensive planning, engineering, and construction expertise. PB faces the challenge of managing public expectations, navigating political complexities, and ensuring project success while simultaneously showcasing its capabilities to potential future clients.
The main protagonists are:
- Parsons Brinckerhoff (PB): The engineering and construction firm responsible for the project's design and construction.
- The Metropolitan Transportation Authority (MTA): The agency overseeing the project and responsible for public transportation in New York City.
- The City of New York: The governing body with vested interests in the project's success and impact on the city's infrastructure and economy.
- The Public: Residents and commuters who will be directly affected by the project and hold expectations for its effectiveness and efficiency.
3. Analysis of the Case Study
To analyze the situation, we will utilize a combination of frameworks:
SWOT Analysis:
- Strengths: PB's long history, strong reputation, expertise in complex urban projects, and successful track record.
- Weaknesses: Potential for project delays and cost overruns, limited public awareness of its capabilities, and challenges in managing stakeholder expectations.
- Opportunities: Growing demand for infrastructure projects in New York City, potential for expansion into other urban markets, and the ability to leverage the Second Avenue Subway project as a showcase for its expertise.
- Threats: Competition from other engineering and construction firms, potential for regulatory changes, and economic downturns impacting project funding.
PESTEL Analysis:
- Political: The project is subject to political scrutiny and potential changes in government policies.
- Economic: The project's success depends on the availability of funding and the overall economic health of the city.
- Social: Public perception of the project and its impact on the community is crucial for its acceptance.
- Technological: Advancements in construction technology can improve efficiency and reduce project costs.
- Environmental: The project needs to comply with environmental regulations and minimize its impact on the surrounding environment.
- Legal: The project must adhere to all relevant legal requirements and regulations.
Marketing Analysis:
- Target Market: The primary target market is government agencies, transportation authorities, and private developers seeking infrastructure solutions.
- Market Segmentation: PB can segment the market based on project size, complexity, and location.
- Brand Positioning: PB needs to position itself as a trusted partner with expertise in complex urban infrastructure projects.
- Marketing Mix: This includes developing a comprehensive marketing strategy that leverages various channels such as public relations, advertising, content marketing, and digital marketing.
4. Recommendations
PB should adopt a multi-pronged marketing strategy to achieve its objectives:
Brand Building:
- Develop a strong brand identity: Create a consistent brand message highlighting PB's expertise, commitment to quality, and dedication to delivering successful projects.
- Increase public awareness: Utilize public relations, advertising, and social media campaigns to raise awareness of PB's capabilities and its role in the Second Avenue Subway project.
- Engage with stakeholders: Actively engage with the public, community groups, and media to address concerns and build trust.
Expertise Showcase:
- Highlight project successes: Develop case studies and testimonials showcasing PB's expertise in complex urban infrastructure projects.
- Leverage the Second Avenue Subway project: Use the project as a platform to demonstrate PB's capabilities and attract future clients.
- Participate in industry events: Attend conferences, exhibitions, and networking events to connect with potential clients and showcase expertise.
Digital Marketing Strategy:
- Develop a comprehensive website: Create a user-friendly website with detailed information about PB's services, projects, and expertise.
- Utilize social media: Engage with potential clients and industry professionals on relevant social media platforms.
- Implement SEO and SEM: Optimize website content for search engines to improve visibility and attract potential clients.
Content Marketing:
- Create valuable content: Develop informative articles, blog posts, and white papers on topics related to urban infrastructure and transit projects.
- Share industry insights: Provide thought leadership by sharing insights and perspectives on industry trends and challenges.
- Build a community: Engage with potential clients and industry professionals through online forums and discussion groups.
Customer Relationship Management (CRM):
- Implement a CRM system: Track interactions with potential clients and manage leads effectively.
- Personalize communication: Tailor marketing messages and outreach efforts to specific target segments.
- Build long-term relationships: Foster strong relationships with clients based on trust, transparency, and mutual understanding.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with PB's core competencies in engineering and construction, and its mission to deliver innovative and sustainable infrastructure solutions.
- External Customers and Internal Clients: The recommendations address the needs of both external clients, such as government agencies and private developers, and internal clients, such as project managers and engineers.
- Competitors: The recommendations consider the competitive landscape and position PB as a leader in the urban infrastructure market.
- Attractiveness: The recommendations are expected to generate positive returns on investment through increased brand awareness, client acquisition, and project wins.
6. Conclusion
By adopting a comprehensive marketing strategy that focuses on brand building, expertise showcasing, and digital marketing, PB can position itself as a leading player in the New York City transit construction market. This strategy will enable PB to attract new clients, secure future projects, and solidify its reputation as a trusted partner in delivering complex urban infrastructure solutions.
7. Discussion
Other alternatives not selected include:
- Focusing solely on traditional marketing channels: This approach may not be effective in reaching the target market and could result in missed opportunities.
- Ignoring the importance of digital marketing: In today's digital age, neglecting digital marketing channels can significantly limit reach and engagement.
- Failing to build strong relationships with stakeholders: Ignoring the needs and concerns of stakeholders can lead to negative publicity and project delays.
Key assumptions of the recommendations include:
- The Second Avenue Subway project will be successful: The project's success is crucial for PB's marketing efforts and its ability to leverage it as a showcase.
- The New York City transit construction market will continue to grow: The recommendations assume that the market will continue to offer opportunities for PB to expand its business.
- PB will allocate sufficient resources to implement the marketing strategy: The recommendations require investment in marketing personnel, technology, and other resources.
8. Next Steps
To implement the recommendations, PB should:
- Develop a detailed marketing plan: Outline specific objectives, strategies, tactics, and timelines.
- Allocate budget and resources: Secure funding for marketing activities and hire or train personnel.
- Establish key performance indicators (KPIs): Track progress and measure the effectiveness of marketing efforts.
- Monitor and adapt: Continuously evaluate the marketing strategy and make adjustments as needed.
By taking these steps, PB can effectively market its services, build a strong brand, and secure its position as a leading player in the New York City transit construction market.
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Case Description
Can a company base a major proposal on its good reputation, history with the client, and a perspective that differs from the client's own? Emphasizing both its engineering capability and 80 years' experience, Parsons Brinckerhoff spends one year and $1 million preparing a proposal to build a $17 billion subway line. Competition from four equally qualified firms is stiff, but PB is sure its history and top-level MTA connections make it a shoe-in. Despite MTA's concerns about the finished line's functionality, PB believes the construction of the tunnel itself is the key to winning the bid. In the A case, the firm awaits the good news. The B and C cases reveal the results and the direction the company then chooses to take. (A teaching note is available to registered faculty members.)
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