Yama Ribbons & Bows Co., Ltd.: Where to Next? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Yama Ribbons & Bows Co., Ltd.: Where to Next?
In March, 2014, the founder and chairman of the board of Yama Ribbons & Bows Co., Ltd., the world's largest polyester ribbon manufacturer based in Xiamen, China, was reflecting on the awards, accolades, victories and revenue growth that he had achieved over the past 16 years. In spite of the problems that beset the Chinese ribbons industry - intense competition, rising labour and production costs and strict international regulation of imports - the company had not only launched a successful subsidiary in the United States and was poised to open a second in Hong Kong but planned to outsource some of its manufacturing operations to a new plant in India. It had won a major trademark dispute and successfully survived an investigation by the U.S. Department of Commerce joint investigation into anti-dumping and anti-subsidy practices. By concentrating on superior customer service through its make-to-stock strategy and in-house research and development, the company was able to control inventory while achieving an excellent product deliverable on time anywhere in the world. As he reflected on his growth goals for the company, the founder wondered what, if anything, he was missing. How could he best grow the company over the next decade?
Swot Analysis of "Yama Ribbons & Bows Co., Ltd.: Where to Next?" written by Zhiduan Xu, W. Glenn Rowe includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ribbons Bows facing as an external strategic factors. Some of the topics covered in Yama Ribbons & Bows Co., Ltd.: Where to Next? case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Yama Ribbons & Bows Co., Ltd.: Where to Next? casestudy better are - – there is increasing trade war between United States & China, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
increasing commodity prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Yama Ribbons & Bows Co., Ltd.: Where to Next?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yama Ribbons & Bows Co., Ltd.: Where to Next? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ribbons Bows, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ribbons Bows 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 Yama Ribbons & Bows Co., Ltd.: Where to Next? can be done for the following purposes –
1. Strategic planning using facts provided in Yama Ribbons & Bows Co., Ltd.: Where to Next? case study
2. Improving business portfolio management of Ribbons Bows
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ribbons Bows
Strengths Yama Ribbons & Bows Co., Ltd.: Where to Next? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ribbons Bows in Yama Ribbons & Bows Co., Ltd.: Where to Next? Harvard Business Review case study are -
Training and development
– Ribbons Bows has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yama Ribbons & Bows Co., Ltd.: Where to Next? Harvard Business Review case study by analyzing – 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)
– Ribbons Bows has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Yama Ribbons & Bows Co., Ltd.: Where to Next? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Yama Ribbons & Bows Co., Ltd.: Where to Next? firm has clearly differentiated products in the market place. This has enabled Ribbons Bows to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ribbons Bows to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Ribbons Bows in the sector have low bargaining power. Yama Ribbons & Bows Co., Ltd.: Where to Next? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ribbons Bows to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Yama Ribbons & Bows Co., Ltd.: Where to Next? Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
Strong track record of project management
– Ribbons Bows is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Ribbons Bows
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ribbons Bows does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Ribbons Bows has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ribbons Bows 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.
Innovation driven organization
– Ribbons Bows is one of the most innovative firm in sector. Manager in Yama Ribbons & Bows Co., Ltd.: Where to Next? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Ribbons Bows has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Yama Ribbons & Bows Co., Ltd.: Where to Next? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Ribbons Bows 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.
Diverse revenue streams
– Ribbons Bows is present in almost all the verticals within the industry. This has provided firm in Yama Ribbons & Bows Co., Ltd.: Where to Next? case study 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.
Weaknesses Yama Ribbons & Bows Co., Ltd.: Where to Next? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yama Ribbons & Bows Co., Ltd.: Where to Next? are -
Skills based hiring
– The stress on hiring functional specialists at Ribbons Bows has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next? has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ribbons Bows 's lucrative customers.
Lack of clear differentiation of Ribbons Bows products
– To increase the profitability and margins on the products, Ribbons Bows needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next?, is just above the industry average. Ribbons Bows 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.
Slow to strategic competitive environment developments
– As Yama Ribbons & Bows Co., Ltd.: Where to Next? HBR case study mentions - Ribbons Bows takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Ribbons Bows is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ribbons Bows needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ribbons Bows to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Yama Ribbons & Bows Co., Ltd.: Where to Next?, in the dynamic environment Ribbons Bows has struggled to respond to the nimble upstart competition. Ribbons Bows has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Ribbons Bows supply chain. Even after few cautionary changes mentioned in the HBR case study - Yama Ribbons & Bows Co., Ltd.: Where to Next?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ribbons Bows vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Ribbons Bows 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.
High cash cycle compare to competitors
Ribbons Bows has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Ribbons Bows, firm in the HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Yama Ribbons & Bows Co., Ltd.: Where to Next? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Yama Ribbons & Bows Co., Ltd.: Where to Next? are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ribbons Bows is facing challenges because of the dominance of functional experts in the organization. Yama Ribbons & Bows Co., Ltd.: Where to Next? case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Ribbons Bows in the consumer business. Now Ribbons Bows can target international markets with far fewer capital restrictions requirements than the existing system.
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. Ribbons Bows can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ribbons Bows 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 Ribbons Bows to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Ribbons Bows can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Ribbons Bows can develop new processes and procedures in Strategy & Execution 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.
Learning at scale
– Online learning technologies has now opened space for Ribbons Bows 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.
Better consumer reach
– The expansion of the 5G network will help Ribbons Bows to increase its market reach. Ribbons Bows 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ribbons Bows can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ribbons Bows can use these opportunities to build new business models that can help the communities that Ribbons Bows operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Ribbons Bows 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.
Loyalty marketing
– Ribbons Bows 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.
Manufacturing automation
– Ribbons Bows can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. 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.
Threats Yama Ribbons & Bows Co., Ltd.: Where to Next? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next? are -
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 Ribbons Bows.
Regulatory challenges
– Ribbons Bows 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 Strategy & Execution industry regulations.
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. Ribbons Bows 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.
High dependence on third party suppliers
– Ribbons Bows 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.
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. Ribbons Bows needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Ribbons Bows business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Ribbons Bows 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. Ribbons Bows can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Ribbons Bows 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 the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ribbons Bows 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 prominent markets illustrated in HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next? .
Stagnating economy with rate increase
– Ribbons Bows 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 field.
Shortening product life cycle
– it is one of the major threat that Ribbons Bows is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ribbons Bows in the Strategy & Execution industry. The Strategy & Execution 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.
Weighted SWOT Analysis of Yama Ribbons & Bows Co., Ltd.: Where to Next? Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Yama Ribbons & Bows Co., Ltd.: Where to Next? 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 the case study Yama Ribbons & Bows Co., Ltd.: Where to Next? 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 the Harvard case study Yama Ribbons & Bows Co., Ltd.: Where to Next? 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 Yama Ribbons & Bows Co., Ltd.: Where to Next? is 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 Ribbons Bows needs to make to build a sustainable competitive advantage.
