Global Sources Ltd.: The Evolution of B2B SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Global Sources Ltd.: The Evolution of B2B
Global Sources Ltd. is Asia's leading publisher of business-to-business (B2B) trade-related magazines. In the latter half of the 1990s, the Internet became a powerful force for change in the business world, leading to an explosion of Internet-related activities by both traditional bricks and mortar companies, as well as countless upstart dot.coms. The chairman and CEO of Global Sources had foreseen the opportunities afforded by the Internet early on and had made it an integral part of the company's strategy. Currently, the level of activity in the B2B portal space has evolved so quickly that a noticeable degree of confusion among suppliers, buyers, and investors about the merits and drawbacks of these portals has arisen. Moreover, the sustainability of these ventures has been brought into question, which is causing a dramatic reversal of fortunes for many companies. The result is that there are strong signs that the industry will experience a significant consolidation. This has left Global Sources chairman with the key challenge of generating greater visibility among users and potential users of the companies services, as well as greater interest from the investment community to remain viable. The company must be able to educate and convey its value proposition to its users, as well as determine whether it should continue to remain an independent player, purchase a competitor, or enter into a strategic alliance.
Authors :: Allen Morrison, Tom Gleave, John C. Beck
Swot Analysis of "Global Sources Ltd.: The Evolution of B2B" written by Allen Morrison, Tom Gleave, John C. Beck includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sources B2b facing as an external strategic factors. Some of the topics covered in Global Sources Ltd.: The Evolution of B2B case study are - Strategic Management Strategies, Change management, Internet, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Global Sources Ltd.: The Evolution of B2B casestudy better are - – increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Global Sources Ltd.: The Evolution of B2B
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Sources Ltd.: The Evolution of B2B case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sources B2b, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sources B2b 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 Global Sources Ltd.: The Evolution of B2B can be done for the following purposes –
1. Strategic planning using facts provided in Global Sources Ltd.: The Evolution of B2B case study
2. Improving business portfolio management of Sources B2b
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 Sources B2b
Strengths Global Sources Ltd.: The Evolution of B2B | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sources B2b in Global Sources Ltd.: The Evolution of B2B Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Global Sources Ltd.: The Evolution of B2B 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.
Organizational Resilience of Sources B2b
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sources B2b does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Sources B2b are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Global Sources Ltd.: The Evolution of B2B firm has clearly differentiated products in the market place. This has enabled Sources B2b to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Sources B2b to invest into research and development (R&D) and innovation.
Innovation driven organization
– Sources B2b is one of the most innovative firm in sector. Manager in Global Sources Ltd.: The Evolution of B2B Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Sources B2b is present in almost all the verticals within the industry. This has provided firm in Global Sources Ltd.: The Evolution of B2B 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.
Superior customer experience
– The customer experience strategy of Sources B2b in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Sources B2b is one of the leading recruiters in the industry. Managers in the Global Sources Ltd.: The Evolution of B2B are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Sources B2b has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Global Sources Ltd.: The Evolution of B2B 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)
– Sources B2b 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 Global Sources Ltd.: The Evolution of B2B - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Sources B2b 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 industry. The technology infrastructure suggested by Allen Morrison, Tom Gleave, John C. Beck can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High switching costs
– The high switching costs that Sources B2b 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.
Weaknesses Global Sources Ltd.: The Evolution of B2B | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Sources Ltd.: The Evolution of B2B are -
High bargaining power of channel partners
– Because of the regulatory requirements, Allen Morrison, Tom Gleave, John C. Beck suggests that, Sources B2b 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 industry.
Products dominated business model
– Even though Sources B2b has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Global Sources Ltd.: The Evolution of B2B should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Global Sources Ltd.: The Evolution of B2B, in the dynamic environment Sources B2b has struggled to respond to the nimble upstart competition. Sources B2b 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, firm in the HBR case study Global Sources Ltd.: The Evolution of B2B 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 Sources B2b 's lucrative customers.
Interest costs
– Compare to the competition, Sources B2b 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Global Sources Ltd.: The Evolution of B2B, it seems that the employees of Sources B2b don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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 Sources B2b supply chain. Even after few cautionary changes mentioned in the HBR case study - Global Sources Ltd.: The Evolution of B2B, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sources B2b vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Sources B2b is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Sources B2b needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sources B2b to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Sources B2b 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.
Aligning sales with marketing
– It come across in the case study Global Sources Ltd.: The Evolution of B2B that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Global Sources Ltd.: The Evolution of B2B can leverage the sales team experience to cultivate customer relationships as Sources B2b is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sources B2b is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Global Sources Ltd.: The Evolution of B2B can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Global Sources Ltd.: The Evolution of B2B | 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 Global Sources Ltd.: The Evolution of B2B are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sources B2b in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sources B2b 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 Sources B2b to hire the very best people irrespective of their geographical location.
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 Sources B2b 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sources B2b 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.
Buying journey improvements
– Sources B2b can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Global Sources Ltd.: The Evolution of B2B suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sources B2b can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sources B2b is facing challenges because of the dominance of functional experts in the organization. Global Sources Ltd.: The Evolution of B2B 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.
Building a culture of innovation
– managers at Sources B2b 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 Strategy & Execution segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Sources B2b 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. Sources B2b 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.
Manufacturing automation
– Sources B2b 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.
Better consumer reach
– The expansion of the 5G network will help Sources B2b to increase its market reach. Sources B2b 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.
Developing new processes and practices
– Sources B2b 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.
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 Sources B2b in the consumer business. Now Sources B2b can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Global Sources Ltd.: The Evolution of B2B External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Global Sources Ltd.: The Evolution of B2B are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sources B2b 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.
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. Sources B2b needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Sources B2b is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Sources B2b business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sources B2b 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 Global Sources Ltd.: The Evolution of B2B .
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 Sources B2b.
Environmental challenges
– Sources B2b 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. Sources B2b can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing wage structure of Sources B2b
– 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 Sources B2b.
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 Sources B2b in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Sources B2b 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. Sources B2b 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.
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.
Stagnating economy with rate increase
– Sources B2b 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.
Weighted SWOT Analysis of Global Sources Ltd.: The Evolution of B2B 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 Global Sources Ltd.: The Evolution of B2B 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 Global Sources Ltd.: The Evolution of B2B 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 Global Sources Ltd.: The Evolution of B2B 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 Global Sources Ltd.: The Evolution of B2B 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 Sources B2b needs to make to build a sustainable competitive advantage.
