Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A)
Hong Kong Article Numbering Association's (HKANA) mission was to promote and facilitate efficient trade practices and to contribute toward the continued global competitiveness of Hong Kong companies. As such, HKANA had been successful in introducing EAN bar codes to Hong Kong manufacturers and retailers. The challenge now was to convince retailers to use the scanned bar codes in their stock planning and replenishment cycles. This would optimize existing routines and take costs out of the replenishment process.
Swot Analysis of "Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A)" written by Jan Damsgaard, Ali F. Farhoomand includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hkana Kong facing as an external strategic factors. Some of the topics covered in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) case study are - Strategic Management Strategies, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) casestudy better are - – challanges to central banks by blockchain based private currencies, there is backlash against globalization, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing commodity prices, wage bills are increasing,
there is increasing trade war between United States & China, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hkana Kong, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hkana Kong 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) can be done for the following purposes –
1. Strategic planning using facts provided in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) case study
2. Improving business portfolio management of Hkana Kong
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 Hkana Kong
Strengths Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hkana Kong in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Hkana Kong in the sector have low bargaining power. Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hkana Kong to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Hkana Kong in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Hkana Kong has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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.
Learning organization
- Hkana Kong 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 Hkana Kong is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Hkana Kong 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.
Effective Research and Development (R&D)
– Hkana Kong 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Strategy & Execution field
– Hkana Kong is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Hkana Kong in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Hkana Kong has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hkana Kong 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) firm has clearly differentiated products in the market place. This has enabled Hkana Kong to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Hkana Kong to invest into research and development (R&D) and innovation.
Analytics focus
– Hkana Kong 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 Jan Damsgaard, Ali F. Farhoomand 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.
Highly skilled collaborators
– Hkana Kong 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Hkana Kong digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hkana Kong 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.
Weaknesses Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) are -
No frontier risks strategy
– After analyzing the HBR case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow decision making process
– As mentioned earlier in the report, Hkana Kong has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Hkana Kong even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, Hkana Kong has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) HBR case study mentions - Hkana Kong 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.
Low market penetration in new markets
– Outside its home market of Hkana Kong, firm in the HBR case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Hkana Kong is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Hkana Kong needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hkana Kong to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Hkana Kong 's lucrative customers.
High cash cycle compare to competitors
Hkana Kong 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.
Need for greater diversity
– Hkana Kong has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Hkana Kong 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A), is just above the industry average. Hkana Kong 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.
Opportunities Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) | 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hkana Kong can use these opportunities to build new business models that can help the communities that Hkana Kong operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Hkana Kong can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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.
Learning at scale
– Online learning technologies has now opened space for Hkana Kong 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.
Manufacturing automation
– Hkana Kong 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 Hkana Kong to increase its market reach. Hkana Kong 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hkana Kong 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.
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. Hkana Kong can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Hkana Kong 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.
Creating value in data economy
– The success of analytics program of Hkana Kong has opened avenues for new revenue streams for the organization in the industry. This can help Hkana Kong to build a more holistic ecosystem as suggested in the Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) case study. Hkana Kong can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Hkana Kong 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hkana Kong 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, as suggested in case study, Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hkana Kong can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Hkana Kong 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.
Threats Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) are -
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. Hkana Kong 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.
Shortening product life cycle
– it is one of the major threat that Hkana Kong is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hkana Kong with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Hkana Kong 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.
Consumer confidence and its impact on Hkana Kong 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 wage structure of Hkana Kong
– 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 Hkana Kong.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A), Hkana Kong may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Hkana Kong business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hkana Kong can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Hkana Kong in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hkana Kong 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) .
Environmental challenges
– Hkana Kong 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. Hkana Kong can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Building Electronic Commerce Infrastructure: Hong Kong Consumer Goods Distribution (A) 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 Hkana Kong needs to make to build a sustainable competitive advantage.
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