Trip Trap: Managing Certification in the Global Supply Chain SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Trip Trap: Managing Certification in the Global Supply Chain
A small Danish design company seeks to collaborate with its largest supplier in Thailand in order to improve health, safety and environmental conditions, as well as labour standards, as a core element of complying with the UN Global Compact principles. The company takes its corporate social responsibility (CSR) agenda seriously and has developed a new standard for CSR in its supplier factories that is implemented and audited by a non-governmental organization. New challenges emerge as attention shifts to the certification of production inputs such as wood. Although Western small- and medium-sized enterprises (SMEs) face pressures to audit their suppliers in developing countries, these SMEs often lack the financial and political resources to change behaviours in supplier factories. The firm's quality manager must evaluate its sustainability approach. How much leverage can a small company expect to have with its suppliers? Furthermore, is the cost of auditing suppliers in a country such as Thailand too high? Jette Steen Knudsen is affiliated with Massachusetts Institute of Technology. Dana Brown is affiliated with University of Oxford.
Swot Analysis of "Trip Trap: Managing Certification in the Global Supply Chain" written by Jette Steen Knudsen, Dana Brown includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Supplier Smes facing as an external strategic factors. Some of the topics covered in Trip Trap: Managing Certification in the Global Supply Chain case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Trip Trap: Managing Certification in the Global Supply Chain casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption,
increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Trip Trap: Managing Certification in the Global Supply Chain
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Trip Trap: Managing Certification in the Global Supply Chain case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Supplier Smes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Supplier Smes 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 Trip Trap: Managing Certification in the Global Supply Chain can be done for the following purposes –
1. Strategic planning using facts provided in Trip Trap: Managing Certification in the Global Supply Chain case study
2. Improving business portfolio management of Supplier Smes
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 Supplier Smes
Strengths Trip Trap: Managing Certification in the Global Supply Chain | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Supplier Smes in Trip Trap: Managing Certification in the Global Supply Chain Harvard Business Review case study are -
Analytics focus
– Supplier Smes 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 Jette Steen Knudsen, Dana Brown 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.
Diverse revenue streams
– Supplier Smes is present in almost all the verticals within the industry. This has provided firm in Trip Trap: Managing Certification in the Global Supply Chain 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Trip Trap: Managing Certification in the Global Supply Chain firm has clearly differentiated products in the market place. This has enabled Supplier Smes to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Supplier Smes to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Supplier Smes in the sector have low bargaining power. Trip Trap: Managing Certification in the Global Supply Chain has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Supplier Smes to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Supplier Smes is one of the leading recruiters in the industry. Managers in the Trip Trap: Managing Certification in the Global Supply Chain are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Supplier Smes has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Supplier Smes to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Supplier Smes is one of the most innovative firm in sector. Manager in Trip Trap: Managing Certification in the Global Supply Chain Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Supplier Smes 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 Trip Trap: Managing Certification in the Global Supply Chain - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Supplier Smes
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Supplier Smes 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
– Supplier Smes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Supplier Smes 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.
Superior customer experience
– The customer experience strategy of Supplier Smes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Supplier Smes 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.
Weaknesses Trip Trap: Managing Certification in the Global Supply Chain | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Trip Trap: Managing Certification in the Global Supply Chain are -
Lack of clear differentiation of Supplier Smes products
– To increase the profitability and margins on the products, Supplier Smes needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Supplier Smes 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 decision making process
– As mentioned earlier in the report, Supplier Smes 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. Supplier Smes 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.
Need for greater diversity
– Supplier Smes 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.
Aligning sales with marketing
– It come across in the case study Trip Trap: Managing Certification in the Global Supply Chain 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 Trip Trap: Managing Certification in the Global Supply Chain can leverage the sales team experience to cultivate customer relationships as Supplier Smes is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Supplier Smes 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.
Low market penetration in new markets
– Outside its home market of Supplier Smes, firm in the HBR case study Trip Trap: Managing Certification in the Global Supply Chain needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Trip Trap: Managing Certification in the Global Supply Chain, 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Trip Trap: Managing Certification in the Global Supply Chain HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Supplier Smes has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Supplier Smes is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Supplier Smes needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Supplier Smes to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Trip Trap: Managing Certification in the Global Supply Chain, is just above the industry average. Supplier Smes 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 Trip Trap: Managing Certification in the Global Supply Chain | 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 Trip Trap: Managing Certification in the Global Supply Chain are -
Building a culture of innovation
– managers at Supplier Smes 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.
Creating value in data economy
– The success of analytics program of Supplier Smes has opened avenues for new revenue streams for the organization in the industry. This can help Supplier Smes to build a more holistic ecosystem as suggested in the Trip Trap: Managing Certification in the Global Supply Chain case study. Supplier Smes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Supplier Smes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Supplier Smes has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Trip Trap: Managing Certification in the Global Supply Chain - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Supplier Smes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Supplier Smes can use these opportunities to build new business models that can help the communities that Supplier Smes operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Supplier Smes 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 Supplier Smes to increase its market reach. Supplier Smes 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, Supplier Smes 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.
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. Supplier Smes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Supplier Smes 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Supplier Smes 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 Supplier Smes to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Supplier Smes can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Supplier Smes in the consumer business. Now Supplier Smes can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Trip Trap: Managing Certification in the Global Supply Chain External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Trip Trap: Managing Certification in the Global Supply Chain are -
Shortening product life cycle
– it is one of the major threat that Supplier Smes is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Trip Trap: Managing Certification in the Global Supply Chain, Supplier Smes 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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Supplier Smes has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Supplier Smes needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Supplier Smes 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Supplier Smes with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Supplier Smes.
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 Supplier Smes business can come under increasing regulations regarding data privacy, data security, etc.
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. Supplier Smes 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.
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 Supplier Smes in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Supplier Smes 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Supplier Smes 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.
Consumer confidence and its impact on Supplier Smes 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.
Weighted SWOT Analysis of Trip Trap: Managing Certification in the Global Supply Chain 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 Trip Trap: Managing Certification in the Global Supply Chain 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 Trip Trap: Managing Certification in the Global Supply Chain 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 Trip Trap: Managing Certification in the Global Supply Chain 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 Trip Trap: Managing Certification in the Global Supply Chain 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 Supplier Smes needs to make to build a sustainable competitive advantage.
