The U.S. Postal Service: A First Class Disruption SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The U.S. Postal Service: A First Class Disruption
Facing declining revenues, huge fixed costs, bloated employee unions, an inflexible regulatory environment and a generation of millennials that virtually never used its products, the United States Postal Service (USPS) was looking for help. Accordingly, it had hired several advisors who all came from entrepreneurial backgrounds. Their mandate was clear: challenge the status quo, help to frame the magnitude of the disruption that the USPS was facing, identify opportunities for the USPS to enter new markets for new sources of revenue, and develop a solution immediately. Was an entrepreneurial approach likely to be successful? Or would this approach only involve niche ideas that would not produce significant results? Many other developed countries were facing the same disruption; were there lessons to be learned from these other postal services? The advisors gathered together in a small office and settled into a task that, at first blush, seemed impossible. Allen H. Kupetz is affiliated with Rollins College.
Swot Analysis of "The U.S. Postal Service: A First Class Disruption" written by Allen H. Kupetz, Martin Suter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Usps Postal facing as an external strategic factors. Some of the topics covered in The U.S. Postal Service: A First Class Disruption case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The U.S. Postal Service: A First Class Disruption casestudy better are - – increasing transportation and logistics costs, increasing energy prices, increasing commodity prices, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, technology disruption, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, etc
Introduction to SWOT Analysis of The U.S. Postal Service: A First Class Disruption
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The U.S. Postal Service: A First Class Disruption case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Usps Postal, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Usps Postal 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 The U.S. Postal Service: A First Class Disruption can be done for the following purposes –
1. Strategic planning using facts provided in The U.S. Postal Service: A First Class Disruption case study
2. Improving business portfolio management of Usps Postal
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 Usps Postal
Strengths The U.S. Postal Service: A First Class Disruption | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Usps Postal in The U.S. Postal Service: A First Class Disruption Harvard Business Review case study are -
High brand equity
– Usps Postal has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Usps Postal to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Usps Postal is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Usps Postal has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The U.S. Postal Service: A First Class Disruption 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.
Organizational Resilience of Usps Postal
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Usps Postal does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Usps Postal is present in almost all the verticals within the industry. This has provided firm in The U.S. Postal Service: A First Class Disruption 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.
Operational resilience
– The operational resilience strategy in the The U.S. Postal Service: A First Class Disruption 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.
Low bargaining power of suppliers
– Suppliers of Usps Postal in the sector have low bargaining power. The U.S. Postal Service: A First Class Disruption has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Usps Postal to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Usps Postal 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)
– Usps Postal 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 The U.S. Postal Service: A First Class Disruption - 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
– Usps Postal 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 Usps Postal in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– The U.S. Postal Service: A First Class Disruption firm has clearly differentiated products in the market place. This has enabled Usps Postal to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Usps Postal to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Usps Postal is one of the leading recruiters in the industry. Managers in the The U.S. Postal Service: A First Class Disruption are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses The U.S. Postal Service: A First Class Disruption | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The U.S. Postal Service: A First Class Disruption are -
No frontier risks strategy
– After analyzing the HBR case study The U.S. Postal Service: A First Class Disruption, 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 bargaining power of channel partners
– Because of the regulatory requirements, Allen H. Kupetz, Martin Suter suggests that, Usps Postal 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The U.S. Postal Service: A First Class Disruption, in the dynamic environment Usps Postal has struggled to respond to the nimble upstart competition. Usps Postal has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The U.S. Postal Service: A First Class Disruption, it seems that the employees of Usps Postal 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Usps Postal is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The U.S. Postal Service: A First Class Disruption can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study The U.S. Postal Service: A First Class Disruption 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 The U.S. Postal Service: A First Class Disruption can leverage the sales team experience to cultivate customer relationships as Usps Postal is planning to shift buying processes online.
Products dominated business model
– Even though Usps Postal 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 - The U.S. Postal Service: A First Class Disruption should strive to include more intangible value offerings along with its core products and services.
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 Usps Postal supply chain. Even after few cautionary changes mentioned in the HBR case study - The U.S. Postal Service: A First Class Disruption, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Usps Postal vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As The U.S. Postal Service: A First Class Disruption HBR case study mentions - Usps Postal 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The U.S. Postal Service: A First Class Disruption 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 Usps Postal has relatively successful track record of launching new products.
Need for greater diversity
– Usps Postal 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.
Opportunities The U.S. Postal Service: A First Class Disruption | 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 The U.S. Postal Service: A First Class Disruption are -
Creating value in data economy
– The success of analytics program of Usps Postal has opened avenues for new revenue streams for the organization in the industry. This can help Usps Postal to build a more holistic ecosystem as suggested in the The U.S. Postal Service: A First Class Disruption case study. Usps Postal can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Usps Postal 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, Usps Postal is facing challenges because of the dominance of functional experts in the organization. The U.S. Postal Service: A First Class Disruption 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 Usps Postal in the consumer business. Now Usps Postal can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Usps Postal 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.
Using analytics as competitive advantage
– Usps Postal 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 The U.S. Postal Service: A First Class Disruption - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Usps Postal to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Usps Postal 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.
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. Usps Postal can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Usps Postal 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, The U.S. Postal Service: A First Class Disruption, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Usps Postal can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Usps Postal 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.
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 Usps Postal 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.
Better consumer reach
– The expansion of the 5G network will help Usps Postal to increase its market reach. Usps Postal 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.
Threats The U.S. Postal Service: A First Class Disruption External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The U.S. Postal Service: A First Class Disruption are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Usps Postal 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 The U.S. Postal Service: A First Class Disruption .
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. Usps Postal 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.
Stagnating economy with rate increase
– Usps Postal 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.
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 Usps Postal business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Usps Postal 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.
Environmental challenges
– Usps Postal 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. Usps Postal can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Usps Postal 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.
Regulatory challenges
– Usps Postal 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.
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 Usps Postal.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The U.S. Postal Service: A First Class Disruption, Usps Postal 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 acceleration in Forth Industrial Revolution
– Usps Postal has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Usps Postal 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Usps Postal 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 The U.S. Postal Service: A First Class Disruption 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 The U.S. Postal Service: A First Class Disruption 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 The U.S. Postal Service: A First Class Disruption 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 The U.S. Postal Service: A First Class Disruption 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 The U.S. Postal Service: A First Class Disruption 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 Usps Postal needs to make to build a sustainable competitive advantage.