Swot Analysis of "Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note" written by Juan Alcacer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Locate Crafting facing as an external strategic factors. Some of the topics covered in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Locate Crafting, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Locate Crafting 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note can be done for the following purposes –
1. Strategic planning using facts provided in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note case study
2. Improving business portfolio management of Locate Crafting
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 Locate Crafting
Strengths Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Locate Crafting in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note Harvard Business Review case study are -
Ability to recruit top talent
– Locate Crafting is one of the leading recruiters in the industry. Managers in the Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Locate Crafting 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 Locate Crafting is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Locate Crafting in the sector have low bargaining power. Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Locate Crafting to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Locate Crafting has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Locate Crafting 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Locate Crafting digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Locate Crafting 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.
Effective Research and Development (R&D)
– Locate Crafting 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Locate Crafting 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note firm has clearly differentiated products in the market place. This has enabled Locate Crafting to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Locate Crafting to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Locate Crafting 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.
Operational resilience
– The operational resilience strategy in the Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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.
Ability to lead change in Strategy & Execution field
– Locate Crafting 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 Locate Crafting in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Locate Crafting is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note are -
Interest costs
– Compare to the competition, Locate Crafting has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Locate Crafting 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, is just above the industry average. Locate Crafting 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.
Need for greater diversity
– Locate Crafting 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, it seems that the employees of Locate Crafting 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.
Products dominated business model
– Even though Locate Crafting 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 - Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Locate Crafting products
– To increase the profitability and margins on the products, Locate Crafting needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Locate Crafting is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Locate Crafting needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Locate Crafting to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Locate Crafting, firm in the HBR case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note can leverage the sales team experience to cultivate customer relationships as Locate Crafting is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Locate Crafting has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note | 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Locate Crafting 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. Locate Crafting can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Locate Crafting 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Locate Crafting to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Locate Crafting is facing challenges because of the dominance of functional experts in the organization. Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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.
Creating value in data economy
– The success of analytics program of Locate Crafting has opened avenues for new revenue streams for the organization in the industry. This can help Locate Crafting to build a more holistic ecosystem as suggested in the Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note case study. Locate Crafting can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Locate Crafting 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. Locate Crafting 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.
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 Locate Crafting in the consumer business. Now Locate Crafting can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Locate Crafting can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Locate Crafting can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Locate Crafting can use these opportunities to build new business models that can help the communities that Locate Crafting operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Locate Crafting 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.
Better consumer reach
– The expansion of the 5G network will help Locate Crafting to increase its market reach. Locate Crafting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Locate Crafting 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, Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note are -
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 Locate Crafting in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Locate Crafting 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.
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. Locate Crafting 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.
Regulatory challenges
– Locate Crafting 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, Locate Crafting 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 .
High dependence on third party suppliers
– Locate Crafting 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.
Stagnating economy with rate increase
– Locate Crafting 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.
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.
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. Locate Crafting needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Locate Crafting has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Locate Crafting 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Locate Crafting with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Locate Crafting 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. Locate Crafting can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Locate Crafting can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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 Locate Crafting needs to make to build a sustainable competitive advantage.
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