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 - – increasing transportation and logistics costs, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
talent flight as more people leaving formal jobs, 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 -
Diverse revenue streams
– Locate Crafting is present in almost all the verticals within the industry. This has provided firm in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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.
High brand equity
– Locate Crafting has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Locate Crafting to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Locate Crafting is one of the most innovative firm in sector. Manager in Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note 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)
– 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.
Organizational Resilience of Locate Crafting
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Locate Crafting does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Superior customer experience
– The customer experience strategy of Locate Crafting in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Locate Crafting 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 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 -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, in the dynamic environment Locate Crafting has struggled to respond to the nimble upstart competition. Locate Crafting has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, 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.
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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Locate Crafting 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 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.
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 Locate Crafting supply chain. Even after few cautionary changes mentioned in the HBR case study - Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Locate Crafting vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Locate Crafting is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Juan Alcacer suggests that, Locate Crafting 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.
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 -
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Locate Crafting in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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.
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 Locate Crafting 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 Locate Crafting 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 Locate Crafting to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Locate Crafting 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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Locate Crafting 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.
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 -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Locate Crafting 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 Where to Locate? Crafting Location Strategies to Strengthen Competitive Advantage, Module Note .
Shortening product life cycle
– it is one of the major threat that Locate Crafting 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 Locate Crafting with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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.
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.
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.
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 .
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.
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.
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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