Swot Analysis of "Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note" written by Juan Alcacer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Abroad Module facing as an external strategic factors. Some of the topics covered in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note casestudy better are - – increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, wage bills are increasing, there is backlash against globalization,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Abroad Module, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note can be done for the following purposes –
1. Strategic planning using facts provided in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note case study
2. Improving business portfolio management of Abroad Module
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 Abroad Module
Strengths Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Abroad Module in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note Harvard Business Review case study are -
High brand equity
– Abroad Module has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Abroad Module to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Abroad Module has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note 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.
Low bargaining power of suppliers
– Suppliers of Abroad Module in the sector have low bargaining power. Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Abroad Module to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Abroad Module is one of the leading recruiters in the industry. Managers in the Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
Diverse revenue streams
– Abroad Module is present in almost all the verticals within the industry. This has provided firm in Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
Learning organization
- Abroad Module 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 Abroad Module is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Abroad Module is one of the most innovative firm in sector. Manager in Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Strategy & Execution field
– Abroad Module 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 Abroad Module in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Abroad Module 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 Juan Alcacer 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.
Superior customer experience
– The customer experience strategy of Abroad Module in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
Weaknesses Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note, in the dynamic environment Abroad Module has struggled to respond to the nimble upstart competition. Abroad Module has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Abroad Module products
– To increase the profitability and margins on the products, Abroad Module needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Abroad Module 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Juan Alcacer suggests that, Abroad Module 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Abroad Module is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Abroad Module 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.
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 Abroad Module supply chain. Even after few cautionary changes mentioned in the HBR case study - Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Abroad Module vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note, it seems that the employees of Abroad Module 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.
Increasing silos among functional specialists
– The organizational structure of Abroad Module is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Abroad Module needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note, is just above the industry average. Abroad Module 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.
Interest costs
– Compare to the competition, Abroad Module 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.
Opportunities Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note are -
Learning at scale
– Online learning technologies has now opened space for Abroad Module 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.
Buying journey improvements
– Abroad Module can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Better consumer reach
– The expansion of the 5G network will help Abroad Module to increase its market reach. Abroad Module 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Abroad Module can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Abroad Module can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Abroad Module 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.
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 Abroad Module in the consumer business. Now Abroad Module can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Abroad Module 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.
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 Abroad Module 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.
Creating value in data economy
– The success of analytics program of Abroad Module has opened avenues for new revenue streams for the organization in the industry. This can help Abroad Module to build a more holistic ecosystem as suggested in the Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note case study. Abroad Module can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Abroad Module 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.
Building a culture of innovation
– managers at Abroad Module 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Abroad Module 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, Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note are -
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. Abroad Module can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Abroad Module with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Shortening product life cycle
– it is one of the major threat that Abroad Module is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Abroad Module 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.
Technology acceleration in Forth Industrial Revolution
– Abroad Module has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Abroad Module 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.
Increasing wage structure of Abroad Module
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Abroad Module.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Abroad Module 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.
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. Abroad Module needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note .
Consumer confidence and its impact on Abroad Module 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. Abroad Module 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.
Weighted SWOT Analysis of Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Abroad Module needs to make to build a sustainable competitive advantage.