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 - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, 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.
Successful track record of launching new products
– Abroad Module has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Abroad Module 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.
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.
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.
Effective Research and Development (R&D)
– Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
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.
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.
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.
Highly skilled collaborators
– Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
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 -
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.
Slow to strategic competitive environment developments
– As Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note HBR case study mentions - Abroad Module 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 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.
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.
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.
Aligning sales with marketing
– It come across in the case study Why Do Firms Go Abroad? Strategies to Create Value Globally, 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note can leverage the sales team experience to cultivate customer relationships as Abroad Module is planning to shift buying processes online.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Abroad Module 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note 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 Abroad Module has relatively successful track record of launching new products.
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.
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.
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 -
Using analytics as competitive advantage
– Abroad Module 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 Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Abroad Module to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Leveraging digital technologies
– Abroad Module can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Abroad Module 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Abroad Module 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 Abroad Module to hire the very best people irrespective of their geographical location.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Abroad Module is facing challenges because of the dominance of functional experts in the organization. Why Do Firms Go Abroad? Strategies to Create Value Globally, 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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 Abroad Module in the Strategy & Execution sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Why Do Firms Go Abroad? Strategies to Create Value Globally, Module Note, Abroad Module 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 .
Environmental challenges
– Abroad Module 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. Abroad Module can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 .
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.
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 Abroad Module business can come under increasing regulations regarding data privacy, data security, etc.
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 Abroad Module.
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.
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.
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.
