A User-Centred Approach to Public Services (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A User-Centred Approach to Public Services (A)
This case describes a user-centred approach to public services and is a result after a pioneering collaboration between Hongkong Post and Hong Kong Design Centre. Since operating as a Trading Fund in 1995, Hongkong Post has managed to reinvent itself as a dynamic, customer-focused and market-oriented service organisation. Leveraging its extensive retail and distribution networks and a strong brand, Hongkong Post has grown beyond the traditional postal service to providing a wide and comprehensive range of services in the logistics supply chain, at the same time diversifying into new markets. Hongkong Post recognizes that the current design of the post offices at the retail level may not be able to meet the growing needs and changing patterns of its users. The collaboration between Hongkong Post and Hong Kong Design Centre is an attempt to adopt the user-centered design research approach to public services and to apply the concept at the Mongkok Post Office with a view to understanding users' needs, providing a better user experience and improving operationally efficiency of the Mongkok Post Office. Users in this context, include both customers and post office staff. Case (A) focuses on the internal design, while Case (B) focuses on the external design.
Swot Analysis of "A User-Centred Approach to Public Services (A)" written by Ali Farhoomand, Minyi Huang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hongkong Post facing as an external strategic factors. Some of the topics covered in A User-Centred Approach to Public Services (A) case study are - Strategic Management Strategies, Marketing, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the A User-Centred Approach to Public Services (A) casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing commodity prices, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing transportation and logistics costs,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of A User-Centred Approach to Public Services (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A User-Centred Approach to Public Services (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hongkong Post, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hongkong Post 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 A User-Centred Approach to Public Services (A) can be done for the following purposes –
1. Strategic planning using facts provided in A User-Centred Approach to Public Services (A) case study
2. Improving business portfolio management of Hongkong Post
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 Hongkong Post
Strengths A User-Centred Approach to Public Services (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hongkong Post in A User-Centred Approach to Public Services (A) Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– A User-Centred Approach to Public Services (A) firm has clearly differentiated products in the market place. This has enabled Hongkong Post to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Hongkong Post to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Hongkong Post is one of the leading recruiters in the industry. Managers in the A User-Centred Approach to Public Services (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Hongkong Post in the sector have low bargaining power. A User-Centred Approach to Public Services (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hongkong Post to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hongkong Post 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.
Effective Research and Development (R&D)
– Hongkong Post 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 A User-Centred Approach to Public Services (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Hongkong Post 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 Ali Farhoomand, Minyi Huang 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.
Training and development
– Hongkong Post has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A User-Centred Approach to Public Services (A) 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.
Operational resilience
– The operational resilience strategy in the A User-Centred Approach to Public Services (A) 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.
High brand equity
– Hongkong Post has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hongkong Post to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Hongkong Post is one of the most innovative firm in sector. Manager in A User-Centred Approach to Public Services (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Hongkong Post
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hongkong Post does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Hongkong Post is present in almost all the verticals within the industry. This has provided firm in A User-Centred Approach to Public Services (A) 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.
Weaknesses A User-Centred Approach to Public Services (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A User-Centred Approach to Public Services (A) are -
Workers concerns about automation
– As automation is fast increasing in the segment, Hongkong Post 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 cash cycle compare to competitors
Hongkong Post 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.
Aligning sales with marketing
– It come across in the case study A User-Centred Approach to Public Services (A) 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 A User-Centred Approach to Public Services (A) can leverage the sales team experience to cultivate customer relationships as Hongkong Post is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study A User-Centred Approach to Public Services (A), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, firm in the HBR case study A User-Centred Approach to Public Services (A) 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 Hongkong Post 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A User-Centred Approach to Public Services (A), in the dynamic environment Hongkong Post has struggled to respond to the nimble upstart competition. Hongkong Post has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali Farhoomand, Minyi Huang suggests that, Hongkong Post 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.
Need for greater diversity
– Hongkong Post 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.
Capital Spending Reduction
– Even during the low interest decade, Hongkong Post has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Hongkong Post 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A User-Centred Approach to Public Services (A), is just above the industry average. Hongkong Post 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.
Opportunities A User-Centred Approach to Public Services (A) | 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 A User-Centred Approach to Public Services (A) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hongkong Post is facing challenges because of the dominance of functional experts in the organization. A User-Centred Approach to Public Services (A) 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.
Using analytics as competitive advantage
– Hongkong Post 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 A User-Centred Approach to Public Services (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hongkong Post to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Hongkong Post 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.
Buying journey improvements
– Hongkong Post can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A User-Centred Approach to Public Services (A) 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.
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 Hongkong Post 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.
Learning at scale
– Online learning technologies has now opened space for Hongkong Post 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.
Developing new processes and practices
– Hongkong Post 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hongkong Post can use these opportunities to build new business models that can help the communities that Hongkong Post operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Creating value in data economy
– The success of analytics program of Hongkong Post has opened avenues for new revenue streams for the organization in the industry. This can help Hongkong Post to build a more holistic ecosystem as suggested in the A User-Centred Approach to Public Services (A) case study. Hongkong Post can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hongkong Post 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.
Better consumer reach
– The expansion of the 5G network will help Hongkong Post to increase its market reach. Hongkong Post 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hongkong Post 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 Hongkong Post to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Hongkong Post 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.
Threats A User-Centred Approach to Public Services (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A User-Centred Approach to Public Services (A) 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A User-Centred Approach to Public Services (A), Hongkong Post 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 .
Shortening product life cycle
– it is one of the major threat that Hongkong Post is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Hongkong Post in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Hongkong Post 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 acceleration in Forth Industrial Revolution
– Hongkong Post has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Hongkong Post 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.
Regulatory challenges
– Hongkong Post 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hongkong Post with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hongkong Post 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 A User-Centred Approach to Public Services (A) .
Consumer confidence and its impact on Hongkong Post 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.
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.
Increasing wage structure of Hongkong Post
– 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 Hongkong Post.
Environmental challenges
– Hongkong Post 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. Hongkong Post can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of A User-Centred Approach to Public Services (A) 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 A User-Centred Approach to Public Services (A) 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 A User-Centred Approach to Public Services (A) 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 A User-Centred Approach to Public Services (A) 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 A User-Centred Approach to Public Services (A) 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 Hongkong Post needs to make to build a sustainable competitive advantage.
