Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse
An increasing number of firms in Asia, Europe, and North America engage in voluntary or mandatory end-of-life product management. Because developments in product take-back are driven by a mixture of environmental concerns and economic opportunities, the most promising corporate end-of-life strategies create both economic and environmental value. Introduces a framework that can help managers identify and assess such supply loop strategies. Application of the framework to two specific supply loops demonstrates the usefulness of the framework: recycling and reuse of structural steel sections in the U.K. construction sector. Highlights the importance of supply chain constraints and also shows how lack of data can be a major obstacle to the evaluation of potential win-win supply loops.
Swot Analysis of "Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse" written by Roland Geyer, Ted Jackson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Loops Supply facing as an external strategic factors. Some of the topics covered in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse case study are - Strategic Management Strategies, Supply chain, Sustainability and Technology & Operations.
Some of the macro environment factors that can be used to understand the Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse casestudy better are - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing commodity prices, wage bills are increasing, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
digital marketing is dominated by two big players Facebook and Google, technology disruption, etc
Introduction to SWOT Analysis of Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Loops Supply, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Loops Supply 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse can be done for the following purposes –
1. Strategic planning using facts provided in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse case study
2. Improving business portfolio management of Loops Supply
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Loops Supply
Strengths Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Loops Supply in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse Harvard Business Review case study are -
Learning organization
- Loops Supply 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 Loops Supply is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse firm has clearly differentiated products in the market place. This has enabled Loops Supply to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Loops Supply to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Loops Supply 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.
High brand equity
– Loops Supply has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Loops Supply to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Loops Supply has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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.
Innovation driven organization
– Loops Supply is one of the most innovative firm in sector. Manager in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Loops Supply is one of the leading recruiters in the industry. Managers in the Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Loops Supply in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Loops Supply 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Loops Supply 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.
Diverse revenue streams
– Loops Supply is present in almost all the verticals within the industry. This has provided firm in Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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.
Successful track record of launching new products
– Loops Supply has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Loops Supply 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.
Weaknesses Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse are -
Increasing silos among functional specialists
– The organizational structure of Loops Supply is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Loops Supply needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Loops Supply 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Loops Supply 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse can leverage the sales team experience to cultivate customer relationships as Loops Supply is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Loops Supply, firm in the HBR case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse, in the dynamic environment Loops Supply has struggled to respond to the nimble upstart competition. Loops Supply has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Loops Supply has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Loops Supply is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Loops Supply 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.
Need for greater diversity
– Loops Supply 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse, is just above the industry average. Loops Supply 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.
Slow decision making process
– As mentioned earlier in the report, Loops Supply has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Loops Supply even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse | 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Loops Supply can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Loops Supply 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 Loops Supply to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Loops Supply can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Loops Supply can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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.
Loyalty marketing
– Loops Supply 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.
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. Loops Supply can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Loops Supply 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, Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse, 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 Loops Supply in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Loops Supply can develop new processes and procedures in Technology & Operations 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.
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 Loops Supply in the consumer business. Now Loops Supply can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Loops Supply 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 Technology & Operations segment.
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 Loops Supply 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Loops Supply is facing challenges because of the dominance of functional experts in the organization. Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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.
Threats Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse are -
Technology acceleration in Forth Industrial Revolution
– Loops Supply has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Loops Supply needs to keep up with the evolution of technology in the Technology & Operations 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.
Shortening product life cycle
– it is one of the major threat that Loops Supply is facing in Technology & Operations 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 Loops Supply in the Technology & Operations sector and impact the bottomline of the organization.
Regulatory challenges
– Loops Supply 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 Technology & Operations industry regulations.
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 Loops Supply.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Loops Supply in the Technology & Operations industry. The Technology & Operations 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Loops Supply with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Loops Supply 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Loops Supply 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse .
Environmental challenges
– Loops Supply 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. Loops Supply can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Loops Supply business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Loops Supply can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Supply Loops and Their Constraints: The Industrial Ecology of Recycling and Reuse 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 Loops Supply needs to make to build a sustainable competitive advantage.
