Making RFID Work: The World's Largest University Library RFID Implementation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Making RFID Work: The World's Largest University Library RFID Implementation
In October 2008, the University of Hong Kong's Libraries ("HKU Libraries") successfully launched an initiative to introduce radio-frequency identification ("RFID") into its Main Library. Through the RFID initiative, HKU Libraries intended to pursue effective management of the public and private resources bestowed upon the institution. In 2008, the libraries served a total of 102,676 registered borrowers and had collected a total of 2.65 million items. Managing such a large number of resources was always an issue for HKU Libraries' management team. Deputy Librarian Peter Sidorko saw the promise of RFID technology in helping him to serve the libraries and their users better. After reviewing the possible use of RFID, HKU Libraries chose the Main Library, one of seven branches, as the first location for launching the RFID initiative. The 2008 launch was the first phase in the RFID implementation scheme. Although initial RFID usage information had not been compiled, Sidorko had to decide what the next step of this initiative should be. What should Sidorko consider when implementing future RFID strategies?
Swot Analysis of "Making RFID Work: The World's Largest University Library RFID Implementation" written by Benjamin Yen, Boby Shiu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rfid Libraries facing as an external strategic factors. Some of the topics covered in Making RFID Work: The World's Largest University Library RFID Implementation case study are - Strategic Management Strategies, Innovation, IT, Project management, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Making RFID Work: The World's Largest University Library RFID Implementation casestudy better are - – increasing commodity prices, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic ,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Making RFID Work: The World's Largest University Library RFID Implementation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Making RFID Work: The World's Largest University Library RFID Implementation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rfid Libraries, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rfid Libraries 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 Making RFID Work: The World's Largest University Library RFID Implementation can be done for the following purposes –
1. Strategic planning using facts provided in Making RFID Work: The World's Largest University Library RFID Implementation case study
2. Improving business portfolio management of Rfid Libraries
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 Rfid Libraries
Strengths Making RFID Work: The World's Largest University Library RFID Implementation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rfid Libraries in Making RFID Work: The World's Largest University Library RFID Implementation Harvard Business Review case study are -
Learning organization
- Rfid Libraries 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 Rfid Libraries is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Making RFID Work: The World's Largest University Library RFID Implementation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Rfid Libraries has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rfid Libraries 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.
Innovation driven organization
– Rfid Libraries is one of the most innovative firm in sector. Manager in Making RFID Work: The World's Largest University Library RFID Implementation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Rfid Libraries 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 Making RFID Work: The World's Largest University Library RFID Implementation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Making RFID Work: The World's Largest University Library RFID Implementation 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.
Ability to recruit top talent
– Rfid Libraries is one of the leading recruiters in the industry. Managers in the Making RFID Work: The World's Largest University Library RFID Implementation 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 Rfid Libraries in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Rfid Libraries in the sector have low bargaining power. Making RFID Work: The World's Largest University Library RFID Implementation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rfid Libraries to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Rfid Libraries has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rfid Libraries to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Rfid Libraries 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.
Effective Research and Development (R&D)
– Rfid Libraries 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 Making RFID Work: The World's Largest University Library RFID Implementation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Technology & Operations field
– Rfid Libraries 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 Rfid Libraries in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Making RFID Work: The World's Largest University Library RFID Implementation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Making RFID Work: The World's Largest University Library RFID Implementation are -
High cash cycle compare to competitors
Rfid Libraries 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Benjamin Yen, Boby Shiu suggests that, Rfid Libraries 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Rfid Libraries 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 operating costs
– Compare to the competitors, firm in the HBR case study Making RFID Work: The World's Largest University Library RFID Implementation 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 Rfid Libraries 's lucrative customers.
Products dominated business model
– Even though Rfid Libraries 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 - Making RFID Work: The World's Largest University Library RFID Implementation 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, Rfid Libraries is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Making RFID Work: The World's Largest University Library RFID Implementation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Making RFID Work: The World's Largest University Library RFID Implementation, it seems that the employees of Rfid Libraries 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.
Capital Spending Reduction
– Even during the low interest decade, Rfid Libraries 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.
Low market penetration in new markets
– Outside its home market of Rfid Libraries, firm in the HBR case study Making RFID Work: The World's Largest University Library RFID Implementation needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Rfid Libraries products
– To increase the profitability and margins on the products, Rfid Libraries needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Making RFID Work: The World's Largest University Library RFID Implementation, in the dynamic environment Rfid Libraries has struggled to respond to the nimble upstart competition. Rfid Libraries has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Making RFID Work: The World's Largest University Library RFID Implementation | 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 Making RFID Work: The World's Largest University Library RFID Implementation 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. Rfid Libraries can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Rfid Libraries can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Rfid Libraries to increase its market reach. Rfid Libraries 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.
Building a culture of innovation
– managers at Rfid Libraries 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Rfid Libraries 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.
Buying journey improvements
– Rfid Libraries can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Making RFID Work: The World's Largest University Library RFID Implementation 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.
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 Rfid Libraries in the consumer business. Now Rfid Libraries can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rfid Libraries can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Rfid Libraries 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.
Using analytics as competitive advantage
– Rfid Libraries 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 Making RFID Work: The World's Largest University Library RFID Implementation - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rfid Libraries to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Rfid Libraries has opened avenues for new revenue streams for the organization in the industry. This can help Rfid Libraries to build a more holistic ecosystem as suggested in the Making RFID Work: The World's Largest University Library RFID Implementation case study. Rfid Libraries 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 Rfid Libraries 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.
Loyalty marketing
– Rfid Libraries 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.
Threats Making RFID Work: The World's Largest University Library RFID Implementation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Making RFID Work: The World's Largest University Library RFID Implementation are -
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. Rfid Libraries 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.
Technology acceleration in Forth Industrial Revolution
– Rfid Libraries has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Rfid Libraries 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.
High dependence on third party suppliers
– Rfid Libraries high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Rfid Libraries 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.
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.
Regulatory challenges
– Rfid Libraries 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.
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 Rfid Libraries in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Rfid Libraries 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. Rfid Libraries can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Rfid Libraries is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Rfid Libraries.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rfid Libraries 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 Making RFID Work: The World's Largest University Library RFID Implementation .
Consumer confidence and its impact on Rfid Libraries 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rfid Libraries 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.
Weighted SWOT Analysis of Making RFID Work: The World's Largest University Library RFID Implementation 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 Making RFID Work: The World's Largest University Library RFID Implementation 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 Making RFID Work: The World's Largest University Library RFID Implementation 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 Making RFID Work: The World's Largest University Library RFID Implementation 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 Making RFID Work: The World's Largest University Library RFID Implementation 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 Rfid Libraries needs to make to build a sustainable competitive advantage.