Another Look at Offshoring: Which Jobs Are at Risk and Why? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Another Look at Offshoring: Which Jobs Are at Risk and Why?
Many recent articles regarding offshoring have made sweeping, industrywide generalizations about the impact of this process, but have not typically addressed the specific types of jobs that are at risk and why. Develops a framework that integrates several key variables--the (changing) need for proximity, the regulatory environment, firm-level security and intellectual property rights concerns, and the socio-political context within which the offshoring phenomenon is unfolding--that collectively help explain how vulnerable particular jobs are to offshoring. Uses this framework to examine what types of health care and information technology jobs are most and least at risk to offshoring and suggests extending this model to other industries.
Swot Analysis of "Another Look at Offshoring: Which Jobs Are at Risk and Why?" written by Martin Stack, Ricard Downing includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Offshoring Jobs facing as an external strategic factors. Some of the topics covered in Another Look at Offshoring: Which Jobs Are at Risk and Why? case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Another Look at Offshoring: Which Jobs Are at Risk and Why? casestudy better are - – increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, geopolitical disruptions, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
supply chains are disrupted by pandemic , technology disruption, etc
Introduction to SWOT Analysis of Another Look at Offshoring: Which Jobs Are at Risk and Why?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Another Look at Offshoring: Which Jobs Are at Risk and Why? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Offshoring Jobs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Offshoring Jobs 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? can be done for the following purposes –
1. Strategic planning using facts provided in Another Look at Offshoring: Which Jobs Are at Risk and Why? case study
2. Improving business portfolio management of Offshoring Jobs
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 Offshoring Jobs
Strengths Another Look at Offshoring: Which Jobs Are at Risk and Why? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Offshoring Jobs in Another Look at Offshoring: Which Jobs Are at Risk and Why? Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Offshoring Jobs in the sector have low bargaining power. Another Look at Offshoring: Which Jobs Are at Risk and Why? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Offshoring Jobs to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Offshoring Jobs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Another Look at Offshoring: Which Jobs Are at Risk and Why? 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.
Analytics focus
– Offshoring Jobs 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 Martin Stack, Ricard Downing 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.
Operational resilience
– The operational resilience strategy in the Another Look at Offshoring: Which Jobs Are at Risk and Why? 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Offshoring Jobs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Offshoring Jobs has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Offshoring Jobs 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? - 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
– Offshoring Jobs 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 Offshoring Jobs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Offshoring Jobs is present in almost all the verticals within the industry. This has provided firm in Another Look at Offshoring: Which Jobs Are at Risk and Why? 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.
Superior customer experience
– The customer experience strategy of Offshoring Jobs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Offshoring Jobs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Offshoring Jobs 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.
Learning organization
- Offshoring Jobs 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 Offshoring Jobs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Another Look at Offshoring: Which Jobs Are at Risk and Why? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Offshoring Jobs is one of the leading recruiters in the industry. Managers in the Another Look at Offshoring: Which Jobs Are at Risk and Why? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Another Look at Offshoring: Which Jobs Are at Risk and Why? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Another Look at Offshoring: Which Jobs Are at Risk and Why? are -
Aligning sales with marketing
– It come across in the case study Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? can leverage the sales team experience to cultivate customer relationships as Offshoring Jobs is planning to shift buying processes online.
High cash cycle compare to competitors
Offshoring Jobs 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.
Lack of clear differentiation of Offshoring Jobs products
– To increase the profitability and margins on the products, Offshoring Jobs needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Offshoring Jobs needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Offshoring Jobs has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Offshoring Jobs 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.
Need for greater diversity
– Offshoring Jobs 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.
Increasing silos among functional specialists
– The organizational structure of Offshoring Jobs is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Offshoring Jobs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Offshoring Jobs to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Another Look at Offshoring: Which Jobs Are at Risk and Why?, it seems that the employees of Offshoring Jobs 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.
Low market penetration in new markets
– Outside its home market of Offshoring Jobs, firm in the HBR case study Another Look at Offshoring: Which Jobs Are at Risk and Why? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Offshoring Jobs supply chain. Even after few cautionary changes mentioned in the HBR case study - Another Look at Offshoring: Which Jobs Are at Risk and Why?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Offshoring Jobs vulnerable to further global disruptions in South East Asia.
Opportunities Another Look at Offshoring: Which Jobs Are at Risk and Why? | 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Offshoring Jobs is facing challenges because of the dominance of functional experts in the organization. Another Look at Offshoring: Which Jobs Are at Risk and Why? 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.
Manufacturing automation
– Offshoring Jobs can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Offshoring Jobs 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 Offshoring Jobs to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Offshoring Jobs can use these opportunities to build new business models that can help the communities that Offshoring Jobs operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Using analytics as competitive advantage
– Offshoring Jobs 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Offshoring Jobs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Offshoring Jobs 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.
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. Offshoring Jobs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Offshoring Jobs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Offshoring Jobs in the consumer business. Now Offshoring Jobs can target international markets with far fewer capital restrictions requirements than the existing system.
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 Offshoring Jobs 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.
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. Offshoring Jobs can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Offshoring Jobs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Offshoring Jobs 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.
Threats Another Look at Offshoring: Which Jobs Are at Risk and Why? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Another Look at Offshoring: Which Jobs Are at Risk and Why? are -
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.
Environmental challenges
– Offshoring Jobs 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. Offshoring Jobs 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 Offshoring Jobs business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Offshoring Jobs 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.
Stagnating economy with rate increase
– Offshoring Jobs 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.
Regulatory challenges
– Offshoring Jobs 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Another Look at Offshoring: Which Jobs Are at Risk and Why?, Offshoring Jobs may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Offshoring Jobs 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Offshoring Jobs 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? .
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. Offshoring Jobs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Offshoring Jobs.
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. Offshoring Jobs will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Another Look at Offshoring: Which Jobs Are at Risk and Why? 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 Offshoring Jobs needs to make to build a sustainable competitive advantage.
