Role and Relevance of Refocused Inventory: Supply Chain Management Solutions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Role and Relevance of Refocused Inventory: Supply Chain Management Solutions
Practitioners and academics continue to note that there is no shortage of inventory in many, if not most, supply chains. Rather, the historical notion holds true: the right product is not in the right place at the right time to meet demand. For positive supply chain performance, it is necessary to re-address inventory's role and relevance with respect to the development, maintenance, and control of product flows. Suggests that examining such flows from a three-fold perspective can provide a framework to assess efforts to achieve lowest total cost and meet customer service expectations.
Swot Analysis of "Role and Relevance of Refocused Inventory: Supply Chain Management Solutions" written by Robert Frankel includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Relevance Supply facing as an external strategic factors. Some of the topics covered in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Role and Relevance of Refocused Inventory: Supply Chain Management Solutions casestudy better are - – increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Role and Relevance of Refocused Inventory: Supply Chain Management Solutions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Relevance Supply, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Relevance 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions can be done for the following purposes –
1. Strategic planning using facts provided in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions case study
2. Improving business portfolio management of Relevance 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 Relevance Supply
Strengths Role and Relevance of Refocused Inventory: Supply Chain Management Solutions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Relevance Supply in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions Harvard Business Review case study are -
Innovation driven organization
– Relevance Supply is one of the most innovative firm in sector. Manager in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Technology & Operations field
– Relevance Supply 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 Relevance Supply in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Relevance Supply in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Relevance 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.
Organizational Resilience of Relevance Supply
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Relevance Supply does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Relevance Supply digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Relevance Supply 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)
– Relevance 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Relevance Supply has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Relevance Supply to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Relevance Supply 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Relevance 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 Relevance Supply is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Role and Relevance of Refocused Inventory: Supply Chain Management Solutions Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Relevance Supply in the sector have low bargaining power. Role and Relevance of Refocused Inventory: Supply Chain Management Solutions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Relevance Supply to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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.
Weaknesses Role and Relevance of Refocused Inventory: Supply Chain Management Solutions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Role and Relevance of Refocused Inventory: Supply Chain Management Solutions are -
No frontier risks strategy
– After analyzing the HBR case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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 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 Relevance Supply supply chain. Even after few cautionary changes mentioned in the HBR case study - Role and Relevance of Refocused Inventory: Supply Chain Management Solutions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Relevance Supply vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions can leverage the sales team experience to cultivate customer relationships as Relevance Supply is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Relevance Supply, firm in the HBR case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Relevance Supply 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 operating costs
– Compare to the competitors, firm in the HBR case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Relevance Supply 's lucrative customers.
Lack of clear differentiation of Relevance Supply products
– To increase the profitability and margins on the products, Relevance Supply needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions, is just above the industry average. Relevance 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Relevance Supply has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Relevance Supply is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Relevance Supply needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Relevance Supply to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Role and Relevance of Refocused Inventory: Supply Chain Management Solutions HBR case study mentions - Relevance Supply takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Role and Relevance of Refocused Inventory: Supply Chain Management Solutions | 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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. Relevance Supply can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Relevance Supply has opened avenues for new revenue streams for the organization in the industry. This can help Relevance Supply to build a more holistic ecosystem as suggested in the Role and Relevance of Refocused Inventory: Supply Chain Management Solutions case study. Relevance Supply can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Relevance 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Relevance 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 Relevance Supply to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Relevance 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Relevance Supply can use these opportunities to build new business models that can help the communities that Relevance Supply operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Developing new processes and practices
– Relevance 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Relevance Supply is facing challenges because of the dominance of functional experts in the organization. Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Relevance 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
– Relevance Supply can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Relevance Supply in the consumer business. Now Relevance Supply can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Relevance Supply to increase its market reach. Relevance Supply 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.
Manufacturing automation
– Relevance Supply 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.
Threats Role and Relevance of Refocused Inventory: Supply Chain Management Solutions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Relevance 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions .
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. Relevance Supply can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Relevance Supply 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Relevance Supply with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Relevance Supply 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Role and Relevance of Refocused Inventory: Supply Chain Management Solutions, Relevance Supply 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 .
Environmental challenges
– Relevance 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. Relevance Supply can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
Shortening product life cycle
– it is one of the major threat that Relevance 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 Relevance Supply in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Relevance Supply has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Relevance 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.
Consumer confidence and its impact on Relevance 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.
Weighted SWOT Analysis of Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Role and Relevance of Refocused Inventory: Supply Chain Management Solutions 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 Relevance Supply needs to make to build a sustainable competitive advantage.