World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration
Covers inter-firm, IT-enabled supply chain collaboration and focuses on supplier-manufacturer collaboration. To assess collaboration from a holistic point of view, the case describes the distinct role played by the various parties involved in the collaborative effort: the manufacturer and its supply base, as well as a consulting firm, a supply chain process outsourcing company, and a software provider. Centers on the two latter companies--World Wide Technology (WWT), a $2 billion supply chain process outsourcing company based in St. Louis, and ClearOrbit, a rapidly growing software company based in Austin, Texas. Presents the story of a world-class automotive original equipment manufacturer (OEM) whose purchasing operations for maintenance, repair, and operations material had grown complex, costly, and error prone. In mid-2004, WWT, along with a consulting firm, proposed an outsourcing program to the OEM: the consulting firm would perform strategic sourcing and WWT would manage the entire fulfillment cycle. A critical feature of this program was that it would be collaborative. Early on in the program, however, it became apparent to WWT that delivering on the collaborative requirements of the program demanded the aid of specialized technological capabilities. WWT decided to partner with ClearOrbit, a company that had recently developed an Internet-based solution for companies to manage POs, deliveries, and invoices with a supply base regardless of size and technological resources available at each supplier. Describes the challenges of design, implementation, and growth of the program.
Swot Analysis of "World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration" written by Luis C. Blancas, Hau Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wwt Clearorbit facing as an external strategic factors. Some of the topics covered in World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration case study are - Strategic Management Strategies, Strategic planning, Supply chain, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration casestudy better are - – there is increasing trade war between United States & China, geopolitical disruptions, talent flight as more people leaving formal jobs, 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%, increasing energy prices,
increasing transportation and logistics costs, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wwt Clearorbit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wwt Clearorbit 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration can be done for the following purposes –
1. Strategic planning using facts provided in World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration case study
2. Improving business portfolio management of Wwt Clearorbit
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 Wwt Clearorbit
Strengths World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wwt Clearorbit in World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration Harvard Business Review case study are -
Ability to recruit top talent
– Wwt Clearorbit is one of the leading recruiters in the industry. Managers in the World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Wwt Clearorbit 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.
Organizational Resilience of Wwt Clearorbit
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wwt Clearorbit does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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.
Effective Research and Development (R&D)
– Wwt Clearorbit 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Wwt Clearorbit 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 Luis C. Blancas, Hau Lee 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.
Superior customer experience
– The customer experience strategy of Wwt Clearorbit in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Wwt Clearorbit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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.
Strong track record of project management
– Wwt Clearorbit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Wwt Clearorbit digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wwt Clearorbit 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.
Highly skilled collaborators
– Wwt Clearorbit 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Technology & Operations field
– Wwt Clearorbit 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 Wwt Clearorbit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration are -
High operating costs
– Compare to the competitors, firm in the HBR case study World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 Wwt Clearorbit 's lucrative customers.
Interest costs
– Compare to the competition, Wwt Clearorbit 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.
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 Wwt Clearorbit supply chain. Even after few cautionary changes mentioned in the HBR case study - World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wwt Clearorbit vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Wwt Clearorbit products
– To increase the profitability and margins on the products, Wwt Clearorbit needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Wwt Clearorbit 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.
Slow to strategic competitive environment developments
– As World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration HBR case study mentions - Wwt Clearorbit 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Luis C. Blancas, Hau Lee suggests that, Wwt Clearorbit 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.
Low market penetration in new markets
– Outside its home market of Wwt Clearorbit, firm in the HBR case study World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Wwt Clearorbit 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.
Skills based hiring
– The stress on hiring functional specialists at Wwt Clearorbit has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Wwt Clearorbit 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.
Opportunities World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration | 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wwt Clearorbit 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, World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Wwt Clearorbit 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wwt Clearorbit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Wwt Clearorbit 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.
Better consumer reach
– The expansion of the 5G network will help Wwt Clearorbit to increase its market reach. Wwt Clearorbit 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.
Using analytics as competitive advantage
– Wwt Clearorbit 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wwt Clearorbit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wwt Clearorbit is facing challenges because of the dominance of functional experts in the organization. World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wwt Clearorbit can use these opportunities to build new business models that can help the communities that Wwt Clearorbit operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Loyalty marketing
– Wwt Clearorbit 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.
Buying journey improvements
– Wwt Clearorbit can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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.
Leveraging digital technologies
– Wwt Clearorbit can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 Wwt Clearorbit in the consumer business. Now Wwt Clearorbit can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Wwt Clearorbit 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.
Threats World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration are -
Regulatory challenges
– Wwt Clearorbit 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.
Consumer confidence and its impact on Wwt Clearorbit 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 Wwt Clearorbit 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.
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 Wwt Clearorbit in the Technology & Operations sector and impact the bottomline of the organization.
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 Wwt Clearorbit.
Environmental challenges
– Wwt Clearorbit 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. Wwt Clearorbit 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.
High dependence on third party suppliers
– Wwt Clearorbit 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.
Shortening product life cycle
– it is one of the major threat that Wwt Clearorbit is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Wwt Clearorbit business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration, Wwt Clearorbit 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 .
Increasing wage structure of Wwt Clearorbit
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Wwt Clearorbit.
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.
Weighted SWOT Analysis of World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration 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 Wwt Clearorbit needs to make to build a sustainable competitive advantage.
