Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry
In mid-2004, Jewellworld.com was one of the few, if not the only, surviving jewelry portals in Hong Kong, with both a business-to-business (B2B) and business-to-consumer (B2C) scope. For its business clients, it had become an Internet technology consultancy specializing in the jewelry industry, providing services such as B2B trading portal, eTraining, security surveillance systems, and so on. Its B2C business had improved as well, appealing to both the local young generation and overseas Chinese.
Swot Analysis of "Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry" written by Bennett Yim, Andrew Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jewellworld.com Jewelry facing as an external strategic factors. Some of the topics covered in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, geopolitical disruptions, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, etc
Introduction to SWOT Analysis of Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jewellworld.com Jewelry, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jewellworld.com Jewelry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry can be done for the following purposes –
1. Strategic planning using facts provided in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry case study
2. Improving business portfolio management of Jewellworld.com Jewelry
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 Jewellworld.com Jewelry
Strengths Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jewellworld.com Jewelry in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry Harvard Business Review case study are -
Successful track record of launching new products
– Jewellworld.com Jewelry has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jewellworld.com Jewelry 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.
Training and development
– Jewellworld.com Jewelry has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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.
Ability to lead change in Technology & Operations field
– Jewellworld.com Jewelry 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 Jewellworld.com Jewelry in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Jewellworld.com Jewelry in the sector have low bargaining power. Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jewellworld.com Jewelry to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Jewellworld.com Jewelry 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 Jewellworld.com Jewelry 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 Jewellworld.com Jewelry
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jewellworld.com Jewelry does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Jewellworld.com Jewelry 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 Bennett Yim, Andrew 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.
Cross disciplinary teams
– Horizontal connected teams at the Jewellworld.com Jewelry 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)
– Jewellworld.com Jewelry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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.
Learning organization
- Jewellworld.com Jewelry 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 Jewellworld.com Jewelry is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry are -
Interest costs
– Compare to the competition, Jewellworld.com Jewelry 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.
Products dominated business model
– Even though Jewellworld.com Jewelry 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 - Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry, in the dynamic environment Jewellworld.com Jewelry has struggled to respond to the nimble upstart competition. Jewellworld.com Jewelry has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Jewellworld.com Jewelry products
– To increase the profitability and margins on the products, Jewellworld.com Jewelry needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Jewellworld.com Jewelry, firm in the HBR case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Jewellworld.com Jewelry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry HBR case study mentions - Jewellworld.com Jewelry 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.
Slow decision making process
– As mentioned earlier in the report, Jewellworld.com Jewelry has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Jewellworld.com Jewelry even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High operating costs
– Compare to the competitors, firm in the HBR case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com Jewelry 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry, 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.
Aligning sales with marketing
– It come across in the case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry can leverage the sales team experience to cultivate customer relationships as Jewellworld.com Jewelry is planning to shift buying processes online.
Opportunities Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry | 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jewellworld.com Jewelry can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Jewellworld.com Jewelry 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.
Manufacturing automation
– Jewellworld.com Jewelry 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.
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 Jewellworld.com Jewelry 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.
Developing new processes and practices
– Jewellworld.com Jewelry 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jewellworld.com Jewelry 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, Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jewellworld.com Jewelry can use these opportunities to build new business models that can help the communities that Jewellworld.com Jewelry operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Buying journey improvements
– Jewellworld.com Jewelry can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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
– Jewellworld.com Jewelry 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.
Better consumer reach
– The expansion of the 5G network will help Jewellworld.com Jewelry to increase its market reach. Jewellworld.com Jewelry 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.
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. Jewellworld.com Jewelry 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. Jewellworld.com Jewelry can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jewellworld.com Jewelry is facing challenges because of the dominance of functional experts in the organization. Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jewellworld.com Jewelry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jewellworld.com Jewelry 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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Jewellworld.com Jewelry is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Jewellworld.com Jewelry 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.
Technology acceleration in Forth Industrial Revolution
– Jewellworld.com Jewelry has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Jewellworld.com Jewelry 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.
Regulatory challenges
– Jewellworld.com Jewelry 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.
Increasing wage structure of Jewellworld.com Jewelry
– 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 Jewellworld.com Jewelry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jewellworld.com Jewelry with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Jewellworld.com Jewelry business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Jewellworld.com Jewelry 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.
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 Jewellworld.com Jewelry.
Weighted SWOT Analysis of Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com: Leading Web-Based IT Development in the Jewellery Industry 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 Jewellworld.com Jewelry needs to make to build a sustainable competitive advantage.
