Ruentex Industries Ltd. and Liz Claiborne, Inc. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ruentex Industries Ltd. and Liz Claiborne, Inc.
Describes Ruentex's operations and the piece goods production process and begins to describe the company's relationship with Liz Claiborne, Inc., its largest customer. When used with Liz Claiborne, Inc. and Ruentex Industries Ltd. and Liz Claiborne, Inc. and Ruentex Industries Ltd.: Building the Relationship, it illustrates how a long-term cooperative relationship creates mutual value in the companies.
Swot Analysis of "Ruentex Industries Ltd. and Liz Claiborne, Inc." written by Marie-Therese Flaherty, Jill S. Dalby includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Liz Claiborne facing as an external strategic factors. Some of the topics covered in Ruentex Industries Ltd. and Liz Claiborne, Inc. case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Ruentex Industries Ltd. and Liz Claiborne, Inc. casestudy better are - – increasing energy prices, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Ruentex Industries Ltd. and Liz Claiborne, Inc.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ruentex Industries Ltd. and Liz Claiborne, Inc. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Liz Claiborne, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Liz Claiborne 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. can be done for the following purposes –
1. Strategic planning using facts provided in Ruentex Industries Ltd. and Liz Claiborne, Inc. case study
2. Improving business portfolio management of Liz Claiborne
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 Liz Claiborne
Strengths Ruentex Industries Ltd. and Liz Claiborne, Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Liz Claiborne in Ruentex Industries Ltd. and Liz Claiborne, Inc. Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Liz Claiborne in the sector have low bargaining power. Ruentex Industries Ltd. and Liz Claiborne, Inc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Liz Claiborne to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Liz Claiborne is one of the leading recruiters in the industry. Managers in the Ruentex Industries Ltd. and Liz Claiborne, Inc. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Liz Claiborne has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ruentex Industries Ltd. and Liz Claiborne, Inc. 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.
High switching costs
– The high switching costs that Liz Claiborne 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.
Superior customer experience
– The customer experience strategy of Liz Claiborne in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Liz Claiborne 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.
High brand equity
– Liz Claiborne has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Liz Claiborne to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Liz Claiborne is present in almost all the verticals within the industry. This has provided firm in Ruentex Industries Ltd. and Liz Claiborne, Inc. 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.
Analytics focus
– Liz Claiborne 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 Marie-Therese Flaherty, Jill S. Dalby 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Liz Claiborne digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Liz Claiborne 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.
Innovation driven organization
– Liz Claiborne is one of the most innovative firm in sector. Manager in Ruentex Industries Ltd. and Liz Claiborne, Inc. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Liz Claiborne has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Liz Claiborne 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.
Weaknesses Ruentex Industries Ltd. and Liz Claiborne, Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ruentex Industries Ltd. and Liz Claiborne, Inc. are -
No frontier risks strategy
– After analyzing the HBR case study Ruentex Industries Ltd. and Liz Claiborne, Inc., 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.
Lack of clear differentiation of Liz Claiborne products
– To increase the profitability and margins on the products, Liz Claiborne needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ruentex Industries Ltd. and Liz Claiborne, Inc., in the dynamic environment Liz Claiborne has struggled to respond to the nimble upstart competition. Liz Claiborne has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Liz Claiborne has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Liz Claiborne 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 Liz Claiborne supply chain. Even after few cautionary changes mentioned in the HBR case study - Ruentex Industries Ltd. and Liz Claiborne, Inc., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Liz Claiborne vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Liz Claiborne 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.
Need for greater diversity
– Liz Claiborne 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ruentex Industries Ltd. and Liz Claiborne, Inc., is just above the industry average. Liz Claiborne 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ruentex Industries Ltd. and Liz Claiborne, Inc., it seems that the employees of Liz Claiborne 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.
Skills based hiring
– The stress on hiring functional specialists at Liz Claiborne 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.
Opportunities Ruentex Industries Ltd. and Liz Claiborne, Inc. | 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. are -
Learning at scale
– Online learning technologies has now opened space for Liz Claiborne 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.
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. Liz Claiborne can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Liz Claiborne in the consumer business. Now Liz Claiborne can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Liz Claiborne 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Liz Claiborne to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Liz Claiborne 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.
Building a culture of innovation
– managers at Liz Claiborne can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Buying journey improvements
– Liz Claiborne can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ruentex Industries Ltd. and Liz Claiborne, Inc. 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Liz Claiborne can use these opportunities to build new business models that can help the communities that Liz Claiborne operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Liz Claiborne has opened avenues for new revenue streams for the organization in the industry. This can help Liz Claiborne to build a more holistic ecosystem as suggested in the Ruentex Industries Ltd. and Liz Claiborne, Inc. case study. Liz Claiborne can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Liz Claiborne 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.
Better consumer reach
– The expansion of the 5G network will help Liz Claiborne to increase its market reach. Liz Claiborne 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Liz Claiborne can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Liz Claiborne can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Liz Claiborne 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 Liz Claiborne to hire the very best people irrespective of their geographical location.
Threats Ruentex Industries Ltd. and Liz Claiborne, Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ruentex Industries Ltd. and Liz Claiborne, Inc. are -
Technology acceleration in Forth Industrial Revolution
– Liz Claiborne has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Liz Claiborne 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.
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 Liz Claiborne business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Liz Claiborne is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Ruentex Industries Ltd. and Liz Claiborne, Inc., Liz Claiborne 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 .
High dependence on third party suppliers
– Liz Claiborne 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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Liz Claiborne needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Liz Claiborne in the Technology & Operations sector and impact the bottomline of the organization.
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
– Liz Claiborne 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Liz Claiborne 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, Liz Claiborne 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. .
Regulatory challenges
– Liz Claiborne 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.
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. Liz Claiborne can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Ruentex Industries Ltd. and Liz Claiborne, Inc. 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 Liz Claiborne needs to make to build a sustainable competitive advantage.
