Laura Ashley and Federal Express Strategic Alliance, Portuguese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Laura Ashley and Federal Express Strategic Alliance, Portuguese Version
In an effort to improve its global distribution system and thus enhance customer service in its shops around the world, Laura Ashley entered into a path-breaking strategic alliance with Federal Express Business Logistics Services. Under the terms of a loosely structured partnership, Federal Express essentially takes over the warehouse and distribution activities formerly handled by Laura Ashley. The alliance is path breaking due to its largely informal structure, based more on trust and mutual benefit than on complicated rules and measures.
Swot Analysis of "Laura Ashley and Federal Express Strategic Alliance, Portuguese Version" written by Gary W. Loveman, Robert T. Anthony includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ashley Laura facing as an external strategic factors. Some of the topics covered in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version case study are - Strategic Management Strategies, International business, Joint ventures, Marketing, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Laura Ashley and Federal Express Strategic Alliance, Portuguese Version casestudy better are - – increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, there is backlash against globalization, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing energy prices,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of Laura Ashley and Federal Express Strategic Alliance, Portuguese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ashley Laura, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ashley Laura 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version can be done for the following purposes –
1. Strategic planning using facts provided in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version case study
2. Improving business portfolio management of Ashley Laura
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 Ashley Laura
Strengths Laura Ashley and Federal Express Strategic Alliance, Portuguese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ashley Laura in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version Harvard Business Review case study are -
Effective Research and Development (R&D)
– Ashley Laura 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version - 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
– Ashley Laura has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ashley Laura to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Ashley Laura in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Ashley Laura digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ashley Laura 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.
Cross disciplinary teams
– Horizontal connected teams at the Ashley Laura 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.
Diverse revenue streams
– Ashley Laura is present in almost all the verticals within the industry. This has provided firm in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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.
Ability to recruit top talent
– Ashley Laura is one of the leading recruiters in the industry. Managers in the Laura Ashley and Federal Express Strategic Alliance, Portuguese Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Ashley Laura 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 Gary W. Loveman, Robert T. Anthony 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.
Training and development
– Ashley Laura has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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
– Ashley Laura 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 Ashley Laura in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Ashley Laura is one of the most innovative firm in sector. Manager in Laura Ashley and Federal Express Strategic Alliance, Portuguese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– Laura Ashley and Federal Express Strategic Alliance, Portuguese Version firm has clearly differentiated products in the market place. This has enabled Ashley Laura to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ashley Laura to invest into research and development (R&D) and innovation.
Weaknesses Laura Ashley and Federal Express Strategic Alliance, Portuguese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Laura Ashley and Federal Express Strategic Alliance, Portuguese Version are -
Skills based hiring
– The stress on hiring functional specialists at Ashley Laura 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Laura Ashley and Federal Express Strategic Alliance, Portuguese Version, it seems that the employees of Ashley Laura 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.
Products dominated business model
– Even though Ashley Laura 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 - Laura Ashley and Federal Express Strategic Alliance, Portuguese Version should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Ashley Laura is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ashley Laura needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ashley Laura to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Ashley Laura products
– To increase the profitability and margins on the products, Ashley Laura needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Ashley Laura 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 star products
– The top 2 products and services of the firm as mentioned in the Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Ashley Laura has relatively successful track record of launching new products.
Need for greater diversity
– Ashley Laura 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ashley Laura is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Laura Ashley and Federal Express Strategic Alliance, Portuguese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Ashley Laura supply chain. Even after few cautionary changes mentioned in the HBR case study - Laura Ashley and Federal Express Strategic Alliance, Portuguese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ashley Laura vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Ashley Laura 's lucrative customers.
Opportunities Laura Ashley and Federal Express Strategic Alliance, Portuguese Version | 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ashley Laura 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, Laura Ashley and Federal Express Strategic Alliance, Portuguese Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Ashley Laura 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. Ashley Laura 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 Ashley Laura 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 Ashley Laura to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Ashley Laura 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.
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. Ashley Laura can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ashley Laura can use these opportunities to build new business models that can help the communities that Ashley Laura operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Ashley Laura 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.
Leveraging digital technologies
– Ashley Laura 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.
Manufacturing automation
– Ashley Laura 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.
Creating value in data economy
– The success of analytics program of Ashley Laura has opened avenues for new revenue streams for the organization in the industry. This can help Ashley Laura to build a more holistic ecosystem as suggested in the Laura Ashley and Federal Express Strategic Alliance, Portuguese Version case study. Ashley Laura 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 Ashley Laura 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ashley Laura is facing challenges because of the dominance of functional experts in the organization. Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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.
Loyalty marketing
– Ashley Laura 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.
Threats Laura Ashley and Federal Express Strategic Alliance, Portuguese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Laura Ashley and Federal Express Strategic Alliance, Portuguese Version are -
Regulatory challenges
– Ashley Laura needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Laura Ashley and Federal Express Strategic Alliance, Portuguese Version, Ashley Laura 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
– Ashley Laura 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ashley Laura with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Ashley Laura 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.
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. Ashley Laura can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Ashley Laura needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Ashley Laura
– 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 Ashley Laura.
Consumer confidence and its impact on Ashley Laura 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
– Ashley Laura has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ashley Laura 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.
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.
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 Ashley Laura in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Ashley Laura 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. Ashley Laura can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Laura Ashley and Federal Express Strategic Alliance, Portuguese Version 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 Ashley Laura needs to make to build a sustainable competitive advantage.