Case Study Description of Xerox (Hong Kong): Sales Activity Management Process (A)
The sales director of Xerox (Hong Kong) has a vision to transform sales force management processes that would require radical changes to both the organization and the information technology infrastructure. The design includes a companywide database to be available to the sales force by remote access through Intranet/Internet. From this database the sales force could manage their territory using notebook computers while traveling, working at client sites, sitting in meetings, or talking on the phone. At the time of sale, they could check inventory, quote prices, notify delivery or service schedules, and make billing arrangements. Successful implementation of the plan requires the sales director to overcome financial constraints, ingrained habits, traditional cultural values, an inadequate information technology infrastructure, and the effects of the change beyond the sales organization.
Swot Analysis of "Xerox (Hong Kong): Sales Activity Management Process (A)" written by E.F. Peter Newson, Michael Zhao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sales Force facing as an external strategic factors. Some of the topics covered in Xerox (Hong Kong): Sales Activity Management Process (A) case study are - Strategic Management Strategies, Sales and Technology & Operations.
Some of the macro environment factors that can be used to understand the Xerox (Hong Kong): Sales Activity Management Process (A) casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, technology disruption, increasing transportation and logistics costs,
increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, etc
Introduction to SWOT Analysis of Xerox (Hong Kong): Sales Activity Management Process (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Xerox (Hong Kong): Sales Activity Management Process (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sales Force, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sales Force 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 Xerox (Hong Kong): Sales Activity Management Process (A) can be done for the following purposes –
1. Strategic planning using facts provided in Xerox (Hong Kong): Sales Activity Management Process (A) case study
2. Improving business portfolio management of Sales Force
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 Sales Force
Strengths Xerox (Hong Kong): Sales Activity Management Process (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sales Force in Xerox (Hong Kong): Sales Activity Management Process (A) Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Sales Force 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 Sales Force in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Sales Force has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sales Force to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Sales Force 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 Sales Force
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sales Force does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Sales Force is present in almost all the verticals within the industry. This has provided firm in Xerox (Hong Kong): Sales Activity Management Process (A) 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.
Sustainable margins compare to other players in Technology & Operations industry
– Xerox (Hong Kong): Sales Activity Management Process (A) firm has clearly differentiated products in the market place. This has enabled Sales Force to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Sales Force to invest into research and development (R&D) and innovation.
Strong track record of project management
– Sales Force is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Sales Force 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 Sales Force 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.
Ability to recruit top talent
– Sales Force is one of the leading recruiters in the industry. Managers in the Xerox (Hong Kong): Sales Activity Management Process (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Sales Force in the sector have low bargaining power. Xerox (Hong Kong): Sales Activity Management Process (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sales Force to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Xerox (Hong Kong): Sales Activity Management Process (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Xerox (Hong Kong): Sales Activity Management Process (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Xerox (Hong Kong): Sales Activity Management Process (A) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A) 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 Sales Force 's lucrative customers.
Slow to strategic competitive environment developments
– As Xerox (Hong Kong): Sales Activity Management Process (A) HBR case study mentions - Sales Force 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A), is just above the industry average. Sales Force 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.
Products dominated business model
– Even though Sales Force 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 - Xerox (Hong Kong): Sales Activity Management Process (A) should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Sales Force products
– To increase the profitability and margins on the products, Sales Force needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A), it seems that the employees of Sales Force 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Xerox (Hong Kong): Sales Activity Management Process (A), in the dynamic environment Sales Force has struggled to respond to the nimble upstart competition. Sales Force has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Sales Force is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Sales Force needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sales Force to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A), 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.
Low market penetration in new markets
– Outside its home market of Sales Force, firm in the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Sales Force supply chain. Even after few cautionary changes mentioned in the HBR case study - Xerox (Hong Kong): Sales Activity Management Process (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sales Force vulnerable to further global disruptions in South East Asia.
Opportunities Xerox (Hong Kong): Sales Activity Management Process (A) | 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 Xerox (Hong Kong): Sales Activity Management Process (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Sales Force 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.
Building a culture of innovation
– managers at Sales Force 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.
Better consumer reach
– The expansion of the 5G network will help Sales Force to increase its market reach. Sales Force will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Sales Force 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sales Force is facing challenges because of the dominance of functional experts in the organization. Xerox (Hong Kong): Sales Activity Management Process (A) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sales Force 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 Sales Force to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sales Force can use these opportunities to build new business models that can help the communities that Sales Force operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sales Force can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 Sales Force 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.
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. Sales Force 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. Sales Force 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.
Leveraging digital technologies
– Sales Force 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.
Using analytics as competitive advantage
– Sales Force 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 Xerox (Hong Kong): Sales Activity Management Process (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sales Force to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sales Force can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Xerox (Hong Kong): Sales Activity Management Process (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Xerox (Hong Kong): Sales Activity Management Process (A) are -
Environmental challenges
– Sales Force 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. Sales Force can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sales Force 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.
Regulatory challenges
– Sales Force 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sales Force 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 Xerox (Hong Kong): Sales Activity Management Process (A) .
Technology acceleration in Forth Industrial Revolution
– Sales Force has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Sales Force 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 Sales Force business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sales Force with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Sales Force 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 Sales Force 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.
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. Sales Force can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Sales Force in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Sales Force 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.
Weighted SWOT Analysis of Xerox (Hong Kong): Sales Activity Management Process (A) 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 Xerox (Hong Kong): Sales Activity Management Process (A) 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 Xerox (Hong Kong): Sales Activity Management Process (A) 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 Xerox (Hong Kong): Sales Activity Management Process (A) 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 Xerox (Hong Kong): Sales Activity Management Process (A) 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 Sales Force needs to make to build a sustainable competitive advantage.
