Blockchain: A New Solution for Supply Integrity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Blockchain: A New Solution for Supply Integrity
In 2016, blockchain, the technological innovation behind the cryptocurrency bitcoin, was gaining traction as companies began to integrate blockchain-based technology into their existing business models. While blockchain technology was still in its infancy, it could potentially transform the US$40 trillion global supply-chain industry. Ultimately, the emergence of blockchain would challenge market positioning in established businesses. Some advantages would become obsolete with the introduction of blockchain into the supply-chain network. How would vertically integrated companies compete with multiple participants that specialized in a particular task linked by blockchain? Would the key to future businesses be providing value-added services rather than seeking information asymmetry in the market? What kinds of firms could leverage this technology to better position their brands and value creation?
Swot Analysis of "Blockchain: A New Solution for Supply Integrity" written by Xin Wang, Xin Xu, Min Pan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Blockchain Supply facing as an external strategic factors. Some of the topics covered in Blockchain: A New Solution for Supply Integrity case study are - Strategic Management Strategies, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Blockchain: A New Solution for Supply Integrity casestudy better are - – talent flight as more people leaving formal jobs, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing energy prices, technology disruption, increasing government debt because of Covid-19 spendings,
geopolitical disruptions, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Blockchain: A New Solution for Supply Integrity
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Blockchain: A New Solution for Supply Integrity case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Blockchain Supply, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Blockchain Supply 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 Blockchain: A New Solution for Supply Integrity can be done for the following purposes –
1. Strategic planning using facts provided in Blockchain: A New Solution for Supply Integrity case study
2. Improving business portfolio management of Blockchain Supply
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 Blockchain Supply
Strengths Blockchain: A New Solution for Supply Integrity | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Blockchain Supply in Blockchain: A New Solution for Supply Integrity Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Blockchain Supply in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Blockchain Supply has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Blockchain Supply 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.
Innovation driven organization
– Blockchain Supply is one of the most innovative firm in sector. Manager in Blockchain: A New Solution for Supply Integrity Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Blockchain Supply 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 Blockchain Supply is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Blockchain: A New Solution for Supply Integrity Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Blockchain Supply
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Blockchain Supply does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Blockchain Supply is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Technology & Operations industry
– Blockchain: A New Solution for Supply Integrity firm has clearly differentiated products in the market place. This has enabled Blockchain Supply to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Blockchain Supply to invest into research and development (R&D) and innovation.
Ability to lead change in Technology & Operations field
– Blockchain Supply 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 Blockchain Supply in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Blockchain Supply 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 Xin Wang, Xin Xu, Min Pan 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
– Blockchain Supply has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Blockchain: A New Solution for Supply Integrity 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Blockchain Supply digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Blockchain Supply has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Blockchain Supply has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Blockchain: A New Solution for Supply Integrity HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Blockchain: A New Solution for Supply Integrity | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Blockchain: A New Solution for Supply Integrity are -
Lack of clear differentiation of Blockchain Supply products
– To increase the profitability and margins on the products, Blockchain Supply needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Blockchain Supply 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Blockchain: A New Solution for Supply Integrity, it seems that the employees of Blockchain Supply 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.
Slow decision making process
– As mentioned earlier in the report, Blockchain Supply 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. Blockchain Supply 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Blockchain Supply needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Blockchain: A New Solution for Supply Integrity, in the dynamic environment Blockchain Supply has struggled to respond to the nimble upstart competition. Blockchain Supply 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 Blockchain Supply is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Blockchain Supply needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Blockchain Supply to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Blockchain Supply has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Blockchain Supply 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 - Blockchain: A New Solution for Supply Integrity should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Blockchain Supply 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.
Need for greater diversity
– Blockchain Supply 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.
Opportunities Blockchain: A New Solution for Supply Integrity | 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 Blockchain: A New Solution for Supply Integrity are -
Loyalty marketing
– Blockchain Supply 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.
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. Blockchain Supply can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Blockchain Supply 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
– Blockchain Supply can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Blockchain: A New Solution for Supply Integrity 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.
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 Blockchain Supply 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Blockchain Supply 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.
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. Blockchain Supply 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. Blockchain Supply 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.
Better consumer reach
– The expansion of the 5G network will help Blockchain Supply to increase its market reach. Blockchain Supply 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.
Creating value in data economy
– The success of analytics program of Blockchain Supply has opened avenues for new revenue streams for the organization in the industry. This can help Blockchain Supply to build a more holistic ecosystem as suggested in the Blockchain: A New Solution for Supply Integrity case study. Blockchain Supply can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Blockchain Supply in the consumer business. Now Blockchain Supply can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Blockchain Supply 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 Blockchain: A New Solution for Supply Integrity - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Blockchain Supply to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Blockchain Supply 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Blockchain Supply 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, Blockchain: A New Solution for Supply Integrity, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Blockchain: A New Solution for Supply Integrity External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Blockchain: A New Solution for Supply Integrity are -
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.
Regulatory challenges
– Blockchain Supply needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Consumer confidence and its impact on Blockchain Supply 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Blockchain Supply will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Blockchain: A New Solution for Supply Integrity, Blockchain Supply 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 .
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 Blockchain Supply.
Environmental challenges
– Blockchain Supply 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. Blockchain Supply can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Blockchain Supply
– 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 Blockchain Supply.
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 Blockchain Supply business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Blockchain Supply 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 Blockchain: A New Solution for Supply Integrity .
Technology acceleration in Forth Industrial Revolution
– Blockchain Supply has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Blockchain Supply 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.
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. Blockchain Supply needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Blockchain: A New Solution for Supply Integrity 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 Blockchain: A New Solution for Supply Integrity 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 Blockchain: A New Solution for Supply Integrity 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 Blockchain: A New Solution for Supply Integrity 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 Blockchain: A New Solution for Supply Integrity 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 Blockchain Supply needs to make to build a sustainable competitive advantage.