Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry
3D printing was a bottom-up process by which materials were laid down in thin successive layers until an object was fully constructed. As an innovation in technique, 3D printing made production conducted at or near the points of purchase or consumption possible. This had a huge impact on traditional manufacturing industry and supply chain management. A variety of key 3D-printing patents expired in 2014, stimulating mass production and adoption of 3D-printing devices. 3D printing was likely to provide a solution to supply chain management challenges by printing low-volume and tailor-made products on-site, a solution that would also reduce materials-supply risks, supply chain network complexity and inventory costs. Imitative innovation, well-established manufacturing infrastructure and relatively low labor and material costs made rapid growth of 3D-printer manufacturing in China possible. In recent years, China rapidly embraced the 3D-printing trend and explored the new, greatly expanded 3D-printing manufacturing and export market space. What role could 3D printing play in changing supply-chain management? What could the short-term and long-term impact of 3D printing on the Chinese manufacturing industry be? Could China leverage the coming 3D-printing trend to reinforce the power of its manufacturing industry?
Swot Analysis of "Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry" written by Benjamin Yen, Yihong Yao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 3d Printing facing as an external strategic factors. Some of the topics covered in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry case study are - Strategic Management Strategies, Disruptive innovation, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry casestudy better are - – central banks are concerned over increasing inflation, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing energy prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 3d Printing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 3d Printing 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 Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry can be done for the following purposes –
1. Strategic planning using facts provided in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry case study
2. Improving business portfolio management of 3d Printing
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 3d Printing
Strengths Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 3d Printing in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry Harvard Business Review case study are -
Diverse revenue streams
– 3d Printing is present in almost all the verticals within the industry. This has provided firm in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry 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.
Organizational Resilience of 3d Printing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 3d Printing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– 3d Printing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 3d Printing 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.
Ability to lead change in Technology & Operations field
– 3d Printing 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 3d Printing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- 3d Printing 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 3d Printing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– 3d Printing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– 3d Printing is one of the leading recruiters in the industry. Managers in the Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry 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
– 3d Printing 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 Benjamin Yen, Yihong Yao 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.
Superior customer experience
– The customer experience strategy of 3d Printing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– 3d Printing 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 Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– 3d Printing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 3d Printing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry are -
Aligning sales with marketing
– It come across in the case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry can leverage the sales team experience to cultivate customer relationships as 3d Printing is planning to shift buying processes online.
High cash cycle compare to competitors
3d Printing 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 3d Printing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of 3d Printing, firm in the HBR case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, 3d Printing 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.
Lack of clear differentiation of 3d Printing products
– To increase the profitability and margins on the products, 3d Printing needs to provide more differentiated products than what it is currently offering in the marketplace.
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 3d Printing supply chain. Even after few cautionary changes mentioned in the HBR case study - Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 3d Printing vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry 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 3d Printing has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, 3d Printing 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.
Slow to strategic competitive environment developments
– As Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry HBR case study mentions - 3d Printing 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry, it seems that the employees of 3d Printing 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.
Opportunities Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry are -
Loyalty marketing
– 3d Printing 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.
Learning at scale
– Online learning technologies has now opened space for 3d Printing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 3d Printing is facing challenges because of the dominance of functional experts in the organization. Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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. 3d Printing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 3d Printing 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, Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– 3d Printing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– 3d Printing 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.
Leveraging digital technologies
– 3d Printing 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.
Creating value in data economy
– The success of analytics program of 3d Printing has opened avenues for new revenue streams for the organization in the industry. This can help 3d Printing to build a more holistic ecosystem as suggested in the Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry case study. 3d Printing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, 3d Printing 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.
Better consumer reach
– The expansion of the 5G network will help 3d Printing to increase its market reach. 3d Printing 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.
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 3d Printing 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. 3d Printing 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. 3d Printing 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.
Threats Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry are -
High dependence on third party suppliers
– 3d Printing 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.
Stagnating economy with rate increase
– 3d Printing 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.
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. 3d Printing needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 3d Printing business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– 3d Printing 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. 3d Printing can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– 3d Printing has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, 3d Printing 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.
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 3d Printing.
Consumer confidence and its impact on 3d Printing 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.
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 3d Printing in the Technology & Operations sector and impact the bottomline of the organization.
Increasing wage structure of 3d Printing
– 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 3d Printing.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry, 3d Printing 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 3d Printing in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that 3d Printing needs to make to build a sustainable competitive advantage.
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