Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged)
Details the evolution of a value-creating supplier-buyer partnership. Describes the buyer's (Liz Claiborne) manufacturing and marketing strategy, and details the workings of the firm's relationship with an important Taiwanese supplier of piece goods (Ruentex Industries Ltd.).
Swot Analysis of "Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged)" written by Marie-Therese Flaherty, Jill S. Dalby includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ruentex Liz facing as an external strategic factors. Some of the topics covered in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) case study are - Strategic Management Strategies, Growth strategy, Joint ventures, Manufacturing, Marketing, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) casestudy better are - – increasing commodity prices, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ruentex Liz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ruentex Liz 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) case study
2. Improving business portfolio management of Ruentex Liz
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 Ruentex Liz
Strengths Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ruentex Liz in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) Harvard Business Review case study are -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Ruentex Liz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ruentex Liz 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.
Low bargaining power of suppliers
– Suppliers of Ruentex Liz in the sector have low bargaining power. Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ruentex Liz to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Ruentex Liz in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Ruentex Liz
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ruentex Liz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Technology & Operations industry
– Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) firm has clearly differentiated products in the market place. This has enabled Ruentex Liz to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ruentex Liz to invest into research and development (R&D) and innovation.
Analytics focus
– Ruentex Liz is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Marie-Therese Flaherty, Jill S. Dalby can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Ruentex Liz is one of the leading recruiters in the industry. Managers in the Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Ruentex Liz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ruentex Liz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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.
Training and development
– Ruentex Liz has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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.
Cross disciplinary teams
– Horizontal connected teams at the Ruentex Liz 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
– Ruentex Liz is present in almost all the verticals within the industry. This has provided firm in Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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.
Weaknesses Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) are -
High bargaining power of channel partners
– Because of the regulatory requirements, Marie-Therese Flaherty, Jill S. Dalby suggests that, Ruentex Liz is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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 Ruentex Liz supply chain. Even after few cautionary changes mentioned in the HBR case study - Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ruentex Liz vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ruentex Liz is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) can leverage the sales team experience to cultivate customer relationships as Ruentex Liz is planning to shift buying processes online.
Products dominated business model
– Even though Ruentex Liz 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 - Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged), is just above the industry average. Ruentex Liz 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged), in the dynamic environment Ruentex Liz has struggled to respond to the nimble upstart competition. Ruentex Liz has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Ruentex Liz 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.
Increasing silos among functional specialists
– The organizational structure of Ruentex Liz is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ruentex Liz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ruentex Liz to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) HBR case study mentions - Ruentex Liz 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.
Need for greater diversity
– Ruentex Liz 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) | 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Ruentex Liz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Ruentex Liz 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ruentex Liz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Ruentex Liz 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. Ruentex Liz 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 Ruentex Liz 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 Ruentex Liz to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Ruentex Liz 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.
Better consumer reach
– The expansion of the 5G network will help Ruentex Liz to increase its market reach. Ruentex Liz 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.
Leveraging digital technologies
– Ruentex Liz 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ruentex Liz can use these opportunities to build new business models that can help the communities that Ruentex Liz operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Ruentex Liz 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.
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. Ruentex Liz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Ruentex Liz has opened avenues for new revenue streams for the organization in the industry. This can help Ruentex Liz to build a more holistic ecosystem as suggested in the Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) case study. Ruentex Liz 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, Ruentex Liz 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.
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 Ruentex Liz in the consumer business. Now Ruentex Liz can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) are -
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. Ruentex Liz 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.
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 Ruentex Liz in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Ruentex Liz 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. Ruentex Liz can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ruentex Liz 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) .
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. Ruentex Liz can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ruentex Liz.
Shortening product life cycle
– it is one of the major threat that Ruentex Liz is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ruentex Liz business can come under increasing regulations regarding data privacy, data security, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ruentex Liz 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ruentex Liz with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Ruentex Liz 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.
Increasing wage structure of Ruentex Liz
– 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 Ruentex Liz.
Weighted SWOT Analysis of Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Liz Claiborne, Inc. and Ruentex Industries Ltd. (Abridged) 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 Ruentex Liz needs to make to build a sustainable competitive advantage.
