Case Study Description of E-Enabled Closed-Loop Supply Chains
Information and communication technology can help companies realize new, innovative business opportunities in the area of closed-loop supply chains. Examines closed-loop supply chains from three perspectives: processes, customers, and products. Exploiting the possibilities of closed-loop supply chains involves handling uncertainties by providing adequate information. Information on recovery options for a product, product preferences of the customer, and the state of the product can be used to reduce uncertainty. Data that is retrieved from the closed-loop supply chain by new technologies can be transformed into management information in a systematic way. Presents a framework to address uncertainty reduction strategies.
Swot Analysis of "E-Enabled Closed-Loop Supply Chains" written by Rob A. Zuidwijk, Jo A.E.E. Van Nunen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Loop Closed facing as an external strategic factors. Some of the topics covered in E-Enabled Closed-Loop Supply Chains case study are - Strategic Management Strategies, IT, Managing uncertainty, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the E-Enabled Closed-Loop Supply Chains casestudy better are - – there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, supply chains are disrupted by pandemic , technology disruption, central banks are concerned over increasing inflation, there is increasing trade war between United States & China,
geopolitical disruptions, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of E-Enabled Closed-Loop Supply Chains
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in E-Enabled Closed-Loop Supply Chains case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Loop Closed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Loop Closed 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 E-Enabled Closed-Loop Supply Chains can be done for the following purposes –
1. Strategic planning using facts provided in E-Enabled Closed-Loop Supply Chains case study
2. Improving business portfolio management of Loop Closed
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 Loop Closed
Strengths E-Enabled Closed-Loop Supply Chains | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Loop Closed in E-Enabled Closed-Loop Supply Chains Harvard Business Review case study are -
Analytics focus
– Loop Closed 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 Rob A. Zuidwijk, Jo A.E.E. Van Nunen 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.
Sustainable margins compare to other players in Technology & Operations industry
– E-Enabled Closed-Loop Supply Chains firm has clearly differentiated products in the market place. This has enabled Loop Closed to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Loop Closed to invest into research and development (R&D) and innovation.
Organizational Resilience of Loop Closed
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Loop Closed does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Loop Closed 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 E-Enabled Closed-Loop Supply Chains HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Loop Closed in the sector have low bargaining power. E-Enabled Closed-Loop Supply Chains has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Loop Closed to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Loop Closed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Loop Closed 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
– Loop Closed 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 Loop Closed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Loop Closed is present in almost all the verticals within the industry. This has provided firm in E-Enabled Closed-Loop Supply Chains 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.
Training and development
– Loop Closed has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in E-Enabled Closed-Loop Supply Chains 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 Loop Closed 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.
Strong track record of project management
– Loop Closed is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Loop Closed is one of the most innovative firm in sector. Manager in E-Enabled Closed-Loop Supply Chains Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses E-Enabled Closed-Loop Supply Chains | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of E-Enabled Closed-Loop Supply Chains are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Loop Closed is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study E-Enabled Closed-Loop Supply Chains can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study E-Enabled Closed-Loop Supply Chains 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 Loop Closed 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Rob A. Zuidwijk, Jo A.E.E. Van Nunen suggests that, Loop Closed 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study E-Enabled Closed-Loop Supply Chains, in the dynamic environment Loop Closed has struggled to respond to the nimble upstart competition. Loop Closed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study E-Enabled Closed-Loop Supply Chains, 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.
Increasing silos among functional specialists
– The organizational structure of Loop Closed is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Loop Closed needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Loop Closed to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Loop Closed 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.
Lack of clear differentiation of Loop Closed products
– To increase the profitability and margins on the products, Loop Closed needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the E-Enabled Closed-Loop Supply Chains 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 Loop Closed has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Loop Closed, firm in the HBR case study E-Enabled Closed-Loop Supply Chains needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Loop Closed 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 E-Enabled Closed-Loop Supply Chains | 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 E-Enabled Closed-Loop Supply Chains are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Loop Closed 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.
Developing new processes and practices
– Loop Closed 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.
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 Loop Closed 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Loop Closed can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Loop Closed 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.
Creating value in data economy
– The success of analytics program of Loop Closed has opened avenues for new revenue streams for the organization in the industry. This can help Loop Closed to build a more holistic ecosystem as suggested in the E-Enabled Closed-Loop Supply Chains case study. Loop Closed can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Loop Closed 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 E-Enabled Closed-Loop Supply Chains - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Loop Closed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Loop Closed is facing challenges because of the dominance of functional experts in the organization. E-Enabled Closed-Loop Supply Chains 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Loop Closed 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.
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. Loop Closed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Loop Closed 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Loop Closed 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, E-Enabled Closed-Loop Supply Chains, 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
– Loop Closed can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. E-Enabled Closed-Loop Supply Chains 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.
Threats E-Enabled Closed-Loop Supply Chains External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study E-Enabled Closed-Loop Supply Chains are -
Stagnating economy with rate increase
– Loop Closed 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.
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 Loop Closed in the Technology & Operations sector and impact the bottomline of the organization.
Consumer confidence and its impact on Loop Closed 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.
Regulatory challenges
– Loop Closed 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 wage structure of Loop Closed
– 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 Loop Closed.
Technology acceleration in Forth Industrial Revolution
– Loop Closed has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Loop Closed 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Loop Closed 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 E-Enabled Closed-Loop Supply Chains .
Shortening product life cycle
– it is one of the major threat that Loop Closed is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Loop Closed 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. Loop Closed can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Loop Closed.
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.
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 Loop Closed business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Loop Closed 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 E-Enabled Closed-Loop Supply Chains 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 E-Enabled Closed-Loop Supply Chains 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 E-Enabled Closed-Loop Supply Chains 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 E-Enabled Closed-Loop Supply Chains 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 E-Enabled Closed-Loop Supply Chains 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 Loop Closed needs to make to build a sustainable competitive advantage.
