Jardines: Tapping the Asian E-Commerce Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jardines: Tapping the Asian E-Commerce Market
"We have made significant progress in reshaping the group in the current cycle of change," announced the homepage of Jardine Matheson & Co.'s web site. Percy Weatherall, newly appointed managing director of the company, knew all too well about change. In his previous position as chief executive of Hongkong Land Holdings, a core Jardines holding, Weatherall had successfully navigated through the Asian economic crisis and the plummeting Hong Kong rents and asset values that ensued. But these changes paled in comparison to the challenge of devising an e-commerce strategy for Jardine Matheson, a group with an intricate imbroglio of minority interests and diverse subsidiary and associate companies employing over 160,000 people worldwide. From the 48th floor of Jardine House in Hong Kong, Weatherall and approximately 100 of his Jardine Matheson Ltd. colleagues provided leadership, direction, planning, budgeting, as well as financial resources to the decentralized subsidiary companies located around the world. The question at hand was how a 168-year-old multinational company with commercial interests in over 30 countries could move fast enough to stake its claim in the electronic domain.
Authors :: F. Warren McFarlan, Melissa Dailey, Fred Young
Swot Analysis of "Jardines: Tapping the Asian E-Commerce Market" written by F. Warren McFarlan, Melissa Dailey, Fred Young includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jardine Weatherall facing as an external strategic factors. Some of the topics covered in Jardines: Tapping the Asian E-Commerce Market case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Jardines: Tapping the Asian E-Commerce Market casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, geopolitical disruptions,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Jardines: Tapping the Asian E-Commerce Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jardines: Tapping the Asian E-Commerce Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jardine Weatherall, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jardine Weatherall 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 Jardines: Tapping the Asian E-Commerce Market can be done for the following purposes –
1. Strategic planning using facts provided in Jardines: Tapping the Asian E-Commerce Market case study
2. Improving business portfolio management of Jardine Weatherall
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 Jardine Weatherall
Strengths Jardines: Tapping the Asian E-Commerce Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jardine Weatherall in Jardines: Tapping the Asian E-Commerce Market Harvard Business Review case study are -
Organizational Resilience of Jardine Weatherall
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jardine Weatherall does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Jardine Weatherall in the sector have low bargaining power. Jardines: Tapping the Asian E-Commerce Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jardine Weatherall to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– Jardines: Tapping the Asian E-Commerce Market firm has clearly differentiated products in the market place. This has enabled Jardine Weatherall to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Jardine Weatherall to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Jardine Weatherall 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 Jardines: Tapping the Asian E-Commerce Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Jardine Weatherall has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jardine Weatherall 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.
High switching costs
– The high switching costs that Jardine Weatherall has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Jardine Weatherall digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jardine Weatherall 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.
Superior customer experience
– The customer experience strategy of Jardine Weatherall in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Technology & Operations field
– Jardine Weatherall 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 Jardine Weatherall in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Jardine Weatherall is present in almost all the verticals within the industry. This has provided firm in Jardines: Tapping the Asian E-Commerce Market 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.
Cross disciplinary teams
– Horizontal connected teams at the Jardine Weatherall 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.
Training and development
– Jardine Weatherall has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jardines: Tapping the Asian E-Commerce Market 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.
Weaknesses Jardines: Tapping the Asian E-Commerce Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jardines: Tapping the Asian E-Commerce Market are -
Capital Spending Reduction
– Even during the low interest decade, Jardine Weatherall 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jardines: Tapping the Asian E-Commerce Market, is just above the industry average. Jardine Weatherall needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Products dominated business model
– Even though Jardine Weatherall 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 - Jardines: Tapping the Asian E-Commerce Market should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Jardine Weatherall, firm in the HBR case study Jardines: Tapping the Asian E-Commerce Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jardine Weatherall supply chain. Even after few cautionary changes mentioned in the HBR case study - Jardines: Tapping the Asian E-Commerce Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jardine Weatherall 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 Jardines: Tapping the Asian E-Commerce Market 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 Jardine Weatherall has relatively successful track record of launching new products.
Need for greater diversity
– Jardine Weatherall 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jardine Weatherall 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.
Skills based hiring
– The stress on hiring functional specialists at Jardine Weatherall 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.
High bargaining power of channel partners
– Because of the regulatory requirements, F. Warren McFarlan, Melissa Dailey, Fred Young suggests that, Jardine Weatherall 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jardine Weatherall is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Jardines: Tapping the Asian E-Commerce Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Jardines: Tapping the Asian E-Commerce Market | 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 Jardines: Tapping the Asian E-Commerce Market are -
Using analytics as competitive advantage
– Jardine Weatherall 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 Jardines: Tapping the Asian E-Commerce Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jardine Weatherall to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Jardine Weatherall 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.
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 Jardine Weatherall in the consumer business. Now Jardine Weatherall can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jardine Weatherall is facing challenges because of the dominance of functional experts in the organization. Jardines: Tapping the Asian E-Commerce Market 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jardine Weatherall can use these opportunities to build new business models that can help the communities that Jardine Weatherall 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 Jardine Weatherall 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. Jardine Weatherall can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jardine Weatherall can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jardine Weatherall 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, Jardines: Tapping the Asian E-Commerce Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Jardine Weatherall 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
– Jardine Weatherall can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jardines: Tapping the Asian E-Commerce Market 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jardine Weatherall 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.
Better consumer reach
– The expansion of the 5G network will help Jardine Weatherall to increase its market reach. Jardine Weatherall 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.
Threats Jardines: Tapping the Asian E-Commerce Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jardines: Tapping the Asian E-Commerce Market are -
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 Jardine Weatherall in the Technology & Operations sector and impact the bottomline of the organization.
Consumer confidence and its impact on Jardine Weatherall 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.
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. Jardine Weatherall needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Jardine Weatherall 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.
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 Jardine Weatherall.
Technology acceleration in Forth Industrial Revolution
– Jardine Weatherall has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Jardine Weatherall 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jardines: Tapping the Asian E-Commerce Market, Jardine Weatherall 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 .
Increasing wage structure of Jardine Weatherall
– 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 Jardine Weatherall.
Regulatory challenges
– Jardine Weatherall 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.
Shortening product life cycle
– it is one of the major threat that Jardine Weatherall is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Jardine Weatherall 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. Jardine Weatherall can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Jardine Weatherall business can come under increasing regulations regarding data privacy, data security, etc.
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. Jardine Weatherall can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Jardines: Tapping the Asian E-Commerce Market 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 Jardines: Tapping the Asian E-Commerce Market 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 Jardines: Tapping the Asian E-Commerce Market 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 Jardines: Tapping the Asian E-Commerce Market 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 Jardines: Tapping the Asian E-Commerce Market 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 Jardine Weatherall needs to make to build a sustainable competitive advantage.