3R Framework: Improving EStrategy Across Reach, Richness, and Range SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of 3R Framework: Improving EStrategy Across Reach, Richness, and Range
Identifying effective strategies for designing and implementing e-business initiatives has been a persistent challenge for both practitioners and academicians. A conceptual framework is needed for leveraging digital attributes based on three dimensions: reach, richness, and range. By defining and combining these three dimensions to create such an integrated e-business strategic framework, this article provides managers with a way to assess their current strategy, as well as a prescriptive direction for strengthening it.
Authors :: John R. Wells, John D. Wells, David H. Gobeli
Swot Analysis of "3R Framework: Improving EStrategy Across Reach, Richness, and Range" written by John R. Wells, John D. Wells, David H. Gobeli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Richness Framework facing as an external strategic factors. Some of the topics covered in 3R Framework: Improving EStrategy Across Reach, Richness, and Range case study are - Strategic Management Strategies, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the 3R Framework: Improving EStrategy Across Reach, Richness, and Range casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, technology disruption, increasing energy prices,
there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of 3R Framework: Improving EStrategy Across Reach, Richness, and Range
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in 3R Framework: Improving EStrategy Across Reach, Richness, and Range case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Richness Framework, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Richness Framework 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range can be done for the following purposes –
1. Strategic planning using facts provided in 3R Framework: Improving EStrategy Across Reach, Richness, and Range case study
2. Improving business portfolio management of Richness Framework
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 Richness Framework
Strengths 3R Framework: Improving EStrategy Across Reach, Richness, and Range | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Richness Framework in 3R Framework: Improving EStrategy Across Reach, Richness, and Range Harvard Business Review case study are -
Diverse revenue streams
– Richness Framework is present in almost all the verticals within the industry. This has provided firm in 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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.
Analytics focus
– Richness Framework 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 John R. Wells, John D. Wells, David H. Gobeli 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.
Strong track record of project management
– Richness Framework is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Richness Framework 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.
Highly skilled collaborators
– Richness Framework 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 Richness Framework in the sector have low bargaining power. 3R Framework: Improving EStrategy Across Reach, Richness, and Range has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Richness Framework to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Richness Framework has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Richness Framework to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Richness Framework
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Richness Framework 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
– Richness Framework has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Richness Framework 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.
Operational resilience
– The operational resilience strategy in the 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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.
Ability to recruit top talent
– Richness Framework is one of the leading recruiters in the industry. Managers in the 3R Framework: Improving EStrategy Across Reach, Richness, and Range are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Richness Framework 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 Richness Framework is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in 3R Framework: Improving EStrategy Across Reach, Richness, and Range Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses 3R Framework: Improving EStrategy Across Reach, Richness, and Range | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of 3R Framework: Improving EStrategy Across Reach, Richness, and Range are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range, it seems that the employees of Richness Framework 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.
Need for greater diversity
– Richness Framework 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.
Slow decision making process
– As mentioned earlier in the report, Richness Framework has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Richness Framework even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Richness Framework 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.
High operating costs
– Compare to the competitors, firm in the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 Richness Framework 's lucrative customers.
Slow to strategic competitive environment developments
– As 3R Framework: Improving EStrategy Across Reach, Richness, and Range HBR case study mentions - Richness Framework 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.
Increasing silos among functional specialists
– The organizational structure of Richness Framework is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Richness Framework needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Richness Framework to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Richness Framework products
– To increase the profitability and margins on the products, Richness Framework needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Richness Framework has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Richness Framework 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 - 3R Framework: Improving EStrategy Across Reach, Richness, and Range should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Richness Framework 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.
Opportunities 3R Framework: Improving EStrategy Across Reach, Richness, and Range | 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range are -
Developing new processes and practices
– Richness Framework 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Richness Framework 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, 3R Framework: Improving EStrategy Across Reach, Richness, and Range, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Richness Framework can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Richness Framework to increase its market reach. Richness Framework will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Richness Framework has opened avenues for new revenue streams for the organization in the industry. This can help Richness Framework to build a more holistic ecosystem as suggested in the 3R Framework: Improving EStrategy Across Reach, Richness, and Range case study. Richness Framework can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Richness Framework can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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.
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 Richness Framework in the consumer business. Now Richness Framework can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Richness Framework can use these opportunities to build new business models that can help the communities that Richness Framework operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– Richness Framework 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Richness Framework is facing challenges because of the dominance of functional experts in the organization. 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Richness Framework 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.
Leveraging digital technologies
– Richness Framework 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Richness Framework 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.
Threats 3R Framework: Improving EStrategy Across Reach, Richness, and Range External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range are -
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. Richness Framework 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 Richness Framework business can come under increasing regulations regarding data privacy, data security, etc.
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 Richness Framework.
Shortening product life cycle
– it is one of the major threat that Richness Framework is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Richness Framework 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.
Consumer confidence and its impact on Richness Framework 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Richness Framework with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Richness Framework 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 Richness Framework
– 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 Richness Framework.
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.
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. Richness Framework can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Richness Framework 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range .
High dependence on third party suppliers
– Richness Framework 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 Richness Framework needs to make to build a sustainable competitive advantage.