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 - – increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, increasing household debt because of falling income levels,
banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, 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 -
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Richness Framework digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Richness Framework 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.
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.
Sustainable margins compare to other players in Technology & Operations industry
– 3R Framework: Improving EStrategy Across Reach, Richness, and Range firm has clearly differentiated products in the market place. This has enabled Richness Framework to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Richness Framework to invest into research and development (R&D) and innovation.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Richness Framework 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.
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.
Training and development
– Richness Framework has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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.
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.
Effective Research and Development (R&D)
– Richness Framework has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Technology & Operations field
– Richness Framework 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 Richness Framework in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
High bargaining power of channel partners
– Because of the regulatory requirements, John R. Wells, John D. Wells, David H. Gobeli suggests that, Richness Framework 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.
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.
Low market penetration in new markets
– Outside its home market of Richness Framework, firm in the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
No frontier risks strategy
– After analyzing the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range, 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.
Aligning sales with marketing
– It come across in the case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range can leverage the sales team experience to cultivate customer relationships as Richness Framework is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range, in the dynamic environment Richness Framework has struggled to respond to the nimble upstart competition. Richness Framework has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study 3R Framework: Improving EStrategy Across Reach, Richness, and Range, is just above the industry average. Richness Framework 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.
Skills based hiring
– The stress on hiring functional specialists at Richness Framework 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 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.
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 -
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. Richness Framework can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Richness Framework 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.
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.
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.
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.
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.
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.
Building a culture of innovation
– managers at Richness Framework 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.
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.
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.
Using analytics as competitive advantage
– Richness Framework 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 3R Framework: Improving EStrategy Across Reach, Richness, and Range - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Richness Framework 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. Richness Framework 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. Richness Framework 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.
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 -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Richness Framework 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.
Environmental challenges
– Richness Framework 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. Richness Framework can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
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.
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.
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 Richness Framework in the Technology & Operations sector and impact the bottomline of the organization.
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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Richness Framework has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Richness Framework needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Richness Framework.
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.