Making Sense of Emerging Market Structures in B2B E-Commerce SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Making Sense of Emerging Market Structures in B2B E-Commerce
Over the last five years, a variety of market mechanisms have emerged to address various issues pertaining to business-to-business (B2B) e-commerce. However, there is a general lack of understanding on the part of researchers and practitioners on two key issues: What are the key characteristics of these market mechanisms? What factors drive the choice of one market mechanism over the other? Addresses these questions through a study of 12 different market mechanisms in 200 B2B electronic marketplaces. Four factors--degree of fragmentation, asset specificity, complexity of product description, and complexity of value assessment--significantly drive the choice of an appropriate market mechanism for an organization. To gainfully exploit these market structures, organizations need to devise new strategies and reconfigure their supply chains.
Swot Analysis of "Making Sense of Emerging Market Structures in B2B E-Commerce" written by B. Mahadevan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that B2b Mechanisms facing as an external strategic factors. Some of the topics covered in Making Sense of Emerging Market Structures in B2B E-Commerce case study are - Strategic Management Strategies, Financial markets, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Making Sense of Emerging Market Structures in B2B E-Commerce casestudy better are - – technology disruption, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, wage bills are increasing, geopolitical disruptions, there is increasing trade war between United States & China,
increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Making Sense of Emerging Market Structures in B2B E-Commerce
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Making Sense of Emerging Market Structures in B2B E-Commerce case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the B2b Mechanisms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which B2b Mechanisms 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 Making Sense of Emerging Market Structures in B2B E-Commerce can be done for the following purposes –
1. Strategic planning using facts provided in Making Sense of Emerging Market Structures in B2B E-Commerce case study
2. Improving business portfolio management of B2b Mechanisms
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 B2b Mechanisms
Strengths Making Sense of Emerging Market Structures in B2B E-Commerce | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of B2b Mechanisms in Making Sense of Emerging Market Structures in B2B E-Commerce Harvard Business Review case study are -
Innovation driven organization
– B2b Mechanisms is one of the most innovative firm in sector. Manager in Making Sense of Emerging Market Structures in B2B E-Commerce Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of B2b Mechanisms in the sector have low bargaining power. Making Sense of Emerging Market Structures in B2B E-Commerce has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps B2b Mechanisms to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- B2b Mechanisms 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 B2b Mechanisms is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Making Sense of Emerging Market Structures in B2B E-Commerce Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of B2b Mechanisms
– The covid-19 pandemic has put organizational resilience at the centre of everthing that B2b Mechanisms does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For B2b Mechanisms digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. B2b Mechanisms 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.
High brand equity
– B2b Mechanisms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled B2b Mechanisms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Making Sense of Emerging Market Structures in B2B E-Commerce 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.
Effective Research and Development (R&D)
– B2b Mechanisms 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 Making Sense of Emerging Market Structures in B2B E-Commerce - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– B2b Mechanisms 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 B. Mahadevan 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.
High switching costs
– The high switching costs that B2b Mechanisms 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.
Sustainable margins compare to other players in Technology & Operations industry
– Making Sense of Emerging Market Structures in B2B E-Commerce firm has clearly differentiated products in the market place. This has enabled B2b Mechanisms to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped B2b Mechanisms to invest into research and development (R&D) and innovation.
Strong track record of project management
– B2b Mechanisms is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Making Sense of Emerging Market Structures in B2B E-Commerce | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Making Sense of Emerging Market Structures in B2B E-Commerce are -
Interest costs
– Compare to the competition, B2b Mechanisms has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Low market penetration in new markets
– Outside its home market of B2b Mechanisms, firm in the HBR case study Making Sense of Emerging Market Structures in B2B E-Commerce needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
B2b Mechanisms 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.
Skills based hiring
– The stress on hiring functional specialists at B2b Mechanisms 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.
Slow to strategic competitive environment developments
– As Making Sense of Emerging Market Structures in B2B E-Commerce HBR case study mentions - B2b Mechanisms 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.
High bargaining power of channel partners
– Because of the regulatory requirements, B. Mahadevan suggests that, B2b Mechanisms 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.
Products dominated business model
– Even though B2b Mechanisms 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 - Making Sense of Emerging Market Structures in B2B E-Commerce 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 Making Sense of Emerging Market Structures in B2B E-Commerce, is just above the industry average. B2b Mechanisms 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.
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 B2b Mechanisms supply chain. Even after few cautionary changes mentioned in the HBR case study - Making Sense of Emerging Market Structures in B2B E-Commerce, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left B2b Mechanisms vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Making Sense of Emerging Market Structures in B2B E-Commerce, it seems that the employees of B2b Mechanisms 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.
Increasing silos among functional specialists
– The organizational structure of B2b Mechanisms is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. B2b Mechanisms needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help B2b Mechanisms to focus more on services rather than just following the product oriented approach.
Opportunities Making Sense of Emerging Market Structures in B2B E-Commerce | 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 Making Sense of Emerging Market Structures in B2B E-Commerce are -
Manufacturing automation
– B2b Mechanisms 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, B2b Mechanisms can use these opportunities to build new business models that can help the communities that B2b Mechanisms operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of B2b Mechanisms has opened avenues for new revenue streams for the organization in the industry. This can help B2b Mechanisms to build a more holistic ecosystem as suggested in the Making Sense of Emerging Market Structures in B2B E-Commerce case study. B2b Mechanisms can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, B2b Mechanisms 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, Making Sense of Emerging Market Structures in B2B E-Commerce, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help B2b Mechanisms to increase its market reach. B2b Mechanisms 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.
Buying journey improvements
– B2b Mechanisms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Making Sense of Emerging Market Structures in B2B E-Commerce 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.
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. B2b Mechanisms 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. B2b Mechanisms 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.
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. B2b Mechanisms can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– B2b Mechanisms 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 Making Sense of Emerging Market Structures in B2B E-Commerce - to build a competitive advantage using analytics. The analytics driven competitive advantage can help B2b Mechanisms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. B2b Mechanisms can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, B2b Mechanisms 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects B2b Mechanisms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, B2b Mechanisms is facing challenges because of the dominance of functional experts in the organization. Making Sense of Emerging Market Structures in B2B E-Commerce 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.
Threats Making Sense of Emerging Market Structures in B2B E-Commerce External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Making Sense of Emerging Market Structures in B2B E-Commerce are -
Regulatory challenges
– B2b Mechanisms 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.
Stagnating economy with rate increase
– B2b Mechanisms 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents B2b Mechanisms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of B2b Mechanisms
– 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 B2b Mechanisms.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Making Sense of Emerging Market Structures in B2B E-Commerce, B2b Mechanisms 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 .
Consumer confidence and its impact on B2b Mechanisms 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.
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. B2b Mechanisms 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.
Environmental challenges
– B2b Mechanisms 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. B2b Mechanisms can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High dependence on third party suppliers
– B2b Mechanisms 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.
Technology acceleration in Forth Industrial Revolution
– B2b Mechanisms has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, B2b Mechanisms 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for B2b Mechanisms 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.
Weighted SWOT Analysis of Making Sense of Emerging Market Structures in B2B E-Commerce 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 Making Sense of Emerging Market Structures in B2B E-Commerce 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 Making Sense of Emerging Market Structures in B2B E-Commerce 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 Making Sense of Emerging Market Structures in B2B E-Commerce 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 Making Sense of Emerging Market Structures in B2B E-Commerce 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 B2b Mechanisms needs to make to build a sustainable competitive advantage.