Supply Chain Hubs in Global Humanitarian Logistics SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Supply Chain Hubs in Global Humanitarian Logistics
Decentralized supply chains - with a greater number of hubs and depot locations - are designed to be more responsive to disasters around the globe by getting primary relief items such as food, water and medicines to beneficiaries quickly. This case explores the centralized vs. decentralized tradeoff for the secondary support supply chain of an international humanitarian organization (IHO). Using data from a real organization (unnamed), it asks whether supply chains for secondary support items should be the same as those for primary relief goods, and how earmarked funds impact the supply chain configuration. It presents information on donations, secondary support demand and response in mega disasters, and optimized data and simulation results. These allow for extensive data analytics, interpretation, and Excel modeling skills to be utilized, as well as students' intuition.
Authors :: Jon M. Stauffer, Alfonso Pedraza Martinez, Luk N. Van Wassenhove
Swot Analysis of "Supply Chain Hubs in Global Humanitarian Logistics" written by Jon M. Stauffer, Alfonso Pedraza Martinez, Luk N. Van Wassenhove includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Supply Secondary facing as an external strategic factors. Some of the topics covered in Supply Chain Hubs in Global Humanitarian Logistics case study are - Strategic Management Strategies, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Supply Chain Hubs in Global Humanitarian Logistics casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, supply chains are disrupted by pandemic , technology disruption, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Supply Chain Hubs in Global Humanitarian Logistics
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Supply Chain Hubs in Global Humanitarian Logistics case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Supply Secondary, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Supply Secondary 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 Supply Chain Hubs in Global Humanitarian Logistics can be done for the following purposes –
1. Strategic planning using facts provided in Supply Chain Hubs in Global Humanitarian Logistics case study
2. Improving business portfolio management of Supply Secondary
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 Supply Secondary
Strengths Supply Chain Hubs in Global Humanitarian Logistics | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Supply Secondary in Supply Chain Hubs in Global Humanitarian Logistics Harvard Business Review case study are -
Organizational Resilience of Supply Secondary
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Supply Secondary 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 Supply Secondary digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Supply Secondary 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 switching costs
– The high switching costs that Supply Secondary 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.
Successful track record of launching new products
– Supply Secondary has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Supply Secondary 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.
Training and development
– Supply Secondary has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Supply Chain Hubs in Global Humanitarian Logistics 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.
Effective Research and Development (R&D)
– Supply Secondary 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 Supply Chain Hubs in Global Humanitarian Logistics - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Supply Secondary is one of the most innovative firm in sector. Manager in Supply Chain Hubs in Global Humanitarian Logistics Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Supply Secondary is present in almost all the verticals within the industry. This has provided firm in Supply Chain Hubs in Global Humanitarian Logistics 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.
Sustainable margins compare to other players in Technology & Operations industry
– Supply Chain Hubs in Global Humanitarian Logistics firm has clearly differentiated products in the market place. This has enabled Supply Secondary to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Supply Secondary to invest into research and development (R&D) and innovation.
Learning organization
- Supply Secondary 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 Supply Secondary is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Supply Chain Hubs in Global Humanitarian Logistics Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Supply Secondary has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Supply Secondary to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Supply Secondary 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 Supply Chain Hubs in Global Humanitarian Logistics | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Supply Chain Hubs in Global Humanitarian Logistics are -
Increasing silos among functional specialists
– The organizational structure of Supply Secondary is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Supply Secondary needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Supply Secondary to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Jon M. Stauffer, Alfonso Pedraza Martinez, Luk N. Van Wassenhove suggests that, Supply Secondary 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.
Skills based hiring
– The stress on hiring functional specialists at Supply Secondary 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Supply Chain Hubs in Global Humanitarian Logistics, in the dynamic environment Supply Secondary has struggled to respond to the nimble upstart competition. Supply Secondary has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Supply Chain Hubs in Global Humanitarian Logistics, is just above the industry average. Supply Secondary 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 Supply Secondary 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 - Supply Chain Hubs in Global Humanitarian Logistics should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Supply Secondary 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. Supply Secondary 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 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 Supply Secondary supply chain. Even after few cautionary changes mentioned in the HBR case study - Supply Chain Hubs in Global Humanitarian Logistics, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Supply Secondary vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Secondary 's lucrative customers.
High cash cycle compare to competitors
Supply Secondary 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.
Lack of clear differentiation of Supply Secondary products
– To increase the profitability and margins on the products, Supply Secondary needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Supply Chain Hubs in Global Humanitarian Logistics | 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 Supply Chain Hubs in Global Humanitarian Logistics are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Supply Secondary 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, Supply Chain Hubs in Global Humanitarian Logistics, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Supply Secondary 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Supply Secondary 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.
Leveraging digital technologies
– Supply Secondary 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
– Supply Secondary can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Supply Chain Hubs in Global Humanitarian Logistics 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.
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 Supply Secondary 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.
Manufacturing automation
– Supply Secondary 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.
Developing new processes and practices
– Supply Secondary 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.
Building a culture of innovation
– managers at Supply Secondary 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.
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 Supply Secondary in the consumer business. Now Supply Secondary can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Supply Secondary to increase its market reach. Supply Secondary 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.
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. Supply Secondary 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. Supply Secondary 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.
Creating value in data economy
– The success of analytics program of Supply Secondary has opened avenues for new revenue streams for the organization in the industry. This can help Supply Secondary to build a more holistic ecosystem as suggested in the Supply Chain Hubs in Global Humanitarian Logistics case study. Supply Secondary can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Supply Chain Hubs in Global Humanitarian Logistics External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Supply Chain Hubs in Global Humanitarian Logistics are -
Increasing wage structure of Supply Secondary
– 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 Supply Secondary.
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 Supply Secondary.
Stagnating economy with rate increase
– Supply Secondary 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.
Regulatory challenges
– Supply Secondary 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Supply Secondary 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 Supply Chain Hubs in Global Humanitarian Logistics .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Supply Secondary 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Supply Secondary with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Supply Secondary has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Supply Secondary 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.
Consumer confidence and its impact on Supply Secondary 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.
Shortening product life cycle
– it is one of the major threat that Supply Secondary is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Supply Chain Hubs in Global Humanitarian Logistics, Supply Secondary 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 .
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. Supply Secondary needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Chain Hubs in Global Humanitarian Logistics 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 Supply Secondary needs to make to build a sustainable competitive advantage.
