HP Labs in Singapore SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of HP Labs in Singapore

When HP established a branch of its corporate research lab in Singapore, the government played a key role through its Economic Development Board (EDB). Chris Whitney, the lab's director, sought to generate revenue from the lab's innovations, making it financially independent from corporate funding. The case explores HP's history in Singapore, and the role of the EDB in encouraging the growth of local R&D capabilities. The case poses questions on the sustainability of the funding model.

Authors :: Willy Shih, Pankaj Agarwal, Christine Chi

Topics :: Technology & Operations

Tags :: Entrepreneurship, Global strategy, Globalization, Government, IT, Research & development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "HP Labs in Singapore" written by Willy Shih, Pankaj Agarwal, Christine Chi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Edb Lab's facing as an external strategic factors. Some of the topics covered in HP Labs in Singapore case study are - Strategic Management Strategies, Entrepreneurship, Global strategy, Globalization, Government, IT, Research & development and Technology & Operations.

Some of the macro environment factors that can be used to understand the HP Labs in Singapore casestudy better are - – central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, there is backlash against globalization, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing commodity prices, etc

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Introduction to SWOT Analysis of HP Labs in Singapore

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HP Labs in Singapore case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Edb Lab's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Edb Lab's 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of HP Labs in Singapore can be done for the following purposes –
1. Strategic planning using facts provided in HP Labs in Singapore case study
2. Improving business portfolio management of Edb Lab's
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 Edb Lab's

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Strengths HP Labs in Singapore | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Edb Lab's in HP Labs in Singapore Harvard Business Review case study are -

Low bargaining power of suppliers

– Suppliers of Edb Lab's in the sector have low bargaining power. HP Labs in Singapore has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Edb Lab's to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Technology & Operations industry

– HP Labs in Singapore firm has clearly differentiated products in the market place. This has enabled Edb Lab's to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Edb Lab's to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Edb Lab's 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 HP Labs in Singapore - 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 recruit top talent

– Edb Lab's is one of the leading recruiters in the industry. Managers in the HP Labs in Singapore are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Edb Lab's 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 HP Labs in Singapore HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Operational resilience

– The operational resilience strategy in the HP Labs in Singapore 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.

Training and development

– Edb Lab's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HP Labs in Singapore 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.

Learning organization

- Edb Lab's 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 Edb Lab's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HP Labs in Singapore Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Edb Lab's 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.

Diverse revenue streams

– Edb Lab's is present in almost all the verticals within the industry. This has provided firm in HP Labs in Singapore 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.

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Edb Lab's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Edb Lab's 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

– Edb Lab's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Edb Lab's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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Weaknesses HP Labs in Singapore | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of HP Labs in Singapore are -

Aligning sales with marketing

– It come across in the case study HP Labs in Singapore 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 HP Labs in Singapore can leverage the sales team experience to cultivate customer relationships as Edb Lab's is planning to shift buying processes online.

Capital Spending Reduction

– Even during the low interest decade, Edb Lab's 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.

Skills based hiring

– The stress on hiring functional specialists at Edb Lab's 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 cash cycle compare to competitors

Edb Lab's 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 bargaining power of channel partners

– Because of the regulatory requirements, Willy Shih, Pankaj Agarwal, Christine Chi suggests that, Edb Lab's 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 Edb Lab's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Edb Lab's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Edb Lab's to focus more on services rather than just following the product oriented approach.

Low market penetration in new markets

– Outside its home market of Edb Lab's, firm in the HBR case study HP Labs in Singapore needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study HP Labs in Singapore, it seems that the employees of Edb Lab's 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the HP Labs in Singapore HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Edb Lab's has relatively successful track record of launching new products.

Products dominated business model

– Even though Edb Lab's 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 - HP Labs in Singapore should strive to include more intangible value offerings along with its core products and services.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study HP Labs in Singapore, in the dynamic environment Edb Lab's has struggled to respond to the nimble upstart competition. Edb Lab's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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Opportunities HP Labs in Singapore | 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 HP Labs in Singapore are -

Building a culture of innovation

– managers at Edb Lab's 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Edb Lab's 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.

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 Edb Lab's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Edb Lab's can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Using analytics as competitive advantage

– Edb Lab's 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 HP Labs in Singapore - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Edb Lab's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Manufacturing automation

– Edb Lab's 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, Edb Lab's is facing challenges because of the dominance of functional experts in the organization. HP Labs in Singapore 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.

Loyalty marketing

– Edb Lab's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

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. Edb Lab's 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. Edb Lab's 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.

Buying journey improvements

– Edb Lab's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HP Labs in Singapore 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.

Creating value in data economy

– The success of analytics program of Edb Lab's has opened avenues for new revenue streams for the organization in the industry. This can help Edb Lab's to build a more holistic ecosystem as suggested in the HP Labs in Singapore case study. Edb Lab's 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, Edb Lab's 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, HP Labs in Singapore, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Edb Lab's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Edb Lab's to hire the very best people irrespective of their geographical location.

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Threats HP Labs in Singapore External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study HP Labs in Singapore are -

Increasing wage structure of Edb Lab's

– 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 Edb Lab's.

Regulatory challenges

– Edb Lab's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.

Shortening product life cycle

– it is one of the major threat that Edb Lab's 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. Edb Lab's 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Edb Lab's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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. Edb Lab's needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.

Consumer confidence and its impact on Edb Lab's 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HP Labs in Singapore, Edb Lab's 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 .

Stagnating economy with rate increase

– Edb Lab's 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.

Technology acceleration in Forth Industrial Revolution

– Edb Lab's has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Edb Lab's 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.

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 Edb Lab's 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 Edb Lab's.

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.

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Weighted SWOT Analysis of HP Labs in Singapore 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 HP Labs in Singapore 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 HP Labs in Singapore 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 HP Labs in Singapore 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 HP Labs in Singapore 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 Edb Lab's needs to make to build a sustainable competitive advantage.

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