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 - – increasing transportation and logistics costs, increasing commodity prices, technology disruption, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, there is increasing trade war between United States & China, 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 -

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.

Organizational Resilience of Edb Lab's

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Edb Lab's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– Edb Lab's is one of the most innovative firm in sector. Manager in HP Labs in Singapore Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

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.

High switching costs

– The high switching costs that Edb Lab's 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.

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.

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.

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.

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.

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.

Strong track record of project management

– Edb Lab's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

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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 -

Lack of clear differentiation of Edb Lab's products

– To increase the profitability and margins on the products, Edb Lab's needs to provide more differentiated products than what it is currently offering in the marketplace.

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.

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.

Interest costs

– Compare to the competition, Edb Lab's 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Edb Lab's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HP Labs in Singapore can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Need for greater diversity

– Edb Lab's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

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.

High operating costs

– Compare to the competitors, firm in the HBR case study HP Labs in Singapore 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 Edb Lab's 's lucrative customers.

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.

Workers concerns about automation

– As automation is fast increasing in the segment, Edb Lab's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

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.

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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 -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Edb Lab's 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.

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.

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. Edb Lab's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Edb Lab's can use these opportunities to build new business models that can help the communities that Edb Lab's operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

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.

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.

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.

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.

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.

Developing new processes and practices

– Edb Lab's 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.

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 Edb Lab's in the consumer business. Now Edb Lab's can target international markets with far fewer capital restrictions requirements than the existing system.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Edb Lab's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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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 -

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 Edb Lab's in the Technology & Operations sector and impact the bottomline of the organization.

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.

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.

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.

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.

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.

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.

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.

Environmental challenges

– Edb Lab's 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. Edb Lab's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

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.

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 .

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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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