Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges
Vietnam has made impressive economic gains over a period of three decades, following the Doi Moi reforms of 1986. Before reform, the country's socialist economy had been unable to displace the poverty that had plagued the country in the aftermath of the Vietnam War. After reform, Vietnam has experienced many years of sustained growth, as evidenced by its advances on several economic performance rankings. By 2014, Vietnam's rankings compared favourably with those of many of its Asian neighbours. A major feature of the country's strategy for economic development was its emphasis on information and computing technologies. Students will analyze Vietnam's past successes to extract lessons that can lead to additional future success.
Swot Analysis of "Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges" written by Vu Minh Khuong, Robert D. Austin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vietnam's Vietnam facing as an external strategic factors. Some of the topics covered in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges case study are - Strategic Management Strategies, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges casestudy better are - – challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, etc
Introduction to SWOT Analysis of Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vietnam's Vietnam, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vietnam's Vietnam 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges can be done for the following purposes –
1. Strategic planning using facts provided in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges case study
2. Improving business portfolio management of Vietnam's Vietnam
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 Vietnam's Vietnam
Strengths Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vietnam's Vietnam in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges Harvard Business Review case study are -
Analytics focus
– Vietnam's Vietnam 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 Vu Minh Khuong, Robert D. Austin 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.
Low bargaining power of suppliers
– Suppliers of Vietnam's Vietnam in the sector have low bargaining power. Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vietnam's Vietnam to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Vietnam's Vietnam in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Vietnam's Vietnam digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vietnam's Vietnam has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Vietnam's Vietnam 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 Vietnam's Vietnam is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Vietnam's Vietnam is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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.
Organizational Resilience of Vietnam's Vietnam
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vietnam's Vietnam does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Technology & Operations industry
– Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges firm has clearly differentiated products in the market place. This has enabled Vietnam's Vietnam to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Vietnam's Vietnam to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Vietnam's Vietnam is one of the leading recruiters in the industry. Managers in the Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Vietnam's Vietnam is one of the most innovative firm in sector. Manager in Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Vietnam's Vietnam 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges are -
Need for greater diversity
– Vietnam's Vietnam 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Vietnam's Vietnam is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Vietnam's Vietnam 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. Vietnam's Vietnam 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.
Products dominated business model
– Even though Vietnam's Vietnam 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 - Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges, in the dynamic environment Vietnam's Vietnam has struggled to respond to the nimble upstart competition. Vietnam's Vietnam has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Vietnam's Vietnam, firm in the HBR case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Vietnam's Vietnam products
– To increase the profitability and margins on the products, Vietnam's Vietnam needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges, it seems that the employees of Vietnam's Vietnam 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Vietnam's Vietnam 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Vu Minh Khuong, Robert D. Austin suggests that, Vietnam's Vietnam 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Vietnam 's lucrative customers.
Opportunities Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges | 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges are -
Creating value in data economy
– The success of analytics program of Vietnam's Vietnam has opened avenues for new revenue streams for the organization in the industry. This can help Vietnam's Vietnam to build a more holistic ecosystem as suggested in the Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges case study. Vietnam's Vietnam 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, Vietnam's Vietnam 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, Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Vietnam's Vietnam 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.
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 Vietnam's Vietnam in the consumer business. Now Vietnam's Vietnam can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Vietnam's Vietnam to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vietnam's Vietnam 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 Vietnam's Vietnam to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Vietnam's Vietnam 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vietnam's Vietnam can use these opportunities to build new business models that can help the communities that Vietnam's Vietnam operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Vietnam's Vietnam can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Vietnam's Vietnam to increase its market reach. Vietnam's Vietnam 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vietnam's Vietnam is facing challenges because of the dominance of functional experts in the organization. Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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.
Developing new processes and practices
– Vietnam's Vietnam 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vietnam's Vietnam can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges are -
Consumer confidence and its impact on Vietnam's Vietnam 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.
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 Vietnam's Vietnam.
Environmental challenges
– Vietnam's Vietnam 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. Vietnam's Vietnam can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Technology acceleration in Forth Industrial Revolution
– Vietnam's Vietnam has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Vietnam's Vietnam 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.
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. Vietnam's Vietnam 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges, Vietnam's Vietnam 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 .
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 Vietnam's Vietnam business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 Vietnam's Vietnam in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vietnam's Vietnam 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Vietnam's Vietnam can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Vietnam's Vietnam 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges .
Shortening product life cycle
– it is one of the major threat that Vietnam's Vietnam is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Embrace of ICT for Economic Development: Success and Future Challenges 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 Vietnam's Vietnam needs to make to build a sustainable competitive advantage.
