Case Study Description of Aligning Supply Chain Strategies with Product Uncertainties
Today's supply chain managers have been bombarded with a wide variety of the so-called leading-edge supply chain strategies. New terminologies and initiatives are being developed constantly. However, not all of these initiatives or strategies are appropriate for all firms. Companies need first to understand the uncertainties facing the demand and supply of its products and then try to match these uncertainties with the right supply chain strategies. Based on an analysis of the uncertainties of supply and demand facing the firm, this article develops a framework that can assist managers in developing the right supply chain strategy for their products.
Swot Analysis of "Aligning Supply Chain Strategies with Product Uncertainties" written by Hau Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Supply Uncertainties facing as an external strategic factors. Some of the topics covered in Aligning Supply Chain Strategies with Product Uncertainties case study are - Strategic Management Strategies, Economy, Managing uncertainty, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Aligning Supply Chain Strategies with Product Uncertainties casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing commodity prices,
increasing transportation and logistics costs, increasing energy prices, etc
Introduction to SWOT Analysis of Aligning Supply Chain Strategies with Product Uncertainties
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Aligning Supply Chain Strategies with Product Uncertainties case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Supply Uncertainties, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Supply Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties can be done for the following purposes –
1. Strategic planning using facts provided in Aligning Supply Chain Strategies with Product Uncertainties case study
2. Improving business portfolio management of Supply Uncertainties
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 Uncertainties
Strengths Aligning Supply Chain Strategies with Product Uncertainties | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Supply Uncertainties in Aligning Supply Chain Strategies with Product Uncertainties Harvard Business Review case study are -
High switching costs
– The high switching costs that Supply Uncertainties 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.
High brand equity
– Supply Uncertainties has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Supply Uncertainties to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Supply Uncertainties is one of the leading recruiters in the industry. Managers in the Aligning Supply Chain Strategies with Product Uncertainties are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Supply Uncertainties in the sector have low bargaining power. Aligning Supply Chain Strategies with Product Uncertainties has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Supply Uncertainties to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Supply Uncertainties in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Aligning Supply Chain Strategies with Product Uncertainties 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Supply Uncertainties digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Supply Uncertainties 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.
Innovation driven organization
– Supply Uncertainties is one of the most innovative firm in sector. Manager in Aligning Supply Chain Strategies with Product Uncertainties Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Technology & Operations field
– Supply Uncertainties is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Supply Uncertainties in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Supply Uncertainties
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Supply Uncertainties 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
– Aligning Supply Chain Strategies with Product Uncertainties firm has clearly differentiated products in the market place. This has enabled Supply Uncertainties to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Supply Uncertainties to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Supply Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Aligning Supply Chain Strategies with Product Uncertainties | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aligning Supply Chain Strategies with Product Uncertainties are -
No frontier risks strategy
– After analyzing the HBR case study Aligning Supply Chain Strategies with Product Uncertainties, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Need for greater diversity
– Supply Uncertainties 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Aligning Supply Chain Strategies with Product Uncertainties 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 Supply Uncertainties has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Supply Uncertainties, firm in the HBR case study Aligning Supply Chain Strategies with Product Uncertainties needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Hau Lee suggests that, Supply Uncertainties 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Aligning Supply Chain Strategies with Product Uncertainties, in the dynamic environment Supply Uncertainties has struggled to respond to the nimble upstart competition. Supply Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties, is just above the industry average. Supply Uncertainties 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 Uncertainties 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 - Aligning Supply Chain Strategies with Product Uncertainties should strive to include more intangible value offerings along with its core products and services.
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 Uncertainties supply chain. Even after few cautionary changes mentioned in the HBR case study - Aligning Supply Chain Strategies with Product Uncertainties, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Supply Uncertainties vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Aligning Supply Chain Strategies with Product Uncertainties, it seems that the employees of Supply Uncertainties 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 operating costs
– Compare to the competitors, firm in the HBR case study Aligning Supply Chain Strategies with Product Uncertainties 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 Uncertainties 's lucrative customers.
Opportunities Aligning Supply Chain Strategies with Product Uncertainties | 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 Aligning Supply Chain Strategies with Product Uncertainties are -
Creating value in data economy
– The success of analytics program of Supply Uncertainties has opened avenues for new revenue streams for the organization in the industry. This can help Supply Uncertainties to build a more holistic ecosystem as suggested in the Aligning Supply Chain Strategies with Product Uncertainties case study. Supply Uncertainties can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Supply Uncertainties 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 Supply Uncertainties to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Supply Uncertainties 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.
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. Supply Uncertainties can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Supply Uncertainties to increase its market reach. Supply Uncertainties 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Supply Uncertainties 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.
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 Uncertainties 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Supply Uncertainties is facing challenges because of the dominance of functional experts in the organization. Aligning Supply Chain Strategies with Product Uncertainties 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.
Buying journey improvements
– Supply Uncertainties can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Aligning Supply Chain Strategies with Product Uncertainties 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.
Learning at scale
– Online learning technologies has now opened space for Supply Uncertainties 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.
Leveraging digital technologies
– Supply Uncertainties 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.
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. Supply Uncertainties can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Supply Uncertainties 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.
Threats Aligning Supply Chain Strategies with Product Uncertainties External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Aligning Supply Chain Strategies with Product Uncertainties are -
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 Supply Uncertainties business can come under increasing regulations regarding data privacy, data security, 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. Supply Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties, Supply Uncertainties 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 dependence on third party suppliers
– Supply Uncertainties high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
Stagnating economy with rate increase
– Supply Uncertainties 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 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.
Shortening product life cycle
– it is one of the major threat that Supply Uncertainties is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Supply Uncertainties.
Regulatory challenges
– Supply Uncertainties 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.
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 Uncertainties needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Supply Uncertainties can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Supply Uncertainties
– 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 Uncertainties.
Weighted SWOT Analysis of Aligning Supply Chain Strategies with Product Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties 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 Uncertainties needs to make to build a sustainable competitive advantage.