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 - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
increasing government debt because of Covid-19 spendings, increasing commodity 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 -
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.
Cross disciplinary teams
– Horizontal connected teams at the Supply Uncertainties 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.
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.
Strong track record of project management
– Supply Uncertainties is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
Learning organization
- Supply Uncertainties is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Supply Uncertainties is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Aligning Supply Chain Strategies with Product Uncertainties Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Supply Uncertainties is present in almost all the verticals within the industry. This has provided firm in Aligning Supply Chain Strategies with Product Uncertainties 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.
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.
Successful track record of launching new products
– Supply Uncertainties has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Supply Uncertainties has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
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.
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.
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 -
High cash cycle compare to competitors
Supply Uncertainties 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 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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Supply Uncertainties is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Aligning Supply Chain Strategies with Product Uncertainties can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Lack of clear differentiation of Supply Uncertainties products
– To increase the profitability and margins on the products, Supply Uncertainties needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Supply Uncertainties is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Supply Uncertainties needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Supply Uncertainties to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Aligning Supply Chain Strategies with Product Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties can leverage the sales team experience to cultivate customer relationships as Supply Uncertainties is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Supply Uncertainties 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.
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.
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.
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 -
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.
Manufacturing automation
– Supply Uncertainties 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.
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.
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.
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Supply Uncertainties in the consumer business. Now Supply Uncertainties can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Loyalty marketing
– Supply Uncertainties 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.
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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Supply Uncertainties 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, Aligning Supply Chain Strategies with Product Uncertainties, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Supply Uncertainties 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 Aligning Supply Chain Strategies with Product Uncertainties .
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.
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.
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.
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.
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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Supply Uncertainties 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.
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 Supply Uncertainties in the Technology & Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Supply Uncertainties has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Supply Uncertainties 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. 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.
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.
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.