Case Study Description of Tradelink Electronic Commerce Ltd.: Implementation Strategy
Tradelink was into the second year of the seven-year franchise granted it by the Hong Kong government. Tradelink's primary task was to transfer all paper transactions between the government and traders/manufacturers to electronic submission format. Furthermore, counters for paper submissions of trade declarations were due to close on March 31, 2000. The task of bringing on board 70,000 traders, the majority of which were small and medium-size enterprises (SMEs), seemed immense. At a higher level, Tradelink's mission was to establish an electronic commerce infrastructure within Hong Kong's trading community.
Authors :: Ali F. Farhoomand, Pauline Ng, Kwok-Keung Law, Jan Damsgaard
Swot Analysis of "Tradelink Electronic Commerce Ltd.: Implementation Strategy" written by Ali F. Farhoomand, Pauline Ng, Kwok-Keung Law, Jan Damsgaard includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tradelink's Tradelink facing as an external strategic factors. Some of the topics covered in Tradelink Electronic Commerce Ltd.: Implementation Strategy case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Tradelink Electronic Commerce Ltd.: Implementation Strategy casestudy better are - – increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, there is backlash against globalization, supply chains are disrupted by pandemic ,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Tradelink Electronic Commerce Ltd.: Implementation Strategy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tradelink Electronic Commerce Ltd.: Implementation Strategy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tradelink's Tradelink, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tradelink's Tradelink 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy can be done for the following purposes –
1. Strategic planning using facts provided in Tradelink Electronic Commerce Ltd.: Implementation Strategy case study
2. Improving business portfolio management of Tradelink's Tradelink
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 Tradelink's Tradelink
Strengths Tradelink Electronic Commerce Ltd.: Implementation Strategy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tradelink's Tradelink in Tradelink Electronic Commerce Ltd.: Implementation Strategy Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Tradelink's Tradelink in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Tradelink's Tradelink 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 Tradelink's Tradelink is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tradelink Electronic Commerce Ltd.: Implementation Strategy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Tradelink's Tradelink is one of the most innovative firm in sector. Manager in Tradelink Electronic Commerce Ltd.: Implementation Strategy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Tradelink's Tradelink 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
– Tradelink's Tradelink is one of the leading recruiters in the industry. Managers in the Tradelink Electronic Commerce Ltd.: Implementation Strategy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Tradelink's Tradelink has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tradelink's Tradelink 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.
Analytics focus
– Tradelink's Tradelink 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 Ali F. Farhoomand, Pauline Ng, Kwok-Keung Law, Jan Damsgaard 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Tradelink's Tradelink digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tradelink's Tradelink 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.
Sustainable margins compare to other players in Technology & Operations industry
– Tradelink Electronic Commerce Ltd.: Implementation Strategy firm has clearly differentiated products in the market place. This has enabled Tradelink's Tradelink to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Tradelink's Tradelink to invest into research and development (R&D) and innovation.
High brand equity
– Tradelink's Tradelink has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tradelink's Tradelink to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Tradelink's Tradelink 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Tradelink's Tradelink is present in almost all the verticals within the industry. This has provided firm in Tradelink Electronic Commerce Ltd.: Implementation Strategy 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.
Weaknesses Tradelink Electronic Commerce Ltd.: Implementation Strategy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tradelink Electronic Commerce Ltd.: Implementation Strategy are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink's Tradelink has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tradelink Electronic Commerce Ltd.: Implementation Strategy, in the dynamic environment Tradelink's Tradelink has struggled to respond to the nimble upstart competition. Tradelink's Tradelink has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Tradelink's Tradelink 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 bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Pauline Ng, Kwok-Keung Law, Jan Damsgaard suggests that, Tradelink's Tradelink 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Tradelink Electronic Commerce Ltd.: Implementation Strategy, it seems that the employees of Tradelink's Tradelink 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.
Interest costs
– Compare to the competition, Tradelink's Tradelink 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.
Need for greater diversity
– Tradelink's Tradelink 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.
Skills based hiring
– The stress on hiring functional specialists at Tradelink's Tradelink 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.
Aligning sales with marketing
– It come across in the case study Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy can leverage the sales team experience to cultivate customer relationships as Tradelink's Tradelink is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Tradelink Electronic Commerce Ltd.: Implementation Strategy, is just above the industry average. Tradelink's Tradelink 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.
Slow to strategic competitive environment developments
– As Tradelink Electronic Commerce Ltd.: Implementation Strategy HBR case study mentions - Tradelink's Tradelink takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Tradelink Electronic Commerce Ltd.: Implementation Strategy | 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy are -
Better consumer reach
– The expansion of the 5G network will help Tradelink's Tradelink to increase its market reach. Tradelink's Tradelink 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.
Creating value in data economy
– The success of analytics program of Tradelink's Tradelink has opened avenues for new revenue streams for the organization in the industry. This can help Tradelink's Tradelink to build a more holistic ecosystem as suggested in the Tradelink Electronic Commerce Ltd.: Implementation Strategy case study. Tradelink's Tradelink can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Tradelink's Tradelink in the consumer business. Now Tradelink's Tradelink can target international markets with far fewer capital restrictions requirements than the existing system.
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 Tradelink's Tradelink 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.
Buying journey improvements
– Tradelink's Tradelink can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tradelink Electronic Commerce Ltd.: Implementation Strategy 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.
Building a culture of innovation
– managers at Tradelink's Tradelink can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tradelink's Tradelink 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.
Developing new processes and practices
– Tradelink's Tradelink 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.
Leveraging digital technologies
– Tradelink's Tradelink 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tradelink's Tradelink 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, Tradelink Electronic Commerce Ltd.: Implementation Strategy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tradelink's Tradelink can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Tradelink's Tradelink can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Tradelink's Tradelink 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.
Using analytics as competitive advantage
– Tradelink's Tradelink 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tradelink's Tradelink to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Tradelink Electronic Commerce Ltd.: Implementation Strategy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tradelink Electronic Commerce Ltd.: Implementation Strategy are -
Regulatory challenges
– Tradelink's Tradelink 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 Tradelink's Tradelink 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.
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. Tradelink's Tradelink 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.
Technology acceleration in Forth Industrial Revolution
– Tradelink's Tradelink has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Tradelink's Tradelink needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Tradelink's Tradelink business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tradelink's Tradelink with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tradelink Electronic Commerce Ltd.: Implementation Strategy, Tradelink's Tradelink 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
– Tradelink's Tradelink 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.
Increasing wage structure of Tradelink's Tradelink
– 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 Tradelink's Tradelink.
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 Tradelink's Tradelink in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Tradelink's Tradelink 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. Tradelink's Tradelink can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink Electronic Commerce Ltd.: Implementation Strategy 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 Tradelink's Tradelink needs to make to build a sustainable competitive advantage.
