How Do Intelligent Goods Shape Closed-Loop Systems? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of How Do Intelligent Goods Shape Closed-Loop Systems?
Disruptive technologies can increase the intelligence of goods and revitalize business models in the circular economy. Applying an industrial ecology perspective, this article discusses how intelligent goods can boost the sustainability of industrial ecosystems. North American and European cases highlight how business model innovators can utilize goods-related information to develop more competitive closedloop systems. The authors identify three archetypes of closed-loop systems--inner circles, decentralized systems, and open systems--and delineate how they leverage information resources for collaboration. This study advances the understanding of closed-loop systems in the circular economy, which is more dependent than ever on digital platforms.
Authors :: Risto Rajala, Esko Hakanen, Juri Mattila, Timo Seppala
Swot Analysis of "How Do Intelligent Goods Shape Closed-Loop Systems?" written by Risto Rajala, Esko Hakanen, Juri Mattila, Timo Seppala includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Loop Systems facing as an external strategic factors. Some of the topics covered in How Do Intelligent Goods Shape Closed-Loop Systems? case study are - Strategic Management Strategies, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the How Do Intelligent Goods Shape Closed-Loop Systems? casestudy better are - – there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing transportation and logistics costs, there is backlash against globalization, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings,
geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of How Do Intelligent Goods Shape Closed-Loop Systems?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How Do Intelligent Goods Shape Closed-Loop Systems? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Loop Systems, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems? can be done for the following purposes –
1. Strategic planning using facts provided in How Do Intelligent Goods Shape Closed-Loop Systems? case study
2. Improving business portfolio management of Loop Systems
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Loop Systems
Strengths How Do Intelligent Goods Shape Closed-Loop Systems? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Loop Systems in How Do Intelligent Goods Shape Closed-Loop Systems? Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Loop Systems 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 Loop Systems in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Loop Systems 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.
Strong track record of project management
– Loop Systems is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Loop Systems is one of the most innovative firm in sector. Manager in How Do Intelligent Goods Shape Closed-Loop Systems? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Loop Systems is present in almost all the verticals within the industry. This has provided firm in How Do Intelligent Goods Shape Closed-Loop Systems? 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– How Do Intelligent Goods Shape Closed-Loop Systems? firm has clearly differentiated products in the market place. This has enabled Loop Systems to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Loop Systems to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Loop Systems in the sector have low bargaining power. How Do Intelligent Goods Shape Closed-Loop Systems? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Loop Systems to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Loop Systems 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 Loop Systems is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in How Do Intelligent Goods Shape Closed-Loop Systems? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Loop Systems is one of the leading recruiters in the industry. Managers in the How Do Intelligent Goods Shape Closed-Loop Systems? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the How Do Intelligent Goods Shape Closed-Loop Systems? 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.
Weaknesses How Do Intelligent Goods Shape Closed-Loop Systems? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How Do Intelligent Goods Shape Closed-Loop Systems? are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the How Do Intelligent Goods Shape Closed-Loop Systems? 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 Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems?, in the dynamic environment Loop Systems has struggled to respond to the nimble upstart competition. Loop Systems has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As How Do Intelligent Goods Shape Closed-Loop Systems? HBR case study mentions - Loop Systems 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.
Capital Spending Reduction
– Even during the low interest decade, Loop Systems 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.
Products dominated business model
– Even though Loop Systems 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 - How Do Intelligent Goods Shape Closed-Loop Systems? should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Loop Systems 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.
Low market penetration in new markets
– Outside its home market of Loop Systems, firm in the HBR case study How Do Intelligent Goods Shape Closed-Loop Systems? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Loop Systems 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.
Aligning sales with marketing
– It come across in the case study How Do Intelligent Goods Shape Closed-Loop Systems? 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 How Do Intelligent Goods Shape Closed-Loop Systems? can leverage the sales team experience to cultivate customer relationships as Loop Systems is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Loop Systems 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. Loop Systems 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Loop Systems is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study How Do Intelligent Goods Shape Closed-Loop Systems? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities How Do Intelligent Goods Shape Closed-Loop Systems? | 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 How Do Intelligent Goods Shape Closed-Loop Systems? are -
Learning at scale
– Online learning technologies has now opened space for Loop Systems 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.
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 Loop Systems 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.
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 Loop Systems in the consumer business. Now Loop Systems can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Loop Systems 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Loop Systems can use these opportunities to build new business models that can help the communities that Loop Systems operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Loop Systems 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. Loop Systems 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Loop Systems can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Using analytics as competitive advantage
– Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Loop Systems to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Loop Systems has opened avenues for new revenue streams for the organization in the industry. This can help Loop Systems to build a more holistic ecosystem as suggested in the How Do Intelligent Goods Shape Closed-Loop Systems? case study. Loop Systems can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Loop Systems is facing challenges because of the dominance of functional experts in the organization. How Do Intelligent Goods Shape Closed-Loop Systems? 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
– Loop Systems can develop new processes and procedures in Leadership & Managing People 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.
Buying journey improvements
– Loop Systems can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. How Do Intelligent Goods Shape Closed-Loop Systems? 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Loop Systems 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, How Do Intelligent Goods Shape Closed-Loop Systems?, 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 How Do Intelligent Goods Shape Closed-Loop Systems? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How Do Intelligent Goods Shape Closed-Loop Systems? are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Loop Systems with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Loop Systems can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Loop Systems in the Leadership & Managing People industry. The Leadership & Managing People 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.
Technology acceleration in Forth Industrial Revolution
– Loop Systems has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Loop Systems needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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. Loop Systems needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Loop Systems is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study How Do Intelligent Goods Shape Closed-Loop Systems?, Loop Systems may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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 Loop Systems business can come under increasing regulations regarding data privacy, data security, etc.
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 Loop Systems in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Loop Systems 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 How Do Intelligent Goods Shape Closed-Loop Systems? .
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.
High dependence on third party suppliers
– Loop Systems 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.
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 Loop Systems.
Weighted SWOT Analysis of How Do Intelligent Goods Shape Closed-Loop Systems? 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 How Do Intelligent Goods Shape Closed-Loop Systems? 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 How Do Intelligent Goods Shape Closed-Loop Systems? 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 How Do Intelligent Goods Shape Closed-Loop Systems? 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 How Do Intelligent Goods Shape Closed-Loop Systems? 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 Loop Systems needs to make to build a sustainable competitive advantage.
