Bottlenecks in Land Supply: Government or Developers to Blame? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bottlenecks in Land Supply: Government or Developers to Blame?
The Hong Kong government's land policy seems to aggravate the shortage of land supply there. All land is owned by the government and is released at stipulated times when supply is considered to be short. But the government's policy is not the only factor influencing the supply of land in Hong Kong. When developers buy land from the government, they are not required to build immediately; instead, they often buy new land to augment their land banks. A handful of large developers, therefore, have the power to influence land supply and, thus, prices. The result is a shortage of properties, high prices, and an average unit size that is smaller than that of other countries.
Swot Analysis of "Bottlenecks in Land Supply: Government or Developers to Blame?" written by Ka-Fu Wong, Carola Ramon-Berjano includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Land Supply facing as an external strategic factors. Some of the topics covered in Bottlenecks in Land Supply: Government or Developers to Blame? case study are - Strategic Management Strategies, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Bottlenecks in Land Supply: Government or Developers to Blame? casestudy better are - – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, technology disruption, wage bills are increasing, geopolitical disruptions, increasing household debt because of falling income levels, increasing transportation and logistics costs,
increasing commodity prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Bottlenecks in Land Supply: Government or Developers to Blame?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bottlenecks in Land Supply: Government or Developers to Blame? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Land Supply, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Land Supply 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 Bottlenecks in Land Supply: Government or Developers to Blame? can be done for the following purposes –
1. Strategic planning using facts provided in Bottlenecks in Land Supply: Government or Developers to Blame? case study
2. Improving business portfolio management of Land Supply
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Land Supply
Strengths Bottlenecks in Land Supply: Government or Developers to Blame? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Land Supply in Bottlenecks in Land Supply: Government or Developers to Blame? Harvard Business Review case study are -
Diverse revenue streams
– Land Supply is present in almost all the verticals within the industry. This has provided firm in Bottlenecks in Land Supply: Government or Developers to Blame? 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.
Low bargaining power of suppliers
– Suppliers of Land Supply in the sector have low bargaining power. Bottlenecks in Land Supply: Government or Developers to Blame? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Land Supply to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Land Supply 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 Land Supply is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bottlenecks in Land Supply: Government or Developers to Blame? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Land Supply is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– Bottlenecks in Land Supply: Government or Developers to Blame? firm has clearly differentiated products in the market place. This has enabled Land Supply to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Land Supply to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Land Supply in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Land Supply has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Land Supply to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Land Supply digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Land Supply 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.
Cross disciplinary teams
– Horizontal connected teams at the Land Supply 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.
Training and development
– Land Supply has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bottlenecks in Land Supply: Government or Developers to Blame? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High switching costs
– The high switching costs that Land Supply 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 lead change in Global Business field
– Land Supply 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 Land Supply in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Bottlenecks in Land Supply: Government or Developers to Blame? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bottlenecks in Land Supply: Government or Developers to Blame? are -
Skills based hiring
– The stress on hiring functional specialists at Land Supply 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ka-Fu Wong, Carola Ramon-Berjano suggests that, Land Supply 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.
Aligning sales with marketing
– It come across in the case study Bottlenecks in Land Supply: Government or Developers to Blame? 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 Bottlenecks in Land Supply: Government or Developers to Blame? can leverage the sales team experience to cultivate customer relationships as Land Supply is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Bottlenecks in Land Supply: Government or Developers to Blame? HBR case study mentions - Land Supply 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.
Low market penetration in new markets
– Outside its home market of Land Supply, firm in the HBR case study Bottlenecks in Land Supply: Government or Developers to Blame? 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, Land Supply is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bottlenecks in Land Supply: Government or Developers to Blame? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Land Supply supply chain. Even after few cautionary changes mentioned in the HBR case study - Bottlenecks in Land Supply: Government or Developers to Blame?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Land Supply vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Land Supply is dominated by functional specialists. It is not different from other players in the Global Business segment. Land Supply needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Land Supply to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Bottlenecks in Land Supply: Government or Developers to Blame?, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Interest costs
– Compare to the competition, Land Supply 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bottlenecks in Land Supply: Government or Developers to Blame? 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 Land Supply has relatively successful track record of launching new products.
Opportunities Bottlenecks in Land Supply: Government or Developers to Blame? | 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 Bottlenecks in Land Supply: Government or Developers to Blame? are -
Buying journey improvements
– Land Supply can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bottlenecks in Land Supply: Government or Developers to Blame? 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Land Supply is facing challenges because of the dominance of functional experts in the organization. Bottlenecks in Land Supply: Government or Developers to Blame? 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Land Supply 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 Land Supply to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Land Supply to increase its market reach. Land Supply 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.
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. Land Supply can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Land Supply 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.
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 Land Supply in the consumer business. Now Land Supply can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Land Supply can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Land Supply can use these opportunities to build new business models that can help the communities that Land Supply operates in. Secondly it can use opportunities from government spending in Global Business sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Land Supply 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. Land Supply 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.
Building a culture of innovation
– managers at Land Supply 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 Global Business segment.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Land Supply in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Land Supply 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.
Threats Bottlenecks in Land Supply: Government or Developers to Blame? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bottlenecks in Land Supply: Government or Developers to Blame? are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Land Supply 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 Bottlenecks in Land Supply: Government or Developers to Blame? .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Land Supply in the Global Business industry. The Global Business 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.
Environmental challenges
– Land Supply 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. Land Supply can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Shortening product life cycle
– it is one of the major threat that Land Supply is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Technology acceleration in Forth Industrial Revolution
– Land Supply has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Land Supply needs to keep up with the evolution of technology in the Global Business 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 dependence on third party suppliers
– Land Supply 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.
Consumer confidence and its impact on Land Supply 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.
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 Land Supply business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Land Supply 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.
Regulatory challenges
– Land Supply 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 Global Business industry regulations.
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. Land Supply 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.
Weighted SWOT Analysis of Bottlenecks in Land Supply: Government or Developers to Blame? 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 Bottlenecks in Land Supply: Government or Developers to Blame? 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 Bottlenecks in Land Supply: Government or Developers to Blame? 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 Bottlenecks in Land Supply: Government or Developers to Blame? 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 Bottlenecks in Land Supply: Government or Developers to Blame? 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 Land Supply needs to make to build a sustainable competitive advantage.
