Urban Renewal of Wan Chai: A Collision of People & Policy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Urban Renewal of Wan Chai: A Collision of People & Policy
Wan Chai, one of the oldest districts in Hong Kong, was appointed as one of the urban redevelopment areas in Hong Kong in 1998. The government had laid out various redevelopment plans in select sections within the district. Ever since the announcement, many community leaders, residents, and town planners have expressed the fear that Wan Chai would become an "air-conditioned glass box" if the historical buildings were torn down to make ways for high-rises. The government, on the other hand, made justifications to proceed with renewal and claimed that they have adopted a "people-oriented" approach to solve the social and cultural issues. Illustrates a classic case of disputes between policy and people in urban renewal projects and the dilemma of urban renewal and preservation of culture and community networks.
Swot Analysis of "Urban Renewal of Wan Chai: A Collision of People & Policy" written by P.S. Tso, Emily Ho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chai Wan facing as an external strategic factors. Some of the topics covered in Urban Renewal of Wan Chai: A Collision of People & Policy case study are - Strategic Management Strategies, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Urban Renewal of Wan Chai: A Collision of People & Policy casestudy better are - – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Urban Renewal of Wan Chai: A Collision of People & Policy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Urban Renewal of Wan Chai: A Collision of People & Policy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chai Wan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chai Wan 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 Urban Renewal of Wan Chai: A Collision of People & Policy can be done for the following purposes –
1. Strategic planning using facts provided in Urban Renewal of Wan Chai: A Collision of People & Policy case study
2. Improving business portfolio management of Chai Wan
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 Chai Wan
Strengths Urban Renewal of Wan Chai: A Collision of People & Policy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chai Wan in Urban Renewal of Wan Chai: A Collision of People & Policy Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Chai Wan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Chai Wan 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.
Diverse revenue streams
– Chai Wan is present in almost all the verticals within the industry. This has provided firm in Urban Renewal of Wan Chai: A Collision of People & Policy 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 Chai Wan in the sector have low bargaining power. Urban Renewal of Wan Chai: A Collision of People & Policy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chai Wan to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Chai Wan 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 Chai Wan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Urban Renewal of Wan Chai: A Collision of People & Policy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Global Business field
– Chai Wan 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 Chai Wan in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Chai Wan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chai Wan 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 Chai Wan in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Chai Wan 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 Urban Renewal of Wan Chai: A Collision of People & Policy - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Global Business industry
– Urban Renewal of Wan Chai: A Collision of People & Policy firm has clearly differentiated products in the market place. This has enabled Chai Wan to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Chai Wan to invest into research and development (R&D) and innovation.
Innovation driven organization
– Chai Wan is one of the most innovative firm in sector. Manager in Urban Renewal of Wan Chai: A Collision of People & Policy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Chai Wan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Chai Wan 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 Urban Renewal of Wan Chai: A Collision of People & Policy HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Urban Renewal of Wan Chai: A Collision of People & Policy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Urban Renewal of Wan Chai: A Collision of People & Policy are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chai Wan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Urban Renewal of Wan Chai: A Collision of People & Policy 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 star products
– The top 2 products and services of the firm as mentioned in the Urban Renewal of Wan Chai: A Collision of People & Policy 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 Chai Wan has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Urban Renewal of Wan Chai: A Collision of People & Policy, it seems that the employees of Chai Wan 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.
Low market penetration in new markets
– Outside its home market of Chai Wan, firm in the HBR case study Urban Renewal of Wan Chai: A Collision of People & Policy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Urban Renewal of Wan Chai: A Collision of People & Policy, 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.
Aligning sales with marketing
– It come across in the case study Urban Renewal of Wan Chai: A Collision of People & Policy 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 Urban Renewal of Wan Chai: A Collision of People & Policy can leverage the sales team experience to cultivate customer relationships as Chai Wan is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Urban Renewal of Wan Chai: A Collision of People & Policy HBR case study mentions - Chai Wan 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Urban Renewal of Wan Chai: A Collision of People & Policy has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Chai Wan 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Chai Wan 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, P.S. Tso, Emily Ho suggests that, Chai Wan 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.
Products dominated business model
– Even though Chai Wan 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 - Urban Renewal of Wan Chai: A Collision of People & Policy should strive to include more intangible value offerings along with its core products and services.
Opportunities Urban Renewal of Wan Chai: A Collision of People & Policy | 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 Urban Renewal of Wan Chai: A Collision of People & Policy are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chai Wan 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
– Chai Wan 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.
Loyalty marketing
– Chai Wan 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.
Learning at scale
– Online learning technologies has now opened space for Chai Wan 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chai Wan 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, Urban Renewal of Wan Chai: A Collision of People & Policy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chai Wan 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 Chai Wan to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Chai Wan has opened avenues for new revenue streams for the organization in the industry. This can help Chai Wan to build a more holistic ecosystem as suggested in the Urban Renewal of Wan Chai: A Collision of People & Policy case study. Chai Wan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chai Wan 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.
Better consumer reach
– The expansion of the 5G network will help Chai Wan to increase its market reach. Chai Wan 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. Chai Wan can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Chai Wan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chai Wan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Chai Wan is facing challenges because of the dominance of functional experts in the organization. Urban Renewal of Wan Chai: A Collision of People & Policy 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.
Threats Urban Renewal of Wan Chai: A Collision of People & Policy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Urban Renewal of Wan Chai: A Collision of People & Policy are -
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chai Wan can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Chai Wan 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chai Wan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Chai Wan business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Chai Wan 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. Chai Wan can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Chai Wan.
Technology acceleration in Forth Industrial Revolution
– Chai Wan has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Chai Wan 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.
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 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. Chai Wan needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chai Wan 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 Urban Renewal of Wan Chai: A Collision of People & Policy .
Shortening product life cycle
– it is one of the major threat that Chai Wan is facing in Global Business 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 Urban Renewal of Wan Chai: A Collision of People & Policy, Chai Wan may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chai Wan 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.
Weighted SWOT Analysis of Urban Renewal of Wan Chai: A Collision of People & Policy 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 Urban Renewal of Wan Chai: A Collision of People & Policy 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 Urban Renewal of Wan Chai: A Collision of People & Policy 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 Urban Renewal of Wan Chai: A Collision of People & Policy 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 Urban Renewal of Wan Chai: A Collision of People & Policy 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 Chai Wan needs to make to build a sustainable competitive advantage.