Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage
This article offers two integrated strategies managers can use in the face of environmental regulatory uncertainty. As integrated strategies, they both recognize non-market forces while taking into account market realities. Advocating for pragmatic, progressive policies enables firms to shape future policy around existing environmental strengths; this strategy raises competitors' costs when competitors have yet to develop identical competencies. Systematically embracing advancing regulation enables firms to satisfy activists who are pressuring policymakers to force firms to conform to higher environmental standards in other jurisdictions; this strategy allows managers to adapt to coming regulation at their own pace while leveraging market competencies. This article presents four case studies that highlight how some firms have implemented these strategies, and why some have been successful at mitigating regulatory uncertainty and some have not.
Swot Analysis of "Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage" written by Adam Fremeth, Brian K. Richter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Environmental Uncertainty facing as an external strategic factors. Some of the topics covered in Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage case study are - Strategic Management Strategies, Managing uncertainty and Global Business.
Some of the macro environment factors that can be used to understand the Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing household debt because of falling income levels, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, etc
Introduction to SWOT Analysis of Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Environmental Uncertainty, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Environmental Uncertainty 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage can be done for the following purposes –
1. Strategic planning using facts provided in Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage case study
2. Improving business portfolio management of Environmental Uncertainty
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 Environmental Uncertainty
Strengths Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Environmental Uncertainty in Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage Harvard Business Review case study are -
Successful track record of launching new products
– Environmental Uncertainty has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Environmental Uncertainty 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.
High switching costs
– The high switching costs that Environmental Uncertainty 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.
Superior customer experience
– The customer experience strategy of Environmental Uncertainty in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Environmental Uncertainty is one of the leading recruiters in the industry. Managers in the Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage firm has clearly differentiated products in the market place. This has enabled Environmental Uncertainty to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Environmental Uncertainty to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Environmental Uncertainty 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 Environmental Uncertainty 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 Environmental Uncertainty 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.
Low bargaining power of suppliers
– Suppliers of Environmental Uncertainty in the sector have low bargaining power. Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Environmental Uncertainty to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Environmental Uncertainty digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Environmental Uncertainty has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Environmental Uncertainty has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Environmental Uncertainty to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Environmental Uncertainty is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage are -
No frontier risks strategy
– After analyzing the HBR case study Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage, 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage can leverage the sales team experience to cultivate customer relationships as Environmental Uncertainty is planning to shift buying processes online.
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 Environmental Uncertainty supply chain. Even after few cautionary changes mentioned in the HBR case study - Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Environmental Uncertainty vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Environmental Uncertainty 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.
Increasing silos among functional specialists
– The organizational structure of Environmental Uncertainty is dominated by functional specialists. It is not different from other players in the Global Business segment. Environmental Uncertainty needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Environmental Uncertainty to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Environmental Uncertainty products
– To increase the profitability and margins on the products, Environmental Uncertainty needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Environmental Uncertainty, firm in the HBR case study Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage HBR case study mentions - Environmental Uncertainty 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Environmental Uncertainty 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage, in the dynamic environment Environmental Uncertainty has struggled to respond to the nimble upstart competition. Environmental Uncertainty has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Environmental Uncertainty is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage | 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage are -
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 Environmental Uncertainty in the consumer business. Now Environmental Uncertainty can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Environmental Uncertainty has opened avenues for new revenue streams for the organization in the industry. This can help Environmental Uncertainty to build a more holistic ecosystem as suggested in the Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage case study. Environmental Uncertainty can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Environmental Uncertainty 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 Environmental Uncertainty to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Environmental Uncertainty 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Environmental Uncertainty 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Environmental Uncertainty can use these opportunities to build new business models that can help the communities that Environmental Uncertainty operates in. Secondly it can use opportunities from government spending in Global Business sector.
Buying journey improvements
– Environmental Uncertainty can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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.
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 Environmental Uncertainty 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.
Leveraging digital technologies
– Environmental Uncertainty 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Environmental Uncertainty 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.
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. Environmental Uncertainty can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Environmental Uncertainty can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Environmental Uncertainty to increase its market reach. Environmental Uncertainty 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.
Threats Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage are -
Environmental challenges
– Environmental Uncertainty 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. Environmental Uncertainty 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 Environmental Uncertainty.
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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage, Environmental Uncertainty 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Environmental Uncertainty with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 Environmental Uncertainty business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Environmental Uncertainty 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.
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. Environmental Uncertainty can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Environmental Uncertainty in the Global Business sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Environmental Uncertainty 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Environmental Uncertainty 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage .
Increasing wage structure of Environmental Uncertainty
– 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 Environmental Uncertainty.
Weighted SWOT Analysis of Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Profiting from Environmental Regulatory Uncertainty: Integrated Strategies for Competitive Advantage 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 Environmental Uncertainty needs to make to build a sustainable competitive advantage.
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