Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Searching for Trade Remedies: The U.S. Machine Tool Industry--1983
In 1983 the National Machine Tools Builder Association was predicting a declining market for the United States and rising imports. Machine tool manufacturers had to decide if they should ask the U.S. government for help, and if they did, which administrative channels offered the most promise. This case examines the competitive position of the U.S. industry in 1983 compared to Japan, Germany, and the newly industrialized countries; and, in conjunction with United States Trade Law, explores some of the governmental options that were available.
Swot Analysis of "Searching for Trade Remedies: The U.S. Machine Tool Industry--1983" written by David B. Yoffie, Richard Phelps includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 1983 Machine facing as an external strategic factors. Some of the topics covered in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 case study are - Strategic Management Strategies, International business, Manufacturing, Regulation and Global Business.
Some of the macro environment factors that can be used to understand the Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 casestudy better are - – 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, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, technology disruption,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Searching for Trade Remedies: The U.S. Machine Tool Industry--1983
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 1983 Machine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 1983 Machine 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 can be done for the following purposes –
1. Strategic planning using facts provided in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 case study
2. Improving business portfolio management of 1983 Machine
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 1983 Machine
Strengths Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 1983 Machine in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 Harvard Business Review case study are -
Highly skilled collaborators
– 1983 Machine 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– 1983 Machine is one of the leading recruiters in the industry. Managers in the Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of 1983 Machine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– 1983 Machine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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.
Analytics focus
– 1983 Machine is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by David B. Yoffie, Richard Phelps can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For 1983 Machine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 1983 Machine 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
– 1983 Machine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 1983 Machine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– 1983 Machine is present in almost all the verticals within the industry. This has provided firm in Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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.
Strong track record of project management
– 1983 Machine is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– 1983 Machine has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 1983 Machine 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 1983 Machine 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.
Sustainable margins compare to other players in Global Business industry
– Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 firm has clearly differentiated products in the market place. This has enabled 1983 Machine to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped 1983 Machine to invest into research and development (R&D) and innovation.
Weaknesses Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 are -
Capital Spending Reduction
– Even during the low interest decade, 1983 Machine 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983, in the dynamic environment 1983 Machine has struggled to respond to the nimble upstart competition. 1983 Machine has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, David B. Yoffie, Richard Phelps suggests that, 1983 Machine 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.
Need for greater diversity
– 1983 Machine has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 1983 Machine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983, 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.
Lack of clear differentiation of 1983 Machine products
– To increase the profitability and margins on the products, 1983 Machine needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at 1983 Machine 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983, it seems that the employees of 1983 Machine 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.
Aligning sales with marketing
– It come across in the case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 can leverage the sales team experience to cultivate customer relationships as 1983 Machine is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of 1983 Machine is dominated by functional specialists. It is not different from other players in the Global Business segment. 1983 Machine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 1983 Machine to focus more on services rather than just following the product oriented approach.
Opportunities Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 | 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 1983 Machine can use these opportunities to build new business models that can help the communities that 1983 Machine operates in. Secondly it can use opportunities from government spending in Global Business sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 1983 Machine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at 1983 Machine 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.
Using analytics as competitive advantage
– 1983 Machine 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 1983 Machine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 1983 Machine 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, Searching for Trade Remedies: The U.S. Machine Tool Industry--1983, 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 1983 Machine 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 1983 Machine to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of 1983 Machine has opened avenues for new revenue streams for the organization in the industry. This can help 1983 Machine to build a more holistic ecosystem as suggested in the Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 case study. 1983 Machine can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for 1983 Machine 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.
Developing new processes and practices
– 1983 Machine can develop new processes and procedures in Global Business 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.
Manufacturing automation
– 1983 Machine can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 1983 Machine is facing challenges because of the dominance of functional experts in the organization. Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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.
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. 1983 Machine 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. 1983 Machine 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.
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. 1983 Machine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 are -
Regulatory challenges
– 1983 Machine 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 1983 Machine 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.
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. 1983 Machine 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, 1983 Machine 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 .
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. 1983 Machine 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Searching for Trade Remedies: The U.S. Machine Tool Industry--1983, 1983 Machine 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 .
High dependence on third party suppliers
– 1983 Machine 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.
Stagnating economy with rate increase
– 1983 Machine 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 wage structure of 1983 Machine
– 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 1983 Machine.
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 1983 Machine business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on 1983 Machine 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents 1983 Machine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 Searching for Trade Remedies: The U.S. Machine Tool Industry--1983 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 1983 Machine needs to make to build a sustainable competitive advantage.
