Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A)
Ho Tak Kee was originally a professional publisher and printer that started in the 1950s in Hong Kong. Having faced static performance for decades, the founder and grandfather of the family decided to close the printing department. This pushed his youngest son, On-ping, to a critical decision: whether and how to continue the family business. Under pressure, On-ping turned to his son John for support but the request put John in a difficult position of choosing between a professional career and the family business. As a young man without much life and work experience, John had to go through a personal development process to shape up as a leader in order to make the family business thrive again and keep the family together. Case (A) is from John's point of view as he is making his decision and is intended to stimulate students to look at a family business from a third generation's perspective. Case (B) starts with John's decision to join Ho Tak Kee.
Swot Analysis of "Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A)" written by Kevin Au, Barbara Li includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kee Tak facing as an external strategic factors. Some of the topics covered in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) case study are - Strategic Management Strategies, Growth strategy, Succession planning and Global Business.
Some of the macro environment factors that can be used to understand the Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) casestudy better are - – increasing household debt because of falling income levels, geopolitical disruptions, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kee Tak, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kee Tak 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) can be done for the following purposes –
1. Strategic planning using facts provided in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) case study
2. Improving business portfolio management of Kee Tak
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 Kee Tak
Strengths Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kee Tak in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) Harvard Business Review case study are -
Innovation driven organization
– Kee Tak is one of the most innovative firm in sector. Manager in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Kee Tak
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kee Tak does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Kee Tak is one of the leading recruiters in the industry. Managers in the Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Kee Tak in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Kee Tak 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Kee Tak 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Kee Tak digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kee Tak 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 Kee Tak 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 Kee Tak in the sector have low bargaining power. Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kee Tak to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Kee Tak 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 Kee Tak is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Kee Tak 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 Kevin Au, Barbara Li 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.
Successful track record of launching new products
– Kee Tak has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Kee Tak 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.
Weaknesses Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) are -
Aligning sales with marketing
– It come across in the case study Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) can leverage the sales team experience to cultivate customer relationships as Kee Tak is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Kee Tak needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 Kee Tak supply chain. Even after few cautionary changes mentioned in the HBR case study - Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kee Tak vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Kee Tak 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.
Interest costs
– Compare to the competition, Kee Tak 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.
Slow decision making process
– As mentioned earlier in the report, Kee Tak has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Kee Tak even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Kee Tak, firm in the HBR case study Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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, Kee Tak is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Kee Tak products
– To increase the profitability and margins on the products, Kee Tak needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Kee Tak has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A), is just above the industry average. Kee Tak needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) | 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) are -
Leveraging digital technologies
– Kee Tak 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kee Tak 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 Kee Tak to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Kee Tak can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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.
Better consumer reach
– The expansion of the 5G network will help Kee Tak to increase its market reach. Kee Tak 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.
Loyalty marketing
– Kee Tak 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.
Creating value in data economy
– The success of analytics program of Kee Tak has opened avenues for new revenue streams for the organization in the industry. This can help Kee Tak to build a more holistic ecosystem as suggested in the Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) case study. Kee Tak can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Kee Tak 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.
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. Kee Tak can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kee Tak is facing challenges because of the dominance of functional experts in the organization. Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kee Tak 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.
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. Kee Tak 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. Kee Tak 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kee Tak can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Kee Tak can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) are -
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 Kee Tak business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Kee Tak 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.
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.
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 Kee Tak.
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. Kee Tak can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Kee Tak has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Kee Tak 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.
Consumer confidence and its impact on Kee Tak 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.
Environmental challenges
– Kee Tak 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. Kee Tak can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Kee Tak 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.
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. Kee Tak needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Kee Tak 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A), Kee Tak 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 .
Increasing wage structure of Kee Tak
– 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 Kee Tak.
Weighted SWOT Analysis of Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Ho Tak Kee Book Co. Ltd. - A Third Generation at a Crossroads (A) 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 Kee Tak needs to make to build a sustainable competitive advantage.
