Norpak Corp.: The Search for a Perfect Partner SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Norpak Corp.: The Search for a Perfect Partner
The president of a small Canadian high technology firm needed a strategic partner to access global markets. The search took him to Korea where Samsung became his partner of choice. Issues around the partner selection process, and around negotiating and maintaining a relationship with such a large global enterprise, emerge.
Swot Analysis of "Norpak Corp.: The Search for a Perfect Partner" written by Donald Barclay includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Partner Norpak facing as an external strategic factors. Some of the topics covered in Norpak Corp.: The Search for a Perfect Partner case study are - Strategic Management Strategies, IT, Joint ventures, Marketing, Negotiations and Global Business.
Some of the macro environment factors that can be used to understand the Norpak Corp.: The Search for a Perfect Partner casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, technology disruption, supply chains are disrupted by pandemic , increasing commodity prices,
central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Norpak Corp.: The Search for a Perfect Partner
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Norpak Corp.: The Search for a Perfect Partner case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Partner Norpak, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner can be done for the following purposes –
1. Strategic planning using facts provided in Norpak Corp.: The Search for a Perfect Partner case study
2. Improving business portfolio management of Partner Norpak
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 Partner Norpak
Strengths Norpak Corp.: The Search for a Perfect Partner | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Partner Norpak in Norpak Corp.: The Search for a Perfect Partner Harvard Business Review case study are -
Successful track record of launching new products
– Partner Norpak has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Partner Norpak 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.
Low bargaining power of suppliers
– Suppliers of Partner Norpak in the sector have low bargaining power. Norpak Corp.: The Search for a Perfect Partner has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Partner Norpak to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Global Business industry
– Norpak Corp.: The Search for a Perfect Partner firm has clearly differentiated products in the market place. This has enabled Partner Norpak to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Partner Norpak to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Partner Norpak digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Partner Norpak 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.
Training and development
– Partner Norpak has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Norpak Corp.: The Search for a Perfect Partner 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.
Learning organization
- Partner Norpak 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 Partner Norpak is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Norpak Corp.: The Search for a Perfect Partner Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Partner Norpak
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Partner Norpak does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Partner Norpak is one of the most innovative firm in sector. Manager in Norpak Corp.: The Search for a Perfect Partner Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Partner Norpak 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 Donald Barclay 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.
Ability to recruit top talent
– Partner Norpak is one of the leading recruiters in the industry. Managers in the Norpak Corp.: The Search for a Perfect Partner are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Norpak Corp.: The Search for a Perfect Partner | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Norpak Corp.: The Search for a Perfect Partner are -
High bargaining power of channel partners
– Because of the regulatory requirements, Donald Barclay suggests that, Partner Norpak 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.
Slow to strategic competitive environment developments
– As Norpak Corp.: The Search for a Perfect Partner HBR case study mentions - Partner Norpak 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Norpak Corp.: The Search for a Perfect Partner, in the dynamic environment Partner Norpak has struggled to respond to the nimble upstart competition. Partner Norpak has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Norpak Corp.: The Search for a Perfect Partner, is just above the industry average. Partner Norpak 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.
Increasing silos among functional specialists
– The organizational structure of Partner Norpak is dominated by functional specialists. It is not different from other players in the Global Business segment. Partner Norpak needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Partner Norpak to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Norpak Corp.: The Search for a Perfect Partner 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 Partner Norpak 's lucrative customers.
High cash cycle compare to competitors
Partner Norpak 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Partner Norpak 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 star products
– The top 2 products and services of the firm as mentioned in the Norpak Corp.: The Search for a Perfect Partner 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 Partner Norpak has relatively successful track record of launching new products.
Products dominated business model
– Even though Partner Norpak 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 - Norpak Corp.: The Search for a Perfect Partner should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Partner Norpak 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.
Opportunities Norpak Corp.: The Search for a Perfect Partner | 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 Norpak Corp.: The Search for a Perfect Partner are -
Leveraging digital technologies
– Partner Norpak 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.
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. Partner Norpak 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. Partner Norpak 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Partner Norpak is facing challenges because of the dominance of functional experts in the organization. Norpak Corp.: The Search for a Perfect Partner 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.
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. Partner Norpak can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Partner Norpak has opened avenues for new revenue streams for the organization in the industry. This can help Partner Norpak to build a more holistic ecosystem as suggested in the Norpak Corp.: The Search for a Perfect Partner case study. Partner Norpak can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Partner Norpak 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.
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 Partner Norpak in the consumer business. Now Partner Norpak can target international markets with far fewer capital restrictions requirements than the existing system.
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 Partner Norpak 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.
Using analytics as competitive advantage
– Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Partner Norpak to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Partner Norpak 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Partner Norpak 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, Norpak Corp.: The Search for a Perfect Partner, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Partner Norpak to increase its market reach. Partner Norpak 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Partner Norpak can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Norpak Corp.: The Search for a Perfect Partner External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Norpak Corp.: The Search for a Perfect Partner are -
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 Partner Norpak in the Global Business sector and impact the bottomline 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. Partner Norpak needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Partner Norpak has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Partner Norpak needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Partner Norpak 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Norpak Corp.: The Search for a Perfect Partner, Partner Norpak 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 Partner Norpak
– 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 Partner Norpak.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Partner Norpak with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Partner Norpak 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, Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner .
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.
Shortening product life cycle
– it is one of the major threat that Partner Norpak is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Partner Norpak 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 Norpak Corp.: The Search for a Perfect Partner 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 Norpak Corp.: The Search for a Perfect Partner 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 Norpak Corp.: The Search for a Perfect Partner 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 Norpak Corp.: The Search for a Perfect Partner 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 Norpak Corp.: The Search for a Perfect Partner 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 Partner Norpak needs to make to build a sustainable competitive advantage.
