Search Costs and Market Efficiency in Emerging Economies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Search Costs and Market Efficiency in Emerging Economies
This note summarizes recent research on how information technology (such as mobile phones or internet) can be used to reduce costs associated with searching for prices, as well as the associated increases in social welfare.
Swot Analysis of "Search Costs and Market Efficiency in Emerging Economies" written by Tarun Jain, Rohini Ray includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Costs Searching facing as an external strategic factors. Some of the topics covered in Search Costs and Market Efficiency in Emerging Economies case study are - Strategic Management Strategies, Technology and Global Business.
Some of the macro environment factors that can be used to understand the Search Costs and Market Efficiency in Emerging Economies casestudy better are - – technology disruption, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, increasing commodity prices,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Search Costs and Market Efficiency in Emerging Economies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Search Costs and Market Efficiency in Emerging Economies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Costs Searching, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Costs Searching 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 Search Costs and Market Efficiency in Emerging Economies can be done for the following purposes –
1. Strategic planning using facts provided in Search Costs and Market Efficiency in Emerging Economies case study
2. Improving business portfolio management of Costs Searching
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 Costs Searching
Strengths Search Costs and Market Efficiency in Emerging Economies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Costs Searching in Search Costs and Market Efficiency in Emerging Economies Harvard Business Review case study are -
Successful track record of launching new products
– Costs Searching has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Costs Searching 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.
Cross disciplinary teams
– Horizontal connected teams at the Costs Searching 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.
Ability to recruit top talent
– Costs Searching is one of the leading recruiters in the industry. Managers in the Search Costs and Market Efficiency in Emerging Economies are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Costs Searching 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 Costs Searching is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Search Costs and Market Efficiency in Emerging Economies Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Search Costs and Market Efficiency in Emerging Economies 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.
Low bargaining power of suppliers
– Suppliers of Costs Searching in the sector have low bargaining power. Search Costs and Market Efficiency in Emerging Economies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Costs Searching to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Costs Searching 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 Tarun Jain, Rohini Ray 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.
High brand equity
– Costs Searching has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Costs Searching to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Costs Searching
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Costs Searching does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Costs Searching 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.
Innovation driven organization
– Costs Searching is one of the most innovative firm in sector. Manager in Search Costs and Market Efficiency in Emerging Economies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Costs Searching digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Costs Searching 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.
Weaknesses Search Costs and Market Efficiency in Emerging Economies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Search Costs and Market Efficiency in Emerging Economies are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Search Costs and Market Efficiency in Emerging Economies, in the dynamic environment Costs Searching has struggled to respond to the nimble upstart competition. Costs Searching has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Search Costs and Market Efficiency in Emerging Economies 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 Search Costs and Market Efficiency in Emerging Economies can leverage the sales team experience to cultivate customer relationships as Costs Searching is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Costs Searching 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. Costs Searching 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.
Capital Spending Reduction
– Even during the low interest decade, Costs Searching 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.
No frontier risks strategy
– After analyzing the HBR case study Search Costs and Market Efficiency in Emerging Economies, 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.
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 Costs Searching supply chain. Even after few cautionary changes mentioned in the HBR case study - Search Costs and Market Efficiency in Emerging Economies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Costs Searching vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Search Costs and Market Efficiency in Emerging Economies HBR case study mentions - Costs Searching 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.
Increasing silos among functional specialists
– The organizational structure of Costs Searching is dominated by functional specialists. It is not different from other players in the Global Business segment. Costs Searching needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Costs Searching to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Costs Searching 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.
High cash cycle compare to competitors
Costs Searching 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.
Low market penetration in new markets
– Outside its home market of Costs Searching, firm in the HBR case study Search Costs and Market Efficiency in Emerging Economies needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Search Costs and Market Efficiency in Emerging Economies | 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 Search Costs and Market Efficiency in Emerging Economies 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, Costs Searching can use these opportunities to build new business models that can help the communities that Costs Searching operates in. Secondly it can use opportunities from government spending in Global Business sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Costs Searching 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Costs Searching 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. Costs Searching 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. Costs Searching 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.
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 Costs Searching in the consumer business. Now Costs Searching can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Costs Searching 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Costs Searching 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, Search Costs and Market Efficiency in Emerging Economies, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Costs Searching 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.
Using analytics as competitive advantage
– Costs Searching 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 Search Costs and Market Efficiency in Emerging Economies - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Costs Searching to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Costs Searching can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Costs Searching 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Costs Searching can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Costs Searching 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 Costs Searching to hire the very best people irrespective of their geographical location.
Threats Search Costs and Market Efficiency in Emerging Economies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Search Costs and Market Efficiency in Emerging Economies are -
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. Costs Searching needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
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. Costs Searching can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Search Costs and Market Efficiency in Emerging Economies, Costs Searching 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 .
Shortening product life cycle
– it is one of the major threat that Costs Searching is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Costs Searching
– 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 Costs Searching.
High dependence on third party suppliers
– Costs Searching 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.
Technology acceleration in Forth Industrial Revolution
– Costs Searching has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Costs Searching 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.
Regulatory challenges
– Costs Searching 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.
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 Costs Searching.
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.
Environmental challenges
– Costs Searching 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. Costs Searching can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Costs Searching business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Search Costs and Market Efficiency in Emerging Economies 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 Search Costs and Market Efficiency in Emerging Economies 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 Search Costs and Market Efficiency in Emerging Economies 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 Search Costs and Market Efficiency in Emerging Economies 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 Search Costs and Market Efficiency in Emerging Economies 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 Costs Searching needs to make to build a sustainable competitive advantage.
