Replacing Hong Kong's ID Card (B): Debating the Options SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Replacing Hong Kong's ID Card (B): Debating the Options
Discusses the plans of the Hong Kong government to seek approval of its proposal to replace the current Hong Kong ID card with a smart ID card. The approval in question is sought from the Hong Kong legislature. Supplies material for an in-class debate on the government's proposal to replace the current ID card with a smart ID card. The government's proposal calls for a multiapplication smart ID card. This is one of three options recommended in a consultant report. Students are invited to play the role of legislators and defend their preferred option.
Swot Analysis of "Replacing Hong Kong's ID Card (B): Debating the Options" written by Ali F. Farhoomand, Francois Roy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Id Card facing as an external strategic factors. Some of the topics covered in Replacing Hong Kong's ID Card (B): Debating the Options case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Replacing Hong Kong's ID Card (B): Debating the Options casestudy better are - – wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing commodity prices, geopolitical disruptions, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing energy prices,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Replacing Hong Kong's ID Card (B): Debating the Options
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Replacing Hong Kong's ID Card (B): Debating the Options case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Id Card, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options can be done for the following purposes –
1. Strategic planning using facts provided in Replacing Hong Kong's ID Card (B): Debating the Options case study
2. Improving business portfolio management of Id Card
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 Id Card
Strengths Replacing Hong Kong's ID Card (B): Debating the Options | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Id Card in Replacing Hong Kong's ID Card (B): Debating the Options Harvard Business Review case study are -
Ability to recruit top talent
– Id Card is one of the leading recruiters in the industry. Managers in the Replacing Hong Kong's ID Card (B): Debating the Options are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Id Card has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Replacing Hong Kong's ID Card (B): Debating the Options 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.
Low bargaining power of suppliers
– Suppliers of Id Card in the sector have low bargaining power. Replacing Hong Kong's ID Card (B): Debating the Options has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Id Card to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Global Business field
– Id Card is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Id Card in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Id Card has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Id Card to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Id Card 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.
Cross disciplinary teams
– Horizontal connected teams at the Id Card 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.
Learning organization
- Id Card 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 Id Card is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Replacing Hong Kong's ID Card (B): Debating the Options Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Id Card is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Id Card
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Id Card does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Id Card digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Replacing Hong Kong's ID Card (B): Debating the Options are -
Slow to strategic competitive environment developments
– As Replacing Hong Kong's ID Card (B): Debating the Options HBR case study mentions - Id Card 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Replacing Hong Kong's ID Card (B): Debating the Options, it seems that the employees of Id Card 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.
Capital Spending Reduction
– Even during the low interest decade, Id Card 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.
High cash cycle compare to competitors
Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options, is just above the industry average. Id Card 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Replacing Hong Kong's ID Card (B): Debating the Options, in the dynamic environment Id Card has struggled to respond to the nimble upstart competition. Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options 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 Replacing Hong Kong's ID Card (B): Debating the Options can leverage the sales team experience to cultivate customer relationships as Id Card is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Id Card supply chain. Even after few cautionary changes mentioned in the HBR case study - Replacing Hong Kong's ID Card (B): Debating the Options, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Id Card vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Replacing Hong Kong's ID Card (B): Debating the Options 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 Id Card 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Francois Roy suggests that, Id Card 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Replacing Hong Kong's ID Card (B): Debating the Options 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 Id Card has relatively successful track record of launching new products.
Opportunities Replacing Hong Kong's ID Card (B): Debating the Options | 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 Replacing Hong Kong's ID Card (B): Debating the Options are -
Learning at scale
– Online learning technologies has now opened space for Id Card 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Id Card can use these opportunities to build new business models that can help the communities that Id Card operates in. Secondly it can use opportunities from government spending in Global Business sector.
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. Id Card can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Id Card 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.
Buying journey improvements
– Id Card can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Replacing Hong Kong's ID Card (B): Debating the Options 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 Id Card to increase its market reach. Id Card 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 Id Card can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Id Card has opened avenues for new revenue streams for the organization in the industry. This can help Id Card to build a more holistic ecosystem as suggested in the Replacing Hong Kong's ID Card (B): Debating the Options case study. Id Card can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Id Card 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
– Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Id Card to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Id Card in the consumer business. Now Id Card can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Id Card 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 Id Card to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Id Card 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.
Threats Replacing Hong Kong's ID Card (B): Debating the Options External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Replacing Hong Kong's ID Card (B): Debating the Options are -
Consumer confidence and its impact on Id Card 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
– Id Card 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. Id Card can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Regulatory challenges
– Id Card 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 Id Card 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Id Card 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 Replacing Hong Kong's ID Card (B): Debating the Options .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Id Card with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Id Card in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Replacing Hong Kong's ID Card (B): Debating the Options, Id Card 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 .
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 Id Card business can come under increasing regulations regarding data privacy, data security, etc.
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. Id Card 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 Id Card is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Id Card can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Weighted SWOT Analysis of Replacing Hong Kong's ID Card (B): Debating the Options 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 Replacing Hong Kong's ID Card (B): Debating the Options 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 Replacing Hong Kong's ID Card (B): Debating the Options 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 Replacing Hong Kong's ID Card (B): Debating the Options 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 Replacing Hong Kong's ID Card (B): Debating the Options 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 Id Card needs to make to build a sustainable competitive advantage.