Firm Strategies in a Changing Global Competitive Landscape SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Firm Strategies in a Changing Global Competitive Landscape
We can no longer discuss globalization in the future tense. Firms now operate in a global competitive landscape, one that is vibrantly dynamic and continuously changing. Herein, we examine this global landscape in its current form, and the changes we expect to occur over the next few decades. Based on these analyses, we identify firm strategies that are necessary to be successful in this challenging competitive landscape.
Swot Analysis of "Firm Strategies in a Changing Global Competitive Landscape" written by Michael A Hitt, Xiaoming He includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Landscape Vibrantly facing as an external strategic factors. Some of the topics covered in Firm Strategies in a Changing Global Competitive Landscape case study are - Strategic Management Strategies, Cross-cultural management, Globalization, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the Firm Strategies in a Changing Global Competitive Landscape casestudy better are - – wage bills are increasing, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Firm Strategies in a Changing Global Competitive Landscape
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Firm Strategies in a Changing Global Competitive Landscape case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Landscape Vibrantly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Landscape Vibrantly 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 Firm Strategies in a Changing Global Competitive Landscape can be done for the following purposes –
1. Strategic planning using facts provided in Firm Strategies in a Changing Global Competitive Landscape case study
2. Improving business portfolio management of Landscape Vibrantly
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 Landscape Vibrantly
Strengths Firm Strategies in a Changing Global Competitive Landscape | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Landscape Vibrantly in Firm Strategies in a Changing Global Competitive Landscape Harvard Business Review case study are -
Highly skilled collaborators
– Landscape Vibrantly 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 Firm Strategies in a Changing Global Competitive Landscape HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Firm Strategies in a Changing Global Competitive Landscape 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.
Ability to lead change in Global Business field
– Landscape Vibrantly 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 Landscape Vibrantly in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Landscape Vibrantly is one of the most innovative firm in sector. Manager in Firm Strategies in a Changing Global Competitive Landscape Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Landscape Vibrantly in the sector have low bargaining power. Firm Strategies in a Changing Global Competitive Landscape has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Landscape Vibrantly to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Global Business industry
– Firm Strategies in a Changing Global Competitive Landscape firm has clearly differentiated products in the market place. This has enabled Landscape Vibrantly to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Landscape Vibrantly to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Landscape Vibrantly is present in almost all the verticals within the industry. This has provided firm in Firm Strategies in a Changing Global Competitive Landscape case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Landscape Vibrantly 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Landscape Vibrantly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Landscape Vibrantly 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
– Landscape Vibrantly has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Firm Strategies in a Changing Global Competitive Landscape Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Landscape Vibrantly 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 Michael A Hitt, Xiaoming He 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
– Landscape Vibrantly has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Landscape Vibrantly to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Firm Strategies in a Changing Global Competitive Landscape | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Firm Strategies in a Changing Global Competitive Landscape are -
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 Landscape Vibrantly supply chain. Even after few cautionary changes mentioned in the HBR case study - Firm Strategies in a Changing Global Competitive Landscape, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Landscape Vibrantly vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Landscape Vibrantly 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.
Increasing silos among functional specialists
– The organizational structure of Landscape Vibrantly is dominated by functional specialists. It is not different from other players in the Global Business segment. Landscape Vibrantly needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Landscape Vibrantly to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Landscape Vibrantly 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. Landscape Vibrantly 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Firm Strategies in a Changing Global Competitive Landscape, is just above the industry average. Landscape Vibrantly 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.
Lack of clear differentiation of Landscape Vibrantly products
– To increase the profitability and margins on the products, Landscape Vibrantly needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Landscape Vibrantly 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Firm Strategies in a Changing Global Competitive Landscape, in the dynamic environment Landscape Vibrantly has struggled to respond to the nimble upstart competition. Landscape Vibrantly has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Firm Strategies in a Changing Global Competitive Landscape, it seems that the employees of Landscape Vibrantly 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Landscape Vibrantly 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Landscape Vibrantly is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Firm Strategies in a Changing Global Competitive Landscape can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Firm Strategies in a Changing Global Competitive Landscape | 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 Firm Strategies in a Changing Global Competitive Landscape are -
Creating value in data economy
– The success of analytics program of Landscape Vibrantly has opened avenues for new revenue streams for the organization in the industry. This can help Landscape Vibrantly to build a more holistic ecosystem as suggested in the Firm Strategies in a Changing Global Competitive Landscape case study. Landscape Vibrantly can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Landscape Vibrantly 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 Firm Strategies in a Changing Global Competitive Landscape - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Landscape Vibrantly to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Landscape Vibrantly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Landscape Vibrantly can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Firm Strategies in a Changing Global Competitive Landscape 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.
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. Landscape Vibrantly 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. Landscape Vibrantly 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.
Loyalty marketing
– Landscape Vibrantly 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.
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 Landscape Vibrantly in the consumer business. Now Landscape Vibrantly can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Landscape Vibrantly 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Landscape Vibrantly 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, Firm Strategies in a Changing Global Competitive Landscape, 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 Landscape Vibrantly to increase its market reach. Landscape Vibrantly 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.
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. Landscape Vibrantly can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Landscape Vibrantly can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Landscape Vibrantly 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.
Threats Firm Strategies in a Changing Global Competitive Landscape External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Firm Strategies in a Changing Global Competitive Landscape are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Landscape Vibrantly 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 Firm Strategies in a Changing Global Competitive Landscape .
Shortening product life cycle
– it is one of the major threat that Landscape Vibrantly 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 Landscape Vibrantly 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Landscape Vibrantly with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Firm Strategies in a Changing Global Competitive Landscape, Landscape Vibrantly 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 .
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 Landscape Vibrantly.
Consumer confidence and its impact on Landscape Vibrantly 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.
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 Landscape Vibrantly business can come under increasing regulations regarding data privacy, data security, etc.
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.
Environmental challenges
– Landscape Vibrantly 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. Landscape Vibrantly can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing wage structure of Landscape Vibrantly
– 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 Landscape Vibrantly.
High dependence on third party suppliers
– Landscape Vibrantly 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.
Weighted SWOT Analysis of Firm Strategies in a Changing Global Competitive Landscape 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 Firm Strategies in a Changing Global Competitive Landscape 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 Firm Strategies in a Changing Global Competitive Landscape 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 Firm Strategies in a Changing Global Competitive Landscape 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 Firm Strategies in a Changing Global Competitive Landscape 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 Landscape Vibrantly needs to make to build a sustainable competitive advantage.
