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 - – technology disruption, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, geopolitical disruptions, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
wage bills are increasing, increasing commodity prices, 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 -
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.
High switching costs
– The high switching costs that Landscape Vibrantly 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 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.
Learning organization
- Landscape Vibrantly 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 Landscape Vibrantly is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Firm Strategies in a Changing Global Competitive Landscape Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Landscape Vibrantly is one of the leading recruiters in the industry. Managers in the Firm Strategies in a Changing Global Competitive Landscape are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
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.
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.
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.
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 -
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Firm Strategies in a Changing Global Competitive Landscape 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 Landscape Vibrantly 's lucrative customers.
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.
Products dominated business model
– Even though Landscape Vibrantly 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 - Firm Strategies in a Changing Global Competitive Landscape should strive to include more intangible value offerings along with its core products and services.
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.
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 to strategic competitive environment developments
– As Firm Strategies in a Changing Global Competitive Landscape HBR case study mentions - Landscape Vibrantly 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.
High cash cycle compare to competitors
Landscape Vibrantly 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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Landscape Vibrantly has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 -
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.
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.
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.
Building a culture of innovation
– managers at Landscape Vibrantly 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.
Developing new processes and practices
– Landscape Vibrantly 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Landscape Vibrantly is facing challenges because of the dominance of functional experts in the organization. Firm Strategies in a Changing Global Competitive Landscape 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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Landscape Vibrantly 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Landscape Vibrantly 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 Landscape Vibrantly to hire the very best people irrespective of their geographical location.
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 -
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.
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. Landscape Vibrantly 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
– Landscape Vibrantly has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Landscape Vibrantly 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.
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 Landscape Vibrantly in the Global Business sector and impact the bottomline of the organization.
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 .
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 .
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.
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.
Regulatory challenges
– Landscape Vibrantly 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.
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.
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. Landscape Vibrantly can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.