Integrated Strategy: Trade Policy, and Global Competition SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Integrated Strategy: Trade Policy, and Global Competition
An integrated strategy captures the synergies between competitive strategies that seek superior performance in the marketplace and nonmarket strategies that shape the competitive environment. This article extends the conceptual and analytical foundations of integrated strategy to a competitive environment structured by international trade policy. The framework is illustrated by the international trade dispute between the Eastman Kodak Co. and Fuji Photo Film Co. regarding access to the Japanese market for consumer film and photographic paper. The analysis focuses on the synergies between market and nonmarket strategies in which governments act as agents of their companies. The framework incorporates competition between the two companies in their market environment, competition in the nonmarket environment to influence their government's bargaining position, and bargaining between the governments.
Swot Analysis of "Integrated Strategy: Trade Policy, and Global Competition" written by David P. Baron includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nonmarket Environment facing as an external strategic factors. Some of the topics covered in Integrated Strategy: Trade Policy, and Global Competition case study are - Strategic Management Strategies, International business, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Integrated Strategy: Trade Policy, and Global Competition casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing commodity prices, wage bills are increasing, there is increasing trade war between United States & China, increasing energy prices, talent flight as more people leaving formal jobs,
technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Integrated Strategy: Trade Policy, and Global Competition
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Integrated Strategy: Trade Policy, and Global Competition case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nonmarket Environment, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nonmarket Environment 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 Integrated Strategy: Trade Policy, and Global Competition can be done for the following purposes –
1. Strategic planning using facts provided in Integrated Strategy: Trade Policy, and Global Competition case study
2. Improving business portfolio management of Nonmarket Environment
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 Nonmarket Environment
Strengths Integrated Strategy: Trade Policy, and Global Competition | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nonmarket Environment in Integrated Strategy: Trade Policy, and Global Competition Harvard Business Review case study are -
High brand equity
– Nonmarket Environment has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nonmarket Environment to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Nonmarket Environment has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Integrated Strategy: Trade Policy, and Global Competition - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Nonmarket Environment
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nonmarket Environment does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Global Business industry
– Integrated Strategy: Trade Policy, and Global Competition firm has clearly differentiated products in the market place. This has enabled Nonmarket Environment to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Nonmarket Environment to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Nonmarket Environment in the sector have low bargaining power. Integrated Strategy: Trade Policy, and Global Competition has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nonmarket Environment to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Nonmarket Environment is one of the most innovative firm in sector. Manager in Integrated Strategy: Trade Policy, and Global Competition Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Nonmarket Environment is present in almost all the verticals within the industry. This has provided firm in Integrated Strategy: Trade Policy, and Global Competition 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.
Training and development
– Nonmarket Environment has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Integrated Strategy: Trade Policy, and Global Competition 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.
Cross disciplinary teams
– Horizontal connected teams at the Nonmarket Environment 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.
Successful track record of launching new products
– Nonmarket Environment has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nonmarket Environment 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.
Ability to recruit top talent
– Nonmarket Environment is one of the leading recruiters in the industry. Managers in the Integrated Strategy: Trade Policy, and Global Competition 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
– Nonmarket Environment 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 Nonmarket Environment in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Integrated Strategy: Trade Policy, and Global Competition | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Integrated Strategy: Trade Policy, and Global Competition are -
Lack of clear differentiation of Nonmarket Environment products
– To increase the profitability and margins on the products, Nonmarket Environment needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nonmarket Environment is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Integrated Strategy: Trade Policy, and Global Competition can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Integrated Strategy: Trade Policy, and Global Competition, it seems that the employees of Nonmarket Environment 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.
Need for greater diversity
– Nonmarket Environment 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.
Skills based hiring
– The stress on hiring functional specialists at Nonmarket Environment 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.
Interest costs
– Compare to the competition, Nonmarket Environment 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 bargaining power of channel partners
– Because of the regulatory requirements, David P. Baron suggests that, Nonmarket Environment 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.
Products dominated business model
– Even though Nonmarket Environment 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 - Integrated Strategy: Trade Policy, and Global Competition should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Integrated Strategy: Trade Policy, and Global Competition 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 Nonmarket Environment 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Integrated Strategy: Trade Policy, and Global Competition, in the dynamic environment Nonmarket Environment has struggled to respond to the nimble upstart competition. Nonmarket Environment has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Integrated Strategy: Trade Policy, and Global Competition HBR case study mentions - Nonmarket Environment 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.
Opportunities Integrated Strategy: Trade Policy, and Global Competition | 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 Integrated Strategy: Trade Policy, and Global Competition are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nonmarket Environment is facing challenges because of the dominance of functional experts in the organization. Integrated Strategy: Trade Policy, and Global Competition 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.
Leveraging digital technologies
– Nonmarket Environment can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Nonmarket Environment can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Nonmarket Environment in the consumer business. Now Nonmarket Environment 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 Nonmarket Environment 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 Nonmarket Environment to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Nonmarket Environment 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.
Building a culture of innovation
– managers at Nonmarket Environment 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.
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. Nonmarket Environment 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. Nonmarket Environment 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.
Better consumer reach
– The expansion of the 5G network will help Nonmarket Environment to increase its market reach. Nonmarket Environment 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.
Creating value in data economy
– The success of analytics program of Nonmarket Environment has opened avenues for new revenue streams for the organization in the industry. This can help Nonmarket Environment to build a more holistic ecosystem as suggested in the Integrated Strategy: Trade Policy, and Global Competition case study. Nonmarket Environment can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Nonmarket Environment can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Integrated Strategy: Trade Policy, and Global Competition 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nonmarket Environment 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nonmarket Environment 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, Integrated Strategy: Trade Policy, and Global Competition, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Integrated Strategy: Trade Policy, and Global Competition External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Integrated Strategy: Trade Policy, and Global Competition 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. Nonmarket Environment needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Nonmarket Environment 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nonmarket Environment 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 Integrated Strategy: Trade Policy, and Global Competition .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Nonmarket Environment will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Integrated Strategy: Trade Policy, and Global Competition, Nonmarket Environment 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 .
Stagnating economy with rate increase
– Nonmarket Environment can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Shortening product life cycle
– it is one of the major threat that Nonmarket Environment is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Nonmarket Environment.
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 Nonmarket Environment business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Nonmarket Environment 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. Nonmarket Environment can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
Increasing wage structure of Nonmarket Environment
– 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 Nonmarket Environment.
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. Nonmarket Environment can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Integrated Strategy: Trade Policy, and Global Competition 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 Integrated Strategy: Trade Policy, and Global Competition 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 Integrated Strategy: Trade Policy, and Global Competition 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 Integrated Strategy: Trade Policy, and Global Competition 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 Integrated Strategy: Trade Policy, and Global Competition 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 Nonmarket Environment needs to make to build a sustainable competitive advantage.