Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets
In May 2006, Foxconn International Holdings first discovered a trade secret leakage to BYD Company Limited through current and former employees. Despite successful conviction of four individuals involved, prosecutors dropped all criminal charges against BYD in December 2008. Around 400 senior managers and engineers have left Foxconn for BYD since 2003, posing continuous threats of further infringement of intellectual property ("IP") rights. In response to a deep global recession since late 2008, one of Foxconn's strategies has been to increase investments in research on and production of smartphones, which maintain strong demand relative to traditional mobile phones. Because Foxconn's factories are located mainly in emerging markets with high IP risks, the success of this strategy is being threatened by ineffective IP protection. It is imperative for the company to revisit its IP management strategies, not only to protect its research and development investment but also to generate extra revenue for survival. It also has to devise an appropriate litigation strategy against BYD.
Swot Analysis of "Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets" written by Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Byd Foxconn facing as an external strategic factors. Some of the topics covered in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study are - Strategic Management Strategies, Intellectual property, Manufacturing, Technology and Global Business.
Some of the macro environment factors that can be used to understand the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, there is backlash against globalization, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Byd Foxconn, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can be done for the following purposes –
1. Strategic planning using facts provided in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study
2. Improving business portfolio management of Byd Foxconn
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 Byd Foxconn
Strengths Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Byd Foxconn in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Harvard Business Review case study are -
Diverse revenue streams
– Byd Foxconn is present in almost all the verticals within the industry. This has provided firm in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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.
Sustainable margins compare to other players in Global Business industry
– Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets firm has clearly differentiated products in the market place. This has enabled Byd Foxconn to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Byd Foxconn to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Byd Foxconn has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Byd Foxconn 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.
High switching costs
– The high switching costs that Byd Foxconn 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.
Superior customer experience
– The customer experience strategy of Byd Foxconn in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Byd Foxconn has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Byd Foxconn to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Byd Foxconn 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 Byd Foxconn in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Byd Foxconn is one of the leading recruiters in the industry. Managers in the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Byd Foxconn digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Byd Foxconn 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.
Innovation driven organization
– Byd Foxconn is one of the most innovative firm in sector. Manager in Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Byd Foxconn 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 Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei 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.
Weaknesses Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, in the dynamic environment Byd Foxconn has struggled to respond to the nimble upstart competition. Byd Foxconn has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Byd Foxconn 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 - Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Byd Foxconn 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.
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 Byd Foxconn supply chain. Even after few cautionary changes mentioned in the HBR case study - Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Byd Foxconn vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can leverage the sales team experience to cultivate customer relationships as Byd Foxconn is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Byd Foxconn 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Byd Foxconn 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.
Skills based hiring
– The stress on hiring functional specialists at Byd Foxconn 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, is just above the industry average. Byd Foxconn 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.
Increasing silos among functional specialists
– The organizational structure of Byd Foxconn is dominated by functional specialists. It is not different from other players in the Global Business segment. Byd Foxconn needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Byd Foxconn to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Byd Foxconn 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.
Opportunities Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets | 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -
Buying journey improvements
– Byd Foxconn can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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.
Developing new processes and practices
– Byd Foxconn 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.
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. Byd Foxconn 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. Byd Foxconn 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Byd Foxconn 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, Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, 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. Byd Foxconn can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Byd Foxconn to increase its market reach. Byd Foxconn 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Byd Foxconn 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 Byd Foxconn to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Byd Foxconn in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Byd Foxconn 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.
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 Byd Foxconn in the consumer business. Now Byd Foxconn can target international markets with far fewer capital restrictions requirements than the existing system.
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. Byd Foxconn can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Byd Foxconn to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Byd Foxconn 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.
Threats Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets are -
Consumer confidence and its impact on Byd Foxconn 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 Byd Foxconn business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Byd Foxconn has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Byd Foxconn 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.
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. Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, Byd Foxconn 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
– Byd Foxconn 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.
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 Byd Foxconn in the Global Business sector and impact the bottomline of the organization.
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. Byd Foxconn needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Byd Foxconn can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Byd Foxconn.
Shortening product life cycle
– it is one of the major threat that Byd Foxconn is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Byd Foxconn 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets .
Weighted SWOT Analysis of Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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 Byd Foxconn needs to make to build a sustainable competitive advantage.
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