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 - – supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
technology disruption, there is increasing trade war between United States & China, 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 -
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 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Byd Foxconn 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.
Organizational Resilience of Byd Foxconn
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Byd Foxconn does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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.
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.
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.
Highly skilled collaborators
– Byd Foxconn 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 Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 -
High cash cycle compare to competitors
Byd Foxconn 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.
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.
No frontier risks strategy
– After analyzing the HBR case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Byd Foxconn is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Byd Foxconn has relatively successful track record of launching new products.
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.
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.
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Yahong Li, Jiangyong Lu, Zhigang Tao, Shangjin Wei suggests that, Byd Foxconn 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.
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.
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 -
Building a culture of innovation
– managers at Byd Foxconn 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.
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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Byd Foxconn to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
Leveraging digital technologies
– Byd Foxconn 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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Byd Foxconn is facing challenges because of the dominance of functional experts in the organization. Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets 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.
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.
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.
Creating value in data economy
– The success of analytics program of Byd Foxconn has opened avenues for new revenue streams for the organization in the industry. This can help Byd Foxconn to build a more holistic ecosystem as suggested in the Foxconn V BYD (B): Strategic Approach to Intellectual Property Management in Emerging Markets case study. Byd Foxconn can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Byd Foxconn can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 -
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 .
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.
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.
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.
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.
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.
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 .
Regulatory challenges
– Byd Foxconn 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.
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.
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.
Increasing wage structure of Byd Foxconn
– 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 Byd Foxconn.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Byd Foxconn 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.
Environmental challenges
– Byd Foxconn 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. Byd Foxconn can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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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