Ministry of Supply: Will Professionals Demand Its Performance? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Ministry of Supply: Will Professionals Demand Its Performance?
Ministry of Supply is an entrepreneurial venture in the apparel sector. The firm focuses on a specific segment - 'performance professional wear' - within the sector, specializing in clothes that use fabrics with high-tech performance features (such as moisture-wicking, deodorizing, and temperature control) to make professional attire (button-down shirts, dress pants, etc.) for men. The firm has had success in fund-raising and its innovative product has garnered it good publicity, but the unusual combination of seemingly contradictory features - performance fabrics commonly used in outdoor leisure activities and a professional look and design - in the product has also generated cognitive challenges among consumers. How, if at all, can the firm increase the sales of its products?
Swot Analysis of "Ministry of Supply: Will Professionals Demand Its Performance?" written by Mukti Khaire, Hannah Catzen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fabrics Ministry facing as an external strategic factors. Some of the topics covered in Ministry of Supply: Will Professionals Demand Its Performance? case study are - Strategic Management Strategies, Emerging markets, Entrepreneurship, Financial analysis, Organizational culture, Social responsibility and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Ministry of Supply: Will Professionals Demand Its Performance? casestudy better are - – increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Ministry of Supply: Will Professionals Demand Its Performance?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ministry of Supply: Will Professionals Demand Its Performance? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fabrics Ministry, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fabrics Ministry 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 Ministry of Supply: Will Professionals Demand Its Performance? can be done for the following purposes –
1. Strategic planning using facts provided in Ministry of Supply: Will Professionals Demand Its Performance? case study
2. Improving business portfolio management of Fabrics Ministry
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Fabrics Ministry
Strengths Ministry of Supply: Will Professionals Demand Its Performance? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fabrics Ministry in Ministry of Supply: Will Professionals Demand Its Performance? Harvard Business Review case study are -
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Fabrics Ministry digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fabrics Ministry 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.
High switching costs
– The high switching costs that Fabrics Ministry 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.
Innovation driven organization
– Fabrics Ministry is one of the most innovative firm in sector. Manager in Ministry of Supply: Will Professionals Demand Its Performance? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Fabrics Ministry in the sector have low bargaining power. Ministry of Supply: Will Professionals Demand Its Performance? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fabrics Ministry to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Fabrics Ministry is present in almost all the verticals within the industry. This has provided firm in Ministry of Supply: Will Professionals Demand Its Performance? 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.
High brand equity
– Fabrics Ministry has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fabrics Ministry to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Ministry of Supply: Will Professionals Demand Its Performance? Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Fabrics Ministry is one of the leading recruiters in the industry. Managers in the Ministry of Supply: Will Professionals Demand Its Performance? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Fabrics Ministry 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 Mukti Khaire, Hannah Catzen 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.
Successful track record of launching new products
– Fabrics Ministry has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fabrics Ministry 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.
Strong track record of project management
– Fabrics Ministry is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Ministry of Supply: Will Professionals Demand Its Performance? firm has clearly differentiated products in the market place. This has enabled Fabrics Ministry to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Fabrics Ministry to invest into research and development (R&D) and innovation.
Weaknesses Ministry of Supply: Will Professionals Demand Its Performance? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ministry of Supply: Will Professionals Demand Its Performance? are -
High operating costs
– Compare to the competitors, firm in the HBR case study Ministry of Supply: Will Professionals Demand Its Performance? 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 Fabrics Ministry 's lucrative customers.
Need for greater diversity
– Fabrics Ministry has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ministry of Supply: Will Professionals Demand Its Performance?, in the dynamic environment Fabrics Ministry has struggled to respond to the nimble upstart competition. Fabrics Ministry has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Fabrics Ministry 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Mukti Khaire, Hannah Catzen suggests that, Fabrics Ministry 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ministry of Supply: Will Professionals Demand Its Performance? 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 Fabrics Ministry has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fabrics Ministry is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ministry of Supply: Will Professionals Demand Its Performance? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Fabrics Ministry 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.
Lack of clear differentiation of Fabrics Ministry products
– To increase the profitability and margins on the products, Fabrics Ministry needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Fabrics Ministry supply chain. Even after few cautionary changes mentioned in the HBR case study - Ministry of Supply: Will Professionals Demand Its Performance?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fabrics Ministry vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Fabrics Ministry is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Fabrics Ministry needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fabrics Ministry to focus more on services rather than just following the product oriented approach.
Opportunities Ministry of Supply: Will Professionals Demand Its Performance? | 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 Ministry of Supply: Will Professionals Demand Its Performance? are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Fabrics Ministry 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. Fabrics Ministry 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 Fabrics Ministry to increase its market reach. Fabrics Ministry 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.
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 Fabrics Ministry in the consumer business. Now Fabrics Ministry 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. Fabrics Ministry can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fabrics Ministry in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Fabrics Ministry can develop new processes and procedures in Innovation & Entrepreneurship 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
– Fabrics Ministry can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ministry of Supply: Will Professionals Demand Its Performance? 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.
Using analytics as competitive advantage
– Fabrics Ministry 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 Ministry of Supply: Will Professionals Demand Its Performance? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fabrics Ministry to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Fabrics Ministry can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Fabrics Ministry has opened avenues for new revenue streams for the organization in the industry. This can help Fabrics Ministry to build a more holistic ecosystem as suggested in the Ministry of Supply: Will Professionals Demand Its Performance? case study. Fabrics Ministry can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Fabrics Ministry 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.
Manufacturing automation
– Fabrics Ministry can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fabrics Ministry can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Ministry of Supply: Will Professionals Demand Its Performance? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ministry of Supply: Will Professionals Demand Its Performance? are -
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 Fabrics Ministry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fabrics Ministry with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Fabrics Ministry needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Increasing wage structure of Fabrics Ministry
– 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 Fabrics Ministry.
Regulatory challenges
– Fabrics Ministry 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 Innovation & Entrepreneurship industry regulations.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ministry of Supply: Will Professionals Demand Its Performance?, Fabrics Ministry may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fabrics Ministry 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 Ministry of Supply: Will Professionals Demand Its Performance? .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fabrics Ministry in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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. Fabrics Ministry 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.
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 Fabrics Ministry in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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.
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 Fabrics Ministry business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Ministry of Supply: Will Professionals Demand Its Performance? 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 Ministry of Supply: Will Professionals Demand Its Performance? 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 Ministry of Supply: Will Professionals Demand Its Performance? 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 Ministry of Supply: Will Professionals Demand Its Performance? 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 Ministry of Supply: Will Professionals Demand Its Performance? 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 Fabrics Ministry needs to make to build a sustainable competitive advantage.
