Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version
By 2008, this rapid growth, compounded by limited installed glass manufacturing capacity at regional levels, had caused local supply shortages. Over the last several years, VASA's progressively deteriorating service had damaged its former reputation for excellent service. The case explores how to reverse a disappointing delivery service that led to angry customers complaining about unfulfilled orders, late deliveries, and accusations from transportation companies that held VASA responsible for these delays. Also these accusations resulted in deterioration in relationships with transportation companies that had done business with VASA for more than 25 years. VASA's CEO, evaluated the following options to recover its reputation: 1) take total control of distribution to customers by developing a VASA-owned delivery service; 2) reverse the situation with transportation companies by requiring them to develop delivery service management capabilities; or 3) replace these transportation companies, partially or totally, with more sophisticated logistic service providers.
Authors :: Julio Sanchez-Loppacher, Marcelo Pancotto, Maximiliano Fernandez Vera
Swot Analysis of "Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version" written by Julio Sanchez-Loppacher, Marcelo Pancotto, Maximiliano Fernandez Vera includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vasa Vasa's facing as an external strategic factors. Some of the topics covered in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version case study are - Strategic Management Strategies, Marketing, Strategy execution, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version casestudy better are - – increasing commodity prices, there is increasing trade war between United States & China, increasing energy prices, cloud computing is disrupting traditional business models, technology disruption, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vasa Vasa's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vasa Vasa's 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version case study
2. Improving business portfolio management of Vasa Vasa's
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Vasa Vasa's
Strengths Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vasa Vasa's in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Vasa Vasa's 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 Vasa Vasa's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vasa Vasa's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Vasa Vasa's is present in almost all the verticals within the industry. This has provided firm in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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.
Superior customer experience
– The customer experience strategy of Vasa Vasa's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Vasa Vasa's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Vasa Vasa's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Vasa Vasa's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Vasa Vasa's 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 Julio Sanchez-Loppacher, Marcelo Pancotto, Maximiliano Fernandez Vera 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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.
Highly skilled collaborators
– Vasa Vasa's 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Vasa Vasa's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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.
High switching costs
– The high switching costs that Vasa Vasa's 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.
Ability to recruit top talent
– Vasa Vasa's is one of the leading recruiters in the industry. Managers in the Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version are -
Slow to strategic competitive environment developments
– As Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version HBR case study mentions - Vasa Vasa's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version, is just above the industry average. Vasa Vasa's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Vasa Vasa's has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Vasa Vasa's 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version, in the dynamic environment Vasa Vasa's has struggled to respond to the nimble upstart competition. Vasa Vasa's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version can leverage the sales team experience to cultivate customer relationships as Vasa Vasa's is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Vasa Vasa's is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Vasa Vasa's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vasa Vasa's to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Julio Sanchez-Loppacher, Marcelo Pancotto, Maximiliano Fernandez Vera suggests that, Vasa Vasa's 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 operating costs
– Compare to the competitors, firm in the HBR case study Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Vasa Vasa's 's lucrative customers.
Products dominated business model
– Even though Vasa Vasa's 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 - Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Vasa Vasa's 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.
Opportunities Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version | 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version are -
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 Vasa Vasa's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vasa Vasa's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vasa Vasa's 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, Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Vasa Vasa's is facing challenges because of the dominance of functional experts in the organization. Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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
– Vasa Vasa's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vasa Vasa's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Vasa Vasa's 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 Leadership & Managing People segment.
Creating value in data economy
– The success of analytics program of Vasa Vasa's has opened avenues for new revenue streams for the organization in the industry. This can help Vasa Vasa's to build a more holistic ecosystem as suggested in the Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version case study. Vasa Vasa's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Vasa Vasa's can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Developing new processes and practices
– Vasa Vasa's can develop new processes and procedures in Leadership & Managing People 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.
Learning at scale
– Online learning technologies has now opened space for Vasa Vasa's 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.
Buying journey improvements
– Vasa Vasa's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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, Vasa Vasa's 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.
Threats Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version are -
Technology acceleration in Forth Industrial Revolution
– Vasa Vasa's has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Vasa Vasa's needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Vasa Vasa's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Vasa Vasa's 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 Leadership & Managing People industry regulations.
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 Vasa Vasa's in the Leadership & Managing People sector and impact the bottomline of the organization.
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.
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. Vasa Vasa's needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Vasa Vasa's is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vasa Vasa's in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 Vasa Vasa's business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Vasa Vasa's 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.
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. Vasa Vasa's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vasa Vasa's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Vasa Vasa's 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.
Weighted SWOT Analysis of Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Rethinking Distribution Logistics at VASA, Pilkington, Spanish Version 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 Vasa Vasa's needs to make to build a sustainable competitive advantage.