Swot Analysis of "DPDHL Group: Employee Safety and Wellbeing" written by John A. Quelch, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wellbeing Dpdhl facing as an external strategic factors. Some of the topics covered in DPDHL Group: Employee Safety and Wellbeing case study are - Strategic Management Strategies, Labor, Personnel policies, Risk management, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the DPDHL Group: Employee Safety and Wellbeing casestudy better are - – cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is backlash against globalization, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, etc
Introduction to SWOT Analysis of DPDHL Group: Employee Safety and Wellbeing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in DPDHL Group: Employee Safety and Wellbeing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wellbeing Dpdhl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wellbeing Dpdhl 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 DPDHL Group: Employee Safety and Wellbeing can be done for the following purposes –
1. Strategic planning using facts provided in DPDHL Group: Employee Safety and Wellbeing case study
2. Improving business portfolio management of Wellbeing Dpdhl
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 Wellbeing Dpdhl
Strengths DPDHL Group: Employee Safety and Wellbeing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wellbeing Dpdhl in DPDHL Group: Employee Safety and Wellbeing Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Wellbeing Dpdhl in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Wellbeing Dpdhl 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.
Low bargaining power of suppliers
– Suppliers of Wellbeing Dpdhl in the sector have low bargaining power. DPDHL Group: Employee Safety and Wellbeing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wellbeing Dpdhl to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Wellbeing Dpdhl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wellbeing Dpdhl 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.
Organizational Resilience of Wellbeing Dpdhl
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wellbeing Dpdhl does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Wellbeing Dpdhl is present in almost all the verticals within the industry. This has provided firm in DPDHL Group: Employee Safety and Wellbeing 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.
Cross disciplinary teams
– Horizontal connected teams at the Wellbeing Dpdhl 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.
Ability to lead change in Leadership & Managing People field
– Wellbeing Dpdhl 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 Wellbeing Dpdhl 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)
– Wellbeing Dpdhl 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 DPDHL Group: Employee Safety and Wellbeing - 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
– Wellbeing Dpdhl is one of the leading recruiters in the industry. Managers in the DPDHL Group: Employee Safety and Wellbeing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– DPDHL Group: Employee Safety and Wellbeing firm has clearly differentiated products in the market place. This has enabled Wellbeing Dpdhl to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Wellbeing Dpdhl to invest into research and development (R&D) and innovation.
High brand equity
– Wellbeing Dpdhl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wellbeing Dpdhl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses DPDHL Group: Employee Safety and Wellbeing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of DPDHL Group: Employee Safety and Wellbeing are -
Slow to strategic competitive environment developments
– As DPDHL Group: Employee Safety and Wellbeing HBR case study mentions - Wellbeing Dpdhl 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.
High bargaining power of channel partners
– Because of the regulatory requirements, John A. Quelch, Carin-Isabel Knoop suggests that, Wellbeing Dpdhl 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 DPDHL Group: Employee Safety and Wellbeing 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 Wellbeing Dpdhl has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Wellbeing Dpdhl has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Wellbeing Dpdhl even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Wellbeing Dpdhl 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.
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 Wellbeing Dpdhl supply chain. Even after few cautionary changes mentioned in the HBR case study - DPDHL Group: Employee Safety and Wellbeing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wellbeing Dpdhl vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Wellbeing Dpdhl 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study DPDHL Group: Employee Safety and Wellbeing, is just above the industry average. Wellbeing Dpdhl 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.
No frontier risks strategy
– After analyzing the HBR case study DPDHL Group: Employee Safety and Wellbeing, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study DPDHL Group: Employee Safety and Wellbeing, in the dynamic environment Wellbeing Dpdhl has struggled to respond to the nimble upstart competition. Wellbeing Dpdhl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Wellbeing Dpdhl 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 DPDHL Group: Employee Safety and Wellbeing | 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 DPDHL Group: Employee Safety and Wellbeing are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Wellbeing Dpdhl 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.
Loyalty marketing
– Wellbeing Dpdhl has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wellbeing Dpdhl can use these opportunities to build new business models that can help the communities that Wellbeing Dpdhl operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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. Wellbeing Dpdhl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Wellbeing Dpdhl has opened avenues for new revenue streams for the organization in the industry. This can help Wellbeing Dpdhl to build a more holistic ecosystem as suggested in the DPDHL Group: Employee Safety and Wellbeing case study. Wellbeing Dpdhl can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Wellbeing Dpdhl 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. Wellbeing Dpdhl 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.
Leveraging digital technologies
– Wellbeing Dpdhl 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.
Learning at scale
– Online learning technologies has now opened space for Wellbeing Dpdhl 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.
Developing new processes and practices
– Wellbeing Dpdhl 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.
Building a culture of innovation
– managers at Wellbeing Dpdhl 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wellbeing Dpdhl is facing challenges because of the dominance of functional experts in the organization. DPDHL Group: Employee Safety and Wellbeing 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.
Buying journey improvements
– Wellbeing Dpdhl can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. DPDHL Group: Employee Safety and Wellbeing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wellbeing Dpdhl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats DPDHL Group: Employee Safety and Wellbeing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study DPDHL Group: Employee Safety and Wellbeing 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 DPDHL Group: Employee Safety and Wellbeing, Wellbeing Dpdhl may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Wellbeing Dpdhl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Wellbeing Dpdhl business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wellbeing Dpdhl with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Wellbeing Dpdhl 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wellbeing Dpdhl 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 DPDHL Group: Employee Safety and Wellbeing .
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.
Shortening product life cycle
– it is one of the major threat that Wellbeing Dpdhl is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Wellbeing Dpdhl 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.
Technology acceleration in Forth Industrial Revolution
– Wellbeing Dpdhl has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Wellbeing Dpdhl 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.
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. Wellbeing Dpdhl needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Consumer confidence and its impact on Wellbeing Dpdhl 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.
Weighted SWOT Analysis of DPDHL Group: Employee Safety and Wellbeing 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 DPDHL Group: Employee Safety and Wellbeing 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 DPDHL Group: Employee Safety and Wellbeing 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 DPDHL Group: Employee Safety and Wellbeing 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 DPDHL Group: Employee Safety and Wellbeing 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 Wellbeing Dpdhl needs to make to build a sustainable competitive advantage.
