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Flevy Management Insights Case Study
Agile Transformation Strategy for Computer Manufacturing in Asia-Pacific


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Crisis Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

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Consider this scenario: A leading computer and electronic product manufacturer in the Asia-Pacific region is struggling with crisis management following a 20% decline in market share due to increased competition and supply chain disruptions.

The organization faces external challenges, including aggressive pricing strategies by competitors and tariffs impacting import costs. Internally, the company is hindered by outdated manufacturing processes and a lack of innovation, leading to a 15% increase in production costs. The primary strategic objective of the organization is to implement an agile transformation across its operations to enhance competitiveness, reduce costs, and regain market share.



The company, once a market leader in the computer and electronic manufacturing industry, has seen its competitive edge wane in the face of relentless market changes and internal inefficiencies. The rapid evolution of technology and shifting consumer preferences suggest the core issue may be the organization's slow response to market demands and resistance to process innovation. Addressing these areas could unlock significant growth and operational improvements.

External Assessment

The computer and electronic product manufacturing industry is experiencing intense competition and rapid technological advancements, making innovation and efficiency critical for survival.

The industry's competitive dynamics are influenced by several key factors:

  • Internal Rivalry: High, with numerous global and regional players vying for market share.
  • Supplier Power: Moderate, due to the availability of alternative suppliers for components despite certain proprietary technology dependencies.
  • Buyer Power: High, with consumers having access to a wide range of products and the ability to switch brands easily.
  • Threat of New Entrants: Low to moderate, given the significant capital investment and technological expertise required.
  • Threat of Substitutes: High, especially from mobile devices and cloud computing solutions that reduce the need for traditional computer hardware.

Emerging trends include the increasing demand for eco-friendly and energy-efficient products, the rise of IoT and smart devices, and the shift towards remote working solutions. These trends present opportunities for innovation but also pose risks as the industry's structure evolves. Key changes in industry dynamics include:

  • Increased focus on sustainability: Offering opportunities for differentiation but requiring investment in green technologies.
  • Growing importance of cloud computing and IoT: Demanding rapid technological adaptation but opening new market segments.
  • Shift towards as-a-service models: Creating recurring revenue streams but necessitating changes in business operations.

A STEER analysis highlights significant technological changes, regulatory pressures regarding electronic waste, and economic shifts due to global trade tensions.

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Business Continuity and Disaster Recovery Checklist (55-slide PowerPoint deck)
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Internal Assessment

The organization has a strong brand and significant market presence but is challenged by operational rigidity and slow innovation cycles.

A MOST Analysis reveals misalignment between the company's strategic objectives and its operational capabilities, particularly in adapting to market changes and technology development.

A Value Chain Analysis indicates inefficiencies in supply chain management and production processes, which contribute to higher costs and longer time-to-market for new products.

Core Competencies Analysis suggests the company's strengths lie in its extensive distribution network and customer service. However, there is a need to develop competencies in agile innovation and digital transformation to regain competitive advantage.

Strategic Initiatives

  • Implement Agile Product Development: Adopt agile methodologies to accelerate product innovation and responsiveness to market trends. This initiative aims to reduce development cycles by 30% and increase product launch success rates, creating value through faster market entry and better alignment with consumer demand. Resources required include training for staff and investment in agile development tools.
  • Enhance Supply Chain Resilience: Strengthen supply chain operations through diversification of suppliers and investment in digital supply chain solutions. The intended impact is to reduce supply chain costs by 20% and improve flexibility in response to disruptions. Value creation comes from cost savings and improved market responsiveness. This will require resources for supplier assessment and technology implementation.
  • Crisis Management Enhancement: Develop a comprehensive crisis management plan focused on supply chain disruptions and market shifts. This initiative aims to minimize the impact of future crises on operations and market position, creating value through risk mitigation and business continuity. Resources needed include a dedicated crisis management team and risk assessment tools.

Crisis Management Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


In God we trust. All others must bring data.
     – W. Edwards Deming

  • Time-to-Market for New Products: Measures the effectiveness of agile product development initiatives.
  • Supply Chain Cost Reduction Percentage: Indicates the success of supply chain resilience efforts.
  • Market Share Recovery Rate: Tracks the overall impact of strategic initiatives on regaining lost market share.

These KPIs provide insights into the efficiency of the strategic initiatives, highlighting areas of success and opportunities for further improvement.

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Crisis Management Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Crisis Management. These resources below were developed by management consulting firms and Crisis Management subject matter experts.

Crisis Management Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Agile Transformation Roadmap (PPT)
  • Supply Chain Resilience Plan (PPT)
  • Crisis Management Framework (PPT)
  • Strategic Initiative Performance Dashboard (Excel)

Explore more Crisis Management deliverables

Implement Agile Product Development

The organization adopted the Scrum framework to facilitate the transition to agile product development. Scrum, a subset of Agile, is renowned for its simplicity and effectiveness in managing complex product development. It proved invaluable for enhancing team collaboration and accelerating product cycles. The organization found Scrum to be particularly beneficial in breaking down development tasks into smaller, manageable sprints, allowing for frequent reassessment and adaptation of plans based on current results and feedback.

Following the adoption of Scrum, the organization undertook several steps:

  • Organized development teams into small, cross-functional units to work on specific product features in 2-4 week sprints.
  • Appointed Scrum Masters to facilitate daily stand-up meetings, sprint reviews, and retrospectives, ensuring continuous improvement and removal of any impediments to progress.
  • Engaged product owners in setting and prioritizing the product backlog, ensuring that team efforts were aligned with customer needs and organizational goals.

The implementation of Scrum significantly reduced the time-to-market for new products, with development cycles shortened by an average of 30%. This rapid iteration process not only accelerated product launches but also improved product-market fit through continuous feedback incorporation.

Enhance Supply Chain Resilience

In addressing supply chain resilience, the organization applied the Resource-Based View (RBV) of the organization. This strategic management framework focuses on leveraging a company's internal resources and capabilities as a source of competitive advantage. RBV was instrumental in identifying unique resources within the organization's supply chain that could be optimized or reconfigured to build resilience against disruptions. By focusing on internal strengths, the organization was able to pinpoint critical areas within its supply chain that required enhancement or transformation.

Utilizing the RBV framework, the organization executed the following actions:

  • Conducted a comprehensive audit of internal resources, including manufacturing facilities, supplier networks, and logistic capabilities, to identify unique strengths and vulnerabilities.
  • Developed strategic partnerships with key suppliers to ensure priority access to critical components and materials, reducing dependency on single sources.
  • Invested in technology to improve visibility across the supply chain, enabling proactive identification and mitigation of potential disruptions.

As a result of applying the RBV framework, the organization achieved a 20% reduction in supply chain costs. Furthermore, these efforts enhanced the company's ability to adapt to unforeseen disruptions, ensuring continuous operation and product delivery to customers.

Crisis Management Enhancement

The organization utilized the Cynefin Framework to enhance its crisis management capabilities. The Cynefin Framework is a conceptual framework used to aid decision-making in complex and changing environments. It was particularly useful in this context for categorizing the types of crises the organization might face and determining the most appropriate response strategies. By applying the Cynefin Framework, the organization was better prepared to handle crises by understanding the nature of the problem and responding appropriately.

In implementing the Cynefin Framework, the organization followed these steps:

  • Mapped potential crisis scenarios to the Cynefin domains (Simple, Complicated, Complex, Chaotic, and Disorder) to understand their nature and identify suitable response strategies.
  • Developed and trained a dedicated crisis management team, equipped with the tools and knowledge to apply different approaches based on the categorization of the crisis.
  • Conducted regular simulation exercises to test responses to various types of crises, ensuring that the organization was well-prepared for real-life situations.

The adoption of the Cynefin Framework significantly improved the organization's crisis management effectiveness. It enabled a more nuanced understanding of crises and fostered a proactive rather than reactive approach to management. This strategic initiative not only minimized the impact of crises on operations but also preserved the organization's market position during turbulent times.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced time-to-market for new products by 30% through the implementation of Scrum in agile product development.
  • Achieved a 20% reduction in supply chain costs by applying the Resource-Based View (RBV) framework to enhance supply chain resilience.
  • Improved crisis management effectiveness by utilizing the Cynefin Framework for better decision-making in complex environments.
  • Developed strategic partnerships with key suppliers, reducing dependency on single sources and enhancing supply chain flexibility.
  • Implemented technology solutions to improve supply chain visibility, enabling proactive identification and mitigation of disruptions.
  • Organized development teams into small, cross-functional units, significantly accelerating product development cycles.

The strategic initiatives undertaken by the organization have yielded significant improvements in agility, cost reduction, and crisis management. The 30% reduction in time-to-market for new products is a testament to the successful adoption of agile methodologies, specifically Scrum, which has not only accelerated product development but also improved product-market fit. The 20% reduction in supply chain costs demonstrates the effectiveness of the RBV framework in identifying and leveraging internal resources to build resilience. Furthermore, the application of the Cynefin Framework has enhanced the organization's crisis management capabilities, enabling a more nuanced and proactive approach to handling disruptions.

However, the results also highlight areas for improvement. Despite the successes, there is no direct mention of the impact on market share recovery, suggesting that the initiatives may not have fully addressed the competitive and market challenges faced by the organization. Additionally, the focus on internal processes and efficiencies, while crucial, may have overshadowed the need for external market engagement and customer-centric innovation strategies.

For the next steps, it is recommended to focus on measuring and analyzing the impact of these strategic initiatives on market share recovery. The organization should consider integrating customer feedback mechanisms into the agile development process to ensure that product innovations are closely aligned with market needs. Additionally, exploring partnerships or collaborations with technology providers could accelerate the adoption of emerging technologies, further enhancing competitive advantage. Finally, a more aggressive marketing and customer engagement strategy could help in reclaiming lost market share and strengthening the brand's market presence.

Source: Agile Transformation Strategy for Computer Manufacturing in Asia-Pacific, Flevy Management Insights, 2024

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