Swot Analysis of "Cypress Semiconductors (B): Vision, Values, But No Killer Software" written by Charles A. O'Reilly, David Caldwell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cypress Killer facing as an external strategic factors. Some of the topics covered in Cypress Semiconductors (B): Vision, Values, But No Killer Software case study are - Strategic Management Strategies, Competitive strategy, Human resource management, Innovation, Leadership, Managing people and Organizational Development.
Some of the macro environment factors that can be used to understand the Cypress Semiconductors (B): Vision, Values, But No Killer Software casestudy better are - – geopolitical disruptions, wage bills are increasing, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, cloud computing is disrupting traditional business models,
technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Cypress Semiconductors (B): Vision, Values, But No Killer Software
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cypress Semiconductors (B): Vision, Values, But No Killer Software case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cypress Killer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cypress Killer 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software can be done for the following purposes –
1. Strategic planning using facts provided in Cypress Semiconductors (B): Vision, Values, But No Killer Software case study
2. Improving business portfolio management of Cypress Killer
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cypress Killer
Strengths Cypress Semiconductors (B): Vision, Values, But No Killer Software | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cypress Killer in Cypress Semiconductors (B): Vision, Values, But No Killer Software Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Cypress Killer 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 Cypress Killer in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Cypress Killer is one of the leading recruiters in the industry. Managers in the Cypress Semiconductors (B): Vision, Values, But No Killer Software are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Cypress Killer in the sector have low bargaining power. Cypress Semiconductors (B): Vision, Values, But No Killer Software has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cypress Killer to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Cypress Killer 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Cypress Killer is present in almost all the verticals within the industry. This has provided firm in Cypress Semiconductors (B): Vision, Values, But No Killer Software 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.
Strong track record of project management
– Cypress Killer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Cypress Killer in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Cypress Killer 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 Cypress Killer is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cypress Semiconductors (B): Vision, Values, But No Killer Software Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Cypress Killer
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cypress Killer does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Cypress Semiconductors (B): Vision, Values, But No Killer Software 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.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Cypress Killer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cypress Killer 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.
Training and development
– Cypress Killer has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cypress Semiconductors (B): Vision, Values, But No Killer Software 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.
Weaknesses Cypress Semiconductors (B): Vision, Values, But No Killer Software | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cypress Semiconductors (B): Vision, Values, But No Killer Software are -
Lack of clear differentiation of Cypress Killer products
– To increase the profitability and margins on the products, Cypress Killer needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Cypress Killer 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 - Cypress Semiconductors (B): Vision, Values, But No Killer Software should strive to include more intangible value offerings along with its core products and services.
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 Cypress Killer supply chain. Even after few cautionary changes mentioned in the HBR case study - Cypress Semiconductors (B): Vision, Values, But No Killer Software, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cypress Killer vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Cypress Killer 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software, is just above the industry average. Cypress Killer 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 bargaining power of channel partners
– Because of the regulatory requirements, Charles A. O'Reilly, David Caldwell suggests that, Cypress Killer 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cypress Semiconductors (B): Vision, Values, But No Killer Software, in the dynamic environment Cypress Killer has struggled to respond to the nimble upstart competition. Cypress Killer 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software can leverage the sales team experience to cultivate customer relationships as Cypress Killer is planning to shift buying processes online.
High cash cycle compare to competitors
Cypress Killer 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.
Low market penetration in new markets
– Outside its home market of Cypress Killer, firm in the HBR case study Cypress Semiconductors (B): Vision, Values, But No Killer Software needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Cypress Killer is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Cypress Killer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cypress Killer to focus more on services rather than just following the product oriented approach.
Opportunities Cypress Semiconductors (B): Vision, Values, But No Killer Software | 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software are -
Leveraging digital technologies
– Cypress Killer 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.
Creating value in data economy
– The success of analytics program of Cypress Killer has opened avenues for new revenue streams for the organization in the industry. This can help Cypress Killer to build a more holistic ecosystem as suggested in the Cypress Semiconductors (B): Vision, Values, But No Killer Software case study. Cypress Killer can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cypress Killer in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cypress Killer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Cypress Killer 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 Organizational Development segment.
Loyalty marketing
– Cypress Killer 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.
Using analytics as competitive advantage
– Cypress Killer 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cypress Killer to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Cypress Killer 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 Cypress Killer 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 Cypress Killer to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Cypress Killer can develop new processes and procedures in Organizational Development 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 Cypress Killer 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
– Cypress Killer can use the latest technology developments to improve its manufacturing and designing process in Organizational Development 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Cypress Killer can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Cypress Semiconductors (B): Vision, Values, But No Killer Software External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cypress Semiconductors (B): Vision, Values, But No Killer Software are -
High dependence on third party suppliers
– Cypress Killer 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.
Increasing wage structure of Cypress Killer
– 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 Cypress Killer.
Technology acceleration in Forth Industrial Revolution
– Cypress Killer has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Cypress Killer needs to keep up with the evolution of technology in the Organizational Development 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.
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.
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. Cypress Killer needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Consumer confidence and its impact on Cypress Killer 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.
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.
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 Cypress Killer business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Cypress Killer 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cypress Killer with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Cypress Killer 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. Cypress Killer can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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 Cypress Killer.
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 Cypress Killer in the Organizational Development sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Semiconductors (B): Vision, Values, But No Killer Software 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 Cypress Killer needs to make to build a sustainable competitive advantage.
