Xiameter: The Past and Future of a "Disruptive Innovation" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Xiameter: The Past and Future of a "Disruptive Innovation"
The case study is about a successful strategy formulated at Dow Corning for marketing commodity silicones, a chemical used in diverse applications. It deals with important issues in B2B marketing: refocusing on user needs and developing a "needs-based" segmentation of industrial customers; bundling and de-bundling of technical services; branding of commodity chemicals; web-based low price/no-frills value proposition; making money with commodities. The case also describes a "tipping point" in Dow Corning's history and strategy where their leadership in the silicone business was at stake; management had to chart radically new ways to compete in commoditized markets--what they call their "disruptive innovation". At the end the students are asked to look at the success of Xiameter (the company's web-based brand) and decide its future. The choices are: maintain status quo; incrementally fine tune the strategy; go for a major overhaul. Learning objectives: The Xiameter case can be used to: 1) show an example of using customer insights in successfully re-defining business and marketing strategies; 2) address issues of segmentation, value proposition and branding in industrial marketing; 3) demonstrate how two contrasting value propositions could be offered to industrial customers under different brands; 4) discuss value innovation in B2B markets ; 5) examine and analyze elements of a successful web-based business model; 6) learn how adversity can challenge an organization to re-define its business and marketing strategies for future success.
Swot Analysis of "Xiameter: The Past and Future of a "Disruptive Innovation"" written by Kamran Kashani, Inna Francis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Xiameter Bundling facing as an external strategic factors. Some of the topics covered in Xiameter: The Past and Future of a "Disruptive Innovation" case study are - Strategic Management Strategies, Competition and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Xiameter: The Past and Future of a "Disruptive Innovation" casestudy better are - – central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , technology disruption, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization,
talent flight as more people leaving formal jobs, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Xiameter: The Past and Future of a "Disruptive Innovation"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Xiameter: The Past and Future of a "Disruptive Innovation" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Xiameter Bundling, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Xiameter Bundling 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 Xiameter: The Past and Future of a "Disruptive Innovation" can be done for the following purposes –
1. Strategic planning using facts provided in Xiameter: The Past and Future of a "Disruptive Innovation" case study
2. Improving business portfolio management of Xiameter Bundling
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Xiameter Bundling
Strengths Xiameter: The Past and Future of a "Disruptive Innovation" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Xiameter Bundling in Xiameter: The Past and Future of a "Disruptive Innovation" Harvard Business Review case study are -
Strong track record of project management
– Xiameter Bundling is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Xiameter Bundling digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Xiameter Bundling 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 Xiameter Bundling
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Xiameter Bundling does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Xiameter Bundling has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Xiameter: The Past and Future of a "Disruptive Innovation" 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.
Diverse revenue streams
– Xiameter Bundling is present in almost all the verticals within the industry. This has provided firm in Xiameter: The Past and Future of a "Disruptive Innovation" 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 switching costs
– The high switching costs that Xiameter Bundling 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.
Highly skilled collaborators
– Xiameter Bundling 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 Xiameter: The Past and Future of a "Disruptive Innovation" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Xiameter: The Past and Future of a "Disruptive Innovation" 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.
Cross disciplinary teams
– Horizontal connected teams at the Xiameter Bundling 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 recruit top talent
– Xiameter Bundling is one of the leading recruiters in the industry. Managers in the Xiameter: The Past and Future of a "Disruptive Innovation" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Xiameter Bundling is one of the most innovative firm in sector. Manager in Xiameter: The Past and Future of a "Disruptive Innovation" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Xiameter Bundling has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Xiameter Bundling to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Xiameter: The Past and Future of a "Disruptive Innovation" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Xiameter: The Past and Future of a "Disruptive Innovation" are -
Lack of clear differentiation of Xiameter Bundling products
– To increase the profitability and margins on the products, Xiameter Bundling needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Xiameter Bundling is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Xiameter Bundling needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Xiameter Bundling to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Xiameter Bundling 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.
Low market penetration in new markets
– Outside its home market of Xiameter Bundling, firm in the HBR case study Xiameter: The Past and Future of a "Disruptive Innovation" needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Xiameter: The Past and Future of a "Disruptive Innovation", in the dynamic environment Xiameter Bundling has struggled to respond to the nimble upstart competition. Xiameter Bundling has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Xiameter Bundling 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.
Skills based hiring
– The stress on hiring functional specialists at Xiameter Bundling 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.
Aligning sales with marketing
– It come across in the case study Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter: The Past and Future of a "Disruptive Innovation" can leverage the sales team experience to cultivate customer relationships as Xiameter Bundling is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Xiameter Bundling 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. Xiameter Bundling 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Kamran Kashani, Inna Francis suggests that, Xiameter Bundling 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Xiameter: The Past and Future of a "Disruptive Innovation", is just above the industry average. Xiameter Bundling 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.
Opportunities Xiameter: The Past and Future of a "Disruptive Innovation" | 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 Xiameter: The Past and Future of a "Disruptive Innovation" are -
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. Xiameter Bundling can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Xiameter Bundling can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Xiameter: The Past and Future of a "Disruptive Innovation" 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
– Xiameter Bundling 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 Xiameter: The Past and Future of a "Disruptive Innovation" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Xiameter Bundling to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Xiameter Bundling 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, Xiameter: The Past and Future of a "Disruptive Innovation", to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Xiameter Bundling can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Xiameter Bundling 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.
Learning at scale
– Online learning technologies has now opened space for Xiameter Bundling 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
– Xiameter Bundling can develop new processes and procedures in Sales & Marketing 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Xiameter Bundling 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 Xiameter Bundling to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Xiameter Bundling can use these opportunities to build new business models that can help the communities that Xiameter Bundling operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Creating value in data economy
– The success of analytics program of Xiameter Bundling has opened avenues for new revenue streams for the organization in the industry. This can help Xiameter Bundling to build a more holistic ecosystem as suggested in the Xiameter: The Past and Future of a "Disruptive Innovation" case study. Xiameter Bundling can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Xiameter Bundling 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 Xiameter Bundling in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Threats Xiameter: The Past and Future of a "Disruptive Innovation" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Xiameter: The Past and Future of a "Disruptive Innovation" are -
Shortening product life cycle
– it is one of the major threat that Xiameter Bundling is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Xiameter Bundling in the Sales & Marketing sector and impact the bottomline of the organization.
Regulatory challenges
– Xiameter Bundling 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 Sales & Marketing industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Xiameter Bundling 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 Xiameter: The Past and Future of a "Disruptive Innovation" .
Consumer confidence and its impact on Xiameter Bundling 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.
Environmental challenges
– Xiameter Bundling 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. Xiameter Bundling can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Xiameter Bundling can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Xiameter Bundling business can come under increasing regulations regarding data privacy, data security, etc.
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. Xiameter Bundling 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.
Technology acceleration in Forth Industrial Revolution
– Xiameter Bundling has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Xiameter Bundling needs to keep up with the evolution of technology in the Sales & Marketing 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.
Increasing wage structure of Xiameter Bundling
– 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 Xiameter Bundling.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Xiameter Bundling in the Sales & Marketing industry. The Sales & Marketing 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.
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 Xiameter Bundling.
Weighted SWOT Analysis of Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter: The Past and Future of a "Disruptive Innovation" 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 Xiameter Bundling needs to make to build a sustainable competitive advantage.
