Carrier Corporation: The Future of R410A SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Carrier Corporation: The Future of R410A
Rick Roetken, a manager at Carrier Corporation, is considering the marketability of products using a new air-conditioning refrigerant, R410A. The Clean Air Act called for the gradual elimination of all ozone-depleting refrigerants, including the commonly used Freon 22, but many years remained before they would be banned altogether. R410A, which was produced by Allied Signal, looked to be the likely environmentally friendly replacement. Carrier was the first to incorporate the new refrigerant in some of its air-conditioners, but dealers and distributors had been reluctant to sell the new products, and early sales results were disappointing. Nevertheless, focus group research indicated the new products might have considerable appeal to consumers. After reviewing the research, Roetken wondered whether a positioning strategy could be found that would justify additional investment in the R410A line.
Swot Analysis of "Carrier Corporation: The Future of R410A" written by Mark Parry, Emily Jean Gibbons includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that R410a Refrigerant facing as an external strategic factors. Some of the topics covered in Carrier Corporation: The Future of R410A case study are - Strategic Management Strategies, Marketing, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Carrier Corporation: The Future of R410A casestudy better are - – central banks are concerned over increasing inflation, increasing transportation and logistics costs, geopolitical disruptions, technology disruption, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic ,
wage bills are increasing, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Carrier Corporation: The Future of R410A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Carrier Corporation: The Future of R410A case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the R410a Refrigerant, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which R410a Refrigerant 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 Carrier Corporation: The Future of R410A can be done for the following purposes –
1. Strategic planning using facts provided in Carrier Corporation: The Future of R410A case study
2. Improving business portfolio management of R410a Refrigerant
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 R410a Refrigerant
Strengths Carrier Corporation: The Future of R410A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of R410a Refrigerant in Carrier Corporation: The Future of R410A Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For R410a Refrigerant digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. R410a Refrigerant 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.
High switching costs
– The high switching costs that R410a Refrigerant 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Carrier Corporation: The Future of R410A firm has clearly differentiated products in the market place. This has enabled R410a Refrigerant to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped R410a Refrigerant to invest into research and development (R&D) and innovation.
Innovation driven organization
– R410a Refrigerant is one of the most innovative firm in sector. Manager in Carrier Corporation: The Future of R410A Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of R410a Refrigerant
– The covid-19 pandemic has put organizational resilience at the centre of everthing that R410a Refrigerant does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– R410a Refrigerant is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– R410a Refrigerant 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 Carrier Corporation: The Future of R410A - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– R410a Refrigerant has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled R410a Refrigerant to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of R410a Refrigerant in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of R410a Refrigerant in the sector have low bargaining power. Carrier Corporation: The Future of R410A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps R410a Refrigerant to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– R410a Refrigerant is present in almost all the verticals within the industry. This has provided firm in Carrier Corporation: The Future of R410A 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.
Ability to lead change in Sales & Marketing field
– R410a Refrigerant 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 R410a Refrigerant in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Carrier Corporation: The Future of R410A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Carrier Corporation: The Future of R410A are -
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Parry, Emily Jean Gibbons suggests that, R410a Refrigerant 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.
Lack of clear differentiation of R410a Refrigerant products
– To increase the profitability and margins on the products, R410a Refrigerant needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
R410a Refrigerant 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.
Capital Spending Reduction
– Even during the low interest decade, R410a Refrigerant 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.
Workers concerns about automation
– As automation is fast increasing in the segment, R410a Refrigerant 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Carrier Corporation: The Future of R410A, it seems that the employees of R410a Refrigerant don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of R410a Refrigerant is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. R410a Refrigerant needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help R410a Refrigerant to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, R410a Refrigerant is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Carrier Corporation: The Future of R410A can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of R410a Refrigerant, firm in the HBR case study Carrier Corporation: The Future of R410A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– R410a Refrigerant has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, R410a Refrigerant 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.
Opportunities Carrier Corporation: The Future of R410A | 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 Carrier Corporation: The Future of R410A are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, R410a Refrigerant is facing challenges because of the dominance of functional experts in the organization. Carrier Corporation: The Future of R410A 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, R410a Refrigerant 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, Carrier Corporation: The Future of R410A, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– R410a Refrigerant 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.
Manufacturing automation
– R410a Refrigerant can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
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 R410a Refrigerant 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.
Leveraging digital technologies
– R410a Refrigerant 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.
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. R410a Refrigerant can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. R410a Refrigerant 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. R410a Refrigerant 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.
Better consumer reach
– The expansion of the 5G network will help R410a Refrigerant to increase its market reach. R410a Refrigerant will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, R410a Refrigerant can use these opportunities to build new business models that can help the communities that R410a Refrigerant operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects R410a Refrigerant can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– R410a Refrigerant can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Carrier Corporation: The Future of R410A 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.
Building a culture of innovation
– managers at R410a Refrigerant 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 Sales & Marketing segment.
Threats Carrier Corporation: The Future of R410A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Carrier Corporation: The Future of R410A are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents R410a Refrigerant with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. R410a Refrigerant needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Carrier Corporation: The Future of R410A, R410a Refrigerant may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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.
Stagnating economy with rate increase
– R410a Refrigerant 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.
Consumer confidence and its impact on R410a Refrigerant 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.
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 R410a Refrigerant.
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. R410a Refrigerant can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– R410a Refrigerant 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 R410a Refrigerant
– 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 R410a Refrigerant.
Environmental challenges
– R410a Refrigerant 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. R410a Refrigerant can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. R410a Refrigerant 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.
Weighted SWOT Analysis of Carrier Corporation: The Future of R410A 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 Carrier Corporation: The Future of R410A 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 Carrier Corporation: The Future of R410A 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 Carrier Corporation: The Future of R410A 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 Carrier Corporation: The Future of R410A 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 R410a Refrigerant needs to make to build a sustainable competitive advantage.
