Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile

Mason Instruments has become a second source for the electronics guidance system for a Navy missile. The case decision involves bidding in the third-round competition.

Authors :: E. Raymond Corey

Topics :: Sales & Marketing

Tags :: Negotiations, Pricing, Research & development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile" written by E. Raymond Corey includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Missile Mason facing as an external strategic factors. Some of the topics covered in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study are - Strategic Management Strategies, Negotiations, Pricing, Research & development and Sales & Marketing.

Some of the macro environment factors that can be used to understand the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile casestudy better are - – wage bills are increasing, geopolitical disruptions, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, technology disruption, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Missile Mason, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Missile Mason 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile can be done for the following purposes –
1. Strategic planning using facts provided in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile case study
2. Improving business portfolio management of Missile Mason
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 Missile Mason

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Strengths Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Missile Mason in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile Harvard Business Review case study are -

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Missile Mason digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Missile Mason 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.

Low bargaining power of suppliers

– Suppliers of Missile Mason in the sector have low bargaining power. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Missile Mason to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Missile Mason 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

– Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Sustainable margins compare to other players in Sales & Marketing industry

– Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile firm has clearly differentiated products in the market place. This has enabled Missile Mason to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Missile Mason to invest into research and development (R&D) and innovation.

High brand equity

– Missile Mason has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Missile Mason to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Innovation driven organization

– Missile Mason is one of the most innovative firm in sector. Manager in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Cross disciplinary teams

– Horizontal connected teams at the Missile Mason 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

– Missile Mason is one of the leading recruiters in the industry. Managers in the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Effective Research and Development (R&D)

– Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile - 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

– Missile Mason is present in almost all the verticals within the industry. This has provided firm in Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

Operational resilience

– The operational resilience strategy in the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

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Weaknesses Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Missile Mason is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High cash cycle compare to competitors

Missile Mason 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, Missile Mason 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, in the dynamic environment Missile Mason has struggled to respond to the nimble upstart competition. Missile Mason has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow decision making process

– As mentioned earlier in the report, Missile Mason 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. Missile Mason 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 dependence on star products

– The top 2 products and services of the firm as mentioned in the Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Missile Mason has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, firm in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Missile Mason 's lucrative customers.

Low market penetration in new markets

– Outside its home market of Missile Mason, firm in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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 Missile Mason supply chain. Even after few cautionary changes mentioned in the HBR case study - Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Missile Mason vulnerable to further global disruptions in South East Asia.

Skills based hiring

– The stress on hiring functional specialists at Missile Mason 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Missile Mason 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.

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Opportunities Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile | 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are -

Using analytics as competitive advantage

– Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Missile Mason to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Manufacturing automation

– Missile Mason 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.

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. Missile Mason 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. Missile Mason 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 Missile Mason to increase its market reach. Missile Mason 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.

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. Missile Mason can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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 Missile Mason 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.

Buying journey improvements

– Missile Mason can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Missile Mason in the consumer business. Now Missile Mason can target international markets with far fewer capital restrictions requirements than the existing system.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Missile Mason is facing challenges because of the dominance of functional experts in the organization. Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Missile Mason 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.

Learning at scale

– Online learning technologies has now opened space for Missile Mason 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Missile Mason 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.

Developing new processes and practices

– Missile Mason 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.

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Threats Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile are -

Stagnating economy with rate increase

– Missile Mason 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Missile Mason 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.

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. Missile Mason 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Missile Mason 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile .

Shortening product life cycle

– it is one of the major threat that Missile Mason is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Environmental challenges

– Missile Mason 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. Missile Mason can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile, Missile Mason 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 .

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. Missile Mason needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

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.

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 Missile Mason in the Sales & Marketing sector and impact the bottomline of the organization.

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. Missile Mason can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Consumer confidence and its impact on Missile Mason 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.

Regulatory challenges

– Missile Mason 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.

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Weighted SWOT Analysis of Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Mason Instrument, Inc.--1986 (A): Electronics Guidance System for the Cherokee Missile 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 Missile Mason needs to make to build a sustainable competitive advantage.

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