Case Study Description of HCL Beanstalk: All-in-One Desktop Re-Launch
HCL Infosystems Ltd. is a reputable computer hardware firm and a major player in the Indian desktop market. Due to changes in consumer behaviour, the desktop market is shrinking and demand is shifting towards laptops, where HCL has a miniscule presence. At the same time, the desktop market is witnessing the emergence of a new form of devices called all-in-ones (AIOs). HCL needs a significant presence in AIOs to retain its position in the Indian PC market. The company was an early entrant in the Indian AIO market in 2007 and sought to capture a niche market for its premium range, but did not succeed and withdrew its product line. The category has, in the last four years, grown in the mass market segment and HCL needs a successful relaunch of the HCL Beanstalk AIO in the face of intense competition from multinational competitors who have a head start. The problem is compounded by the fact that the HCL brand is losing market share and that the company lacks the financial resources to invest heavily in brand building. HCL's management believes that the Beanstalk needs to capture eight per cent of the retail segment of the Indian AIO market in order to be able to gain the same share in the business-to-business market, which is slower to adopt new technologies. Jaydeep Mukherjee is affiliated with Management Development Institute
Swot Analysis of "HCL Beanstalk: All-in-One Desktop Re-Launch" written by Rahul Seth, Jaydeep Mukherjee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hcl Aio facing as an external strategic factors. Some of the topics covered in HCL Beanstalk: All-in-One Desktop Re-Launch case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the HCL Beanstalk: All-in-One Desktop Re-Launch casestudy better are - – digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, geopolitical disruptions, increasing government debt because of Covid-19 spendings,
increasing commodity prices, there is backlash against globalization, etc
Introduction to SWOT Analysis of HCL Beanstalk: All-in-One Desktop Re-Launch
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HCL Beanstalk: All-in-One Desktop Re-Launch case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hcl Aio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hcl Aio 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 HCL Beanstalk: All-in-One Desktop Re-Launch can be done for the following purposes –
1. Strategic planning using facts provided in HCL Beanstalk: All-in-One Desktop Re-Launch case study
2. Improving business portfolio management of Hcl Aio
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 Hcl Aio
Strengths HCL Beanstalk: All-in-One Desktop Re-Launch | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hcl Aio in HCL Beanstalk: All-in-One Desktop Re-Launch Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Hcl Aio digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hcl Aio 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.
Ability to recruit top talent
– Hcl Aio is one of the leading recruiters in the industry. Managers in the HCL Beanstalk: All-in-One Desktop Re-Launch are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Sales & Marketing industry
– HCL Beanstalk: All-in-One Desktop Re-Launch firm has clearly differentiated products in the market place. This has enabled Hcl Aio to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Hcl Aio to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Hcl Aio in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Hcl Aio has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hcl Aio to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Hcl Aio is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Hcl Aio 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 HCL Beanstalk: All-in-One Desktop Re-Launch HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Hcl Aio is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Rahul Seth, Jaydeep Mukherjee can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Sales & Marketing field
– Hcl Aio 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 Hcl Aio in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Hcl Aio in the sector have low bargaining power. HCL Beanstalk: All-in-One Desktop Re-Launch has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hcl Aio to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Hcl Aio 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.
Successful track record of launching new products
– Hcl Aio has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hcl Aio has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses HCL Beanstalk: All-in-One Desktop Re-Launch | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HCL Beanstalk: All-in-One Desktop Re-Launch are -
Low market penetration in new markets
– Outside its home market of Hcl Aio, firm in the HBR case study HCL Beanstalk: All-in-One Desktop Re-Launch needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Hcl Aio 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.
High operating costs
– Compare to the competitors, firm in the HBR case study HCL Beanstalk: All-in-One Desktop Re-Launch 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 Hcl Aio 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HCL Beanstalk: All-in-One Desktop Re-Launch 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 Hcl Aio has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Rahul Seth, Jaydeep Mukherjee suggests that, Hcl Aio 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.
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 Hcl Aio supply chain. Even after few cautionary changes mentioned in the HBR case study - HCL Beanstalk: All-in-One Desktop Re-Launch, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hcl Aio vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Hcl Aio 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 - HCL Beanstalk: All-in-One Desktop Re-Launch should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Hcl Aio 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.
Slow to strategic competitive environment developments
– As HCL Beanstalk: All-in-One Desktop Re-Launch HBR case study mentions - Hcl Aio takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study HCL Beanstalk: All-in-One Desktop Re-Launch, it seems that the employees of Hcl Aio 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HCL Beanstalk: All-in-One Desktop Re-Launch, is just above the industry average. Hcl Aio 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 HCL Beanstalk: All-in-One Desktop Re-Launch | 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 HCL Beanstalk: All-in-One Desktop Re-Launch are -
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 Hcl Aio 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.
Creating value in data economy
– The success of analytics program of Hcl Aio has opened avenues for new revenue streams for the organization in the industry. This can help Hcl Aio to build a more holistic ecosystem as suggested in the HCL Beanstalk: All-in-One Desktop Re-Launch case study. Hcl Aio can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Hcl Aio in the consumer business. Now Hcl Aio can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Hcl Aio 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 HCL Beanstalk: All-in-One Desktop Re-Launch - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hcl Aio 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, Hcl Aio 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, HCL Beanstalk: All-in-One Desktop Re-Launch, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Hcl Aio can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Hcl Aio 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.
Learning at scale
– Online learning technologies has now opened space for Hcl Aio 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.
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. Hcl Aio 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. Hcl Aio 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hcl Aio 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.
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. Hcl Aio can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Hcl Aio 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.
Buying journey improvements
– Hcl Aio can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HCL Beanstalk: All-in-One Desktop Re-Launch 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.
Threats HCL Beanstalk: All-in-One Desktop Re-Launch External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HCL Beanstalk: All-in-One Desktop Re-Launch are -
Stagnating economy with rate increase
– Hcl Aio 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.
High dependence on third party suppliers
– Hcl Aio 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.
Consumer confidence and its impact on Hcl Aio 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hcl Aio 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 HCL Beanstalk: All-in-One Desktop Re-Launch .
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 Hcl Aio in the Sales & Marketing sector and impact the bottomline of the organization.
Increasing wage structure of Hcl Aio
– 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 Hcl Aio.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hcl Aio 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.
Shortening product life cycle
– it is one of the major threat that Hcl Aio is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Hcl Aio 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.
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 Hcl Aio.
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 Hcl Aio business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of HCL Beanstalk: All-in-One Desktop Re-Launch 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 HCL Beanstalk: All-in-One Desktop Re-Launch 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 HCL Beanstalk: All-in-One Desktop Re-Launch 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 HCL Beanstalk: All-in-One Desktop Re-Launch 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 HCL Beanstalk: All-in-One Desktop Re-Launch 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 Hcl Aio needs to make to build a sustainable competitive advantage.
