Case Study Description of Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction
The marketing manager for the Imaging Systems business unit (ISY) at Hewlett-Packard Medical Products Group is considering channel strategy and channel management issues raised by the upcoming introduction of a new cardiac imaging product. Product marketing's plans call for the use of indirect distribution channels to enter a new segment; important managers in ISY's direct sales force disagree.
Swot Analysis of "Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction" written by Frank V. Cespedes, Marie Bell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imaging Packard facing as an external strategic factors. Some of the topics covered in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction case study are - Strategic Management Strategies, Product development, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction casestudy better are - – technology disruption, wage bills are increasing, central banks are concerned over increasing inflation, geopolitical disruptions, increasing energy prices, increasing transportation and logistics costs, talent flight as more people leaving formal jobs,
increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imaging Packard, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imaging Packard 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction can be done for the following purposes –
1. Strategic planning using facts provided in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction case study
2. Improving business portfolio management of Imaging Packard
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 Imaging Packard
Strengths Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imaging Packard in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction Harvard Business Review case study are -
Innovation driven organization
– Imaging Packard is one of the most innovative firm in sector. Manager in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Sales & Marketing industry
– Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction firm has clearly differentiated products in the market place. This has enabled Imaging Packard to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Imaging Packard to invest into research and development (R&D) and innovation.
High brand equity
– Imaging Packard has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Imaging Packard to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Imaging Packard is one of the leading recruiters in the industry. Managers in the Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Imaging Packard digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imaging Packard 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.
Operational resilience
– The operational resilience strategy in the Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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.
Organizational Resilience of Imaging Packard
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Imaging Packard does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Imaging Packard in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Imaging Packard 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 Frank V. Cespedes, Marie Bell 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.
High switching costs
– The high switching costs that Imaging Packard 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.
Training and development
– Imaging Packard has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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.
Strong track record of project management
– Imaging Packard is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction are -
Aligning sales with marketing
– It come across in the case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction can leverage the sales team experience to cultivate customer relationships as Imaging Packard is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction, is just above the industry average. Imaging Packard 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.
Increasing silos among functional specialists
– The organizational structure of Imaging Packard is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Imaging Packard needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Imaging Packard to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Imaging Packard 's lucrative customers.
Lack of clear differentiation of Imaging Packard products
– To increase the profitability and margins on the products, Imaging Packard needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Imaging Packard supply chain. Even after few cautionary changes mentioned in the HBR case study - Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Imaging Packard vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Imaging Packard 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction, in the dynamic environment Imaging Packard has struggled to respond to the nimble upstart competition. Imaging Packard has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Imaging Packard has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction, it seems that the employees of Imaging Packard 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.
Opportunities Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction | 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Imaging Packard 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Imaging Packard can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Imaging Packard 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.
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. Imaging Packard 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
– Imaging Packard 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.
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 Imaging Packard 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.
Better consumer reach
– The expansion of the 5G network will help Imaging Packard to increase its market reach. Imaging Packard 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.
Buying journey improvements
– Imaging Packard can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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.
Developing new processes and practices
– Imaging Packard 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.
Manufacturing automation
– Imaging Packard 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imaging Packard 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 Imaging Packard to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Imaging Packard 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Imaging Packard to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Imaging Packard has opened avenues for new revenue streams for the organization in the industry. This can help Imaging Packard to build a more holistic ecosystem as suggested in the Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction case study. Imaging Packard can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction are -
Regulatory challenges
– Imaging Packard 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.
Shortening product life cycle
– it is one of the major threat that Imaging Packard is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Imaging Packard can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imaging Packard with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Imaging Packard.
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.
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 Imaging Packard business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Imaging Packard 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.
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. Imaging Packard 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Imaging Packard 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction .
Stagnating economy with rate increase
– Imaging Packard 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 Imaging Packard 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.
Weighted SWOT Analysis of Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Hewlett-Packard Imaging Systems Division: Sonos 100 C/F Introduction 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 Imaging Packard needs to make to build a sustainable competitive advantage.