Case Study Description of E.T. Phone Home, Inc.: Forecasting Business Demand
Describes a process for forecasting market demand for an emerging technology--cellular radio. The student must critically evaluate the demand model and the market estimates, and modify them as appropriate in order to develop a marketing plan and budget.
Swot Analysis of "E.T. Phone Home, Inc.: Forecasting Business Demand" written by John F. Cady, Frank V. Cespedes includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Forecasting Demand facing as an external strategic factors. Some of the topics covered in E.T. Phone Home, Inc.: Forecasting Business Demand case study are - Strategic Management Strategies, Forecasting, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the E.T. Phone Home, Inc.: Forecasting Business Demand casestudy better are - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, there is backlash against globalization, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of E.T. Phone Home, Inc.: Forecasting Business Demand
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in E.T. Phone Home, Inc.: Forecasting Business Demand case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Forecasting Demand, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Forecasting Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand can be done for the following purposes –
1. Strategic planning using facts provided in E.T. Phone Home, Inc.: Forecasting Business Demand case study
2. Improving business portfolio management of Forecasting Demand
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 Forecasting Demand
Strengths E.T. Phone Home, Inc.: Forecasting Business Demand | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Forecasting Demand in E.T. Phone Home, Inc.: Forecasting Business Demand Harvard Business Review case study are -
Successful track record of launching new products
– Forecasting Demand has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Forecasting Demand 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.
Ability to recruit top talent
– Forecasting Demand is one of the leading recruiters in the industry. Managers in the E.T. Phone Home, Inc.: Forecasting Business Demand are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Forecasting Demand 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 John F. Cady, Frank V. Cespedes 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.
Sustainable margins compare to other players in Sales & Marketing industry
– E.T. Phone Home, Inc.: Forecasting Business Demand firm has clearly differentiated products in the market place. This has enabled Forecasting Demand to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Forecasting Demand to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Forecasting Demand 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.
High brand equity
– Forecasting Demand has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Forecasting Demand to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Forecasting Demand in the sector have low bargaining power. E.T. Phone Home, Inc.: Forecasting Business Demand has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Forecasting Demand to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Forecasting Demand is one of the most innovative firm in sector. Manager in E.T. Phone Home, Inc.: Forecasting Business Demand Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the E.T. Phone Home, Inc.: Forecasting Business Demand 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.
High switching costs
– The high switching costs that Forecasting Demand 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.
Ability to lead change in Sales & Marketing field
– Forecasting Demand 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 Forecasting Demand in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Forecasting Demand
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Forecasting Demand does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses E.T. Phone Home, Inc.: Forecasting Business Demand | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of E.T. Phone Home, Inc.: Forecasting Business Demand are -
High bargaining power of channel partners
– Because of the regulatory requirements, John F. Cady, Frank V. Cespedes suggests that, Forecasting Demand 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.
Need for greater diversity
– Forecasting Demand 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.
Slow to strategic competitive environment developments
– As E.T. Phone Home, Inc.: Forecasting Business Demand HBR case study mentions - Forecasting Demand 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.
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 Forecasting Demand supply chain. Even after few cautionary changes mentioned in the HBR case study - E.T. Phone Home, Inc.: Forecasting Business Demand, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Forecasting Demand vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Forecasting Demand 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.
High cash cycle compare to competitors
Forecasting Demand 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study E.T. Phone Home, Inc.: Forecasting Business Demand, is just above the industry average. Forecasting Demand 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.
High operating costs
– Compare to the competitors, firm in the HBR case study E.T. Phone Home, Inc.: Forecasting Business Demand 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 Forecasting Demand 's lucrative customers.
Products dominated business model
– Even though Forecasting Demand 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 - E.T. Phone Home, Inc.: Forecasting Business Demand should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Forecasting Demand is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study E.T. Phone Home, Inc.: Forecasting Business Demand can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Forecasting Demand 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. Forecasting Demand 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.
Opportunities E.T. Phone Home, Inc.: Forecasting Business Demand | 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 E.T. Phone Home, Inc.: Forecasting Business Demand are -
Learning at scale
– Online learning technologies has now opened space for Forecasting Demand 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Forecasting Demand 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.
Buying journey improvements
– Forecasting Demand can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. E.T. Phone Home, Inc.: Forecasting Business Demand 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 Forecasting Demand 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.
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 Forecasting Demand in the consumer business. Now Forecasting Demand can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Forecasting Demand to increase its market reach. Forecasting Demand 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Forecasting Demand is facing challenges because of the dominance of functional experts in the organization. E.T. Phone Home, Inc.: Forecasting Business Demand 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Forecasting Demand 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 Forecasting Demand to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Forecasting Demand has opened avenues for new revenue streams for the organization in the industry. This can help Forecasting Demand to build a more holistic ecosystem as suggested in the E.T. Phone Home, Inc.: Forecasting Business Demand case study. Forecasting Demand can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Forecasting Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Forecasting Demand to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Forecasting Demand 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.
Manufacturing automation
– Forecasting Demand 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. Forecasting Demand 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. Forecasting Demand 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.
Threats E.T. Phone Home, Inc.: Forecasting Business Demand External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study E.T. Phone Home, Inc.: Forecasting Business Demand are -
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 Forecasting Demand in the Sales & Marketing sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Forecasting Demand 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 Forecasting Demand 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.
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 Forecasting Demand business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Forecasting Demand 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. Forecasting Demand can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Shortening product life cycle
– it is one of the major threat that Forecasting Demand is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Forecasting Demand 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 Forecasting Demand.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Forecasting Demand with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Forecasting Demand 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.
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. Forecasting Demand can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Forecasting Demand has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Forecasting Demand needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Weighted SWOT Analysis of E.T. Phone Home, Inc.: Forecasting Business Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand 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 E.T. Phone Home, Inc.: Forecasting Business Demand 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 Forecasting Demand needs to make to build a sustainable competitive advantage.