Case Study Description of Orbital Sciences Corp.: ORBCOMM
In late 1993, Orbital Communications Corp. (OCC), a subsidiary of Orbital Sciences Corp., is developing a global two-way wireless data communications system, called "ORBCOMM," based on a 26-satellite constellation in low earth orbit. Service is scheduled to begin in the United States in late 1994, followed by a rollout to international markets in 1995. The case focuses on OCC's marketing strategy in the years prior to the product/service being available. Provides details on how the firm has defined its markets and estimated the demand for the United States and international markets. There is also a rich discussion of other parts of OCC's marketing strategy including product design and development, marketing to regulatory bodies, development of the sales organization to include channel partners to enter the domestic and international markets, pricing strategy, and the role of competition. A rewritten version of an earlier case.
Swot Analysis of "Orbital Sciences Corp.: ORBCOMM" written by Das Narayandas, John A. Quelch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Orbital Occ's facing as an external strategic factors. Some of the topics covered in Orbital Sciences Corp.: ORBCOMM case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Orbital Sciences Corp.: ORBCOMM casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Orbital Sciences Corp.: ORBCOMM
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Orbital Sciences Corp.: ORBCOMM case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Orbital Occ's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Orbital Occ's 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 Orbital Sciences Corp.: ORBCOMM can be done for the following purposes –
1. Strategic planning using facts provided in Orbital Sciences Corp.: ORBCOMM case study
2. Improving business portfolio management of Orbital Occ's
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 Orbital Occ's
Strengths Orbital Sciences Corp.: ORBCOMM | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Orbital Occ's in Orbital Sciences Corp.: ORBCOMM Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Orbital Occ's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Orbital Occ's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Orbital Occ's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Orbital Occ's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Orbital Occ's is present in almost all the verticals within the industry. This has provided firm in Orbital Sciences Corp.: ORBCOMM 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.
Successful track record of launching new products
– Orbital Occ's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Orbital Occ's 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.
Innovation driven organization
– Orbital Occ's is one of the most innovative firm in sector. Manager in Orbital Sciences Corp.: ORBCOMM Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Orbital Occ's 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 Orbital Sciences Corp.: ORBCOMM HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Orbital Occ's 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.
Strong track record of project management
– Orbital Occ's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Orbital Occ's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Orbital Occ's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Orbital Sciences Corp.: ORBCOMM Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Orbital Occ's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Orbital Sciences Corp.: ORBCOMM 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.
Ability to recruit top talent
– Orbital Occ's is one of the leading recruiters in the industry. Managers in the Orbital Sciences Corp.: ORBCOMM are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Orbital Occ's in the sector have low bargaining power. Orbital Sciences Corp.: ORBCOMM has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Orbital Occ's to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Orbital Sciences Corp.: ORBCOMM | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Orbital Sciences Corp.: ORBCOMM are -
High bargaining power of channel partners
– Because of the regulatory requirements, Das Narayandas, John A. Quelch suggests that, Orbital Occ's 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 operating costs
– Compare to the competitors, firm in the HBR case study Orbital Sciences Corp.: ORBCOMM 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 Orbital Occ's 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Orbital Occ's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Orbital Occ's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Orbital Occ's to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Orbital Sciences Corp.: ORBCOMM, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Orbital Sciences Corp.: ORBCOMM, in the dynamic environment Orbital Occ's has struggled to respond to the nimble upstart competition. Orbital Occ's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Orbital Occ's 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.
Products dominated business model
– Even though Orbital Occ's 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 - Orbital Sciences Corp.: ORBCOMM should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Orbital Sciences Corp.: ORBCOMM, it seems that the employees of Orbital Occ's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Orbital Sciences Corp.: ORBCOMM 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 Orbital Occ's has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Orbital Occ's 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.
Slow to strategic competitive environment developments
– As Orbital Sciences Corp.: ORBCOMM HBR case study mentions - Orbital Occ's 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.
Opportunities Orbital Sciences Corp.: ORBCOMM | 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 Orbital Sciences Corp.: ORBCOMM are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Orbital Occ's is facing challenges because of the dominance of functional experts in the organization. Orbital Sciences Corp.: ORBCOMM 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.
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 Orbital Occ's in the consumer business. Now Orbital Occ's 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 Orbital Occ's to increase its market reach. Orbital Occ's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Orbital Occ's 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, Orbital Sciences Corp.: ORBCOMM, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Orbital Occ's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Orbital Occ's 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.
Creating value in data economy
– The success of analytics program of Orbital Occ's has opened avenues for new revenue streams for the organization in the industry. This can help Orbital Occ's to build a more holistic ecosystem as suggested in the Orbital Sciences Corp.: ORBCOMM case study. Orbital Occ's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Orbital Occ's 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.
Manufacturing automation
– Orbital Occ's 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.
Using analytics as competitive advantage
– Orbital Occ's 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 Orbital Sciences Corp.: ORBCOMM - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Orbital Occ's 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, Orbital Occ's 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.
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. Orbital Occ's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Orbital Occ's 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.
Threats Orbital Sciences Corp.: ORBCOMM External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Orbital Sciences Corp.: ORBCOMM are -
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.
High dependence on third party suppliers
– Orbital Occ's 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.
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 Orbital Occ's business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Orbital Occ's 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.
Increasing wage structure of Orbital Occ's
– 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 Orbital Occ's.
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 Orbital Occ's.
Stagnating economy with rate increase
– Orbital Occ's 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.
Shortening product life cycle
– it is one of the major threat that Orbital Occ's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Orbital Occ's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Orbital Occ's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Orbital Occ's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Orbital Sciences Corp.: ORBCOMM, Orbital Occ's 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 .
Technology acceleration in Forth Industrial Revolution
– Orbital Occ's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Orbital Occ's 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 Orbital Sciences Corp.: ORBCOMM 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 Orbital Sciences Corp.: ORBCOMM 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 Orbital Sciences Corp.: ORBCOMM 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 Orbital Sciences Corp.: ORBCOMM 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 Orbital Sciences Corp.: ORBCOMM 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 Orbital Occ's needs to make to build a sustainable competitive advantage.
