Customer Value Measurement at Nortel Networks--Optical Networks Division SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Customer Value Measurement at Nortel Networks--Optical Networks Division
Since 1995, Nortel Networks' Optical Networks (ON) division has been incorporating customer satisfaction and loyalty measures into its business practices to increase customer value. Over the years, key process owners in various parts of the organization have become accustomed to receiving such information in the format with which they are familiar. Recent initiatives by the Customer Value Measurement (CVM) team have shown that the current methodology does not provide all the insights required to achieve the full potential of customer value measurement. The CVM team now needs to present Nortel's senior management with the optimal combination of the many choices for soliciting customer perceptions that would make the best use of available resources, minimize the intrusion on customers' time, and add value for the business and customers alike.
Swot Analysis of "Customer Value Measurement at Nortel Networks--Optical Networks Division" written by Das Narayandas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cvm Networks facing as an external strategic factors. Some of the topics covered in Customer Value Measurement at Nortel Networks--Optical Networks Division case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Customer Value Measurement at Nortel Networks--Optical Networks Division casestudy better are - – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Customer Value Measurement at Nortel Networks--Optical Networks Division
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Customer Value Measurement at Nortel Networks--Optical Networks Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cvm Networks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division can be done for the following purposes –
1. Strategic planning using facts provided in Customer Value Measurement at Nortel Networks--Optical Networks Division case study
2. Improving business portfolio management of Cvm Networks
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 Cvm Networks
Strengths Customer Value Measurement at Nortel Networks--Optical Networks Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cvm Networks in Customer Value Measurement at Nortel Networks--Optical Networks Division Harvard Business Review case study are -
Sustainable margins compare to other players in Sales & Marketing industry
– Customer Value Measurement at Nortel Networks--Optical Networks Division firm has clearly differentiated products in the market place. This has enabled Cvm Networks to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Cvm Networks to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Customer Value Measurement at Nortel Networks--Optical Networks Division 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.
Superior customer experience
– The customer experience strategy of Cvm Networks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Cvm Networks is one of the leading recruiters in the industry. Managers in the Customer Value Measurement at Nortel Networks--Optical Networks Division are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Cvm Networks has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Customer Value Measurement at Nortel Networks--Optical Networks Division - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Cvm Networks is one of the most innovative firm in sector. Manager in Customer Value Measurement at Nortel Networks--Optical Networks Division 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
– Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Cvm Networks
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cvm Networks does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Cvm Networks 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 Cvm Networks is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Customer Value Measurement at Nortel Networks--Optical Networks Division Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Cvm Networks is present in almost all the verticals within the industry. This has provided firm in Customer Value Measurement at Nortel Networks--Optical Networks Division 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.
High switching costs
– The high switching costs that Cvm Networks 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.
Cross disciplinary teams
– Horizontal connected teams at the Cvm Networks 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.
Weaknesses Customer Value Measurement at Nortel Networks--Optical Networks Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Customer Value Measurement at Nortel Networks--Optical Networks Division are -
Slow to strategic competitive environment developments
– As Customer Value Measurement at Nortel Networks--Optical Networks Division HBR case study mentions - Cvm Networks 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.
Increasing silos among functional specialists
– The organizational structure of Cvm Networks is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Cvm Networks needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cvm Networks to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Customer Value Measurement at Nortel Networks--Optical Networks Division can leverage the sales team experience to cultivate customer relationships as Cvm Networks is planning to shift buying processes online.
Interest costs
– Compare to the competition, Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Cvm Networks 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Customer Value Measurement at Nortel Networks--Optical Networks Division, 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.
Low market penetration in new markets
– Outside its home market of Cvm Networks, firm in the HBR case study Customer Value Measurement at Nortel Networks--Optical Networks Division needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Cvm Networks 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 decision making process
– As mentioned earlier in the report, Cvm Networks 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. Cvm Networks 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Customer Value Measurement at Nortel Networks--Optical Networks Division, it seems that the employees of Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division, is just above the industry average. Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division | 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 Customer Value Measurement at Nortel Networks--Optical Networks Division are -
Using analytics as competitive advantage
– Cvm Networks 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 Customer Value Measurement at Nortel Networks--Optical Networks Division - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cvm Networks 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, Cvm Networks 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, Customer Value Measurement at Nortel Networks--Optical Networks Division, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Cvm Networks 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.
Leveraging digital technologies
– Cvm Networks 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.
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. Cvm Networks can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cvm Networks 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 Cvm Networks to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cvm Networks 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.
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 Cvm Networks in the consumer business. Now Cvm Networks can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cvm Networks 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.
Building a culture of innovation
– managers at Cvm Networks 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cvm Networks can use these opportunities to build new business models that can help the communities that Cvm Networks operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cvm Networks is facing challenges because of the dominance of functional experts in the organization. Customer Value Measurement at Nortel Networks--Optical Networks Division 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cvm Networks can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Customer Value Measurement at Nortel Networks--Optical Networks Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Customer Value Measurement at Nortel Networks--Optical Networks Division are -
High dependence on third party suppliers
– Cvm Networks 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 Cvm Networks 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Customer Value Measurement at Nortel Networks--Optical Networks Division, Cvm Networks 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cvm Networks 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.
Stagnating economy with rate increase
– Cvm Networks 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.
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 Cvm Networks.
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 Cvm Networks business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Cvm Networks 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. Cvm Networks can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cvm Networks will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
Shortening product life cycle
– it is one of the major threat that Cvm Networks 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. Cvm Networks needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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 Cvm Networks in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Customer Value Measurement at Nortel Networks--Optical Networks Division 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 Cvm Networks needs to make to build a sustainable competitive advantage.
