Alcatel Access Systems Division (C): The Virtual Company - ADSL SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Alcatel Access Systems Division (C): The Virtual Company - ADSL
Supplement to case IN1040. The Alcatel Access Systems Division case highlights the issues and challenges, mainly in terms of product development and innovation, within a multinational organization traditionally organized on a country-based unit structure. The case focuses on the strategic organization and management issues aimed at developing adequate international integration, innovation and transformation processes amidst a fiercely changing competitive environment.
Authors :: Rudi Bogaert, Paul Verdin, Arnoud De Meyer
Swot Analysis of "Alcatel Access Systems Division (C): The Virtual Company - ADSL" written by Rudi Bogaert, Paul Verdin, Arnoud De Meyer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Alcatel Adsl facing as an external strategic factors. Some of the topics covered in Alcatel Access Systems Division (C): The Virtual Company - ADSL case study are - Strategic Management Strategies, Innovation, Regulation and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Alcatel Access Systems Division (C): The Virtual Company - ADSL casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Alcatel Access Systems Division (C): The Virtual Company - ADSL
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alcatel Access Systems Division (C): The Virtual Company - ADSL case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Alcatel Adsl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL can be done for the following purposes –
1. Strategic planning using facts provided in Alcatel Access Systems Division (C): The Virtual Company - ADSL case study
2. Improving business portfolio management of Alcatel Adsl
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 Alcatel Adsl
Strengths Alcatel Access Systems Division (C): The Virtual Company - ADSL | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Alcatel Adsl in Alcatel Access Systems Division (C): The Virtual Company - ADSL Harvard Business Review case study are -
Analytics focus
– Alcatel Adsl 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 Rudi Bogaert, Paul Verdin, Arnoud De Meyer 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.
Successful track record of launching new products
– Alcatel Adsl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Alcatel Adsl 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Alcatel Access Systems Division (C): The Virtual Company - ADSL firm has clearly differentiated products in the market place. This has enabled Alcatel Adsl to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Alcatel Adsl to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Alcatel Adsl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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.
Cross disciplinary teams
– Horizontal connected teams at the Alcatel Adsl 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.
Low bargaining power of suppliers
– Suppliers of Alcatel Adsl in the sector have low bargaining power. Alcatel Access Systems Division (C): The Virtual Company - ADSL has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Alcatel Adsl to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Alcatel Adsl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Alcatel Adsl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Alcatel Adsl is present in almost all the verticals within the industry. This has provided firm in Alcatel Access Systems Division (C): The Virtual Company - ADSL 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.
Innovation driven organization
– Alcatel Adsl is one of the most innovative firm in sector. Manager in Alcatel Access Systems Division (C): The Virtual Company - ADSL Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Alcatel Access Systems Division (C): The Virtual Company - ADSL | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alcatel Access Systems Division (C): The Virtual Company - ADSL are -
Lack of clear differentiation of Alcatel Adsl products
– To increase the profitability and margins on the products, Alcatel Adsl needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Alcatel Adsl 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 - Alcatel Access Systems Division (C): The Virtual Company - ADSL should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Adsl 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL can leverage the sales team experience to cultivate customer relationships as Alcatel Adsl is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Alcatel Adsl 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. Alcatel Adsl 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.
Interest costs
– Compare to the competition, Alcatel Adsl 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Alcatel Access Systems Division (C): The Virtual Company - ADSL, it seems that the employees of Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Adsl has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Alcatel Access Systems Division (C): The Virtual Company - ADSL, 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.
High cash cycle compare to competitors
Alcatel Adsl 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.
Low market penetration in new markets
– Outside its home market of Alcatel Adsl, firm in the HBR case study Alcatel Access Systems Division (C): The Virtual Company - ADSL needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Alcatel Access Systems Division (C): The Virtual Company - ADSL | 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL are -
Developing new processes and practices
– Alcatel Adsl 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.
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. Alcatel Adsl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Alcatel Adsl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Alcatel Adsl 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Alcatel Adsl 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 Alcatel Adsl to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Alcatel Adsl can use these opportunities to build new business models that can help the communities that Alcatel Adsl operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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 Alcatel Adsl in the consumer business. Now Alcatel Adsl can target international markets with far fewer capital restrictions requirements than the existing system.
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 Alcatel Adsl 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.
Building a culture of innovation
– managers at Alcatel Adsl 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.
Creating value in data economy
– The success of analytics program of Alcatel Adsl has opened avenues for new revenue streams for the organization in the industry. This can help Alcatel Adsl to build a more holistic ecosystem as suggested in the Alcatel Access Systems Division (C): The Virtual Company - ADSL case study. Alcatel Adsl can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Alcatel Adsl is facing challenges because of the dominance of functional experts in the organization. Alcatel Access Systems Division (C): The Virtual Company - ADSL 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.
Learning at scale
– Online learning technologies has now opened space for Alcatel Adsl 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.
Leveraging digital technologies
– Alcatel Adsl 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.
Threats Alcatel Access Systems Division (C): The Virtual Company - ADSL External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alcatel Access Systems Division (C): The Virtual Company - ADSL are -
Consumer confidence and its impact on Alcatel Adsl 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.
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 Alcatel Adsl in the Sales & Marketing sector and impact the bottomline of the organization.
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 Alcatel Adsl.
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. Alcatel Adsl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Alcatel Adsl 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.
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 Alcatel Adsl business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Alcatel Adsl 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. Alcatel Adsl can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Alcatel Adsl with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Alcatel Adsl
– 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 Alcatel Adsl.
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. Alcatel Adsl needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Alcatel Adsl has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Alcatel Adsl 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Alcatel Adsl 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL .
Weighted SWOT Analysis of Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Access Systems Division (C): The Virtual Company - ADSL 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 Alcatel Adsl needs to make to build a sustainable competitive advantage.
