Alcatel Access Systems Division (A): Lessons from the Past 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 (A): Lessons from the Past
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 (A): Lessons from the Past" 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 Access facing as an external strategic factors. Some of the topics covered in Alcatel Access Systems Division (A): Lessons from the Past 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 (A): Lessons from the Past casestudy better are - – increasing energy prices, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, there is backlash against globalization, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of Alcatel Access Systems Division (A): Lessons from the Past
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alcatel Access Systems Division (A): Lessons from the Past case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Alcatel Access, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Alcatel Access 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 (A): Lessons from the Past can be done for the following purposes –
1. Strategic planning using facts provided in Alcatel Access Systems Division (A): Lessons from the Past case study
2. Improving business portfolio management of Alcatel Access
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 Access
Strengths Alcatel Access Systems Division (A): Lessons from the Past | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Alcatel Access in Alcatel Access Systems Division (A): Lessons from the Past Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Alcatel Access 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 Alcatel Access in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Alcatel Access 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.
Diverse revenue streams
– Alcatel Access is present in almost all the verticals within the industry. This has provided firm in Alcatel Access Systems Division (A): Lessons from the Past 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.
Ability to recruit top talent
– Alcatel Access is one of the leading recruiters in the industry. Managers in the Alcatel Access Systems Division (A): Lessons from the Past are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Alcatel Access 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 Alcatel Access is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Alcatel Access Systems Division (A): Lessons from the Past Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Alcatel Access is one of the most innovative firm in sector. Manager in Alcatel Access Systems Division (A): Lessons from the Past Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Alcatel Access is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Alcatel Access
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Alcatel Access does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Alcatel Access has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Alcatel Access 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.
Operational resilience
– The operational resilience strategy in the Alcatel Access Systems Division (A): Lessons from the Past 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 Alcatel Access in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Alcatel Access in the sector have low bargaining power. Alcatel Access Systems Division (A): Lessons from the Past has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Alcatel Access to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Alcatel Access Systems Division (A): Lessons from the Past | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alcatel Access Systems Division (A): Lessons from the Past are -
Skills based hiring
– The stress on hiring functional specialists at Alcatel Access has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Interest costs
– Compare to the competition, Alcatel Access 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alcatel Access Systems Division (A): Lessons from the Past, in the dynamic environment Alcatel Access has struggled to respond to the nimble upstart competition. Alcatel Access has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Alcatel Access products
– To increase the profitability and margins on the products, Alcatel Access needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Alcatel Access Systems Division (A): Lessons from the Past, it seems that the employees of Alcatel Access 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.
Slow decision making process
– As mentioned earlier in the report, Alcatel Access 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 Access 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.
Slow to strategic competitive environment developments
– As Alcatel Access Systems Division (A): Lessons from the Past HBR case study mentions - Alcatel Access 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 Alcatel Access is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Alcatel Access needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Alcatel Access to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Alcatel Access Systems Division (A): Lessons from the Past 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 Access 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Alcatel Access is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Alcatel Access Systems Division (A): Lessons from the Past can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Alcatel Access 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.
Opportunities Alcatel Access Systems Division (A): Lessons from the Past | 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 (A): Lessons from the Past are -
Developing new processes and practices
– Alcatel Access 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.
Using analytics as competitive advantage
– Alcatel Access 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 Alcatel Access Systems Division (A): Lessons from the Past - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Alcatel Access to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Alcatel Access is facing challenges because of the dominance of functional experts in the organization. Alcatel Access Systems Division (A): Lessons from the Past 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 Alcatel Access can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Alcatel Access can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Alcatel Access Systems Division (A): Lessons from the Past 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Alcatel Access 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.
Loyalty marketing
– Alcatel Access has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Alcatel Access 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.
Creating value in data economy
– The success of analytics program of Alcatel Access has opened avenues for new revenue streams for the organization in the industry. This can help Alcatel Access to build a more holistic ecosystem as suggested in the Alcatel Access Systems Division (A): Lessons from the Past case study. Alcatel Access can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Alcatel Access to increase its market reach. Alcatel Access 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.
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 Access in the consumer business. Now Alcatel Access can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Alcatel Access 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. Alcatel Access can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Alcatel Access Systems Division (A): Lessons from the Past 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 (A): Lessons from the Past are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Alcatel Access 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 (A): Lessons from the Past .
Environmental challenges
– Alcatel Access 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 Access can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
High dependence on third party suppliers
– Alcatel Access 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.
Increasing wage structure of Alcatel Access
– 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 Access.
Regulatory challenges
– Alcatel Access 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.
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 Access in the Sales & Marketing sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Alcatel Access with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Alcatel Access 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.
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 Access needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Alcatel Access has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Alcatel Access 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.
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 Access can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Access business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Alcatel Access Systems Division (A): Lessons from the Past 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 (A): Lessons from the Past 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 (A): Lessons from the Past 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 (A): Lessons from the Past 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 (A): Lessons from the Past 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 Access needs to make to build a sustainable competitive advantage.