Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies
The creation of Lucent Technologies was the result of AT&T's "trivestiture" in 1995. In this split, three companies were formed: AT&T, a $50 billion telecommunications services company; NCR, a computer firm; and an unnamed $20 billion "Systems and Technology" company that designed, built, and delivered a wide range of public and private networks, communications systems and software, consumer and business telephone systems, and microelectronics components. Given that AT&T was one of the largest, oldest, and best known corporations in the world, the new "S&T" company's management was faced with a series of strategic issues which had to be resolved quickly. Presents the process used by the company and its corporate identity consultants to identify corporate values that were important in the marketplace, to create a name for the company, to design a logo and identity system, and to implement the strategy. Also provides an opportunity to follow the process used by a company at the time of change in its identity and positioning in the marketplace. Such change may come as the result of a merger, acquisition, new alliance or, as in this case, the result of a spin-off. Comparing this process to the one generally followed in the formation of a truly new "start-up" venture; analyzing the effect of business, financial, and regulatory pressures on the process; and examining the role of consultants and research in the development of a name and visual identity for the company. Comparisons to current publicized examples of identity change can foster meaningful debate in the classroom.
Swot Analysis of "Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies" written by Stephen A. Greyser, Peter L. Phillips includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Identity Lucent facing as an external strategic factors. Some of the topics covered in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies case study are - Strategic Management Strategies, Design, IT, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies casestudy better are - – geopolitical disruptions, cloud computing is disrupting traditional business models, technology disruption, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs,
central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Identity Lucent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Identity Lucent 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies can be done for the following purposes –
1. Strategic planning using facts provided in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies case study
2. Improving business portfolio management of Identity Lucent
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 Identity Lucent
Strengths Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Identity Lucent in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Identity Lucent in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies firm has clearly differentiated products in the market place. This has enabled Identity Lucent to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Identity Lucent to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Identity Lucent 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Identity Lucent is present in almost all the verticals within the industry. This has provided firm in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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
– Identity Lucent is one of the leading recruiters in the industry. Managers in the Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Identity Lucent in the sector have low bargaining power. Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Identity Lucent to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Identity Lucent 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.
Analytics focus
– Identity Lucent 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 Stephen A. Greyser, Peter L. Phillips 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Identity Lucent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Identity Lucent 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
– Identity Lucent has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Identity Lucent to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Identity Lucent is one of the most innovative firm in sector. Manager in Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Identity Lucent 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies are -
Capital Spending Reduction
– Even during the low interest decade, Identity Lucent 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Identity Lucent has relatively successful track record of launching new products.
Lack of clear differentiation of Identity Lucent products
– To increase the profitability and margins on the products, Identity Lucent needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Identity Lucent 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. Identity Lucent 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.
Increasing silos among functional specialists
– The organizational structure of Identity Lucent is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Identity Lucent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Identity Lucent to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Identity Lucent, firm in the HBR case study Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Identity Lucent 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 - Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Identity Lucent 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.
Slow to strategic competitive environment developments
– As Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies HBR case study mentions - Identity Lucent 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Identity Lucent is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies can leverage the sales team experience to cultivate customer relationships as Identity Lucent is planning to shift buying processes online.
Opportunities Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies | 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies are -
Loyalty marketing
– Identity Lucent 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Identity Lucent 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.
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. Identity Lucent can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Identity Lucent 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Identity Lucent can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Identity Lucent 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 Identity Lucent 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, Identity Lucent can use these opportunities to build new business models that can help the communities that Identity Lucent operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Using analytics as competitive advantage
– Identity Lucent 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Identity Lucent to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Identity Lucent 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.
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 Identity Lucent in the consumer business. Now Identity Lucent can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Identity Lucent 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.
Building a culture of innovation
– managers at Identity Lucent 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.
Better consumer reach
– The expansion of the 5G network will help Identity Lucent to increase its market reach. Identity Lucent 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.
Threats Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies are -
Increasing wage structure of Identity Lucent
– 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 Identity Lucent.
Stagnating economy with rate increase
– Identity Lucent 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.
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. Identity Lucent 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.
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 Identity Lucent in the Sales & Marketing sector and impact the bottomline of the organization.
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. Identity Lucent can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Identity Lucent.
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.
Consumer confidence and its impact on Identity Lucent 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. Identity Lucent needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Regulatory challenges
– Identity Lucent 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Identity Lucent with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Identity Lucent 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Identity Lucent 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies .
Weighted SWOT Analysis of Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies 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 Identity Lucent needs to make to build a sustainable competitive advantage.
