Case Study Description of Industrial Metrology: Getting In-Line? (A)
To maximize their effectiveness, color cases should be printed in color.Metrology plays a key role in the manufacture of mechanical components. Traditionally it is used extensively in a pre-process stage where a manufacturer does process planning, design, and ramp-up, and in post-process off-line inspection to establish proof of quality. The area that is seeing a lot of growth is the in-process stage of volume manufacturing, where feedback control can help ensure that parts are made to specification. The Industrial Metrology Group at Carl Zeiss AG had its traditional strength in high precision coordinate measuring machines, a universal measuring tool that had been widely used since its introduction in the mid-1970s. The market faced a complex diversification of competition as metrology manufacturers introduced new sensor and measurement technologies, and as some of their customers moved towards a different style of measurement mandating speed and integration with production systems. The case discusses the threat of new in-line metrology systems to the core business as well as the arising new opportunities.
Swot Analysis of "Industrial Metrology: Getting In-Line? (A)" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Metrology Measuring facing as an external strategic factors. Some of the topics covered in Industrial Metrology: Getting In-Line? (A) case study are - Strategic Management Strategies, Design, Disruptive innovation, Manufacturing, Marketing, Performance measurement, Product development, Risk management, Strategic planning, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Industrial Metrology: Getting In-Line? (A) casestudy better are - – there is backlash against globalization, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing commodity prices,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of Industrial Metrology: Getting In-Line? (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Industrial Metrology: Getting In-Line? (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Metrology Measuring, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) can be done for the following purposes –
1. Strategic planning using facts provided in Industrial Metrology: Getting In-Line? (A) case study
2. Improving business portfolio management of Metrology Measuring
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Metrology Measuring
Strengths Industrial Metrology: Getting In-Line? (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Metrology Measuring in Industrial Metrology: Getting In-Line? (A) Harvard Business Review case study are -
High brand equity
– Metrology Measuring has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Metrology Measuring to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Metrology Measuring is present in almost all the verticals within the industry. This has provided firm in Industrial Metrology: Getting In-Line? (A) 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.
Low bargaining power of suppliers
– Suppliers of Metrology Measuring in the sector have low bargaining power. Industrial Metrology: Getting In-Line? (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Metrology Measuring to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Metrology Measuring is one of the most innovative firm in sector. Manager in Industrial Metrology: Getting In-Line? (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Industrial Metrology: Getting In-Line? (A) firm has clearly differentiated products in the market place. This has enabled Metrology Measuring to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Metrology Measuring to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Metrology Measuring has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Industrial Metrology: Getting In-Line? (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Industrial Metrology: Getting In-Line? (A) 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.
Learning organization
- Metrology Measuring 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 Metrology Measuring is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Industrial Metrology: Getting In-Line? (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Metrology Measuring
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Metrology Measuring does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Metrology Measuring 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 Willy Shih 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
– Metrology Measuring has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Metrology Measuring 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.
Weaknesses Industrial Metrology: Getting In-Line? (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Industrial Metrology: Getting In-Line? (A) are -
High cash cycle compare to competitors
Metrology Measuring 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Industrial Metrology: Getting In-Line? (A), it seems that the employees of Metrology Measuring 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.
Low market penetration in new markets
– Outside its home market of Metrology Measuring, firm in the HBR case study Industrial Metrology: Getting In-Line? (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Industrial Metrology: Getting In-Line? (A), in the dynamic environment Metrology Measuring has struggled to respond to the nimble upstart competition. Metrology Measuring has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Industrial Metrology: Getting In-Line? (A) 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 Metrology Measuring 's lucrative customers.
Interest costs
– Compare to the competition, Metrology Measuring 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.
Slow decision making process
– As mentioned earlier in the report, Metrology Measuring 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. Metrology Measuring 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 Metrology Measuring is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Metrology Measuring needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Metrology Measuring to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Industrial Metrology: Getting In-Line? (A) 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 Industrial Metrology: Getting In-Line? (A) can leverage the sales team experience to cultivate customer relationships as Metrology Measuring is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) 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 Metrology Measuring has relatively successful track record of launching new products.
Opportunities Industrial Metrology: Getting In-Line? (A) | 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 Industrial Metrology: Getting In-Line? (A) are -
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 Metrology Measuring 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Metrology Measuring can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Metrology Measuring can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Metrology Measuring 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, Metrology Measuring is facing challenges because of the dominance of functional experts in the organization. Industrial Metrology: Getting In-Line? (A) 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.
Buying journey improvements
– Metrology Measuring can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Industrial Metrology: Getting In-Line? (A) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Metrology Measuring can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Metrology Measuring in the consumer business. Now Metrology Measuring can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Metrology Measuring 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.
Leveraging digital technologies
– Metrology Measuring 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Metrology Measuring can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Metrology Measuring 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.
Manufacturing automation
– Metrology Measuring can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Better consumer reach
– The expansion of the 5G network will help Metrology Measuring to increase its market reach. Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Industrial Metrology: Getting In-Line? (A) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Metrology Measuring with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Metrology Measuring in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Metrology Measuring 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.
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. Metrology Measuring 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.
Shortening product life cycle
– it is one of the major threat that Metrology Measuring is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Increasing wage structure of Metrology Measuring
– 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 Metrology Measuring.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Industrial Metrology: Getting In-Line? (A), Metrology Measuring may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Regulatory challenges
– Metrology Measuring 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 Strategy & Execution industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Metrology Measuring in the Strategy & Execution industry. The Strategy & Execution 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Metrology Measuring 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 Industrial Metrology: Getting In-Line? (A) .
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Metrology Measuring can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Metrology Measuring 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. Metrology Measuring can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of Industrial Metrology: Getting In-Line? (A) 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 Industrial Metrology: Getting In-Line? (A) 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 Industrial Metrology: Getting In-Line? (A) 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 Industrial Metrology: Getting In-Line? (A) 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 Industrial Metrology: Getting In-Line? (A) 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 Metrology Measuring needs to make to build a sustainable competitive advantage.
