MDCM, Inc. (A): IT Strategy Synchronization SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of MDCM, Inc. (A): IT Strategy Synchronization
"MDCM, Inc. (A): IT Strategy Synchronization" examines the issues of formulating an IT strategy and a set of IT objectives aligned with corporate strategy. Specifically, the case describes a firm that has grown rapidly through global acquisitions. As a result of these acquisitions, the new conglomerate is not responsive to the competitive environment. The firm has therefore launched a new transformation strategy called Horizon 2000, but it has yet to develop a corresponding IT strategy. Students solve Case A by applying the management by business objective framework and develop an executive-level IT strategy for the firm. This case is the first in a series; the second is the case "MDCM, Inc. (B): Strategic IT Portfolio Management."
Authors :: Mark Jeffery, Joseph F. Norton, Derek Yung
Swot Analysis of "MDCM, Inc. (A): IT Strategy Synchronization" written by Mark Jeffery, Joseph F. Norton, Derek Yung includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mdcm Synchronization facing as an external strategic factors. Some of the topics covered in MDCM, Inc. (A): IT Strategy Synchronization case study are - Strategic Management Strategies, IT, Manufacturing, Performance measurement, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the MDCM, Inc. (A): IT Strategy Synchronization casestudy better are - – there is backlash against globalization, increasing household debt because of falling income levels, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of MDCM, Inc. (A): IT Strategy Synchronization
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in MDCM, Inc. (A): IT Strategy Synchronization case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mdcm Synchronization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization can be done for the following purposes –
1. Strategic planning using facts provided in MDCM, Inc. (A): IT Strategy Synchronization case study
2. Improving business portfolio management of Mdcm Synchronization
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 Mdcm Synchronization
Strengths MDCM, Inc. (A): IT Strategy Synchronization | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mdcm Synchronization in MDCM, Inc. (A): IT Strategy Synchronization Harvard Business Review case study are -
High switching costs
– The high switching costs that Mdcm Synchronization 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.
Innovation driven organization
– Mdcm Synchronization is one of the most innovative firm in sector. Manager in MDCM, Inc. (A): IT Strategy Synchronization Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Mdcm Synchronization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization 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 Mdcm Synchronization 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.
Ability to lead change in Strategy & Execution field
– Mdcm Synchronization 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 Mdcm Synchronization in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Mdcm Synchronization has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mdcm Synchronization 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.
Highly skilled collaborators
– Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mdcm Synchronization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mdcm Synchronization 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.
Learning organization
- Mdcm Synchronization 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 Mdcm Synchronization is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in MDCM, Inc. (A): IT Strategy Synchronization Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Mdcm Synchronization has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mdcm Synchronization to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses MDCM, Inc. (A): IT Strategy Synchronization | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MDCM, Inc. (A): IT Strategy Synchronization are -
High cash cycle compare to competitors
Mdcm Synchronization 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mdcm Synchronization is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study MDCM, Inc. (A): IT Strategy Synchronization can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Jeffery, Joseph F. Norton, Derek Yung suggests that, Mdcm Synchronization is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mdcm Synchronization supply chain. Even after few cautionary changes mentioned in the HBR case study - MDCM, Inc. (A): IT Strategy Synchronization, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mdcm Synchronization vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Mdcm Synchronization needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Mdcm Synchronization 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. Mdcm Synchronization 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.
Aligning sales with marketing
– It come across in the case study MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization can leverage the sales team experience to cultivate customer relationships as Mdcm Synchronization is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study MDCM, Inc. (A): IT Strategy Synchronization, it seems that the employees of Mdcm Synchronization 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.
Products dominated business model
– Even though Mdcm Synchronization 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 - MDCM, Inc. (A): IT Strategy Synchronization should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Mdcm Synchronization products
– To increase the profitability and margins on the products, Mdcm Synchronization needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization | 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 MDCM, Inc. (A): IT Strategy Synchronization are -
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. Mdcm Synchronization can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Mdcm Synchronization 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.
Developing new processes and practices
– Mdcm Synchronization can develop new processes and procedures in Strategy & Execution 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
– Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mdcm Synchronization to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Mdcm Synchronization 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.
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. Mdcm Synchronization 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. Mdcm Synchronization 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.
Creating value in data economy
– The success of analytics program of Mdcm Synchronization has opened avenues for new revenue streams for the organization in the industry. This can help Mdcm Synchronization to build a more holistic ecosystem as suggested in the MDCM, Inc. (A): IT Strategy Synchronization case study. Mdcm Synchronization can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Mdcm Synchronization 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.
Better consumer reach
– The expansion of the 5G network will help Mdcm Synchronization to increase its market reach. Mdcm Synchronization 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.
Learning at scale
– Online learning technologies has now opened space for Mdcm Synchronization 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mdcm Synchronization is facing challenges because of the dominance of functional experts in the organization. MDCM, Inc. (A): IT Strategy Synchronization 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 Mdcm Synchronization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Mdcm Synchronization can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats MDCM, Inc. (A): IT Strategy Synchronization External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study MDCM, Inc. (A): IT Strategy Synchronization are -
Consumer confidence and its impact on Mdcm Synchronization 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.
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. Mdcm Synchronization can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Mdcm Synchronization needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Mdcm Synchronization.
Stagnating economy with rate increase
– Mdcm Synchronization 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mdcm Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization .
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. Mdcm Synchronization 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 Mdcm Synchronization business can come under increasing regulations regarding data privacy, data security, etc.
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.
High dependence on third party suppliers
– Mdcm Synchronization 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.
Regulatory challenges
– Mdcm Synchronization 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.
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.
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 Mdcm Synchronization in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization 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 MDCM, Inc. (A): IT Strategy Synchronization 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 Mdcm Synchronization needs to make to build a sustainable competitive advantage.