Case Study Description of Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology
Alpha-Beta was founded in 1988 by two scientist-entrepreneurs with ten patents on carbohydrate technology. In 1991, the company faces critical questions about how to focus its product definition from among several promising, but risky, choices. How should they analyze and choose their first product to develop? How can the firm maximize the potential of its technological innovation? How can a start-up ensure that it captures the value its innovation creates?
Authors :: Elizabeth Olmsted Teisberg, Sharon Rossi
Swot Analysis of "Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology" written by Elizabeth Olmsted Teisberg, Sharon Rossi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Carbohydrate Alpha facing as an external strategic factors. Some of the topics covered in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology case study are - Strategic Management Strategies, Competitive strategy, Entrepreneurship, Product development, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology casestudy better are - – central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Carbohydrate Alpha, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Carbohydrate Alpha 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology can be done for the following purposes –
1. Strategic planning using facts provided in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology case study
2. Improving business portfolio management of Carbohydrate Alpha
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 Carbohydrate Alpha
Strengths Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Carbohydrate Alpha in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology Harvard Business Review case study are -
High brand equity
– Carbohydrate Alpha has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Carbohydrate Alpha to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Carbohydrate Alpha is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Carbohydrate Alpha in the sector have low bargaining power. Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Carbohydrate Alpha to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Carbohydrate Alpha 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 Carbohydrate Alpha in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Strategy & Execution industry
– Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology firm has clearly differentiated products in the market place. This has enabled Carbohydrate Alpha to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Carbohydrate Alpha to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Carbohydrate Alpha digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Carbohydrate Alpha 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.
Diverse revenue streams
– Carbohydrate Alpha is present in almost all the verticals within the industry. This has provided firm in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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.
Superior customer experience
– The customer experience strategy of Carbohydrate Alpha in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Carbohydrate Alpha 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.
Highly skilled collaborators
– Carbohydrate Alpha 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Carbohydrate Alpha is one of the most innovative firm in sector. Manager in Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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.
Weaknesses Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology, is just above the industry average. Carbohydrate Alpha needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
No frontier risks strategy
– After analyzing the HBR case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology HBR case study mentions - Carbohydrate Alpha 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.
Need for greater diversity
– Carbohydrate Alpha 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.
High cash cycle compare to competitors
Carbohydrate Alpha 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.
Capital Spending Reduction
– Even during the low interest decade, Carbohydrate Alpha 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 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 Carbohydrate Alpha supply chain. Even after few cautionary changes mentioned in the HBR case study - Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Carbohydrate Alpha vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Carbohydrate Alpha products
– To increase the profitability and margins on the products, Carbohydrate Alpha needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology, in the dynamic environment Carbohydrate Alpha has struggled to respond to the nimble upstart competition. Carbohydrate Alpha has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology can leverage the sales team experience to cultivate customer relationships as Carbohydrate Alpha is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Carbohydrate Alpha 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.
Opportunities Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology | 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology are -
Buying journey improvements
– Carbohydrate Alpha can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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.
Developing new processes and practices
– Carbohydrate Alpha 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Carbohydrate Alpha can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Carbohydrate Alpha 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. Carbohydrate Alpha 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Carbohydrate Alpha can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Carbohydrate Alpha is facing challenges because of the dominance of functional experts in the organization. Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Carbohydrate Alpha in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Carbohydrate Alpha 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.
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 Carbohydrate Alpha in the consumer business. Now Carbohydrate Alpha can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Carbohydrate Alpha 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 Carbohydrate Alpha to increase its market reach. Carbohydrate Alpha 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.
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 Carbohydrate Alpha 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.
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. Carbohydrate Alpha can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology are -
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 Carbohydrate Alpha.
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 Carbohydrate Alpha business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Carbohydrate Alpha 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Carbohydrate Alpha 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.
Consumer confidence and its impact on Carbohydrate Alpha 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.
Shortening product life cycle
– it is one of the major threat that Carbohydrate Alpha is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Carbohydrate Alpha can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Carbohydrate Alpha 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.
Stagnating economy with rate increase
– Carbohydrate Alpha 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.
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 Carbohydrate Alpha
– 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 Carbohydrate Alpha.
Environmental challenges
– Carbohydrate Alpha 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. Carbohydrate Alpha can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Carbohydrate Alpha with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology 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 Carbohydrate Alpha needs to make to build a sustainable competitive advantage.