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 - – increasing household debt because of falling income levels, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, wage bills are increasing,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, 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 -
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Carbohydrate Alpha 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.
Successful track record of launching new products
– Carbohydrate Alpha has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Carbohydrate Alpha 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.
Ability to recruit top talent
– Carbohydrate Alpha is one of the leading recruiters in the industry. Managers in the Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
Analytics focus
– Carbohydrate Alpha 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 Elizabeth Olmsted Teisberg, Sharon Rossi 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.
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.
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.
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.
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 -
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.
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Elizabeth Olmsted Teisberg, Sharon Rossi suggests that, Carbohydrate Alpha 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.
Interest costs
– Compare to the competition, Carbohydrate Alpha 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 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.
Increasing silos among functional specialists
– The organizational structure of Carbohydrate Alpha is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Carbohydrate Alpha needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Carbohydrate Alpha to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Carbohydrate Alpha is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Carbohydrate Alpha 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.
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 -
Using analytics as competitive advantage
– Carbohydrate Alpha 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Carbohydrate Alpha to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Learning at scale
– Online learning technologies has now opened space for Carbohydrate Alpha 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.
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.
Creating value in data economy
– The success of analytics program of Carbohydrate Alpha has opened avenues for new revenue streams for the organization in the industry. This can help Carbohydrate Alpha to build a more holistic ecosystem as suggested in the Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology case study. Carbohydrate Alpha can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Carbohydrate Alpha 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.
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.
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.
Loyalty marketing
– Carbohydrate Alpha 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.
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. Carbohydrate Alpha can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
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 -
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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Carbohydrate Alpha has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Carbohydrate Alpha needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Carbohydrate Alpha 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Carbohydrate Alpha 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 Alpha-Beta Technology, Inc.: Pioneering Carbohydrate Technology .
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.
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.
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.
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.
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.
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 Carbohydrate Alpha in the Strategy & Execution sector and impact the bottomline of the organization.
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.