Case Study Description of Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters
Illinois Superconductor Corp. a technology start-up, came up with an innovative new superconducting filter for use in cellular base stations. It needed to estimate the demand for its filters. The manager came up with a simple chain-ratio-based forecasting model that, while simple and intuitive, was too simplistic. The company had also commissioned a research firm to develop a model-based forecast. The model-based forecast used diffusion modeling, analogy-based forecasting, and conjoint analysis to create a forecast that incorporated customer preferences, diffusion effects, and competitive dynamics.
Authors :: Mohanbir Sawhney, Lisa Damkroger, Greg McGuirk, Julie Milbratz
Swot Analysis of "Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters" written by Mohanbir Sawhney, Lisa Damkroger, Greg McGuirk, Julie Milbratz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Superconducting Superconductor facing as an external strategic factors. Some of the topics covered in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters case study are - Strategic Management Strategies, Forecasting, Networking, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, wage bills are increasing, technology disruption, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Superconducting Superconductor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Superconducting Superconductor 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters can be done for the following purposes –
1. Strategic planning using facts provided in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters case study
2. Improving business portfolio management of Superconducting Superconductor
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 Superconducting Superconductor
Strengths Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Superconducting Superconductor in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Superconducting Superconductor digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Superconducting Superconductor 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.
Superior customer experience
– The customer experience strategy of Superconducting Superconductor in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Superconducting Superconductor has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Superconducting Superconductor to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Superconducting Superconductor is present in almost all the verticals within the industry. This has provided firm in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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.
High switching costs
– The high switching costs that Superconducting Superconductor 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.
Training and development
– Superconducting Superconductor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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.
Successful track record of launching new products
– Superconducting Superconductor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Superconducting Superconductor 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.
Innovation driven organization
– Superconducting Superconductor is one of the most innovative firm in sector. Manager in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Superconducting Superconductor in the sector have low bargaining power. Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Superconducting Superconductor to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Superconducting Superconductor 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.
Learning organization
- Superconducting Superconductor 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 Superconducting Superconductor is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Superconducting Superconductor 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters are -
Slow decision making process
– As mentioned earlier in the report, Superconducting Superconductor 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. Superconducting Superconductor 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters, it seems that the employees of Superconducting Superconductor 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.
Need for greater diversity
– Superconducting Superconductor 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.
Skills based hiring
– The stress on hiring functional specialists at Superconducting Superconductor has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters HBR case study mentions - Superconducting Superconductor 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.
Interest costs
– Compare to the competition, Superconducting Superconductor 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters, is just above the industry average. Superconducting Superconductor 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.
Aligning sales with marketing
– It come across in the case study Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters can leverage the sales team experience to cultivate customer relationships as Superconducting Superconductor is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Superconducting Superconductor 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.
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 Superconducting Superconductor supply chain. Even after few cautionary changes mentioned in the HBR case study - Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Superconducting Superconductor vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Superconducting Superconductor is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Superconducting Superconductor needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Superconducting Superconductor to focus more on services rather than just following the product oriented approach.
Opportunities Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters | 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Superconducting Superconductor 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, Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Superconducting Superconductor 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.
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. Superconducting Superconductor 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. Superconducting Superconductor 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.
Learning at scale
– Online learning technologies has now opened space for Superconducting Superconductor 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Superconducting Superconductor 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.
Buying journey improvements
– Superconducting Superconductor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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.
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 Superconducting Superconductor 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 Superconducting Superconductor has opened avenues for new revenue streams for the organization in the industry. This can help Superconducting Superconductor to build a more holistic ecosystem as suggested in the Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters case study. Superconducting Superconductor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Superconducting Superconductor can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Superconducting Superconductor in the consumer business. Now Superconducting Superconductor can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Superconducting Superconductor can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Superconducting Superconductor can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Superconducting Superconductor 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.
Threats Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Superconducting Superconductor 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, Superconducting Superconductor 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters .
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. Superconducting Superconductor needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Shortening product life cycle
– it is one of the major threat that Superconducting Superconductor 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. Superconducting Superconductor can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Superconducting Superconductor
– 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 Superconducting Superconductor.
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 Superconducting Superconductor in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Superconducting Superconductor 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.
Environmental challenges
– Superconducting Superconductor 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. Superconducting Superconductor can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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
– Superconducting Superconductor 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
– Superconducting Superconductor 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.
Weighted SWOT Analysis of Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Illinois Superconductor Corp.: Forecasting Demand for Superconducting Filters 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 Superconducting Superconductor needs to make to build a sustainable competitive advantage.