New New HP in 2004 (A): Leading Strategic Integration SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New New HP in 2004 (A): Leading Strategic Integration
In early 2004, with the organizational integration of the Compaq acquisition mostly completed, top management was looking toward capitalizing on the potential competitive advantages of the strategic integration of both companies to achieve the goal of becoming the leading technology company in the world. Top management had to make sure that HP would achieve superior profitable growth with its portfolio strategy. This would require high performance from its individual businesses in increasingly competitive environments, the development of new strategic leadership skills to capitalize on opportunities for strategic integration across the organization, and continued significant innovation.
Swot Analysis of "New New HP in 2004 (A): Leading Strategic Integration" written by Robert A. Burgelman, Philip Meza includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Integration Hp facing as an external strategic factors. Some of the topics covered in New New HP in 2004 (A): Leading Strategic Integration case study are - Strategic Management Strategies, Leadership, Mergers & acquisitions, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the New New HP in 2004 (A): Leading Strategic Integration casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of New New HP in 2004 (A): Leading Strategic Integration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New New HP in 2004 (A): Leading Strategic Integration case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Integration Hp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Integration Hp 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 New New HP in 2004 (A): Leading Strategic Integration can be done for the following purposes –
1. Strategic planning using facts provided in New New HP in 2004 (A): Leading Strategic Integration case study
2. Improving business portfolio management of Integration Hp
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 Integration Hp
Strengths New New HP in 2004 (A): Leading Strategic Integration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Integration Hp in New New HP in 2004 (A): Leading Strategic Integration Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Integration Hp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Integration Hp 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.
Sustainable margins compare to other players in Strategy & Execution industry
– New New HP in 2004 (A): Leading Strategic Integration firm has clearly differentiated products in the market place. This has enabled Integration Hp to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Integration Hp to invest into research and development (R&D) and innovation.
Innovation driven organization
– Integration Hp is one of the most innovative firm in sector. Manager in New New HP in 2004 (A): Leading Strategic Integration Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Integration Hp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Integration Hp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Integration Hp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New New HP in 2004 (A): Leading Strategic Integration 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.
Analytics focus
– Integration Hp 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 Robert A. Burgelman, Philip Meza 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.
High switching costs
– The high switching costs that Integration Hp 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
– Integration Hp 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 New New HP in 2004 (A): Leading Strategic Integration HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Integration Hp is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Integration Hp is one of the leading recruiters in the industry. Managers in the New New HP in 2004 (A): Leading Strategic Integration are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Integration Hp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Integration Hp is present in almost all the verticals within the industry. This has provided firm in New New HP in 2004 (A): Leading Strategic Integration 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.
Weaknesses New New HP in 2004 (A): Leading Strategic Integration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New New HP in 2004 (A): Leading Strategic Integration are -
Aligning sales with marketing
– It come across in the case study New New HP in 2004 (A): Leading Strategic Integration 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 New New HP in 2004 (A): Leading Strategic Integration can leverage the sales team experience to cultivate customer relationships as Integration Hp is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Integration Hp 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.
Interest costs
– Compare to the competition, Integration Hp 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.
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 Integration Hp supply chain. Even after few cautionary changes mentioned in the HBR case study - New New HP in 2004 (A): Leading Strategic Integration, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Integration Hp vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Integration Hp 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 - New New HP in 2004 (A): Leading Strategic Integration should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Integration Hp products
– To increase the profitability and margins on the products, Integration Hp needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As New New HP in 2004 (A): Leading Strategic Integration HBR case study mentions - Integration Hp 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.
Low market penetration in new markets
– Outside its home market of Integration Hp, firm in the HBR case study New New HP in 2004 (A): Leading Strategic Integration needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert A. Burgelman, Philip Meza suggests that, Integration Hp 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 operating costs
– Compare to the competitors, firm in the HBR case study New New HP in 2004 (A): Leading Strategic Integration has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Integration Hp 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Integration Hp is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study New New HP in 2004 (A): Leading Strategic Integration can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities New New HP in 2004 (A): Leading Strategic Integration | 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 New New HP in 2004 (A): Leading Strategic Integration are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Integration Hp can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Integration Hp to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Integration Hp to hire the very best people irrespective of their geographical location.
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. Integration Hp 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. Integration Hp 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.
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. Integration Hp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Integration Hp 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.
Creating value in data economy
– The success of analytics program of Integration Hp has opened avenues for new revenue streams for the organization in the industry. This can help Integration Hp to build a more holistic ecosystem as suggested in the New New HP in 2004 (A): Leading Strategic Integration case study. Integration Hp can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Integration Hp can use these opportunities to build new business models that can help the communities that Integration Hp operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Loyalty marketing
– Integration Hp 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.
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 Integration Hp in the consumer business. Now Integration Hp can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Integration Hp 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.
Developing new processes and practices
– Integration Hp 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.
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. Integration Hp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Integration Hp 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 New New HP in 2004 (A): Leading Strategic Integration - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Integration Hp to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats New New HP in 2004 (A): Leading Strategic Integration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New New HP in 2004 (A): Leading Strategic Integration are -
Consumer confidence and its impact on Integration Hp 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.
Technology acceleration in Forth Industrial Revolution
– Integration Hp has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Integration Hp 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.
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 Integration Hp in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Integration Hp
– 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 Integration Hp.
Shortening product life cycle
– it is one of the major threat that Integration Hp 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 Integration Hp 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 Integration Hp business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study New New HP in 2004 (A): Leading Strategic Integration, Integration Hp may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Integration Hp with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Integration Hp 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 Integration Hp.
Environmental challenges
– Integration Hp 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. Integration Hp can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Integration Hp 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.
Weighted SWOT Analysis of New New HP in 2004 (A): Leading Strategic Integration 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 New New HP in 2004 (A): Leading Strategic Integration 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 New New HP in 2004 (A): Leading Strategic Integration 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 New New HP in 2004 (A): Leading Strategic Integration 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 New New HP in 2004 (A): Leading Strategic Integration 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 Integration Hp needs to make to build a sustainable competitive advantage.
