Carl Zeiss and Free-form Production: Can We See Clearly Yet? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Carl Zeiss and Free-form Production: Can We See Clearly Yet?
To maximize their effectiveness, color cases should be printed in color.The prescription eyeglass lens industry was complicated and highly fragmented, and even though many of the tools and techniques employed have been relatively unchanged over the last century, there was still a surprising pace of innovation. An aging population around the world meant the demand for progressive lenses was increasing rapidly, and innovations in production technology meant an evolving competitive dynamic with potentially quite different patterns of manufacturing and distribution. Are there theories that Zeiss managers can use to see clearly how industry evolution might portend shifts in the value network?
Swot Analysis of "Carl Zeiss and Free-form Production: Can We See Clearly Yet?" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Zeiss Meant facing as an external strategic factors. Some of the topics covered in Carl Zeiss and Free-form Production: Can We See Clearly Yet? case study are - Strategic Management Strategies, Business history, Customers, Disruptive innovation, Health, Mergers & acquisitions, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Carl Zeiss and Free-form Production: Can We See Clearly Yet? casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%,
banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc
Introduction to SWOT Analysis of Carl Zeiss and Free-form Production: Can We See Clearly Yet?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Carl Zeiss and Free-form Production: Can We See Clearly Yet? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Zeiss Meant, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Zeiss Meant 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? can be done for the following purposes –
1. Strategic planning using facts provided in Carl Zeiss and Free-form Production: Can We See Clearly Yet? case study
2. Improving business portfolio management of Zeiss Meant
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Zeiss Meant
Strengths Carl Zeiss and Free-form Production: Can We See Clearly Yet? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Zeiss Meant in Carl Zeiss and Free-form Production: Can We See Clearly Yet? Harvard Business Review case study are -
Analytics focus
– Zeiss Meant 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 Willy Shih 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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.
Learning organization
- Zeiss Meant 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 Zeiss Meant is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Carl Zeiss and Free-form Production: Can We See Clearly Yet? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Zeiss Meant is present in almost all the verticals within the industry. This has provided firm in Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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.
Successful track record of launching new products
– Zeiss Meant has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Zeiss Meant 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.
Training and development
– Zeiss Meant has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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.
Low bargaining power of suppliers
– Suppliers of Zeiss Meant in the sector have low bargaining power. Carl Zeiss and Free-form Production: Can We See Clearly Yet? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Zeiss Meant to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Zeiss Meant 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.
Highly skilled collaborators
– Zeiss Meant 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Zeiss Meant in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Zeiss Meant 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Zeiss Meant has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Zeiss Meant to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Carl Zeiss and Free-form Production: Can We See Clearly Yet? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Carl Zeiss and Free-form Production: Can We See Clearly Yet? are -
Slow decision making process
– As mentioned earlier in the report, Zeiss Meant 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. Zeiss Meant 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.
Low market penetration in new markets
– Outside its home market of Zeiss Meant, firm in the HBR case study Carl Zeiss and Free-form Production: Can We See Clearly Yet? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Zeiss Meant 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Carl Zeiss and Free-form Production: Can We See Clearly Yet?, it seems that the employees of Zeiss Meant 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.
High cash cycle compare to competitors
Zeiss Meant has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Carl Zeiss and Free-form Production: Can We See Clearly Yet? HBR case study mentions - Zeiss Meant 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.
Aligning sales with marketing
– It come across in the case study Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? can leverage the sales team experience to cultivate customer relationships as Zeiss Meant is planning to shift buying processes online.
Need for greater diversity
– Zeiss Meant 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.
Capital Spending Reduction
– Even during the low interest decade, Zeiss Meant 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.
Skills based hiring
– The stress on hiring functional specialists at Zeiss Meant 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.
Interest costs
– Compare to the competition, Zeiss Meant 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.
Opportunities Carl Zeiss and Free-form Production: Can We See Clearly Yet? | 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Zeiss Meant 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Zeiss Meant is facing challenges because of the dominance of functional experts in the organization. Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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.
Better consumer reach
– The expansion of the 5G network will help Zeiss Meant to increase its market reach. Zeiss Meant 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.
Creating value in data economy
– The success of analytics program of Zeiss Meant has opened avenues for new revenue streams for the organization in the industry. This can help Zeiss Meant to build a more holistic ecosystem as suggested in the Carl Zeiss and Free-form Production: Can We See Clearly Yet? case study. Zeiss Meant can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Zeiss Meant can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Zeiss Meant 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Zeiss Meant to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Zeiss Meant 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. Zeiss Meant 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. Zeiss Meant can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Zeiss Meant 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.
Buying journey improvements
– Zeiss Meant can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Zeiss Meant can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Zeiss Meant can use these opportunities to build new business models that can help the communities that Zeiss Meant operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Zeiss Meant can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Carl Zeiss and Free-form Production: Can We See Clearly Yet? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Carl Zeiss and Free-form Production: Can We See Clearly Yet? are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Zeiss Meant in the Technology & Operations industry. The Technology & Operations 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Carl Zeiss and Free-form Production: Can We See Clearly Yet?, Zeiss Meant may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
High dependence on third party suppliers
– Zeiss Meant 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Zeiss Meant with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Zeiss Meant 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 Technology & Operations industry regulations.
Consumer confidence and its impact on Zeiss Meant 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
– Zeiss Meant has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Zeiss Meant needs to keep up with the evolution of technology in the Technology & Operations 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Zeiss Meant can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Zeiss Meant 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
– Zeiss Meant 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. Zeiss Meant can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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. Zeiss Meant needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Zeiss Meant in the Technology & Operations sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Carl Zeiss and Free-form Production: Can We See Clearly Yet? 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 Zeiss Meant needs to make to build a sustainable competitive advantage.
