Demand and Supply Forecasting at Air Products--Electronics Specialty Materials SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Demand and Supply Forecasting at Air Products--Electronics Specialty Materials
Explores the process and inputs behind financial and operational forecasting in the Electronic Specialty Materials unit at Air Products and Chemicals, a global chemical company. The protagonist, John Goldberg, grapples with how to better integrate the two forecasting processes, while also trying to prepare for unexpected urgent orders and natural disasters.
Authors :: Susan Kulp, Shoshanah Cohen, Taylor Randall, Zahra Kanji
Swot Analysis of "Demand and Supply Forecasting at Air Products--Electronics Specialty Materials" written by Susan Kulp, Shoshanah Cohen, Taylor Randall, Zahra Kanji includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Forecasting Specialty facing as an external strategic factors. Some of the topics covered in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials case study are - Strategic Management Strategies, Risk management, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Demand and Supply Forecasting at Air Products--Electronics Specialty Materials casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing transportation and logistics costs, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Demand and Supply Forecasting at Air Products--Electronics Specialty Materials
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Forecasting Specialty, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Forecasting Specialty 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials can be done for the following purposes –
1. Strategic planning using facts provided in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials case study
2. Improving business portfolio management of Forecasting Specialty
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 Forecasting Specialty
Strengths Demand and Supply Forecasting at Air Products--Electronics Specialty Materials | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Forecasting Specialty in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials Harvard Business Review case study are -
Highly skilled collaborators
– Forecasting Specialty 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Forecasting Specialty has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Forecasting Specialty to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Forecasting Specialty has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Forecasting Specialty 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.
Superior customer experience
– The customer experience strategy of Forecasting Specialty in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Forecasting Specialty 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
– Forecasting Specialty has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Forecasting Specialty digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Forecasting Specialty 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.
Ability to recruit top talent
– Forecasting Specialty is one of the leading recruiters in the industry. Managers in the Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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
– Forecasting Specialty is present in almost all the verticals within the industry. This has provided firm in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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.
Organizational Resilience of Forecasting Specialty
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Forecasting Specialty does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Technology & Operations field
– Forecasting Specialty 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 Forecasting Specialty in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Forecasting Specialty 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials - 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Demand and Supply Forecasting at Air Products--Electronics Specialty Materials are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Demand and Supply Forecasting at Air Products--Electronics Specialty Materials HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Forecasting Specialty has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Forecasting Specialty, firm in the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Forecasting Specialty 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 - Demand and Supply Forecasting at Air Products--Electronics Specialty Materials should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Forecasting Specialty products
– To increase the profitability and margins on the products, Forecasting Specialty needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Forecasting Specialty 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. Forecasting Specialty 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.
Aligning sales with marketing
– It come across in the case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials can leverage the sales team experience to cultivate customer relationships as Forecasting Specialty is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Forecasting Specialty 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Susan Kulp, Shoshanah Cohen, Taylor Randall, Zahra Kanji suggests that, Forecasting Specialty 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.
No frontier risks strategy
– After analyzing the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Forecasting Specialty is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, in the dynamic environment Forecasting Specialty has struggled to respond to the nimble upstart competition. Forecasting Specialty has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Demand and Supply Forecasting at Air Products--Electronics Specialty Materials | 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Forecasting Specialty 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 Forecasting Specialty 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.
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. Forecasting Specialty can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Forecasting Specialty 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.
Developing new processes and practices
– Forecasting Specialty 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.
Buying journey improvements
– Forecasting Specialty can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Forecasting Specialty 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, Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Forecasting Specialty can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Forecasting Specialty 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.
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 Forecasting Specialty 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Forecasting Specialty 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 Forecasting Specialty to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Forecasting Specialty 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Forecasting Specialty to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Forecasting Specialty is facing challenges because of the dominance of functional experts in the organization. Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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.
Threats Demand and Supply Forecasting at Air Products--Electronics Specialty Materials External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials are -
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. Forecasting Specialty can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Forecasting Specialty with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Forecasting Specialty 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, Forecasting Specialty 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 .
Shortening product life cycle
– it is one of the major threat that Forecasting Specialty is facing in Technology & Operations 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 Forecasting Specialty 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.
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.
Technology acceleration in Forth Industrial Revolution
– Forecasting Specialty has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Forecasting Specialty 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.
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 Forecasting Specialty business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Forecasting Specialty 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials .
Environmental challenges
– Forecasting Specialty 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. Forecasting Specialty can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Forecasting Specialty 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.
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.
Weighted SWOT Analysis of Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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 Forecasting Specialty needs to make to build a sustainable competitive advantage.