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 - – challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, wage bills are increasing, geopolitical disruptions,
there is backlash against globalization, there is increasing trade war between United States & China, 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 -
Innovation driven organization
– Forecasting Specialty is one of the most innovative firm in sector. Manager in Demand and Supply Forecasting at Air Products--Electronics Specialty Materials Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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 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.
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.
Strong track record of project management
– Forecasting Specialty is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Forecasting Specialty in the sector have low bargaining power. Demand and Supply Forecasting at Air Products--Electronics Specialty Materials has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Forecasting Specialty to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Demand and Supply Forecasting at Air Products--Electronics Specialty Materials 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.
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.
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 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.
Cross disciplinary teams
– Horizontal connected teams at the Forecasting Specialty 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.
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 -
Skills based hiring
– The stress on hiring functional specialists at Forecasting Specialty 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.
Need for greater diversity
– Forecasting Specialty 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, it seems that the employees of Forecasting Specialty 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 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.
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 Forecasting Specialty supply chain. Even after few cautionary changes mentioned in the HBR case study - Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Forecasting Specialty vulnerable to further global disruptions in South East Asia.
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.
Increasing silos among functional specialists
– The organizational structure of Forecasting Specialty is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Forecasting Specialty needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Forecasting Specialty to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Demand and Supply Forecasting at Air Products--Electronics Specialty Materials, is just above the industry average. Forecasting Specialty 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.
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.
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.
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 -
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.
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. Forecasting Specialty 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. Forecasting Specialty 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.
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.
Creating value in data economy
– The success of analytics program of Forecasting Specialty has opened avenues for new revenue streams for the organization in the industry. This can help Forecasting Specialty to build a more holistic ecosystem as suggested in the Demand and Supply Forecasting at Air Products--Electronics Specialty Materials case study. Forecasting Specialty can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
Manufacturing automation
– Forecasting Specialty can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Forecasting Specialty in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
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.
Better consumer reach
– The expansion of the 5G network will help Forecasting Specialty to increase its market reach. Forecasting Specialty 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.
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 Forecasting Specialty in the consumer business. Now Forecasting Specialty can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Leveraging digital technologies
– Forecasting Specialty can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Forecasting Specialty will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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 Forecasting Specialty.
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.
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. Forecasting Specialty needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
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 Forecasting Specialty in the Technology & Operations sector and impact the bottomline of the organization.
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.
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 .
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.
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.
Increasing wage structure of Forecasting Specialty
– 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 Forecasting Specialty.
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 .
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.