Case Study Description of Integron, Inc.: The Integrated Components Division (ICD)
A high-technology manufacturing company was recently given profit-and-loss "stand-alone" status by its parent. No longer a captive supplier, it must seek new markets for its technology and products on the outside world. Describes a benchmarking study by a group of consultants to determine future operations improvement.
Authors :: David M. Upton, Michelle Jarrard, Laurie Thomas
Swot Analysis of "Integron, Inc.: The Integrated Components Division (ICD)" written by David M. Upton, Michelle Jarrard, Laurie Thomas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Icd Integron facing as an external strategic factors. Some of the topics covered in Integron, Inc.: The Integrated Components Division (ICD) case study are - Strategic Management Strategies, Innovation, IT, Manufacturing, Reorganization and Technology & Operations.
Some of the macro environment factors that can be used to understand the Integron, Inc.: The Integrated Components Division (ICD) casestudy better are - – there is backlash against globalization, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing energy prices, increasing household debt because of falling income levels, supply chains are disrupted by pandemic ,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Integron, Inc.: The Integrated Components Division (ICD)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Integron, Inc.: The Integrated Components Division (ICD) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Icd Integron, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Icd Integron 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 Integron, Inc.: The Integrated Components Division (ICD) can be done for the following purposes –
1. Strategic planning using facts provided in Integron, Inc.: The Integrated Components Division (ICD) case study
2. Improving business portfolio management of Icd Integron
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 Icd Integron
Strengths Integron, Inc.: The Integrated Components Division (ICD) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Icd Integron in Integron, Inc.: The Integrated Components Division (ICD) Harvard Business Review case study are -
Ability to lead change in Technology & Operations field
– Icd Integron 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 Icd Integron in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Icd Integron 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.
Ability to recruit top talent
– Icd Integron is one of the leading recruiters in the industry. Managers in the Integron, Inc.: The Integrated Components Division (ICD) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Icd Integron has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Integron, Inc.: The Integrated Components Division (ICD) 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 Icd Integron digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Icd Integron 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.
Learning organization
- Icd Integron 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 Icd Integron is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Integron, Inc.: The Integrated Components Division (ICD) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Technology & Operations industry
– Integron, Inc.: The Integrated Components Division (ICD) firm has clearly differentiated products in the market place. This has enabled Icd Integron to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Icd Integron to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Icd Integron in the sector have low bargaining power. Integron, Inc.: The Integrated Components Division (ICD) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Icd Integron to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Icd Integron 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 Integron, Inc.: The Integrated Components Division (ICD) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Icd Integron in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Icd Integron 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 David M. Upton, Michelle Jarrard, Laurie Thomas 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.
Successful track record of launching new products
– Icd Integron has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Icd Integron 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.
Weaknesses Integron, Inc.: The Integrated Components Division (ICD) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Integron, Inc.: The Integrated Components Division (ICD) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Integron, Inc.: The Integrated Components Division (ICD), in the dynamic environment Icd Integron has struggled to respond to the nimble upstart competition. Icd Integron has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Icd Integron, firm in the HBR case study Integron, Inc.: The Integrated Components Division (ICD) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Integron, Inc.: The Integrated Components Division (ICD) HBR case study mentions - Icd Integron 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.
Lack of clear differentiation of Icd Integron products
– To increase the profitability and margins on the products, Icd Integron needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Integron, Inc.: The Integrated Components Division (ICD) 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 Icd Integron has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Icd Integron 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. Icd Integron 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 bargaining power of channel partners
– Because of the regulatory requirements, David M. Upton, Michelle Jarrard, Laurie Thomas suggests that, Icd Integron 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.
Increasing silos among functional specialists
– The organizational structure of Icd Integron is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Icd Integron needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Icd Integron to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Icd Integron 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.
Aligning sales with marketing
– It come across in the case study Integron, Inc.: The Integrated Components Division (ICD) 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 Integron, Inc.: The Integrated Components Division (ICD) can leverage the sales team experience to cultivate customer relationships as Icd Integron is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Icd Integron 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.
Opportunities Integron, Inc.: The Integrated Components Division (ICD) | 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 Integron, Inc.: The Integrated Components Division (ICD) are -
Learning at scale
– Online learning technologies has now opened space for Icd Integron 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Icd Integron can use these opportunities to build new business models that can help the communities that Icd Integron operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Building a culture of innovation
– managers at Icd Integron 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 Technology & Operations segment.
Loyalty marketing
– Icd Integron 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.
Manufacturing automation
– Icd Integron 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.
Using analytics as competitive advantage
– Icd Integron 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 Integron, Inc.: The Integrated Components Division (ICD) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Icd Integron to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Icd Integron has opened avenues for new revenue streams for the organization in the industry. This can help Icd Integron to build a more holistic ecosystem as suggested in the Integron, Inc.: The Integrated Components Division (ICD) case study. Icd Integron can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Icd Integron to increase its market reach. Icd Integron 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.
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 Icd Integron 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.
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 Icd Integron in the consumer business. Now Icd Integron can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Icd Integron is facing challenges because of the dominance of functional experts in the organization. Integron, Inc.: The Integrated Components Division (ICD) 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.
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. Icd Integron 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. Icd Integron 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Icd Integron 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.
Threats Integron, Inc.: The Integrated Components Division (ICD) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Integron, Inc.: The Integrated Components Division (ICD) 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. Icd Integron 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Icd Integron 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 Icd Integron 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.
Environmental challenges
– Icd Integron 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. Icd Integron can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Icd Integron in the Technology & Operations sector and impact the bottomline of the organization.
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 dependence on third party suppliers
– Icd Integron 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.
Increasing wage structure of Icd Integron
– 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 Icd Integron.
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 Icd Integron business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Icd Integron is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Icd Integron.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Icd Integron 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 Integron, Inc.: The Integrated Components Division (ICD) .
Weighted SWOT Analysis of Integron, Inc.: The Integrated Components Division (ICD) 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 Integron, Inc.: The Integrated Components Division (ICD) 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 Integron, Inc.: The Integrated Components Division (ICD) 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 Integron, Inc.: The Integrated Components Division (ICD) 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 Integron, Inc.: The Integrated Components Division (ICD) 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 Icd Integron needs to make to build a sustainable competitive advantage.
