Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project
NYPRO, Inc., one of the world's leading manufacturers of plastic injection-molded products, is asked by the Vistakon Division of Johnson & Johnson to manufacture molds that Vistakon will use to produce disposable contact lenses. The required dimensional tolerances for NYPRO's molds are 10 times tighter than it has ever achieved before. The case describes how engineering teams in these two companies attempt to work together to develop a capable process for making molds and lenses.
Swot Analysis of "Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project" written by Clayton M. Christensen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Molds Vistakon facing as an external strategic factors. Some of the topics covered in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project case study are - Strategic Management Strategies, Design, Product development, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project casestudy better are - – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing government debt because of Covid-19 spendings, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Molds Vistakon, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Molds Vistakon 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project can be done for the following purposes –
1. Strategic planning using facts provided in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project case study
2. Improving business portfolio management of Molds Vistakon
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 Molds Vistakon
Strengths Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Molds Vistakon in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project Harvard Business Review case study are -
High brand equity
– Molds Vistakon has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Molds Vistakon to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Molds Vistakon has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Molds Vistakon 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.
Strong track record of project management
– Molds Vistakon is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Molds Vistakon 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 Molds Vistakon 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.
Sustainable margins compare to other players in Technology & Operations industry
– Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project firm has clearly differentiated products in the market place. This has enabled Molds Vistakon to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Molds Vistakon to invest into research and development (R&D) and innovation.
Learning organization
- Molds Vistakon 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 Molds Vistakon is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Molds Vistakon has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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.
Effective Research and Development (R&D)
– Molds Vistakon 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Molds Vistakon is one of the most innovative firm in sector. Manager in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Molds Vistakon is present in almost all the verticals within the industry. This has provided firm in Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Molds Vistakon digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Molds Vistakon 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.
Weaknesses Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project are -
Workers concerns about automation
– As automation is fast increasing in the segment, Molds Vistakon needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Interest costs
– Compare to the competition, Molds Vistakon 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.
Skills based hiring
– The stress on hiring functional specialists at Molds Vistakon 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.
High cash cycle compare to competitors
Molds Vistakon 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.
Products dominated business model
– Even though Molds Vistakon 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 - Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Molds Vistakon 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molds Vistakon 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Molds Vistakon, firm in the HBR case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Molds Vistakon is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project, it seems that the employees of Molds Vistakon 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.
Aligning sales with marketing
– It come across in the case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project can leverage the sales team experience to cultivate customer relationships as Molds Vistakon is planning to shift buying processes online.
Opportunities Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project | 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project are -
Manufacturing automation
– Molds Vistakon 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.
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 Molds Vistakon 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.
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. Molds Vistakon can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Molds Vistakon to increase its market reach. Molds Vistakon 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Molds Vistakon 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, Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Molds Vistakon 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.
Loyalty marketing
– Molds Vistakon 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.
Leveraging digital technologies
– Molds Vistakon 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Molds Vistakon is facing challenges because of the dominance of functional experts in the organization. Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Molds Vistakon 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.
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. Molds Vistakon can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Molds Vistakon can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Molds Vistakon in the consumer business. Now Molds Vistakon can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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. Molds Vistakon 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Molds Vistakon 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Molds Vistakon with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Molds Vistakon 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.
Shortening product life cycle
– it is one of the major threat that Molds Vistakon is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Molds Vistakon 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project .
Stagnating economy with rate increase
– Molds Vistakon 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
– Molds Vistakon 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. Molds Vistakon can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Molds Vistakon.
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 Molds Vistakon business can come under increasing regulations regarding data privacy, data security, etc.
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. Molds Vistakon needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Increasing wage structure of Molds Vistakon
– 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 Molds Vistakon.
Weighted SWOT Analysis of Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molding the Impossible: The NYPRO/Vistakon Disposable Contact Lens Project 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 Molds Vistakon needs to make to build a sustainable competitive advantage.
