AT&T's Transmission Systems Business Unit (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of AT&T's Transmission Systems Business Unit (A)
This case is available in only hard copy format (HBP does not have digital distribution rights to the content). As a result, a digital Educator Copy of the case is not available through this web site.The newly appointed director of the project dedicated to reducing product development time for AT&T's Transmission Systems Business Unit (TSBU) is trying to decide how best to sustain the momentum of its Achieving Process Excellence (APEX) teams. During the past three years, APEX teams helped reduce TSBU's product interval 50%--an accomplishment that contributed to TSBU's receiving the Malcolm Baldrige National Quality Award. Now motivation and expectations for continued improvement are high. The case describes the launching of APEX, its evolution, and the current challenges facing the product development organization. Details support a discussion of the elements required to launch and sustain an improvement program, including metrics, goal setting, management's role, and methodological approaches for problem solving.
Authors :: Rogelio Oliva, James Quinn, Elizabeth Keating
Topics :: Technology & Operations
Tags :: Business processes, Change management, Collaboration, Communication, Competition, Entrepreneurship, Human resource management, Leading teams, Market research, Product development, Social responsibility, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "AT&T's Transmission Systems Business Unit (A)" written by Rogelio Oliva, James Quinn, Elizabeth Keating includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Apex Tsbu's facing as an external strategic factors. Some of the topics covered in AT&T's Transmission Systems Business Unit (A) case study are - Strategic Management Strategies, Business processes, Change management, Collaboration, Communication, Competition, Entrepreneurship, Human resource management, Leading teams, Market research, Product development, Social responsibility, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the AT&T's Transmission Systems Business Unit (A) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, technology disruption, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic ,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of AT&T's Transmission Systems Business Unit (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AT&T's Transmission Systems Business Unit (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Apex Tsbu's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Apex Tsbu's 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 AT&T's Transmission Systems Business Unit (A) can be done for the following purposes –
1. Strategic planning using facts provided in AT&T's Transmission Systems Business Unit (A) case study
2. Improving business portfolio management of Apex Tsbu's
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 Apex Tsbu's
Strengths AT&T's Transmission Systems Business Unit (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Apex Tsbu's in AT&T's Transmission Systems Business Unit (A) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the AT&T's Transmission Systems Business Unit (A) 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.
Strong track record of project management
– Apex Tsbu's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Apex Tsbu's is one of the most innovative firm in sector. Manager in AT&T's Transmission Systems Business Unit (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Apex Tsbu's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Apex Tsbu's 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.
High switching costs
– The high switching costs that Apex Tsbu's 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.
Highly skilled collaborators
– Apex Tsbu's 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 AT&T's Transmission Systems Business Unit (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Apex Tsbu's 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 Apex Tsbu's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AT&T's Transmission Systems Business Unit (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Apex Tsbu's 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 Rogelio Oliva, James Quinn, Elizabeth Keating 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Apex Tsbu's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Apex Tsbu's 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
– Apex Tsbu's 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 Apex Tsbu's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Apex Tsbu's is present in almost all the verticals within the industry. This has provided firm in AT&T's Transmission Systems Business Unit (A) 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 Apex Tsbu's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses AT&T's Transmission Systems Business Unit (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AT&T's Transmission Systems Business Unit (A) are -
Interest costs
– Compare to the competition, Apex Tsbu's 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.
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 Apex Tsbu's supply chain. Even after few cautionary changes mentioned in the HBR case study - AT&T's Transmission Systems Business Unit (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Apex Tsbu's vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Apex Tsbu's, firm in the HBR case study AT&T's Transmission Systems Business Unit (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Apex Tsbu's 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 - AT&T's Transmission Systems Business Unit (A) should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Apex Tsbu's 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the AT&T's Transmission Systems Business Unit (A) 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 Apex Tsbu's has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study AT&T's Transmission Systems Business Unit (A), it seems that the employees of Apex Tsbu's 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.
Increasing silos among functional specialists
– The organizational structure of Apex Tsbu's is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Apex Tsbu's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Apex Tsbu's to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As AT&T's Transmission Systems Business Unit (A) HBR case study mentions - Apex Tsbu's 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 Apex Tsbu's products
– To increase the profitability and margins on the products, Apex Tsbu's needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study AT&T's Transmission Systems Business Unit (A), is just above the industry average. Apex Tsbu's 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.
Opportunities AT&T's Transmission Systems Business Unit (A) | 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 AT&T's Transmission Systems Business Unit (A) are -
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. Apex Tsbu's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Apex Tsbu's 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
– Apex Tsbu's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Apex Tsbu's is facing challenges because of the dominance of functional experts in the organization. AT&T's Transmission Systems Business Unit (A) 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.
Buying journey improvements
– Apex Tsbu's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AT&T's Transmission Systems Business Unit (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Apex Tsbu's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Apex Tsbu's 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. Apex Tsbu's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Apex Tsbu's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Apex Tsbu's 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.
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 Apex Tsbu's in the consumer business. Now Apex Tsbu's can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Apex Tsbu's can use these opportunities to build new business models that can help the communities that Apex Tsbu's operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Apex Tsbu's has opened avenues for new revenue streams for the organization in the industry. This can help Apex Tsbu's to build a more holistic ecosystem as suggested in the AT&T's Transmission Systems Business Unit (A) case study. Apex Tsbu's can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Apex Tsbu's 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.
Threats AT&T's Transmission Systems Business Unit (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AT&T's Transmission Systems Business Unit (A) are -
Stagnating economy with rate increase
– Apex Tsbu's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AT&T's Transmission Systems Business Unit (A), Apex Tsbu's 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 .
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. Apex Tsbu's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Apex Tsbu's 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 AT&T's Transmission Systems Business Unit (A) .
Technology acceleration in Forth Industrial Revolution
– Apex Tsbu's has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Apex Tsbu's 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.
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. Apex Tsbu's 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.
Consumer confidence and its impact on Apex Tsbu's 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.
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.
Increasing wage structure of Apex Tsbu's
– 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 Apex Tsbu's.
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 Apex Tsbu's business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Apex Tsbu's 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. Apex Tsbu's can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Apex Tsbu's needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Apex Tsbu's 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.
Weighted SWOT Analysis of AT&T's Transmission Systems Business Unit (A) 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 AT&T's Transmission Systems Business Unit (A) 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 AT&T's Transmission Systems Business Unit (A) 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 AT&T's Transmission Systems Business Unit (A) 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 AT&T's Transmission Systems Business Unit (A) 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 Apex Tsbu's needs to make to build a sustainable competitive advantage.