Case Study Description of Cloud Syzygy Technologies: Cloud-Based Computing
The president of Cloud Syzygy Technologies (CST) had recently returned from the Pacific Telecommunications Council conference, where he discussed ways in which cloud computing had transformed industries. He knew that in the future, the real opportunities lay in the cloud and not in traditional internal IT solutions. As the executive in charge of CST, he wished to develop a plan to grow the business, which would include a clear message to his customers about the merits of cloud computing. He recognized that cloud computing provided many opportunities and risks for corporations seeking to take advantage of new and innovative technologies. He was tasked with presenting a ranking and assessment of CST's new products to the board at the next meeting. Mark Chun is affiliated with Pepperdine University. Owen Hall is affiliated with Pepperdine University. Charla Brown is affiliated with Pepperdine University.
Authors :: Mark Chun, Owen Hall, Charla Griffy-Brown
Swot Analysis of "Cloud Syzygy Technologies: Cloud-Based Computing" written by Mark Chun, Owen Hall, Charla Griffy-Brown includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cloud Pepperdine facing as an external strategic factors. Some of the topics covered in Cloud Syzygy Technologies: Cloud-Based Computing case study are - Strategic Management Strategies, Security & privacy and Technology & Operations.
Some of the macro environment factors that can be used to understand the Cloud Syzygy Technologies: Cloud-Based Computing casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, wage bills are increasing, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Cloud Syzygy Technologies: Cloud-Based Computing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cloud Syzygy Technologies: Cloud-Based Computing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cloud Pepperdine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing can be done for the following purposes –
1. Strategic planning using facts provided in Cloud Syzygy Technologies: Cloud-Based Computing case study
2. Improving business portfolio management of Cloud Pepperdine
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 Cloud Pepperdine
Strengths Cloud Syzygy Technologies: Cloud-Based Computing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cloud Pepperdine in Cloud Syzygy Technologies: Cloud-Based Computing Harvard Business Review case study are -
Successful track record of launching new products
– Cloud Pepperdine has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cloud Pepperdine 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 Cloud Pepperdine 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.
Diverse revenue streams
– Cloud Pepperdine is present in almost all the verticals within the industry. This has provided firm in Cloud Syzygy Technologies: Cloud-Based Computing 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.
Ability to lead change in Technology & Operations field
– Cloud Pepperdine 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 Cloud Pepperdine 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 Cloud Pepperdine 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
– Cloud Pepperdine is one of the leading recruiters in the industry. Managers in the Cloud Syzygy Technologies: Cloud-Based Computing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Technology & Operations industry
– Cloud Syzygy Technologies: Cloud-Based Computing firm has clearly differentiated products in the market place. This has enabled Cloud Pepperdine to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Cloud Pepperdine to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Cloud Syzygy Technologies: Cloud-Based Computing 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.
Superior customer experience
– The customer experience strategy of Cloud Pepperdine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Cloud Pepperdine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cloud Pepperdine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Cloud Pepperdine is one of the most innovative firm in sector. Manager in Cloud Syzygy Technologies: Cloud-Based Computing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Cloud Pepperdine 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 Cloud Pepperdine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cloud Syzygy Technologies: Cloud-Based Computing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Cloud Syzygy Technologies: Cloud-Based Computing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cloud Syzygy Technologies: Cloud-Based Computing are -
Need for greater diversity
– Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cloud Syzygy Technologies: Cloud-Based Computing, in the dynamic environment Cloud Pepperdine has struggled to respond to the nimble upstart competition. Cloud Pepperdine has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Cloud Pepperdine has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Cloud Pepperdine, firm in the HBR case study Cloud Syzygy Technologies: Cloud-Based Computing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Pepperdine has relatively successful track record of launching new products.
High cash cycle compare to competitors
Cloud Pepperdine 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.
Slow decision making process
– As mentioned earlier in the report, Cloud Pepperdine 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. Cloud Pepperdine 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.
Products dominated business model
– Even though Cloud Pepperdine 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 - Cloud Syzygy Technologies: Cloud-Based Computing should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Mark Chun, Owen Hall, Charla Griffy-Brown suggests that, Cloud Pepperdine 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.
Skills based hiring
– The stress on hiring functional specialists at Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing | 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 Cloud Syzygy Technologies: Cloud-Based Computing are -
Learning at scale
– Online learning technologies has now opened space for Cloud Pepperdine 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.
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. Cloud Pepperdine can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Cloud Pepperdine has opened avenues for new revenue streams for the organization in the industry. This can help Cloud Pepperdine to build a more holistic ecosystem as suggested in the Cloud Syzygy Technologies: Cloud-Based Computing case study. Cloud Pepperdine can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cloud Pepperdine can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Developing new processes and practices
– Cloud Pepperdine can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Cloud Pepperdine 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.
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. Cloud Pepperdine can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cloud Pepperdine 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.
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. Cloud Pepperdine 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. Cloud Pepperdine 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cloud Pepperdine 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 Cloud Pepperdine to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cloud Pepperdine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Cloud Pepperdine to increase its market reach. Cloud Pepperdine 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.
Building a culture of innovation
– managers at Cloud Pepperdine 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.
Threats Cloud Syzygy Technologies: Cloud-Based Computing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cloud Syzygy Technologies: Cloud-Based Computing are -
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 Cloud Pepperdine.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing .
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 Cloud Pepperdine 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.
Technology acceleration in Forth Industrial Revolution
– Cloud Pepperdine has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Cloud Pepperdine 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.
Shortening product life cycle
– it is one of the major threat that Cloud Pepperdine is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Cloud Pepperdine 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.
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. Cloud Pepperdine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cloud Pepperdine 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.
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.
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. Cloud Pepperdine 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.
High dependence on third party suppliers
– Cloud Pepperdine 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.
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 Cloud Pepperdine business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Pepperdine needs to make to build a sustainable competitive advantage.
