Allstate Chemical Co.: The Commercialization of Dynarim SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Allstate Chemical Co.: The Commercialization of Dynarim
Raises three issues: the different requirements for competing in specialty and commodity chemicals; the steps a new idea follows in moving from research, applied research, and development to manufacturing and marketing; and the role of a commercial development organization in facilitating new product development. Students must evaluate the role of the commercial development group, especially its goals, management criteria for accepting new projects, and the criteria for passing on projects to established divisions.
Swot Analysis of "Allstate Chemical Co.: The Commercialization of Dynarim" written by David A. Garvin, Artemis March includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Criteria Dynarim facing as an external strategic factors. Some of the topics covered in Allstate Chemical Co.: The Commercialization of Dynarim case study are - Strategic Management Strategies, Market research, Product development, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the Allstate Chemical Co.: The Commercialization of Dynarim casestudy better are - – talent flight as more people leaving formal jobs, increasing transportation and logistics costs, geopolitical disruptions, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Allstate Chemical Co.: The Commercialization of Dynarim
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Allstate Chemical Co.: The Commercialization of Dynarim case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Criteria Dynarim, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Criteria Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim can be done for the following purposes –
1. Strategic planning using facts provided in Allstate Chemical Co.: The Commercialization of Dynarim case study
2. Improving business portfolio management of Criteria Dynarim
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 Criteria Dynarim
Strengths Allstate Chemical Co.: The Commercialization of Dynarim | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Criteria Dynarim in Allstate Chemical Co.: The Commercialization of Dynarim Harvard Business Review case study are -
Effective Research and Development (R&D)
– Criteria Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim - 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 Criteria Dynarim in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Technology & Operations field
– Criteria Dynarim 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 Criteria Dynarim in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Criteria Dynarim digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Criteria Dynarim 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.
Strong track record of project management
– Criteria Dynarim is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Criteria Dynarim in the sector have low bargaining power. Allstate Chemical Co.: The Commercialization of Dynarim has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Criteria Dynarim to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Criteria Dynarim 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.
High brand equity
– Criteria Dynarim has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Criteria Dynarim to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Criteria Dynarim has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Criteria Dynarim 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.
Organizational Resilience of Criteria Dynarim
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Criteria Dynarim does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Criteria Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Criteria Dynarim is one of the most innovative firm in sector. Manager in Allstate Chemical Co.: The Commercialization of Dynarim Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Allstate Chemical Co.: The Commercialization of Dynarim | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Allstate Chemical Co.: The Commercialization of Dynarim are -
Slow decision making process
– As mentioned earlier in the report, Criteria Dynarim 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. Criteria Dynarim 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Criteria Dynarim is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Allstate Chemical Co.: The Commercialization of Dynarim can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Criteria Dynarim products
– To increase the profitability and margins on the products, Criteria Dynarim needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Criteria Dynarim 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 Criteria Dynarim 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 - Allstate Chemical Co.: The Commercialization of Dynarim should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Allstate Chemical Co.: The Commercialization of Dynarim 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 Criteria Dynarim 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Allstate Chemical Co.: The Commercialization of Dynarim, it seems that the employees of Criteria Dynarim don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Allstate Chemical Co.: The Commercialization of Dynarim 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 Criteria Dynarim has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Allstate Chemical Co.: The Commercialization of Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim can leverage the sales team experience to cultivate customer relationships as Criteria Dynarim is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Allstate Chemical Co.: The Commercialization of Dynarim, 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Criteria Dynarim 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.
Opportunities Allstate Chemical Co.: The Commercialization of Dynarim | 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 Allstate Chemical Co.: The Commercialization of Dynarim 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. Criteria Dynarim can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Criteria Dynarim 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.
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 Criteria Dynarim in the consumer business. Now Criteria Dynarim can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Criteria Dynarim 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Criteria Dynarim 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, Allstate Chemical Co.: The Commercialization of Dynarim, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Criteria Dynarim 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Criteria Dynarim can use these opportunities to build new business models that can help the communities that Criteria Dynarim operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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. Criteria Dynarim 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. Criteria Dynarim 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 Criteria Dynarim 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 Criteria Dynarim to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Criteria Dynarim has opened avenues for new revenue streams for the organization in the industry. This can help Criteria Dynarim to build a more holistic ecosystem as suggested in the Allstate Chemical Co.: The Commercialization of Dynarim case study. Criteria Dynarim can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Criteria Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Criteria Dynarim to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Criteria Dynarim can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Criteria Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Allstate Chemical Co.: The Commercialization of Dynarim 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 Criteria Dynarim.
High dependence on third party suppliers
– Criteria Dynarim 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 Criteria Dynarim
– 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 Criteria Dynarim.
Technology acceleration in Forth Industrial Revolution
– Criteria Dynarim has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Criteria Dynarim 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.
Environmental challenges
– Criteria Dynarim 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. Criteria Dynarim can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Criteria Dynarim business can come under increasing regulations regarding data privacy, data security, etc.
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 Criteria Dynarim in the Technology & Operations sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Criteria Dynarim 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.
Stagnating economy with rate increase
– Criteria Dynarim 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.
Consumer confidence and its impact on Criteria Dynarim 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Criteria Dynarim with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Criteria Dynarim needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Allstate Chemical Co.: The Commercialization of Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim 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 Allstate Chemical Co.: The Commercialization of Dynarim 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 Criteria Dynarim needs to make to build a sustainable competitive advantage.
