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 - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
increasing transportation and logistics costs, talent flight as more people leaving formal jobs, 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 -
Training and development
– Cloud Pepperdine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cloud Syzygy Technologies: Cloud-Based Computing 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.
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.
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.
Effective Research and Development (R&D)
– Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
Highly skilled collaborators
– Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Cloud Pepperdine digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cloud Pepperdine 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.
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.
Low bargaining power of suppliers
– Suppliers of Cloud Pepperdine in the sector have low bargaining power. Cloud Syzygy Technologies: Cloud-Based Computing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cloud Pepperdine to manage not only supply disruptions but also source products at highly competitive prices.
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 -
Lack of clear differentiation of Cloud Pepperdine products
– To increase the profitability and margins on the products, Cloud Pepperdine needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cloud Syzygy Technologies: Cloud-Based Computing, is just above the industry average. Cloud Pepperdine 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.
Slow to strategic competitive environment developments
– As Cloud Syzygy Technologies: Cloud-Based Computing HBR case study mentions - Cloud Pepperdine 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cloud Pepperdine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cloud Syzygy Technologies: Cloud-Based Computing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Cloud Pepperdine is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Cloud Pepperdine needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cloud Pepperdine to focus more on services rather than just following the product oriented approach.
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.
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.
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.
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.
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 -
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 Cloud Pepperdine in the consumer business. Now Cloud Pepperdine can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cloud Pepperdine 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, Cloud Syzygy Technologies: Cloud-Based Computing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Buying journey improvements
– Cloud Pepperdine can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cloud Syzygy Technologies: Cloud-Based Computing 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.
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 Cloud Pepperdine 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cloud Pepperdine is facing challenges because of the dominance of functional experts in the organization. Cloud Syzygy Technologies: Cloud-Based Computing 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.
Leveraging digital technologies
– Cloud Pepperdine 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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cloud Pepperdine can use these opportunities to build new business models that can help the communities that Cloud Pepperdine operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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.
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.
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 -
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. Cloud Pepperdine needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cloud Syzygy Technologies: Cloud-Based Computing, Cloud Pepperdine 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 .
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.
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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cloud Pepperdine with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Stagnating economy with rate increase
– Cloud Pepperdine 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
– Cloud Pepperdine 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. Cloud Pepperdine can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
