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 - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
technology disruption, digital marketing is dominated by two big players Facebook and Google, 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 -
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.
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.
Analytics focus
– Cloud Pepperdine 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 Mark Chun, Owen Hall, Charla Griffy-Brown 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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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 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.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Syzygy Technologies: Cloud-Based Computing can leverage the sales team experience to cultivate customer relationships as Cloud Pepperdine is planning to shift buying processes online.
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.
Interest costs
– Compare to the competition, Cloud Pepperdine 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 operating costs
– Compare to the competitors, firm in the HBR case study Cloud Syzygy Technologies: Cloud-Based Computing 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 Cloud Pepperdine 's lucrative customers.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
Using analytics as competitive advantage
– Cloud Pepperdine 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 Cloud Syzygy Technologies: Cloud-Based Computing - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cloud Pepperdine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
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.
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 -
Increasing wage structure of Cloud Pepperdine
– 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 Cloud Pepperdine.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 .
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.