Case Study Description of Polaris Battery Labs: Startup Risk Management
Polaris Battery Labs was an Oregon-based startup that provided innovation services to companies in the lithium ion battery industry. Its operating philosophy and expertise in this fast-growing industry enabled it to provide great value to its clients, but as a startup that was seeking growth the company was subject to multiple risks. For Polaris, taking clients, developing new manufacturing capabilities to meet unproven battery technologies, and even extending credit to its clients posed real risk. Many of its clients were startups themselves and had a significant probability of failure. Others were established firms testing new and unproven battery technologies, many of which were unlikely to gain traction in the market. The case examines how a technology-driven firm managed the risk of working with startups, claiming appropriate intellectual property, and developing a sustainable portfolio of clients.
Swot Analysis of "Polaris Battery Labs: Startup Risk Management" written by Russell Walker, Andrew Dilts includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Battery Polaris facing as an external strategic factors. Some of the topics covered in Polaris Battery Labs: Startup Risk Management case study are - Strategic Management Strategies, Decision making, Financial analysis, Growth strategy, Manufacturing, Risk management, Venture capital and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Polaris Battery Labs: Startup Risk Management casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, increasing household debt because of falling income levels, increasing transportation and logistics costs, wage bills are increasing, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Polaris Battery Labs: Startup Risk Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Polaris Battery Labs: Startup Risk Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Battery Polaris, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Battery Polaris 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 Polaris Battery Labs: Startup Risk Management can be done for the following purposes –
1. Strategic planning using facts provided in Polaris Battery Labs: Startup Risk Management case study
2. Improving business portfolio management of Battery Polaris
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Battery Polaris
Strengths Polaris Battery Labs: Startup Risk Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Battery Polaris in Polaris Battery Labs: Startup Risk Management Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Battery Polaris 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 Battery Polaris in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Battery Polaris 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 Polaris Battery Labs: Startup Risk Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Polaris Battery Labs: Startup Risk Management firm has clearly differentiated products in the market place. This has enabled Battery Polaris to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Battery Polaris to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Battery Polaris 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.
Strong track record of project management
– Battery Polaris is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Battery Polaris digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Battery Polaris 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.
Analytics focus
– Battery Polaris 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 Russell Walker, Andrew Dilts 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.
Low bargaining power of suppliers
– Suppliers of Battery Polaris in the sector have low bargaining power. Polaris Battery Labs: Startup Risk Management has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Battery Polaris to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Battery Polaris is one of the most innovative firm in sector. Manager in Polaris Battery Labs: Startup Risk Management Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Battery Polaris has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Battery Polaris to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Battery Polaris is one of the leading recruiters in the industry. Managers in the Polaris Battery Labs: Startup Risk Management are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Battery Polaris is present in almost all the verticals within the industry. This has provided firm in Polaris Battery Labs: Startup Risk Management 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.
Weaknesses Polaris Battery Labs: Startup Risk Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Polaris Battery Labs: Startup Risk Management are -
Skills based hiring
– The stress on hiring functional specialists at Battery Polaris 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.
Products dominated business model
– Even though Battery Polaris 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 - Polaris Battery Labs: Startup Risk Management should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Battery Polaris products
– To increase the profitability and margins on the products, Battery Polaris needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Battery Polaris 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.
Need for greater diversity
– Battery Polaris 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Polaris Battery Labs: Startup Risk Management, it seems that the employees of Battery Polaris 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Polaris Battery Labs: Startup Risk Management, in the dynamic environment Battery Polaris has struggled to respond to the nimble upstart competition. Battery Polaris has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Polaris Battery Labs: Startup Risk Management, is just above the industry average. Battery Polaris 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Polaris Battery Labs: Startup Risk Management 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 Battery Polaris has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Polaris Battery Labs: Startup Risk Management 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 Battery Polaris 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Polaris Battery Labs: Startup Risk Management 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 Polaris Battery Labs: Startup Risk Management can leverage the sales team experience to cultivate customer relationships as Battery Polaris is planning to shift buying processes online.
Opportunities Polaris Battery Labs: Startup Risk Management | 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 Polaris Battery Labs: Startup Risk Management are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Battery Polaris 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. Battery Polaris 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Battery Polaris can use these opportunities to build new business models that can help the communities that Battery Polaris operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Battery Polaris can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Learning at scale
– Online learning technologies has now opened space for Battery Polaris 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Battery Polaris 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 Battery Polaris to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Battery Polaris to increase its market reach. Battery Polaris 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Battery Polaris can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Battery Polaris can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Polaris Battery Labs: Startup Risk Management 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Battery Polaris can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Battery Polaris in the consumer business. Now Battery Polaris can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Battery Polaris can develop new processes and procedures in Strategy & Execution 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. Battery Polaris can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Battery Polaris 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 Polaris Battery Labs: Startup Risk Management - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Battery Polaris to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Polaris Battery Labs: Startup Risk Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Polaris Battery Labs: Startup Risk Management are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Battery Polaris 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. Battery Polaris needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing wage structure of Battery Polaris
– 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 Battery Polaris.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Battery Polaris in the Strategy & Execution industry. The Strategy & Execution 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.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Battery Polaris can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Battery Polaris 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Polaris Battery Labs: Startup Risk Management, Battery Polaris may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Battery Polaris is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Battery Polaris 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 Polaris Battery Labs: Startup Risk Management .
Stagnating economy with rate increase
– Battery Polaris 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
– Battery Polaris 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. Battery Polaris can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Battery Polaris 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.
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.
Weighted SWOT Analysis of Polaris Battery Labs: Startup Risk Management 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 Polaris Battery Labs: Startup Risk Management 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 Polaris Battery Labs: Startup Risk Management 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 Polaris Battery Labs: Startup Risk Management 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 Polaris Battery Labs: Startup Risk Management 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 Battery Polaris needs to make to build a sustainable competitive advantage.
