Case Study Description of Sensormatic Electronics Corp.--1995
Sensormatic is a leading provider of security systems to the retail industry. The company relies on customer financing as a key component of its strategy. The company's growth strategy and accounting is attacked by short-sellers and the financial press.
Swot Analysis of "Sensormatic Electronics Corp.--1995" written by Krishna G. Palepu, James Jinho Chang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sensormatic Attacked facing as an external strategic factors. Some of the topics covered in Sensormatic Electronics Corp.--1995 case study are - Strategic Management Strategies, Financial analysis, Financial management, Social responsibility, Strategy execution and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Sensormatic Electronics Corp.--1995 casestudy better are - – wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Sensormatic Electronics Corp.--1995
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sensormatic Electronics Corp.--1995 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sensormatic Attacked, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sensormatic Attacked 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 Sensormatic Electronics Corp.--1995 can be done for the following purposes –
1. Strategic planning using facts provided in Sensormatic Electronics Corp.--1995 case study
2. Improving business portfolio management of Sensormatic Attacked
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Sensormatic Attacked
Strengths Sensormatic Electronics Corp.--1995 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sensormatic Attacked in Sensormatic Electronics Corp.--1995 Harvard Business Review case study are -
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Sensormatic Attacked digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sensormatic Attacked 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.
Cross disciplinary teams
– Horizontal connected teams at the Sensormatic Attacked 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
– Sensormatic Attacked is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Sensormatic Attacked 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 Sensormatic Electronics Corp.--1995 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Finance & Accounting industry
– Sensormatic Electronics Corp.--1995 firm has clearly differentiated products in the market place. This has enabled Sensormatic Attacked to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Sensormatic Attacked to invest into research and development (R&D) and innovation.
High brand equity
– Sensormatic Attacked has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sensormatic Attacked to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Sensormatic Attacked has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sensormatic Electronics Corp.--1995 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.
Successful track record of launching new products
– Sensormatic Attacked has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sensormatic Attacked 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.
Innovation driven organization
– Sensormatic Attacked is one of the most innovative firm in sector. Manager in Sensormatic Electronics Corp.--1995 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Sensormatic Attacked in the sector have low bargaining power. Sensormatic Electronics Corp.--1995 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sensormatic Attacked to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Sensormatic Attacked
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sensormatic Attacked does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Finance & Accounting field
– Sensormatic Attacked 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 Sensormatic Attacked in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Sensormatic Electronics Corp.--1995 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sensormatic Electronics Corp.--1995 are -
Increasing silos among functional specialists
– The organizational structure of Sensormatic Attacked is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Sensormatic Attacked needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sensormatic Attacked to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Sensormatic Attacked 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 - Sensormatic Electronics Corp.--1995 should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Sensormatic Attacked 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. Sensormatic Attacked 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Sensormatic Attacked 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sensormatic Electronics Corp.--1995, it seems that the employees of Sensormatic Attacked 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.
Lack of clear differentiation of Sensormatic Attacked products
– To increase the profitability and margins on the products, Sensormatic Attacked needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Sensormatic Attacked 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.
Slow to strategic competitive environment developments
– As Sensormatic Electronics Corp.--1995 HBR case study mentions - Sensormatic Attacked 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sensormatic Electronics Corp.--1995 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 Sensormatic Attacked has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Sensormatic Attacked 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sensormatic Electronics Corp.--1995, in the dynamic environment Sensormatic Attacked has struggled to respond to the nimble upstart competition. Sensormatic Attacked has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Sensormatic Electronics Corp.--1995 | 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 Sensormatic Electronics Corp.--1995 are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sensormatic Attacked can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Sensormatic Attacked 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 Finance & Accounting segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sensormatic Attacked is facing challenges because of the dominance of functional experts in the organization. Sensormatic Electronics Corp.--1995 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sensormatic Attacked can use these opportunities to build new business models that can help the communities that Sensormatic Attacked operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Buying journey improvements
– Sensormatic Attacked can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sensormatic Electronics Corp.--1995 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.
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 Sensormatic Attacked in the consumer business. Now Sensormatic Attacked can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Sensormatic Attacked has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Sensormatic Attacked 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.
Better consumer reach
– The expansion of the 5G network will help Sensormatic Attacked to increase its market reach. Sensormatic Attacked 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sensormatic Attacked can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Developing new processes and practices
– Sensormatic Attacked can develop new processes and procedures in Finance & Accounting 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. Sensormatic Attacked can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Sensormatic Attacked 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 Sensormatic Electronics Corp.--1995 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sensormatic Attacked to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Sensormatic Electronics Corp.--1995 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sensormatic Electronics Corp.--1995 are -
High dependence on third party suppliers
– Sensormatic Attacked 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.
Stagnating economy with rate increase
– Sensormatic Attacked 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.
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.
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. Sensormatic Attacked needs to understand the core reasons impacting the Finance & Accounting 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 Sensormatic Attacked in the Finance & Accounting industry. The Finance & Accounting 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.
Regulatory challenges
– Sensormatic Attacked needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Consumer confidence and its impact on Sensormatic Attacked 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 Sensormatic Attacked with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Sensormatic Attacked is facing in Finance & Accounting 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. Sensormatic Attacked 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sensormatic Attacked 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 Sensormatic Electronics Corp.--1995 .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sensormatic Electronics Corp.--1995, Sensormatic Attacked may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Weighted SWOT Analysis of Sensormatic Electronics Corp.--1995 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 Sensormatic Electronics Corp.--1995 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 Sensormatic Electronics Corp.--1995 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 Sensormatic Electronics Corp.--1995 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 Sensormatic Electronics Corp.--1995 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 Sensormatic Attacked needs to make to build a sustainable competitive advantage.