Swot Analysis of "E.I. du Pont de Nemours and Co.: The Conoco Split-off (C)" written by Stuart C. Gilson, Perry L. Fagan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that E.i Nemours facing as an external strategic factors. Some of the topics covered in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) case study are - Strategic Management Strategies, Financial analysis, Financial management, Financial markets, IPO, Reorganization, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) casestudy better are - – technology disruption, supply chains are disrupted by pandemic , increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies,
central banks are concerned over increasing inflation, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of E.I. du Pont de Nemours and Co.: The Conoco Split-off (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the E.i Nemours, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which E.i Nemours 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) can be done for the following purposes –
1. Strategic planning using facts provided in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) case study
2. Improving business portfolio management of E.i Nemours
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 E.i Nemours
Strengths E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of E.i Nemours in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) Harvard Business Review case study are -
Effective Research and Development (R&D)
– E.i Nemours 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– E.i Nemours is one of the most innovative firm in sector. Manager in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of E.i Nemours in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– E.i Nemours has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. E.i Nemours 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 E.i Nemours in the sector have low bargaining power. E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps E.i Nemours to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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.
Strong track record of project management
– E.i Nemours is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the E.i Nemours 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.
Diverse revenue streams
– E.i Nemours is present in almost all the verticals within the industry. This has provided firm in E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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.
Highly skilled collaborators
– E.i Nemours 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– E.i Nemours has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled E.i Nemours to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– E.i Nemours is one of the leading recruiters in the industry. Managers in the E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.i Nemours has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of E.i Nemours, firm in the HBR case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
E.i Nemours 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.
Increasing silos among functional specialists
– The organizational structure of E.i Nemours is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. E.i Nemours needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help E.i Nemours to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.i Nemours 's lucrative customers.
Need for greater diversity
– E.i Nemours 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, E.i Nemours is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though E.i Nemours 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 - E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, E.i Nemours 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.
No frontier risks strategy
– After analyzing the HBR case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C), it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C), it seems that the employees of E.i Nemours 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.
Opportunities E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) | 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, E.i Nemours 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, E.I. du Pont de Nemours and Co.: The Conoco Split-off (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– E.i Nemours 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help E.i Nemours to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 E.i Nemours in the consumer business. Now E.i Nemours can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. E.i Nemours can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– E.i Nemours 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, E.i Nemours can use these opportunities to build new business models that can help the communities that E.i Nemours operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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. E.i Nemours can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– E.i Nemours can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. E.i Nemours 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. E.i Nemours 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.
Better consumer reach
– The expansion of the 5G network will help E.i Nemours to increase its market reach. E.i Nemours 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
– E.i Nemours can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for E.i Nemours 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 E.i Nemours to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of E.i Nemours has opened avenues for new revenue streams for the organization in the industry. This can help E.i Nemours to build a more holistic ecosystem as suggested in the E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) case study. E.i Nemours can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) are -
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.
Technology acceleration in Forth Industrial Revolution
– E.i Nemours has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, E.i Nemours needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– E.i Nemours 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents E.i Nemours with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– E.i Nemours 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.
Stagnating economy with rate increase
– E.i Nemours 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.
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. E.i Nemours 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, E.i Nemours 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) .
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. E.i Nemours can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for E.i Nemours 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.
Environmental challenges
– E.i Nemours 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. E.i Nemours can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Increasing wage structure of E.i Nemours
– 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 E.i Nemours.
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. E.i Nemours needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.I. du Pont de Nemours and Co.: The Conoco Split-off (C) 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 E.i Nemours needs to make to build a sustainable competitive advantage.
