Case Study Description of Fuel Cells: The Hydrogen Revolution?
The challenges faced in establishing hydrogen fuel cell-powered transportation in the United States, which promises to reduce greenhouse gas emissions and dependence on imported oil is examined. Foremost among these challenges is a "chicken-and-egg" dynamic: consumers will not buy hydrogen-fueled vehicles until a nationwide network of hydrogen refueling stations is available, and such a network will not be supplied without a critical mass of vehicles. Explores efforts of the George W. Bush administration and the U.S. Department of Energy in developing hydrogen fuel cell technology and infrastructure and in overcoming the chicken-and-egg dynamic. Also covers industrial policy and tax regimes in the United States, Japan, and the European Union and the efforts of automobile manufacturers to develop environmentally friendly transportation.
Authors :: Thomas R. Eisenmann, R. Matthew Willis
Topics :: Innovation & Entrepreneurship
Tags :: Government, Networking, Research & development, Social enterprise, Sustainability, Technology, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Fuel Cells: The Hydrogen Revolution?" written by Thomas R. Eisenmann, R. Matthew Willis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hydrogen Fuel facing as an external strategic factors. Some of the topics covered in Fuel Cells: The Hydrogen Revolution? case study are - Strategic Management Strategies, Government, Networking, Research & development, Social enterprise, Sustainability, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Fuel Cells: The Hydrogen Revolution? casestudy better are - – there is backlash against globalization, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Fuel Cells: The Hydrogen Revolution?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fuel Cells: The Hydrogen Revolution? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hydrogen Fuel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hydrogen Fuel 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 Fuel Cells: The Hydrogen Revolution? can be done for the following purposes –
1. Strategic planning using facts provided in Fuel Cells: The Hydrogen Revolution? case study
2. Improving business portfolio management of Hydrogen Fuel
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hydrogen Fuel
Strengths Fuel Cells: The Hydrogen Revolution? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hydrogen Fuel in Fuel Cells: The Hydrogen Revolution? Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Hydrogen Fuel 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.
Innovation driven organization
– Hydrogen Fuel is one of the most innovative firm in sector. Manager in Fuel Cells: The Hydrogen Revolution? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Hydrogen Fuel 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 Fuel Cells: The Hydrogen Revolution? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Hydrogen Fuel is one of the leading recruiters in the industry. Managers in the Fuel Cells: The Hydrogen Revolution? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Hydrogen Fuel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hydrogen Fuel 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.
Ability to lead change in Innovation & Entrepreneurship field
– Hydrogen Fuel 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 Hydrogen Fuel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Hydrogen Fuel digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hydrogen Fuel 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.
Diverse revenue streams
– Hydrogen Fuel is present in almost all the verticals within the industry. This has provided firm in Fuel Cells: The Hydrogen Revolution? 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.
High switching costs
– The high switching costs that Hydrogen Fuel has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Fuel Cells: The Hydrogen Revolution? firm has clearly differentiated products in the market place. This has enabled Hydrogen Fuel to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hydrogen Fuel to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Hydrogen Fuel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Hydrogen Fuel is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Hydrogen Fuel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fuel Cells: The Hydrogen Revolution? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Fuel Cells: The Hydrogen Revolution? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fuel Cells: The Hydrogen Revolution? are -
Low market penetration in new markets
– Outside its home market of Hydrogen Fuel, firm in the HBR case study Fuel Cells: The Hydrogen Revolution? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Hydrogen Fuel products
– To increase the profitability and margins on the products, Hydrogen Fuel needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Fuel Cells: The Hydrogen Revolution?, is just above the industry average. Hydrogen Fuel 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 existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hydrogen Fuel supply chain. Even after few cautionary changes mentioned in the HBR case study - Fuel Cells: The Hydrogen Revolution?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hydrogen Fuel vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Hydrogen Fuel 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 - Fuel Cells: The Hydrogen Revolution? should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Fuel Cells: The Hydrogen Revolution? 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 Fuel Cells: The Hydrogen Revolution? can leverage the sales team experience to cultivate customer relationships as Hydrogen Fuel is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Hydrogen Fuel 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. Hydrogen Fuel 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.
Slow to strategic competitive environment developments
– As Fuel Cells: The Hydrogen Revolution? HBR case study mentions - Hydrogen Fuel 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Fuel Cells: The Hydrogen Revolution?, it seems that the employees of Hydrogen Fuel 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Thomas R. Eisenmann, R. Matthew Willis suggests that, Hydrogen Fuel 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.
Skills based hiring
– The stress on hiring functional specialists at Hydrogen Fuel 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.
Opportunities Fuel Cells: The Hydrogen Revolution? | 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 Fuel Cells: The Hydrogen Revolution? are -
Creating value in data economy
– The success of analytics program of Hydrogen Fuel has opened avenues for new revenue streams for the organization in the industry. This can help Hydrogen Fuel to build a more holistic ecosystem as suggested in the Fuel Cells: The Hydrogen Revolution? case study. Hydrogen Fuel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hydrogen Fuel is facing challenges because of the dominance of functional experts in the organization. Fuel Cells: The Hydrogen Revolution? 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.
Manufacturing automation
– Hydrogen Fuel can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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 Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hydrogen Fuel 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. Hydrogen Fuel 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 Hydrogen Fuel to increase its market reach. Hydrogen Fuel 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.
Using analytics as competitive advantage
– Hydrogen Fuel 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 Fuel Cells: The Hydrogen Revolution? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hydrogen Fuel 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 Hydrogen Fuel in the consumer business. Now Hydrogen Fuel can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hydrogen Fuel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Loyalty marketing
– Hydrogen Fuel 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Hydrogen Fuel can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hydrogen Fuel 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
– Hydrogen Fuel can develop new processes and procedures in Innovation & Entrepreneurship 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Hydrogen Fuel to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Fuel Cells: The Hydrogen Revolution? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fuel Cells: The Hydrogen Revolution? are -
Technology acceleration in Forth Industrial Revolution
– Hydrogen Fuel has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hydrogen Fuel needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Increasing wage structure of Hydrogen Fuel
– 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 Hydrogen Fuel.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Fuel Cells: The Hydrogen Revolution?, Hydrogen Fuel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
High dependence on third party suppliers
– Hydrogen Fuel 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
– Hydrogen Fuel 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.
Consumer confidence and its impact on Hydrogen Fuel 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.
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 Hydrogen Fuel.
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. Hydrogen Fuel needs to understand the core reasons impacting the Innovation & Entrepreneurship 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 Hydrogen Fuel in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hydrogen Fuel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Hydrogen Fuel business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hydrogen Fuel 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 Fuel Cells: The Hydrogen Revolution? .
Weighted SWOT Analysis of Fuel Cells: The Hydrogen Revolution? 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 Fuel Cells: The Hydrogen Revolution? 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 Fuel Cells: The Hydrogen Revolution? 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 Fuel Cells: The Hydrogen Revolution? 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 Fuel Cells: The Hydrogen Revolution? 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 Hydrogen Fuel needs to make to build a sustainable competitive advantage.