Case Study Description of Carrier Corporation, Montluel, France: The Aquasnap Design Project
This case focuses on product design as a source of competitive advantage. In the late 1990s, Carrier France faced extremely high labor and overhead costs relative to smaller Italian competitors in one segment. The only way Carrier could compete was by designing a product with low labor costs. While one design alternative would lower assembly costs and space requirements, market acceptance was unpredictable. Relative to another more conservative design alternative, a delayed launch was likely. The case contains rich qualitative and quantitative information on the costs and benefits of the two Aquasnap design concepts in consideration, and focuses on which alternative to introduce.
Swot Analysis of "Carrier Corporation, Montluel, France: The Aquasnap Design Project" written by Emily Jean Gibbons, Kamalini Ramdas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aquasnap Carrier facing as an external strategic factors. Some of the topics covered in Carrier Corporation, Montluel, France: The Aquasnap Design Project case study are - Strategic Management Strategies, Design, Product development and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Carrier Corporation, Montluel, France: The Aquasnap Design Project casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, technology disruption, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, etc
Introduction to SWOT Analysis of Carrier Corporation, Montluel, France: The Aquasnap Design Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Carrier Corporation, Montluel, France: The Aquasnap Design Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aquasnap Carrier, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aquasnap Carrier 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project can be done for the following purposes –
1. Strategic planning using facts provided in Carrier Corporation, Montluel, France: The Aquasnap Design Project case study
2. Improving business portfolio management of Aquasnap Carrier
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 Aquasnap Carrier
Strengths Carrier Corporation, Montluel, France: The Aquasnap Design Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aquasnap Carrier in Carrier Corporation, Montluel, France: The Aquasnap Design Project Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Aquasnap Carrier in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Aquasnap Carrier 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 Emily Jean Gibbons, Kamalini Ramdas 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.
Innovation driven organization
– Aquasnap Carrier is one of the most innovative firm in sector. Manager in Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Aquasnap Carrier in the sector have low bargaining power. Carrier Corporation, Montluel, France: The Aquasnap Design Project has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aquasnap Carrier to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Aquasnap Carrier 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Aquasnap Carrier is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Aquasnap Carrier 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 Aquasnap Carrier is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Carrier Corporation, Montluel, France: The Aquasnap Design Project Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Aquasnap Carrier has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aquasnap Carrier 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.
High switching costs
– The high switching costs that Aquasnap Carrier 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.
Ability to lead change in Innovation & Entrepreneurship field
– Aquasnap Carrier 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 Aquasnap Carrier in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Aquasnap Carrier 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Carrier Corporation, Montluel, France: The Aquasnap Design Project 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.
Weaknesses Carrier Corporation, Montluel, France: The Aquasnap Design Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Carrier Corporation, Montluel, France: The Aquasnap Design Project are -
Interest costs
– Compare to the competition, Aquasnap Carrier 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.
Need for greater diversity
– Aquasnap Carrier 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 strategic competitive environment developments
– As Carrier Corporation, Montluel, France: The Aquasnap Design Project HBR case study mentions - Aquasnap Carrier 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.
Lack of clear differentiation of Aquasnap Carrier products
– To increase the profitability and margins on the products, Aquasnap Carrier needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Emily Jean Gibbons, Kamalini Ramdas suggests that, Aquasnap Carrier 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.
Low market penetration in new markets
– Outside its home market of Aquasnap Carrier, firm in the HBR case study Carrier Corporation, Montluel, France: The Aquasnap Design Project needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Aquasnap Carrier 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Carrier Corporation, Montluel, France: The Aquasnap Design Project, in the dynamic environment Aquasnap Carrier has struggled to respond to the nimble upstart competition. Aquasnap Carrier has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Aquasnap Carrier 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Aquasnap Carrier 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Aquasnap Carrier 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project | 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project are -
Learning at scale
– Online learning technologies has now opened space for Aquasnap Carrier 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.
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 Aquasnap Carrier in the consumer business. Now Aquasnap Carrier can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Aquasnap Carrier 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, Carrier Corporation, Montluel, France: The Aquasnap Design Project, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Aquasnap Carrier 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.
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. Aquasnap Carrier can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Aquasnap Carrier can use these opportunities to build new business models that can help the communities that Aquasnap Carrier operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Aquasnap Carrier 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 Aquasnap Carrier to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Aquasnap Carrier 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aquasnap Carrier to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Aquasnap Carrier 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.
Loyalty marketing
– Aquasnap Carrier 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.
Buying journey improvements
– Aquasnap Carrier can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Carrier Corporation, Montluel, France: The Aquasnap Design Project 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.
Leveraging digital technologies
– Aquasnap Carrier can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Aquasnap Carrier can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Carrier Corporation, Montluel, France: The Aquasnap Design Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Carrier Corporation, Montluel, France: The Aquasnap Design Project are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Carrier Corporation, Montluel, France: The Aquasnap Design Project, Aquasnap Carrier 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 .
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 Aquasnap Carrier business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Aquasnap Carrier has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Aquasnap Carrier 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.
Regulatory challenges
– Aquasnap Carrier 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 Innovation & Entrepreneurship industry regulations.
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. Aquasnap Carrier needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Aquasnap Carrier in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 Aquasnap Carrier.
High dependence on third party suppliers
– Aquasnap Carrier 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.
Shortening product life cycle
– it is one of the major threat that Aquasnap Carrier is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Aquasnap Carrier 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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Aquasnap Carrier can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Aquasnap Carrier 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.
Weighted SWOT Analysis of Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Aquasnap Carrier needs to make to build a sustainable competitive advantage.