Case Study Description of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan
This is a 1-on-1 first interaction negotiation between John, a senior sales manager of high-end, state-of-the-art laptops (Boost computers), and Cindy, a procurement manager of a business consulting firm. Cindy has invited John to discuss his proposal to sell 50 of the latest technology computers.
Swot Analysis of "Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan" written by Horacio Falcao, Kriti Jain, Heather Grover includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cindy Computers facing as an external strategic factors. Some of the topics covered in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study are - Strategic Management Strategies, Growth strategy, IT, Negotiations, Pricing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan casestudy better are - – there is increasing trade war between United States & China, wage bills are increasing, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, supply chains are disrupted by pandemic , geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cindy Computers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan can be done for the following purposes –
1. Strategic planning using facts provided in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study
2. Improving business portfolio management of Cindy Computers
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 Cindy Computers
Strengths Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cindy Computers in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Cindy Computers 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan firm has clearly differentiated products in the market place. This has enabled Cindy Computers to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Cindy Computers to invest into research and development (R&D) and innovation.
Analytics focus
– Cindy Computers 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 Horacio Falcao, Kriti Jain, Heather Grover 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.
Diverse revenue streams
– Cindy Computers is present in almost all the verticals within the industry. This has provided firm in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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.
Organizational Resilience of Cindy Computers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cindy Computers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Cindy Computers is one of the most innovative firm in sector. Manager in Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Cindy Computers 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.
Successful track record of launching new products
– Cindy Computers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cindy Computers 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.
Effective Research and Development (R&D)
– Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Cindy Computers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cindy Computers 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.
High brand equity
– Cindy Computers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cindy Computers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
No frontier risks strategy
– After analyzing the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Horacio Falcao, Kriti Jain, Heather Grover suggests that, Cindy Computers 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 Cindy Computers, firm in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan HBR case study mentions - Cindy Computers 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, in the dynamic environment Cindy Computers has struggled to respond to the nimble upstart competition. Cindy Computers 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
Cindy Computers 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 Cindy Computers is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Cindy Computers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, is just above the industry average. Cindy Computers 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Cindy Computers 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.
Need for greater diversity
– Cindy Computers 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.
Opportunities Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan | 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cindy Computers is facing challenges because of the dominance of functional experts in the organization. Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cindy Computers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cindy Computers 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, Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Cindy Computers has opened avenues for new revenue streams for the organization in the industry. This can help Cindy Computers to build a more holistic ecosystem as suggested in the Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan case study. Cindy Computers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Cindy Computers 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.
Better consumer reach
– The expansion of the 5G network will help Cindy Computers to increase its market reach. Cindy Computers 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.
Developing new processes and practices
– Cindy Computers 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.
Using analytics as competitive advantage
– Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cindy Computers to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Cindy Computers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers in the consumer business. Now Cindy Computers can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Cindy Computers 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cindy Computers can use these opportunities to build new business models that can help the communities that Cindy Computers operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Building a culture of innovation
– managers at Cindy Computers 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 Innovation & Entrepreneurship segment.
Threats Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan are -
High dependence on third party suppliers
– Cindy Computers 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.
Consumer confidence and its impact on Cindy Computers 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.
Shortening product life cycle
– it is one of the major threat that Cindy Computers is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan, Cindy Computers 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 .
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.
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 Cindy Computers business can come under increasing regulations regarding data privacy, data security, etc.
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. Cindy Computers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Cindy Computers 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.
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 Cindy Computers in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Cindy Computers 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. Cindy Computers 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, Cindy Computers 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan .
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.
Weighted SWOT Analysis of Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Boost M6700 (B): Buyer Seller Negotiation - Confidential Instructions for Cindy Tan 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 Cindy Computers needs to make to build a sustainable competitive advantage.
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