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 - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, wage bills are increasing, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Aquasnap Carrier 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.
Organizational Resilience of Aquasnap Carrier
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Aquasnap Carrier does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Training and development
– Aquasnap Carrier has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Carrier Corporation, Montluel, France: The Aquasnap Design Project Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Aquasnap Carrier digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Aquasnap Carrier 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.
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.
Diverse revenue streams
– Aquasnap Carrier is present in almost all the verticals within the industry. This has provided firm in Carrier Corporation, Montluel, France: The Aquasnap Design Project 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.
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 -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aquasnap Carrier is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Carrier Corporation, Montluel, France: The Aquasnap Design Project can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Aquasnap Carrier 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. Aquasnap Carrier 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.
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.
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.
Products dominated business model
– Even though Aquasnap Carrier 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 - Carrier Corporation, Montluel, France: The Aquasnap Design Project should strive to include more intangible value offerings along with its core products and services.
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.
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.
Aligning sales with marketing
– It come across in the case study Carrier Corporation, Montluel, France: The Aquasnap Design Project 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 Carrier Corporation, Montluel, France: The Aquasnap Design Project can leverage the sales team experience to cultivate customer relationships as Aquasnap Carrier is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Carrier Corporation, Montluel, France: The Aquasnap Design Project, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Carrier Corporation, Montluel, France: The Aquasnap Design Project, is just above the industry average. Aquasnap Carrier 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, 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.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aquasnap Carrier can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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 Aquasnap Carrier 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.
Building a culture of innovation
– managers at Aquasnap Carrier 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.
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.
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.
Creating value in data economy
– The success of analytics program of Aquasnap Carrier has opened avenues for new revenue streams for the organization in the industry. This can help Aquasnap Carrier to build a more holistic ecosystem as suggested in the Carrier Corporation, Montluel, France: The Aquasnap Design Project case study. Aquasnap Carrier can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Manufacturing automation
– Aquasnap Carrier 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. Aquasnap Carrier 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. Aquasnap Carrier 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Aquasnap Carrier is facing challenges because of the dominance of functional experts in the organization. Carrier Corporation, Montluel, France: The Aquasnap Design Project 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.
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 -
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.
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.
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.
Increasing wage structure of Aquasnap Carrier
– 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 Aquasnap Carrier.
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.
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.
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. Aquasnap Carrier 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.
Stagnating economy with rate increase
– Aquasnap Carrier 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Aquasnap Carrier with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
