Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged)
Once considered a candidate for divesture, Dow Chemical Polyolefins and Elastomers has had 12 successful years in a row. The company has set the standard of excellence for new-product innovation, having launched an average of one new-product line each year with 10 of the 11 launches being a success. After winning awards and receiving recognition for his speed in developing and launching chemical products, the company's COO now had a new concern to address: how will the company sustain its high performance over the long haul?
Swot Analysis of "Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged)" written by Alexander Horniman, Thomas Cross includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Elastomers Polyolefins facing as an external strategic factors. Some of the topics covered in Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) case study are - Strategic Management Strategies, Product development and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) casestudy better are - – talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, there is backlash against globalization, geopolitical disruptions, there is increasing trade war between United States & China, technology disruption,
banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Elastomers Polyolefins, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Elastomers Polyolefins 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) case study
2. Improving business portfolio management of Elastomers Polyolefins
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 Elastomers Polyolefins
Strengths Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Elastomers Polyolefins in Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Elastomers Polyolefins 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Elastomers Polyolefins 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.
High brand equity
– Elastomers Polyolefins has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Elastomers Polyolefins to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Elastomers Polyolefins 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 Elastomers Polyolefins is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Elastomers Polyolefins in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Innovation & Entrepreneurship field
– Elastomers Polyolefins 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 Elastomers Polyolefins 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 Elastomers Polyolefins digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Elastomers Polyolefins 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.
Successful track record of launching new products
– Elastomers Polyolefins has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Elastomers Polyolefins 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.
Strong track record of project management
– Elastomers Polyolefins is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Elastomers Polyolefins 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 recruit top talent
– Elastomers Polyolefins is one of the leading recruiters in the industry. Managers in the Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) firm has clearly differentiated products in the market place. This has enabled Elastomers Polyolefins to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Elastomers Polyolefins to invest into research and development (R&D) and innovation.
Weaknesses Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Elastomers Polyolefins is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Elastomers Polyolefins has relatively successful track record of launching new products.
Products dominated business model
– Even though Elastomers Polyolefins 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 - Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Elastomers Polyolefins 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.
High cash cycle compare to competitors
Elastomers Polyolefins 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.
Slow to strategic competitive environment developments
– As Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) HBR case study mentions - Elastomers Polyolefins 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.
Low market penetration in new markets
– Outside its home market of Elastomers Polyolefins, firm in the HBR case study Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Elastomers Polyolefins supply chain. Even after few cautionary changes mentioned in the HBR case study - Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Elastomers Polyolefins vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Elastomers Polyolefins 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.
Skills based hiring
– The stress on hiring functional specialists at Elastomers Polyolefins 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.
Slow decision making process
– As mentioned earlier in the report, Elastomers Polyolefins 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. Elastomers Polyolefins 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.
Opportunities Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) | 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) are -
Building a culture of innovation
– managers at Elastomers Polyolefins 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.
Better consumer reach
– The expansion of the 5G network will help Elastomers Polyolefins to increase its market reach. Elastomers Polyolefins 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
– Elastomers Polyolefins 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Elastomers Polyolefins to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Elastomers Polyolefins 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 Elastomers Polyolefins to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Elastomers Polyolefins is facing challenges because of the dominance of functional experts in the organization. Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Elastomers Polyolefins can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Elastomers Polyolefins 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, Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Elastomers Polyolefins 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.
Learning at scale
– Online learning technologies has now opened space for Elastomers Polyolefins 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.
Developing new processes and practices
– Elastomers Polyolefins 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.
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. Elastomers Polyolefins can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Elastomers Polyolefins can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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.
Creating value in data economy
– The success of analytics program of Elastomers Polyolefins has opened avenues for new revenue streams for the organization in the industry. This can help Elastomers Polyolefins to build a more holistic ecosystem as suggested in the Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) case study. Elastomers Polyolefins can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) are -
Shortening product life cycle
– it is one of the major threat that Elastomers Polyolefins is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Elastomers Polyolefins needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Elastomers Polyolefins 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.
Technology acceleration in Forth Industrial Revolution
– Elastomers Polyolefins has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Elastomers Polyolefins 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.
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.
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.
Environmental challenges
– Elastomers Polyolefins needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Elastomers Polyolefins can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Elastomers Polyolefins can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Elastomers Polyolefins 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Elastomers Polyolefins 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Elastomers Polyolefins with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Elastomers Polyolefins 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 Elastomers Polyolefins 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.
Weighted SWOT Analysis of Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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 Dow Chemical Polyolefins and Elastomers R&D: Sustaining High Performance (Abridged) 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 Elastomers Polyolefins needs to make to build a sustainable competitive advantage.
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