CLOUD SYZYGY TECHNOLOGIES Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

CLOUD SYZYGY TECHNOLOGIES Case Study Solution

Weaknesses:

The business requires a strong internet connection which might get hampered by a slight fault in the deep sea cable lines. This would create a huge problem and disturbance in operations for the firm.
Sometimes the cloud providers doesn’t comply with the standards that are required for the quality products and servicing hence, it automatically creates dissatisfaction among the customers.
Power outages are one of the problems that can harm the operations of the business. In the situation of power outages, the operations can come to a complete halt.

Opportunities

The continued growth in online retail market have allowed the businesses to shift towards online/website marketing, this has allowed the firms to get the cloud computing services which is beneficial for the cloud computing service providers.
The storage cost in cloud computing is quiet lower so businesses get attracted to shift their storage towards cloud computing. This creates an opportunity to target different growing companies.
There are various products that are being introduced in the IT market which compliments the cloud service hence, becoming beneficial for the cloud computing service provider.
The firm must look into massive opportunity within the insurance industry because the industry has large amount of data which needs to be processes. With the introduction of cloud computing service for the insurance industry can store the large data in the clouds at much lower cost. (Maletski, 2018 )

Threats:

Cloud Syzygy Technologies will face a tough competition from already established cloud service providing firms like Amazon web service and Microsoft Azure. The companies will use their brand name to attract their customers and they have a variety of services to offer.

Although, there aren’t much competitors in the cloud computing industry but with its growing popularity and high profit margin, different business are looking to establish themselves as cloud service providers.
With low cost of capital and different competitors may provide the service at lower prices than its competitor.
As the insurance cost will increase they will less likely to opt for the cloud computation service which will affect Cloud Syzygy Technologies’ business.

PESTEL Analysis (External Environmental Analysis):

In the year 2016 mobile devices, mobile short message services and internet systems were on the top in telecommunication industry while companies were searching for new technology to develop the industry. For this purpose, company should make external environmental analysis to better understand the demand for products and its features.

In external environment, several factors analyzed. These factors are Political, Economic, Social, Technological, Environmental and Legal.

Political Factors:

This factor is very risky for telecommunication sector in Asia Pacific region. This risk is related with government regulations, network licensing and nationwide trade barriers. These issues were mainly affect the network operators because service providers and equipment importers were felt safe themselves from these barriers.

Despite all, privatization and deregulation works in favor of telecommunication sector. By deregulating its operations from government, companies can work independently and earn more revenues by avoiding the rules and regulations made by the government.

By comparing the current situation from past decade, threat is much high due to the emergence of cloud computing in telecommunication sector that will also emerged threats and risks associated with them.

Political risks that associated with human rights and national security system are the main source to bear this political pressure for telecommunication industry. Across the world, governments launched monitoring and controlling measures for security purposes. These measures are growing day by day in order to avoid any hacking attack on the telecommunication industry especially after the hacking attack in United States on 2011.

Now a days, Wi-Fi and internet are part of life. Knowledge related with these technologies are basic human rights that requires the proper education in order to sustain and competitive in its career for applying the online job and delivering the online interviews.

Economic Factors:

Interest rates, taxes, exchange rates and inflation rate has a great impact upon telecommunication industry. This will affect the cost of the company, if cost will increase the price for the final product will also increase that will affect the purchasing power of customers ultimately revenues for the company (Frue, 2016).

It has been observed that the great recession of 2008 and 2009 hearts badly to telecommunication sector. Customers removed their spending on telecommunication products that will convert on its previous track after passing the great recession period that lasted from 2007 to 2010.

2016 is a year of economic revival for telecommunication industry. Customers spending on this sector is increased globally by increasing per capita income and GDP growth rate in Asia Pacific region. According to research, Malaysia’s ranking on middle level income were improved from 12^th position to 7^th one (810 Malaysia 2, n.d.).

When in an economy, the number of houses increase, demand for telecommunication products also increase means there is a positive relationship with growth in GDP and per capita income of an economy. There is also a positive relationship with population. If population increase, demand for telecommunication product will also increase.

Social Factors:

Social factors have direct relation with telecommunication industry. If people increase its life style, they will spend more in fun and entertainment activities that will increase the demand of telecommunication products ultimately more growth opportunities for suppliers.

The use of 4G was rapidly increase in 2016 that also increased the demand for telecommunication products in order to connect with people faster than now. This saves time for their busy life style and remain connected with its family and friends.

New technologies like cloud computing in telecommunication industry requires strong internet connection. This cloud computing telecom product will also increase the demand of its captive products that can only afford the socially and economically stable persons.

The health consciousness are increasing globally that are increasing the demand of wrist watches that told them about their physical activities also record them for future.

In short, this shifting trend in life style of Asian Pacific region’s people shows the great favorable growth opportunity for telecommunication industry in upcoming years.

Technological Factors:

The main base for telecommunication industry is on technology, so, the small change in technology will effect in drastic way to telecommunication industry. Demand for advance technology like smartphones and tablets are now increasing that requires the faster internet connection (Pratap, 2018).

For this purpose, organizations in telecommunication industry are searching for new better technologies in order to capture more growth opportunities in future by leading the telecommunication sector in Asian Pacific region.

Environmental Factors:

Telecommunication technologies and products like smart phone and tablets are generating e-wasting every year in large quantity that is against the policy of green environment because its impact on the life of a lay man can lead towards the diagnosis of dangerous diseases.

In order to save the lives, organizations are now minimizing the waste in order to protect the environmental foot print.

As the climate changes, effect of global warming on telecommunication products changes the reachability of customers. This change might be ignore by adopting the replacement and stop working on previous versions if you want to gain success over competitors.

Suppliers that are making renewable products are become popular in consumer market because now, customer requires full knowledge about the product, its usage and also about its discarding planning.

Legal Factors:

Issues related with government, monopolists and customers are highly impacting the telecommunication industry. The legislations related to the importing and exporting of technologies are major concerns for technologies developers.

This rise in legislations and trade barriers due to the presence of several laws and licenses that needs to be compiled accordingly.

Several laws are present in telecommunication industry that are related with privacy and telemarketing. Laws related with privacy were strictly followed after the incidents of 9/11 in United States. Governments also increase regulations related with privacy of customers in order to maintain strong customer and supplier relationship.

Alternatives

Cloud Z Technologies had planned to increase their market share by bringing in three new products in the market by the name of Net exchange, Entrust CF and Cloud Z. Here, the three products are being discussed and then the firm will have to decide between the two variables...........

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