Acacia Communications Company is one of the leading firms in optical technology and networking. It maintains its prominence as attributed to its well-organized internal environment. Moreover, it empowers service providers and cloud thus, enabling the realization of rapid growth of data from consumers globally. The company possesses an innovative silicon-based high speed for optical interconnection products thereby, accelerating adaptable network which is attributed to the company’s advancements in achievement, capacity, and cost. Furthermore, the company through its high speeds and bulk, as well as reduced power consumption, can offer products of cloud and service provision which is easy to incorporate with minimized cost and in the available network equipment. Focusing on the internal environment of the company alongside its SWOT analysis is essential in determining the company’s performance in relation to its environment, which includes competitors and other external factors.
Internal Environment
The company’s operations are based on low-power coherent silicon, and the products are made from complementary metal oxide and CMOS-adherence process. Use of CMOS enables the company to retain its continuity to incorporate an increased functionality in its products. Moreover, the use of CMOS enhances the usage of imported foundry services instead of the need for custom fabrication for the manufacturing of the products. By extension, the use of CMOS enables the company to achieve the competitive advantage of the major existing investment opportunities in the manufacturing industry and thus, can incorporate computer and communication services that depend on CMOS.
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The company has engineering and management team which possesses wide experience on optical services as well as networking. Besides, the team has extensive knowledge and skill on digital signal operations, silicon photonic integration, and large-scale design in ASIC alongside system development in software. The extensive expertise as possessed by the team is responsible for the company’s enhanced innovation, development, and design. This, in turn, has enabled the company to develop ten optical interconnect modules. Through the company`s operational cycles, it has been able to maintain persistent contact with customers thus, able to access the information about the current and future market trends and need.
Strengths and weaknesses of Acacia Communication Company (SWOT analysis)
SWOT analysis is an essential planning tool that can come in handy for Acacia Communications Company as a strategic guide for the manager’s assessment program to be able to deliberate on the internal performance of the company. Besides, it is a key tool that facilitates the analysis of the strengths and weaknesses of the company as well as the opportunities ( Zain & Kassim, 2012 ). Also, it is helpful for the company as it enables the company to identify its threats that could be present in its current business environment.
Strengths
Being that Acacia Company is one of the leading communication firms, it can be argued that its prominence must have emerged from various strengths that scale the company high above its competitors. The strengths can be said to enable the company to penetrate new markets and to protect the already existing market share. To begin with, the company has a well-established strategy to merge with other communication and technology companies. This has enabled the company to enhance its operations and by extension to establish a well-grounded supply chain that facilitates the acquisition of customers. The company has a well-established brand portfolio which has been very useful in the expansion of newly introduced products into the market. This moreover, has been made successful through highly go to market strategies which help in availing both existing and newly introduced products.
Acacia Company also incorporates automated operations which have led to evenness of quality communication services and products. Through this, the company has been able to level up and down depending on the demand states in the market. In addition, the company possesses a highly skilled workforce which is achieved through resourceful learning processes and programs as well as effective training sessions. This strength is attributed to the company`s heavy investment in training and development of human resource and hence ensures that the employees within the company are well equipped to deliver a quality workforce ( Grant, 2016 ). Besides, the employees through proper training get motivated to aim higher and achieve more.
The company has outstanding strength in developing and introducing new products to the market through innovation and this has contributed a lot in expanding the market for its products. Nevertheless, the company has outstanding achievement in new markets through well-established expertise streamlined to venture into new markets. The outstanding achievements in new markets have enabled the company to gain new revenue thus, establishing a diversified economic operation within its market. Finally, the company has a stabled distribution of market which it has achieved for many years. Moreover, through this, it has strengthened its distribution resulting in a reliable distribution cycle that is accessible to many of its customers.
Weaknesses
The company, on the other hand, has some weaknesses that have prompted the environment to pose stiff competition. For example, its structure and operations only match the present business environment in terms of the model, and this restricts its expansion in adjoining and adjacent segments of the business model. The company moreover, is not successful at incorporating firms with varieties of work culture. This implies that as much as it merges with other small companies, it is not able to merge with companies which embrace work culture that is different for its culture. The company furthermore, is characterized by high debilitation rate in the workforce as compared to other similar companies. Based on this, it must, therefore, spend a lot on training and developing of employees.
The marketing of its products leaves a lot to be achieved. This is evident in the positioning and selling of the products whereby, the selling presentation of its products is not well described. This consequently, results in the storming of the gap left his competitors. Also, the other weakness of the company is experienced in availing the products demanded by its customers, for example, it is not good at forecasting on the right products demanded by the customers, and as a result, it has missed chances to attract and retain customers as compared to its competitors. Moreover, this has resulted in the company harboring higher inventory both in in-house and channel distribution. Another weakness of the company is its limited investment in research and development as compared to its competitors. This, in turn, has rated it low in innovation aspect of the industry. Finally, the company has a high inventory day’s ratio as compared to its competitors in the same industry. Based on this, the company is forced to spend more capital on channel investment thereby impacting negatively on its long-term growth and development.
The Most Important Internal Environment of the Company
The company operates with a proprietary software framework which is fundamental in increasing the performance. Moreover, the software framework facilitates the reduction in capital expenditures as well as operating expenses that are related to high-speed networks. This greatly enables the customers to factor in the products easily into the present networks. The company sells its products through direct sale to network equipment manufacturers. Additionally, the company operates on the basis of families of high-speed coherent optical interconnect services and products which helps in the reduction of cost while improving the network achievements. Some of the optic solutions offered internally within the company include sophisticated modules which operate a vast majority of digital signal procedures and optical functions and metro inter-data networks. Most importantly, these modules possess the standard cloud services for optical products.
Competitor Analysis
In relation to the external environment, the company faces competition from similar companies such as Clear Path Capital Partners, Transmode and Mosaic Optics. The competition is attributed to the company`s limited operating history that makes it difficult for assessment of the current and future business performance. Moreover, Acacia depends on a scarce number of customers that makes it incompetent to overcome the competition from the external environment. Another aspect of the company`s external environment is its over-dependence on third parties to be able to fabricate its products. The company also has a limited number of suppliers with some being sole source.
Brief Structure of the Company
The company’s structure is subjected to government regulations which include imports, exports, and economic sanctions. Furthermore, anti-corruption laws also apply to the company, thus, may limit its sales and opportunities. This, therefore, means that the company must adhere to state regulations in the aspect of its operations, marketing, distributions, and employee` acquisition. Moreover, it operates by the use of software framework which facilitates the reduction in capital expenditures as well as operating expenses that are related to high-speed networks. This greatly enables the customers to factor in the products easily into the present networks.
References
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition . John Wiley & Sons.
Zain, M., & Kassim, N. M. (2012). The influence of internal environment and continuous improvements on firm’s competitiveness and performance. Procedia-Social and Behavioral Sciences , 65 , 26-32.
