Swot Analysis of "TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia" written by John Zerio, Sebastian Gonzalez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Exito Taeq facing as an external strategic factors. Some of the topics covered in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia casestudy better are - – digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, wage bills are increasing,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Exito Taeq, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Exito Taeq 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia can be done for the following purposes –
1. Strategic planning using facts provided in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia case study
2. Improving business portfolio management of Exito Taeq
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Exito Taeq
Strengths TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Exito Taeq in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia Harvard Business Review case study are -
Diverse revenue streams
– Exito Taeq is present in almost all the verticals within the industry. This has provided firm in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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.
High switching costs
– The high switching costs that Exito Taeq 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.
Cross disciplinary teams
– Horizontal connected teams at the Exito Taeq 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.
Analytics focus
– Exito Taeq 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 John Zerio, Sebastian Gonzalez 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.
Learning organization
- Exito Taeq 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 Exito Taeq is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Exito Taeq in the sector have low bargaining power. TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Exito Taeq to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Exito Taeq is one of the leading recruiters in the industry. Managers in the TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Exito Taeq has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Exito Taeq 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.
Innovation driven organization
– Exito Taeq is one of the most innovative firm in sector. Manager in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Sales & Marketing field
– Exito Taeq 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 Exito Taeq in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Exito Taeq
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Exito Taeq does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Exito Taeq is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia are -
Slow to strategic competitive environment developments
– As TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia HBR case study mentions - Exito Taeq 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.
High operating costs
– Compare to the competitors, firm in the HBR case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 Exito Taeq 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, John Zerio, Sebastian Gonzalez suggests that, Exito Taeq 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Exito Taeq 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.
Products dominated business model
– Even though Exito Taeq 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 - TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia can leverage the sales team experience to cultivate customer relationships as Exito Taeq is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Exito Taeq has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Exito Taeq 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. Exito Taeq 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.
Increasing silos among functional specialists
– The organizational structure of Exito Taeq is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Exito Taeq needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Exito Taeq to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia, in the dynamic environment Exito Taeq has struggled to respond to the nimble upstart competition. Exito Taeq has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Exito Taeq 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.
Opportunities TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia | 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia are -
Loyalty marketing
– Exito Taeq 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Exito Taeq 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 Exito Taeq to hire the very best people irrespective of their geographical location.
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 Exito Taeq 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.
Creating value in data economy
– The success of analytics program of Exito Taeq has opened avenues for new revenue streams for the organization in the industry. This can help Exito Taeq to build a more holistic ecosystem as suggested in the TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia case study. Exito Taeq can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Exito Taeq 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 Sales & Marketing segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Exito Taeq 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Exito Taeq can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Exito Taeq 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Exito Taeq can use these opportunities to build new business models that can help the communities that Exito Taeq operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Exito Taeq 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.
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 Exito Taeq in the consumer business. Now Exito Taeq can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Exito Taeq 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, TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Exito Taeq 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Exito Taeq to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia are -
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Exito Taeq can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Shortening product life cycle
– it is one of the major threat that Exito Taeq is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Exito Taeq
– 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 Exito Taeq.
Regulatory challenges
– Exito Taeq 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 Sales & Marketing industry regulations.
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 Exito Taeq business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Exito Taeq 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.
Technology acceleration in Forth Industrial Revolution
– Exito Taeq has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Exito Taeq needs to keep up with the evolution of technology in the Sales & Marketing 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.
High dependence on third party suppliers
– Exito Taeq 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.
Environmental challenges
– Exito Taeq 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. Exito Taeq can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
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 Exito Taeq.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Exito Taeq in the Sales & Marketing industry. The Sales & Marketing 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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 Exito Taeq needs to make to build a sustainable competitive advantage.