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 - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, technology disruption,
increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Highly skilled collaborators
– Exito Taeq has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Exito Taeq digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Exito Taeq 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.
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.
Sustainable margins compare to other players in Sales & Marketing industry
– TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia firm has clearly differentiated products in the market place. This has enabled Exito Taeq to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Exito Taeq to invest into research and development (R&D) and innovation.
High brand equity
– Exito Taeq has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Exito Taeq to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Superior customer experience
– The customer experience strategy of Exito Taeq in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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.
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.
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 -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia, is just above the industry average. Exito Taeq 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.
Lack of clear differentiation of Exito Taeq products
– To increase the profitability and margins on the products, Exito Taeq needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
Low market penetration in new markets
– Outside its home market of Exito Taeq, firm in the HBR case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia, it seems that the employees of Exito Taeq don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
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.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Exito Taeq is facing challenges because of the dominance of functional experts in the organization. TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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.
Buying journey improvements
– Exito Taeq can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia 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.
Developing new processes and practices
– Exito Taeq can develop new processes and procedures in Sales & Marketing 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.
Better consumer reach
– The expansion of the 5G network will help Exito Taeq to increase its market reach. Exito Taeq 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.
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.
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.
Manufacturing automation
– Exito Taeq can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Exito Taeq can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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 -
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 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TAEQ: Premium Lifestyle Private Brand B Grupo Exito Colombia, Exito Taeq may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
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. Exito Taeq 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.
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. Exito Taeq needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Exito Taeq with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
Stagnating economy with rate increase
– Exito Taeq 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.
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.
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.
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 Exito Taeq in the Sales & Marketing sector and impact the bottomline of the organization.
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.
