The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version
Rey Holdings Corp. was one of the two leading supermarket chains in Panama, with an estimated 30% market share,39 stores and a five-year aggressive expansion plan. In addition, Rey Holdings held a lower market share in the pharmaceutical and food industries. In 2011, the company was evaluating growth options through: a) point-of-sales and geographical growth; b) expanding product mix and store layout; and c) a strong market entry into the pharmaceutical industry through the acquisition of Metro Corporation. CLADEA's case collection
Authors :: Sergio Andres Olavarrieta, Fatima Alves Ribeiro, Eloisa Aravena
Swot Analysis of "The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version" written by Sergio Andres Olavarrieta, Fatima Alves Ribeiro, Eloisa Aravena includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rey Panama facing as an external strategic factors. Some of the topics covered in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, technology disruption, supply chains are disrupted by pandemic ,
increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, etc
Introduction to SWOT Analysis of The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rey Panama, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rey Panama 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version case study
2. Improving business portfolio management of Rey Panama
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Rey Panama
Strengths The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rey Panama in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version Harvard Business Review case study are -
Successful track record of launching new products
– Rey Panama has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rey Panama 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.
Operational resilience
– The operational resilience strategy in the The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Rey Panama is present in almost all the verticals within the industry. This has provided firm in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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.
Ability to lead change in Strategy & Execution field
– Rey Panama 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 Rey Panama in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Rey Panama is one of the leading recruiters in the industry. Managers in the The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Rey Panama has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Rey Panama 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Rey Panama in the sector have low bargaining power. The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rey Panama to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Rey Panama 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 Rey Panama is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Rey Panama in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Rey Panama is one of the most innovative firm in sector. Manager in The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Rey Panama has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rey Panama to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version are -
Slow to strategic competitive environment developments
– As The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version HBR case study mentions - Rey Panama 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.
Capital Spending Reduction
– Even during the low interest decade, Rey Panama 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 cash cycle compare to competitors
Rey Panama 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.
Low market penetration in new markets
– Outside its home market of Rey Panama, firm in the HBR case study The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Rey Panama is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Rey Panama needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rey Panama 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version, it seems that the employees of Rey Panama 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version, in the dynamic environment Rey Panama has struggled to respond to the nimble upstart competition. Rey Panama 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, Rey Panama 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 bargaining power of channel partners
– Because of the regulatory requirements, Sergio Andres Olavarrieta, Fatima Alves Ribeiro, Eloisa Aravena suggests that, Rey Panama 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 Rey Panama 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Rey Panama 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.
Opportunities The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version | 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version are -
Learning at scale
– Online learning technologies has now opened space for Rey Panama 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rey Panama 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 Rey Panama to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Rey Panama 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Rey Panama can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Rey Panama can develop new processes and procedures in Strategy & Execution 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.
Using analytics as competitive advantage
– Rey Panama 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rey Panama to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Rey Panama 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.
Better consumer reach
– The expansion of the 5G network will help Rey Panama to increase its market reach. Rey Panama 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rey Panama in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rey Panama is facing challenges because of the dominance of functional experts in the organization. The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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.
Leveraging digital technologies
– Rey Panama 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rey Panama 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, The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Rey Panama has opened avenues for new revenue streams for the organization in the industry. This can help Rey Panama to build a more holistic ecosystem as suggested in the The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version case study. Rey Panama can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version are -
Regulatory challenges
– Rey Panama 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 Strategy & Execution industry regulations.
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. Rey Panama 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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Rey Panama has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Rey Panama needs to keep up with the evolution of technology in the Strategy & Execution 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.
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 Rey Panama in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Rey Panama 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.
Consumer confidence and its impact on Rey Panama 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.
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 Rey Panama.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rey Panama 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rey Panama with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Rey Panama business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Rey Panama is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 The Future of Rey Holdings Corp. in Panama: Focusing or Diversifying?, Spanish Version 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 Rey Panama needs to make to build a sustainable competitive advantage.
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