The Philippines' Rising Bioethanol Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Philippines' Rising Bioethanol Industry
In 2007, the Philippines passed the Biofuels Act of 2006, which requires all gasoline sold in the country in 2008 to contain at least 5% ethanol by volume. The law's objectives are to reduce Philippine dependence on imported fuel, with its erratic price fluctuations, by providing a local supply of alternative and renewable energy. The success of the implementation of this law depends greatly on how well the country's agricultural sector will respond. Because of this, the Department of Agriculture is crafting a feedstock development strategy.
Swot Analysis of "The Philippines' Rising Bioethanol Industry" written by Ari Luis c. Halos includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Philippines Bioethanol facing as an external strategic factors. Some of the topics covered in The Philippines' Rising Bioethanol Industry case study are - Strategic Management Strategies, Operations management, Social enterprise and Technology & Operations.
Some of the macro environment factors that can be used to understand the The Philippines' Rising Bioethanol Industry casestudy better are - – increasing transportation and logistics costs, technology disruption, increasing government debt because of Covid-19 spendings, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, central banks are concerned over increasing inflation,
wage bills are increasing, increasing commodity prices, etc
Introduction to SWOT Analysis of The Philippines' Rising Bioethanol Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Philippines' Rising Bioethanol Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Philippines Bioethanol, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Philippines Bioethanol 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 Philippines' Rising Bioethanol Industry can be done for the following purposes –
1. Strategic planning using facts provided in The Philippines' Rising Bioethanol Industry case study
2. Improving business portfolio management of Philippines Bioethanol
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Philippines Bioethanol
Strengths The Philippines' Rising Bioethanol Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Philippines Bioethanol in The Philippines' Rising Bioethanol Industry Harvard Business Review case study are -
Strong track record of project management
– Philippines Bioethanol is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Philippines Bioethanol is one of the most innovative firm in sector. Manager in The Philippines' Rising Bioethanol Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Philippines Bioethanol 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.
Learning organization
- Philippines Bioethanol 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 Philippines Bioethanol is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Philippines' Rising Bioethanol Industry Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Philippines Bioethanol is one of the leading recruiters in the industry. Managers in the The Philippines' Rising Bioethanol Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Technology & Operations industry
– The Philippines' Rising Bioethanol Industry firm has clearly differentiated products in the market place. This has enabled Philippines Bioethanol to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Philippines Bioethanol to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Philippines Bioethanol in the sector have low bargaining power. The Philippines' Rising Bioethanol Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Philippines Bioethanol to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Philippines Bioethanol has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Philippines' Rising Bioethanol Industry - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Philippines Bioethanol digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Philippines Bioethanol 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 Philippines Bioethanol 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.
Diverse revenue streams
– Philippines Bioethanol is present in almost all the verticals within the industry. This has provided firm in The Philippines' Rising Bioethanol Industry 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.
Successful track record of launching new products
– Philippines Bioethanol has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Philippines Bioethanol 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.
Weaknesses The Philippines' Rising Bioethanol Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Philippines' Rising Bioethanol Industry are -
Slow to strategic competitive environment developments
– As The Philippines' Rising Bioethanol Industry HBR case study mentions - Philippines Bioethanol 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Philippines' Rising Bioethanol Industry, it seems that the employees of Philippines Bioethanol 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.
Lack of clear differentiation of Philippines Bioethanol products
– To increase the profitability and margins on the products, Philippines Bioethanol needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Philippines Bioethanol is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Philippines' Rising Bioethanol Industry can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study The Philippines' Rising Bioethanol Industry, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though Philippines Bioethanol 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 - The Philippines' Rising Bioethanol Industry should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study The Philippines' Rising Bioethanol Industry 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 Philippines Bioethanol 's lucrative customers.
Aligning sales with marketing
– It come across in the case study The Philippines' Rising Bioethanol Industry 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 The Philippines' Rising Bioethanol Industry can leverage the sales team experience to cultivate customer relationships as Philippines Bioethanol is planning to shift buying processes online.
High cash cycle compare to competitors
Philippines Bioethanol 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Philippines' Rising Bioethanol Industry, in the dynamic environment Philippines Bioethanol has struggled to respond to the nimble upstart competition. Philippines Bioethanol has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Philippines Bioethanol 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 Philippines' Rising Bioethanol Industry | 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 Philippines' Rising Bioethanol Industry are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Philippines Bioethanol can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Philippines Bioethanol in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Philippines Bioethanol 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 Philippines' Rising Bioethanol Industry, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Philippines Bioethanol 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Philippines Bioethanol can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Philippines Bioethanol 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 Philippines Bioethanol to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Philippines Bioethanol has opened avenues for new revenue streams for the organization in the industry. This can help Philippines Bioethanol to build a more holistic ecosystem as suggested in the The Philippines' Rising Bioethanol Industry case study. Philippines Bioethanol can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Philippines Bioethanol can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Philippines Bioethanol can develop new processes and procedures in Technology & Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Philippines Bioethanol 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.
Learning at scale
– Online learning technologies has now opened space for Philippines Bioethanol 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.
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 Philippines Bioethanol in the consumer business. Now Philippines Bioethanol can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Philippines Bioethanol 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 Technology & Operations segment.
Threats The Philippines' Rising Bioethanol Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Philippines' Rising Bioethanol Industry are -
Stagnating economy with rate increase
– Philippines Bioethanol 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Philippines' Rising Bioethanol Industry, Philippines Bioethanol may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Regulatory challenges
– Philippines Bioethanol 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 Technology & Operations industry regulations.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Philippines Bioethanol can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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. Philippines Bioethanol needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
High dependence on third party suppliers
– Philippines Bioethanol 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.
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 Philippines Bioethanol business can come under increasing regulations regarding data privacy, data security, etc.
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. Philippines Bioethanol 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.
Technology acceleration in Forth Industrial Revolution
– Philippines Bioethanol has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Philippines Bioethanol needs to keep up with the evolution of technology in the Technology & Operations 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.
Consumer confidence and its impact on Philippines Bioethanol 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 Philippines Bioethanol.
Weighted SWOT Analysis of The Philippines' Rising Bioethanol Industry 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 Philippines' Rising Bioethanol Industry 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 Philippines' Rising Bioethanol Industry 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 Philippines' Rising Bioethanol Industry 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 Philippines' Rising Bioethanol Industry 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 Philippines Bioethanol needs to make to build a sustainable competitive advantage.
