Peru: Economic Miracle or Just a Mirage?, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
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Case Study SWOT Analysis Solution
Case Study Description of Peru: Economic Miracle or Just a Mirage?, Spanish Version
After years of rapid growth, Peru's economy had recently slowed. Mineral prices were down and the current President, Humala, had only a year remaining in office before the next election. And he could not run again. While the country had many strengths, especially in minerals, natural resources and tourism, infrastructural problems, corruption, drugs, and inequality continued to plague its growth. The next election would help determine Peru's future growth.
Authors :: Richard H.K. Vietor, Fernando A. D'Alessio, Ricardo M. Pino
Swot Analysis of "Peru: Economic Miracle or Just a Mirage?, Spanish Version" written by Richard H.K. Vietor, Fernando A. D'Alessio, Ricardo M. Pino includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Peru's Election facing as an external strategic factors. Some of the topics covered in Peru: Economic Miracle or Just a Mirage?, Spanish Version case study are - Strategic Management Strategies, Government, Security & privacy, Social responsibility, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Peru: Economic Miracle or Just a Mirage?, Spanish Version casestudy better are - – talent flight as more people leaving formal jobs, increasing commodity prices, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, wage bills are increasing, cloud computing is disrupting traditional business models,
central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Peru: Economic Miracle or Just a Mirage?, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Peru: Economic Miracle or Just a Mirage?, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Peru's Election, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Peru's Election 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 Peru: Economic Miracle or Just a Mirage?, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Peru: Economic Miracle or Just a Mirage?, Spanish Version case study
2. Improving business portfolio management of Peru's Election
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Peru's Election
Strengths Peru: Economic Miracle or Just a Mirage?, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Peru's Election in Peru: Economic Miracle or Just a Mirage?, Spanish Version Harvard Business Review case study are -
Innovation driven organization
– Peru's Election is one of the most innovative firm in sector. Manager in Peru: Economic Miracle or Just a Mirage?, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Peru's Election 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 Peru's Election is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Peru: Economic Miracle or Just a Mirage?, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Peru: Economic Miracle or Just a Mirage?, 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
– Peru's Election is present in almost all the verticals within the industry. This has provided firm in Peru: Economic Miracle or Just a Mirage?, 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.
High brand equity
– Peru's Election has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Peru's Election to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Peru's Election has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Peru: Economic Miracle or Just a Mirage?, 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.
Ability to lead change in Global Business field
– Peru's Election 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 Peru's Election 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
– Peru's Election is one of the leading recruiters in the industry. Managers in the Peru: Economic Miracle or Just a Mirage?, 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.
Strong track record of project management
– Peru's Election is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Peru's Election
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Peru's Election does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Global Business industry
– Peru: Economic Miracle or Just a Mirage?, Spanish Version firm has clearly differentiated products in the market place. This has enabled Peru's Election to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Peru's Election to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Peru's Election in the sector have low bargaining power. Peru: Economic Miracle or Just a Mirage?, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Peru's Election to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Peru: Economic Miracle or Just a Mirage?, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Peru: Economic Miracle or Just a Mirage?, Spanish Version are -
Skills based hiring
– The stress on hiring functional specialists at Peru's Election has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Peru: Economic Miracle or Just a Mirage?, Spanish Version HBR case study mentions - Peru's Election 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Peru's Election 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Peru's Election supply chain. Even after few cautionary changes mentioned in the HBR case study - Peru: Economic Miracle or Just a Mirage?, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Peru's Election vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Peru's Election is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Peru: Economic Miracle or Just a Mirage?, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Peru: Economic Miracle or Just a Mirage?, Spanish Version, in the dynamic environment Peru's Election has struggled to respond to the nimble upstart competition. Peru's Election has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Peru: Economic Miracle or Just a Mirage?, Spanish Version, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Peru: Economic Miracle or Just a Mirage?, Spanish Version, it seems that the employees of Peru's Election 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.
Aligning sales with marketing
– It come across in the case study Peru: Economic Miracle or Just a Mirage?, Spanish Version 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 Peru: Economic Miracle or Just a Mirage?, Spanish Version can leverage the sales team experience to cultivate customer relationships as Peru's Election is planning to shift buying processes online.
Interest costs
– Compare to the competition, Peru's Election 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.
Lack of clear differentiation of Peru's Election products
– To increase the profitability and margins on the products, Peru's Election needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, Spanish Version are -
Leveraging digital technologies
– Peru's Election 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 Peru's Election in the consumer business. Now Peru's Election can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Peru's Election can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Peru's Election 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 Peru's Election to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Peru's Election can develop new processes and procedures in Global Business 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.
Manufacturing automation
– Peru's Election can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Peru's Election can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Peru's Election in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Peru's Election 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 Peru: Economic Miracle or Just a Mirage?, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Peru's Election to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Peru's Election 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, Peru: Economic Miracle or Just a Mirage?, 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.
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. Peru's Election can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Peru's Election can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Peru's Election can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Peru's Election is facing challenges because of the dominance of functional experts in the organization. Peru: Economic Miracle or Just a Mirage?, 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.
Threats Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, Spanish Version are -
Consumer confidence and its impact on Peru's Election 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.
Increasing wage structure of Peru's Election
– 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 Peru's Election.
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
– Peru's Election 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.
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 Peru's Election in the Global Business sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Peru's Election can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Peru's Election.
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. Peru's Election 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.
Regulatory challenges
– Peru's Election 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 Global Business industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Peru's Election with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Peru's Election needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Peru's Election is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, 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 Peru: Economic Miracle or Just a Mirage?, 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 Peru's Election needs to make to build a sustainable competitive advantage.
