SWOT Analysis / TOWS Matrix for Cerebra Integrated Technolog (India)
Based on various researches at Oak Spring University , Cerebra Integrated Technolog is operating in a macro-environment that has been destablized by – increasing energy prices, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization,
supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Cerebra Integrated Technolog
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Cerebra Integrated Technolog can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cerebra Integrated Technolog, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cerebra Integrated Technolog 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 Cerebra Integrated Technolog can be done for the following purposes –
1. Strategic planning of Cerebra Integrated Technolog
2. Improving business portfolio management of Cerebra Integrated Technolog
3. Assessing feasibility of the new initiative in India
4. Making a Computer Hardware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cerebra Integrated Technolog
Strengths of Cerebra Integrated Technolog | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cerebra Integrated Technolog are -
Low bargaining power of suppliers
– Suppliers of Cerebra Integrated Technolog in the Technology sector have low bargaining power. Cerebra Integrated Technolog has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cerebra Integrated Technolog to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Cerebra Integrated Technolog 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 Computer Hardware industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy of Cerebra Integrated Technolog comprises – understanding the underlying the factors in the Computer Hardware 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.
Organizational Resilience of Cerebra Integrated Technolog
– The covid-19 pandemic has put organizational resilience at the centre of everthing Cerebra Integrated Technolog does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Computer Hardware
– Cerebra Integrated Technolog is one of the leading players in the Computer Hardware industry in India. Over the years it has not only transformed the business landscape in the Computer Hardware industry in India but also across the existing markets. The ability to lead change has enabled Cerebra Integrated Technolog in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Cerebra Integrated Technolog has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cerebra Integrated Technolog to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Cerebra Integrated Technolog has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cerebra Integrated Technolog 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.
Sustainable margins compare to other players in Computer Hardware industry
– Cerebra Integrated Technolog has clearly differentiated products in the market place. This has enabled Cerebra Integrated Technolog to fetch slight price premium compare to the competitors in the Computer Hardware industry. The sustainable margins have also helped Cerebra Integrated Technolog to invest into research and development (R&D) and innovation.
Strong track record of project management in the Computer Hardware industry
– Cerebra Integrated Technolog is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Cerebra Integrated Technolog is present in almost all the verticals within the Computer Hardware industry. This has provided Cerebra Integrated Technolog 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.
Learning organization
- Cerebra Integrated Technolog 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 Cerebra Integrated Technolog is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Cerebra Integrated Technolog emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Cerebra Integrated Technolog is one of the most innovative firm in Computer Hardware sector.
Weaknesses of Cerebra Integrated Technolog | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cerebra Integrated Technolog are -
High dependence on Cerebra Integrated Technolog ‘s star products
– The top 2 products and services of Cerebra Integrated Technolog still accounts for major business revenue. This dependence on star products in Computer Hardware industry has resulted into insufficient focus on developing new products, even though Cerebra Integrated Technolog has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Cerebra Integrated Technolog 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 Computer Hardware industry using digital technology.
Skills based hiring in Computer Hardware industry
– The stress on hiring functional specialists at Cerebra Integrated Technolog 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.
Workers concerns about automation
– As automation is fast increasing in the Computer Hardware industry, Cerebra Integrated Technolog 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.
Interest costs
– Compare to the competition, Cerebra Integrated Technolog 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.
No frontier risks strategy
– From the 10K / annual statement of Cerebra Integrated Technolog, it seems that company is thinking out the frontier risks that can impact Computer Hardware industry. 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.
Lack of clear differentiation of Cerebra Integrated Technolog products
– To increase the profitability and margins on the products, Cerebra Integrated Technolog needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Cerebra Integrated Technolog has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Computer Hardware industry over the last five years. Cerebra Integrated Technolog even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Compensation and incentives
– The revenue per employee of Cerebra Integrated Technolog is just above the Computer Hardware industry average. It 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.
Need for greater diversity
– Cerebra Integrated Technolog has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Cerebra Integrated Technolog has a high cash cycle compare to other players in the Computer Hardware industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Cerebra Integrated Technolog Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Cerebra Integrated Technolog are -
Buying journey improvements
– Cerebra Integrated Technolog can improve the customer journey of consumers in the Computer Hardware industry by using analytics and artificial intelligence. It 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cerebra Integrated Technolog can use these opportunities to build new business models that can help the communities that Cerebra Integrated Technolog operates in. Secondly it can use opportunities from government spending in Computer Hardware sector.
Better consumer reach
– The expansion of the 5G network will help Cerebra Integrated Technolog to increase its market reach. Cerebra Integrated Technolog 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.
Use of Bitcoin and other crypto currencies for transactions in Computer Hardware industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cerebra Integrated Technolog in the Computer Hardware industry. Now Cerebra Integrated Technolog can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Cerebra Integrated Technolog 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 Computer Hardware industry.
Leveraging digital technologies
– Cerebra Integrated Technolog 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.
Loyalty marketing
– Cerebra Integrated Technolog 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cerebra Integrated Technolog in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Computer Hardware industry, and it will provide faster access to the consumers.
Manufacturing automation
– Cerebra Integrated Technolog can use the latest technology developments to improve its manufacturing and designing process in Computer Hardware sector. 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cerebra Integrated Technolog 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 Cerebra Integrated Technolog 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. Cerebra Integrated Technolog can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cerebra Integrated Technolog can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Cerebra Integrated Technolog 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.
Threats Cerebra Integrated Technolog External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Cerebra Integrated Technolog are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Computer Hardware industry are lowering. It can presents Cerebra Integrated Technolog with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Hardware sector.
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 Cerebra Integrated Technolog.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cerebra Integrated Technolog 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 Cerebra Integrated Technolog prominent markets.
Consumer confidence and its impact on Cerebra Integrated Technolog 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 Computer Hardware industry and other sectors.
Environmental challenges
– Cerebra Integrated Technolog needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cerebra Integrated Technolog can take advantage of this fund but it will also bring new competitors in the Computer Hardware industry.
Easy access to finance
– Easy access to finance in Computer Hardware industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cerebra Integrated Technolog can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Cerebra Integrated Technolog
– 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 Cerebra Integrated Technolog.
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 Cerebra Integrated Technolog in the Computer Hardware sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Cerebra Integrated Technolog 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 Computer Hardware industry.
Technology acceleration in Forth Industrial Revolution
– Cerebra Integrated Technolog has witnessed rapid integration of technology during Covid-19 in the Computer Hardware industry. As one of the leading players in the industry, Cerebra Integrated Technolog needs to keep up with the evolution of technology in the Computer Hardware 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Cerebra Integrated Technolog may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Computer Hardware 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. Cerebra Integrated Technolog needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Cerebra Integrated Technolog Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Cerebra Integrated Technolog 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 Cerebra Integrated Technolog 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 Cerebra Integrated Technolog 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 Cerebra Integrated Technolog 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 Cerebra Integrated Technolog needs to make to build a sustainable competitive advantage.