SWOT Analysis / TOWS Matrix for AGC Networks Ltd (India)
Based on various researches at Oak Spring University , AGC Networks Ltd is operating in a macro-environment that has been destablized by – increasing energy prices, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, geopolitical disruptions, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AGC Networks Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AGC Networks Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which AGC Networks Ltd 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 AGC Networks Ltd can be done for the following purposes –
1. Strategic planning of AGC Networks Ltd
2. Improving business portfolio management of AGC Networks Ltd
3. Assessing feasibility of the new initiative in India
4. Making a Computer Networks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of AGC Networks Ltd
Strengths of AGC Networks Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AGC Networks Ltd are -
Strong track record of project management in the Computer Networks industry
– AGC Networks Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
- AGC Networks Ltd 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 AGC Networks Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AGC Networks Ltd emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that AGC Networks Ltd 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.
Innovation driven organization
– AGC Networks Ltd is one of the most innovative firm in Computer Networks sector.
Diverse revenue streams
– AGC Networks Ltd is present in almost all the verticals within the Computer Networks industry. This has provided AGC Networks Ltd 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.
Sustainable margins compare to other players in Computer Networks industry
– AGC Networks Ltd has clearly differentiated products in the market place. This has enabled AGC Networks Ltd to fetch slight price premium compare to the competitors in the Computer Networks industry. The sustainable margins have also helped AGC Networks Ltd to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of AGC Networks Ltd in Computer Networks industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of AGC Networks Ltd in the Technology sector have low bargaining power. AGC Networks Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AGC Networks Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– AGC Networks Ltd is one of the leading players in the Computer Networks industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Computer Networks
– AGC Networks Ltd is one of the leading players in the Computer Networks industry in India. Over the years it has not only transformed the business landscape in the Computer Networks industry in India but also across the existing markets. The ability to lead change has enabled AGC Networks Ltd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– AGC Networks Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. AGC Networks Ltd 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.
Highly skilled collaborators
– AGC Networks Ltd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Computer Networks industry. Secondly the value chain collaborators of AGC Networks Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of AGC Networks Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AGC Networks Ltd are -
Products dominated business model
– Even though AGC Networks Ltd has some of the most successful models in the Computer Networks industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. AGC Networks Ltd should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, AGC Networks Ltd 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 Networks industry using digital technology.
High bargaining power of channel partners in Computer Networks industry
– because of the regulatory requirements in India, AGC Networks Ltd 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 Computer Networks industry.
Lack of clear differentiation of AGC Networks Ltd products
– To increase the profitability and margins on the products, AGC Networks Ltd 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, AGC Networks Ltd is slow explore the new channels of communication. These new channels of communication can help AGC Networks Ltd to provide better information regarding Computer Networks products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of AGC Networks Ltd, it seems that company is thinking out the frontier risks that can impact Computer Networks 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.
High dependence on AGC Networks Ltd ‘s star products
– The top 2 products and services of AGC Networks Ltd still accounts for major business revenue. This dependence on star products in Computer Networks industry has resulted into insufficient focus on developing new products, even though AGC Networks Ltd has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, AGC Networks Ltd has high operating costs in the Computer Networks industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract AGC Networks Ltd lucrative customers.
Increasing silos among functional specialists
– The organizational structure of AGC Networks Ltd is dominated by functional specialists. It is not different from other players in the Computer Networks industry, but AGC Networks Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help AGC Networks Ltd to focus more on services in the Computer Networks industry rather than just following the product oriented approach.
Aligning sales with marketing
– From the outside it seems that AGC Networks Ltd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Computer Networks industry have deep experience in developing customer relationships. Marketing department at AGC Networks Ltd can leverage the sales team experience to cultivate customer relationships as AGC Networks Ltd is planning to shift buying processes online.
– Compare to the competition, AGC Networks Ltd 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.
AGC Networks Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AGC Networks Ltd are -
Building a culture of innovation
– managers at AGC Networks Ltd 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 Networks industry.
Lowering marketing communication costs
– 5G expansion will open new opportunities for AGC Networks Ltd 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 Networks industry, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for AGC Networks Ltd 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 AGC Networks Ltd 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 AGC Networks Ltd to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– AGC Networks Ltd has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Computer Networks sector. This continuous investment in analytics has enabled AGC Networks Ltd to build a competitive advantage using analytics. The analytics driven competitive advantage can help AGC Networks Ltd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. AGC Networks Ltd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions in Computer Networks industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for AGC Networks Ltd in the Computer Networks industry. Now AGC Networks Ltd can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, AGC Networks Ltd can use these opportunities to build new business models that can help the communities that AGC Networks Ltd operates in. Secondly it can use opportunities from government spending in Computer Networks sector.
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 AGC Networks Ltd 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, AGC Networks Ltd 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 AGC Networks Ltd 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 AGC Networks Ltd has opened avenues for new revenue streams for the organization in Computer Networks industry. This can help AGC Networks Ltd to build a more holistic ecosystem for AGC Networks Ltd products in the Computer Networks industry by providing – data insight services, data privacy related products, data based consulting services, etc.
– AGC Networks Ltd can use the latest technology developments to improve its manufacturing and designing process in Computer Networks 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, AGC Networks Ltd is facing challenges because of the dominance of functional experts in the organization. AGC Networks Ltd can utilize new technology in the field of Computer Networks industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats AGC Networks Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AGC Networks Ltd are -
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. AGC Networks Ltd needs to understand the core reasons impacting the Computer Networks industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– AGC Networks Ltd 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 Networks industry.
Shortening product life cycle
– it is one of the major threat that AGC Networks Ltd is facing in Computer Networks sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AGC Networks Ltd 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 Networks 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 AGC Networks Ltd.
High dependence on third party suppliers
– AGC Networks Ltd 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.
Easy access to finance
– Easy access to finance in Computer Networks industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. AGC Networks Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– AGC Networks Ltd has witnessed rapid integration of technology during Covid-19 in the Computer Networks industry. As one of the leading players in the industry, AGC Networks Ltd needs to keep up with the evolution of technology in the Computer Networks 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.
– AGC Networks Ltd 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 Computer Networks industry regulations.
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 AGC Networks Ltd business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, AGC Networks Ltd 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 AGC Networks Ltd prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Computer Networks industry are lowering. It can presents AGC Networks Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Networks sector.
Weighted SWOT Analysis of AGC Networks Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at AGC Networks Ltd 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 AGC Networks Ltd 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 AGC Networks Ltd 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 AGC Networks Ltd 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 AGC Networks Ltd needs to make to build a sustainable competitive advantage.