Talwalkars Better Val Fitness (TALW) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Talwalkars Better Val Fitness (India)

Based on various researches at Oak Spring University , Talwalkars Better Val Fitness is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, increasing commodity prices, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

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Introduction to SWOT Analysis of Talwalkars Better Val Fitness

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Talwalkars Better Val Fitness can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Talwalkars Better Val Fitness, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Talwalkars Better Val Fitness 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Talwalkars Better Val Fitness can be done for the following purposes –
1. Strategic planning of Talwalkars Better Val Fitness
2. Improving business portfolio management of Talwalkars Better Val Fitness
3. Assessing feasibility of the new initiative in India
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Talwalkars Better Val Fitness

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Strengths of Talwalkars Better Val Fitness | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Talwalkars Better Val Fitness are -

Low bargaining power of suppliers

– Suppliers of Talwalkars Better Val Fitness in the Services sector have low bargaining power. Talwalkars Better Val Fitness has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Talwalkars Better Val Fitness to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Talwalkars Better Val Fitness 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.

Training and development

– Talwalkars Better Val Fitness has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Learning organization

- Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Talwalkars Better Val Fitness emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Talwalkars Better Val Fitness

– The covid-19 pandemic has put organizational resilience at the centre of everthing Talwalkars Better Val Fitness does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Diverse revenue streams

– Talwalkars Better Val Fitness is present in almost all the verticals within the Recreational Activities industry. This has provided Talwalkars Better Val Fitness 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.

Analytics focus

– Talwalkars Better Val Fitness 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 Recreational Activities 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.

High brand equity

– Talwalkars Better Val Fitness has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Talwalkars Better Val Fitness to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

High switching costs

– The high switching costs that Talwalkars Better Val Fitness 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.

Superior customer experience

– The customer experience strategy of Talwalkars Better Val Fitness in Recreational Activities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy of Talwalkars Better Val Fitness comprises – understanding the underlying the factors in the Recreational Activities 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.

Successful track record of launching new products

– Talwalkars Better Val Fitness has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Talwalkars Better Val Fitness 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.

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Weaknesses of Talwalkars Better Val Fitness | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Talwalkars Better Val Fitness are -

Low market penetration in new markets

– Outside its home market of India, Talwalkars Better Val Fitness needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Lack of clear differentiation of Talwalkars Better Val Fitness products

– To increase the profitability and margins on the products, Talwalkars Better Val Fitness needs to provide more differentiated products than what it is currently offering in the marketplace.

Compensation and incentives

– The revenue per employee of Talwalkars Better Val Fitness is just above the Recreational Activities 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.

Interest costs

– Compare to the competition, Talwalkars Better Val Fitness 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.

Skills based hiring in Recreational Activities industry

– The stress on hiring functional specialists at Talwalkars Better Val Fitness 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.

Employees’ less understanding of Talwalkars Better Val Fitness strategy

– From the outside it seems that the employees of Talwalkars Better Val Fitness 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.

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 Talwalkars Better Val Fitness supply chain. Even after few cautionary changes, Talwalkars Better Val Fitness is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Talwalkars Better Val Fitness vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

– The organizational structure of Talwalkars Better Val Fitness is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but Talwalkars Better Val Fitness needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Talwalkars Better Val Fitness to focus more on services in the Recreational Activities industry rather than just following the product oriented approach.

Aligning sales with marketing

– From the outside it seems that Talwalkars Better Val Fitness needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Activities industry have deep experience in developing customer relationships. Marketing department at Talwalkars Better Val Fitness can leverage the sales team experience to cultivate customer relationships as Talwalkars Better Val Fitness is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Talwalkars Better Val Fitness is one of the leading players in the Recreational Activities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Recreational Activities industry in last five years.

High cash cycle compare to competitors

Talwalkars Better Val Fitness has a high cash cycle compare to other players in the Recreational Activities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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Talwalkars Better Val Fitness Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Talwalkars Better Val Fitness are -

Buying journey improvements

– Talwalkars Better Val Fitness can improve the customer journey of consumers in the Recreational Activities 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Recreational Activities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Talwalkars Better Val Fitness 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. Talwalkars Better Val Fitness 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Talwalkars Better Val Fitness 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.

Manufacturing automation

– Talwalkars Better Val Fitness can use the latest technology developments to improve its manufacturing and designing process in Recreational Activities 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.

Better consumer reach

– The expansion of the 5G network will help Talwalkars Better Val Fitness to increase its market reach. Talwalkars Better Val Fitness 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.

Building a culture of innovation

– managers at Talwalkars Better Val Fitness 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 Recreational Activities industry.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Talwalkars Better Val Fitness can use these opportunities to build new business models that can help the communities that Talwalkars Better Val Fitness operates in. Secondly it can use opportunities from government spending in Recreational Activities sector.

Developing new processes and practices

– Talwalkars Better Val Fitness can develop new processes and procedures in Recreational Activities 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.

Loyalty marketing

– Talwalkars Better Val Fitness 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.

Using analytics as competitive advantage

– Talwalkars Better Val Fitness has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Recreational Activities sector. This continuous investment in analytics has enabled Talwalkars Better Val Fitness to build a competitive advantage using analytics. The analytics driven competitive advantage can help Talwalkars Better Val Fitness to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Learning at scale

– Online learning technologies has now opened space for Talwalkars Better Val Fitness 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.

Leveraging digital technologies

– Talwalkars Better Val Fitness 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Talwalkars Better Val Fitness can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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Threats Talwalkars Better Val Fitness External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Talwalkars Better Val Fitness are -

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. Talwalkars Better Val Fitness 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.

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 Talwalkars Better Val Fitness.

High dependence on third party suppliers

– Talwalkars Better Val Fitness 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.

Environmental challenges

– Talwalkars Better Val Fitness 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. Talwalkars Better Val Fitness can take advantage of this fund but it will also bring new competitors in the Recreational Activities industry.

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 Talwalkars Better Val Fitness business can come under increasing regulations regarding data privacy, data security, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Talwalkars Better Val Fitness in Recreational Activities industry. The Recreational Activities industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Consumer confidence and its impact on Talwalkars Better Val Fitness 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 Recreational Activities industry and other sectors.

Increasing wage structure of Talwalkars Better Val Fitness

– 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 Talwalkars Better Val Fitness.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Talwalkars Better Val Fitness may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Recreational Activities sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness prominent markets.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Recreational Activities industry are lowering. It can presents Talwalkars Better Val Fitness with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Activities sector.

Technology acceleration in Forth Industrial Revolution

– Talwalkars Better Val Fitness has witnessed rapid integration of technology during Covid-19 in the Recreational Activities industry. As one of the leading players in the industry, Talwalkars Better Val Fitness needs to keep up with the evolution of technology in the Recreational Activities 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.

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.

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Weighted SWOT Analysis of Talwalkars Better Val Fitness Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness needs to make to build a sustainable competitive advantage.

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