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 – increasing energy prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, 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 -

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.

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.

Highly skilled collaborators

– Talwalkars Better Val Fitness has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Recreational Activities industry. Secondly the value chain collaborators of Talwalkars Better Val Fitness have helped the firm to develop new products and bring them quickly to the marketplace.

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.

Strong track record of project management in the Recreational Activities industry

– Talwalkars Better Val Fitness is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

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.

Sustainable margins compare to other players in Recreational Activities industry

– Talwalkars Better Val Fitness has clearly differentiated products in the market place. This has enabled Talwalkars Better Val Fitness to fetch slight price premium compare to the competitors in the Recreational Activities industry. The sustainable margins have also helped Talwalkars Better Val Fitness to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Talwalkars Better Val Fitness has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Talwalkars Better Val Fitness staying ahead in the Recreational Activities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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.

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.

Ability to recruit top talent

– Talwalkars Better Val Fitness is one of the leading players in the Recreational Activities 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.

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.

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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 -

High bargaining power of channel partners in Recreational Activities industry

– because of the regulatory requirements in India, Talwalkars Better Val Fitness 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 Recreational Activities industry.

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.

Workers concerns about automation

– As automation is fast increasing in the Recreational Activities industry, Talwalkars Better Val Fitness 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.

Slow decision making process

– As mentioned earlier in the report, Talwalkars Better Val Fitness has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Recreational Activities industry over the last five years. Talwalkars Better Val Fitness 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.

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.

High dependence on Talwalkars Better Val Fitness ‘s star products

– The top 2 products and services of Talwalkars Better Val Fitness still accounts for major business revenue. This dependence on star products in Recreational Activities industry has resulted into insufficient focus on developing new products, even though Talwalkars Better Val Fitness has relatively successful track record of launching new products.

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.

No frontier risks strategy

– From the 10K / annual statement of Talwalkars Better Val Fitness, it seems that company is thinking out the frontier risks that can impact Recreational Activities 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.

Ability to respond to the competition

– As the decision making is very deliberative at Talwalkars Better Val Fitness, in the dynamic environment of Recreational Activities industry it has struggled to respond to the nimble upstart competition. Talwalkars Better Val Fitness has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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.

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.

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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 -

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.

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.

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.

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.

Creating value in data economy

– The success of analytics program of Talwalkars Better Val Fitness has opened avenues for new revenue streams for the organization in Recreational Activities industry. This can help Talwalkars Better Val Fitness to build a more holistic ecosystem for Talwalkars Better Val Fitness products in the Recreational Activities industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 Talwalkars Better Val Fitness 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.

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.

Use of Bitcoin and other crypto currencies for transactions in Recreational Activities industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Talwalkars Better Val Fitness in the Recreational Activities industry. Now Talwalkars Better Val Fitness can target international markets with far fewer capital restrictions requirements than the existing system.

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.

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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Talwalkars Better Val Fitness 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 Talwalkars Better Val Fitness to hire the very best people irrespective of their geographical location.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Talwalkars Better Val Fitness in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Recreational Activities industry, and it will provide faster access to the consumers.

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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 -

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.

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 Talwalkars Better Val Fitness in the Recreational Activities sector and impact the bottomline of the organization.

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.

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.

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.

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.

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. Talwalkars Better Val Fitness needs to understand the core reasons impacting the Recreational Activities industry. This will help it in building a better workplace.

Easy access to finance

– Easy access to finance in Recreational Activities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Talwalkars Better Val Fitness can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

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.

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.

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.

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.

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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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