North Eastern Carryingoration (NECC) SWOT Analysis / TOWS Matrix / MBA Resources
Trucking
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for North Eastern Carryingoration (India)
Based on various researches at Oak Spring University , North Eastern Carryingoration is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, wage bills are increasing, increasing commodity prices, supply chains are disrupted by pandemic , increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies,
geopolitical disruptions, technology disruption, etc
Introduction to SWOT Analysis of North Eastern Carryingoration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that North Eastern Carryingoration can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the North Eastern Carryingoration, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which North Eastern Carryingoration 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 North Eastern Carryingoration can be done for the following purposes –
1. Strategic planning of North Eastern Carryingoration
2. Improving business portfolio management of North Eastern Carryingoration
3. Assessing feasibility of the new initiative in India
4. Making a Trucking sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of North Eastern Carryingoration
Strengths of North Eastern Carryingoration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of North Eastern Carryingoration are -
Ability to lead change in Trucking
– North Eastern Carryingoration is one of the leading players in the Trucking industry in India. Over the years it has not only transformed the business landscape in the Trucking industry in India but also across the existing markets. The ability to lead change has enabled North Eastern Carryingoration in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– North Eastern Carryingoration is one of the leading players in the Trucking 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.
High brand equity
– North Eastern Carryingoration has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled North Eastern Carryingoration to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the North Eastern Carryingoration 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.
Highly skilled collaborators
– North Eastern Carryingoration has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Trucking industry. Secondly the value chain collaborators of North Eastern Carryingoration have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– North Eastern Carryingoration has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. North Eastern Carryingoration 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.
Analytics focus
– North Eastern Carryingoration 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 Trucking 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.
Digital Transformation in Trucking industry
- digital transformation varies from industry to industry. For North Eastern Carryingoration digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. North Eastern Carryingoration has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of North Eastern Carryingoration in Trucking industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– North Eastern Carryingoration is present in almost all the verticals within the Trucking industry. This has provided North Eastern Carryingoration 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 Trucking industry
– North Eastern Carryingoration has clearly differentiated products in the market place. This has enabled North Eastern Carryingoration to fetch slight price premium compare to the competitors in the Trucking industry. The sustainable margins have also helped North Eastern Carryingoration to invest into research and development (R&D) and innovation.
Training and development
– North Eastern Carryingoration has one of the best training and development program in Transportation 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.
Weaknesses of North Eastern Carryingoration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of North Eastern Carryingoration are -
High dependence on North Eastern Carryingoration ‘s star products
– The top 2 products and services of North Eastern Carryingoration still accounts for major business revenue. This dependence on star products in Trucking industry has resulted into insufficient focus on developing new products, even though North Eastern Carryingoration has relatively successful track record of launching new products.
Lack of clear differentiation of North Eastern Carryingoration products
– To increase the profitability and margins on the products, North Eastern Carryingoration 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, North Eastern Carryingoration is slow explore the new channels of communication. These new channels of communication can help North Eastern Carryingoration to provide better information regarding Trucking products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of India, North Eastern Carryingoration needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 North Eastern Carryingoration supply chain. Even after few cautionary changes, North Eastern Carryingoration is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left North Eastern Carryingoration vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– North Eastern Carryingoration 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.
Interest costs
– Compare to the competition, North Eastern Carryingoration 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.
Employees’ less understanding of North Eastern Carryingoration strategy
– From the outside it seems that the employees of North Eastern Carryingoration 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.
Workers concerns about automation
– As automation is fast increasing in the Trucking industry, North Eastern Carryingoration 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.
Products dominated business model
– Even though North Eastern Carryingoration has some of the most successful models in the Trucking industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. North Eastern Carryingoration should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
North Eastern Carryingoration has a high cash cycle compare to other players in the Trucking industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
North Eastern Carryingoration Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of North Eastern Carryingoration are -
Learning at scale
– Online learning technologies has now opened space for North Eastern Carryingoration 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.
Developing new processes and practices
– North Eastern Carryingoration can develop new processes and procedures in Trucking 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.
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 North Eastern Carryingoration 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.
Building a culture of innovation
– managers at North Eastern Carryingoration 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 Trucking industry.
Using analytics as competitive advantage
– North Eastern Carryingoration has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Trucking sector. This continuous investment in analytics has enabled North Eastern Carryingoration to build a competitive advantage using analytics. The analytics driven competitive advantage can help North Eastern Carryingoration to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– North Eastern Carryingoration can use the latest technology developments to improve its manufacturing and designing process in Trucking 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.
Use of Bitcoin and other crypto currencies for transactions in Trucking industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for North Eastern Carryingoration in the Trucking industry. Now North Eastern Carryingoration can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– North Eastern Carryingoration 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.
Better consumer reach
– The expansion of the 5G network will help North Eastern Carryingoration to increase its market reach. North Eastern Carryingoration 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, North Eastern Carryingoration 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 North Eastern Carryingoration to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, North Eastern Carryingoration is facing challenges because of the dominance of functional experts in the organization. North Eastern Carryingoration can utilize new technology in the field of Trucking industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– North Eastern Carryingoration can improve the customer journey of consumers in the Trucking 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.
Creating value in data economy
– The success of analytics program of North Eastern Carryingoration has opened avenues for new revenue streams for the organization in Trucking industry. This can help North Eastern Carryingoration to build a more holistic ecosystem for North Eastern Carryingoration products in the Trucking industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats North Eastern Carryingoration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of North Eastern Carryingoration are -
Increasing wage structure of North Eastern Carryingoration
– 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 North Eastern Carryingoration.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, North Eastern Carryingoration may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Trucking sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Trucking industry are lowering. It can presents North Eastern Carryingoration with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Trucking sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, North Eastern Carryingoration 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 North Eastern Carryingoration prominent markets.
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 North Eastern Carryingoration.
Easy access to finance
– Easy access to finance in Trucking industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. North Eastern Carryingoration can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on North Eastern Carryingoration 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 Trucking industry and other sectors.
High dependence on third party suppliers
– North Eastern Carryingoration 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.
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. North Eastern Carryingoration needs to understand the core reasons impacting the Trucking industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– North Eastern Carryingoration 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 Trucking 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 North Eastern Carryingoration business can come under increasing regulations regarding data privacy, data security, etc.
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.
Weighted SWOT Analysis of North Eastern Carryingoration Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at North Eastern Carryingoration 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 North Eastern Carryingoration 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 North Eastern Carryingoration 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 North Eastern Carryingoration 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 North Eastern Carryingoration needs to make to build a sustainable competitive advantage.
