Zicom Electronic Security Systems (ZICO) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Zicom Electronic Security Systems (India)

Based on various researches at Oak Spring University , Zicom Electronic Security Systems is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, technology disruption, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Zicom Electronic Security Systems

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Zicom Electronic Security Systems can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Zicom Electronic Security Systems, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Zicom Electronic Security Systems 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 Zicom Electronic Security Systems can be done for the following purposes –
1. Strategic planning of Zicom Electronic Security Systems
2. Improving business portfolio management of Zicom Electronic Security Systems
3. Assessing feasibility of the new initiative in India
4. Making a Security Systems & Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Zicom Electronic Security Systems

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Strengths of Zicom Electronic Security Systems | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Zicom Electronic Security Systems are -

Ability to lead change in Security Systems & Services

– Zicom Electronic Security Systems is one of the leading players in the Security Systems & Services industry in India. Over the years it has not only transformed the business landscape in the Security Systems & Services industry in India but also across the existing markets. The ability to lead change has enabled Zicom Electronic Security Systems in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High switching costs

– The high switching costs that Zicom Electronic Security Systems 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.

High brand equity

– Zicom Electronic Security Systems has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Zicom Electronic Security Systems to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Zicom Electronic Security Systems has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Security Systems & Services industry. Secondly the value chain collaborators of Zicom Electronic Security Systems have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Zicom Electronic Security Systems is present in almost all the verticals within the Security Systems & Services industry. This has provided Zicom Electronic Security Systems 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.

Low bargaining power of suppliers

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

Sustainable margins compare to other players in Security Systems & Services industry

– Zicom Electronic Security Systems has clearly differentiated products in the market place. This has enabled Zicom Electronic Security Systems to fetch slight price premium compare to the competitors in the Security Systems & Services industry. The sustainable margins have also helped Zicom Electronic Security Systems to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Zicom Electronic Security Systems has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Zicom Electronic Security Systems staying ahead in the Security Systems & Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Cross disciplinary teams

– Horizontal connected teams at the Zicom Electronic Security Systems 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.

Innovation driven organization

– Zicom Electronic Security Systems is one of the most innovative firm in Security Systems & Services sector.

Analytics focus

– Zicom Electronic Security Systems 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 Security Systems & Services industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Operational resilience

– The operational resilience strategy of Zicom Electronic Security Systems comprises – understanding the underlying the factors in the Security Systems & Services 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.

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Weaknesses of Zicom Electronic Security Systems | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Zicom Electronic Security Systems are -

Slow to strategic competitive environment developments

– As Zicom Electronic Security Systems is one of the leading players in the Security Systems & Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Security Systems & Services industry in last five years.

High operating costs

– Compare to the competitors, Zicom Electronic Security Systems has high operating costs in the Security Systems & Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Zicom Electronic Security Systems lucrative customers.

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

Compensation and incentives

– The revenue per employee of Zicom Electronic Security Systems is just above the Security Systems & Services 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, Zicom Electronic Security Systems 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 Security Systems & Services industry

– The stress on hiring functional specialists at Zicom Electronic Security Systems 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.

Low market penetration in new markets

– Outside its home market of India, Zicom Electronic Security Systems needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Aligning sales with marketing

– From the outside it seems that Zicom Electronic Security Systems needs to have more collaboration between its sales team and marketing team. Sales professionals in the Security Systems & Services industry have deep experience in developing customer relationships. Marketing department at Zicom Electronic Security Systems can leverage the sales team experience to cultivate customer relationships as Zicom Electronic Security Systems is planning to shift buying processes online.

Need for greater diversity

– Zicom Electronic Security Systems 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.

Increasing silos among functional specialists

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

Workers concerns about automation

– As automation is fast increasing in the Security Systems & Services industry, Zicom Electronic Security Systems 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.

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Zicom Electronic Security Systems Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Zicom Electronic Security Systems are -

Learning at scale

– Online learning technologies has now opened space for Zicom Electronic Security Systems 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 Zicom Electronic Security Systems 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 Zicom Electronic Security Systems to hire the very best people irrespective of their geographical location.

Buying journey improvements

– Zicom Electronic Security Systems can improve the customer journey of consumers in the Security Systems & Services 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.

Developing new processes and practices

– Zicom Electronic Security Systems can develop new processes and procedures in Security Systems & Services 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.

Use of Bitcoin and other crypto currencies for transactions in Security Systems & Services industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Zicom Electronic Security Systems in the Security Systems & Services industry. Now Zicom Electronic Security Systems can target international markets with far fewer capital restrictions requirements than the existing system.

Low interest rates

– Even though inflation is raising its head in most developed economies, Zicom Electronic Security Systems 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.

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. Zicom Electronic Security Systems can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Creating value in data economy

– The success of analytics program of Zicom Electronic Security Systems has opened avenues for new revenue streams for the organization in Security Systems & Services industry. This can help Zicom Electronic Security Systems to build a more holistic ecosystem for Zicom Electronic Security Systems products in the Security Systems & Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Zicom Electronic Security Systems can use the latest technology developments to improve its manufacturing and designing process in Security Systems & Services 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.

Building a culture of innovation

– managers at Zicom Electronic Security Systems 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 Security Systems & Services industry.

Loyalty marketing

– Zicom Electronic Security Systems 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

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

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Zicom Electronic Security Systems 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 Zicom Electronic Security Systems to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats Zicom Electronic Security Systems External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Zicom Electronic Security Systems are -

Regulatory challenges

– Zicom Electronic Security Systems 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 Security Systems & Services industry regulations.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Zicom Electronic Security Systems may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Security Systems & Services sector.

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 Zicom Electronic Security Systems in the Security Systems & Services sector and impact the bottomline of the organization.

Shortening product life cycle

– it is one of the major threat that Zicom Electronic Security Systems is facing in Security Systems & Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

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.

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. Zicom Electronic Security Systems 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.

Stagnating economy with rate increase

– Zicom Electronic Security Systems 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 Security Systems & Services industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Security Systems & Services industry are lowering. It can presents Zicom Electronic Security Systems with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Security Systems & Services sector.

Environmental challenges

– Zicom Electronic Security Systems 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. Zicom Electronic Security Systems can take advantage of this fund but it will also bring new competitors in the Security Systems & Services industry.

Technology acceleration in Forth Industrial Revolution

– Zicom Electronic Security Systems has witnessed rapid integration of technology during Covid-19 in the Security Systems & Services industry. As one of the leading players in the industry, Zicom Electronic Security Systems needs to keep up with the evolution of technology in the Security Systems & Services 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.

Easy access to finance

– Easy access to finance in Security Systems & Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Zicom Electronic Security Systems can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Zicom Electronic Security Systems needs to understand the core reasons impacting the Security Systems & Services industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Zicom Electronic Security Systems Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Zicom Electronic Security Systems 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 Zicom Electronic Security Systems 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 Zicom Electronic Security Systems 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 Zicom Electronic Security Systems 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 Zicom Electronic Security Systems needs to make to build a sustainable competitive advantage.

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