SWOT Analysis / TOWS Matrix for Vasa Retail Overseas (India)
Based on various researches at Oak Spring University , Vasa Retail Overseas is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, increasing commodity prices, wage bills are increasing, increasing household debt because of falling income levels, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings,
increasing transportation and logistics costs, geopolitical disruptions, etc
Introduction to SWOT Analysis of Vasa Retail Overseas
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Vasa Retail Overseas can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vasa Retail Overseas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vasa Retail Overseas 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 Vasa Retail Overseas can be done for the following purposes –
1. Strategic planning of Vasa Retail Overseas
2. Improving business portfolio management of Vasa Retail Overseas
3. Assessing feasibility of the new initiative in India
4. Making a Office Supplies sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Vasa Retail Overseas
Strengths of Vasa Retail Overseas | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vasa Retail Overseas are -
Learning organization
- Vasa Retail Overseas 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 Vasa Retail Overseas is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Vasa Retail Overseas emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy of Vasa Retail Overseas comprises – understanding the underlying the factors in the Office Supplies 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.
Strong track record of project management in the Office Supplies industry
– Vasa Retail Overseas is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Office Supplies industry
- digital transformation varies from industry to industry. For Vasa Retail Overseas digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vasa Retail Overseas 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.
Low bargaining power of suppliers
– Suppliers of Vasa Retail Overseas in the Consumer/Non-Cyclical sector have low bargaining power. Vasa Retail Overseas has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vasa Retail Overseas to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Vasa Retail Overseas has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Office Supplies industry. Secondly the value chain collaborators of Vasa Retail Overseas have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Vasa Retail Overseas has one of the best training and development program in Consumer/Non-Cyclical 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.
Diverse revenue streams
– Vasa Retail Overseas is present in almost all the verticals within the Office Supplies industry. This has provided Vasa Retail Overseas 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.
Superior customer experience
– The customer experience strategy of Vasa Retail Overseas in Office Supplies industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Vasa Retail Overseas 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.
Successful track record of launching new products
– Vasa Retail Overseas has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Vasa Retail Overseas 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.
Innovation driven organization
– Vasa Retail Overseas is one of the most innovative firm in Office Supplies sector.
Weaknesses of Vasa Retail Overseas | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Vasa Retail Overseas are -
Slow to strategic competitive environment developments
– As Vasa Retail Overseas is one of the leading players in the Office Supplies industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Office Supplies industry in last five years.
High operating costs
– Compare to the competitors, Vasa Retail Overseas has high operating costs in the Office Supplies industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Vasa Retail Overseas lucrative customers.
Lack of clear differentiation of Vasa Retail Overseas products
– To increase the profitability and margins on the products, Vasa Retail Overseas needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Vasa Retail Overseas has some of the most successful models in the Office Supplies industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Vasa Retail Overseas should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Vasa Retail Overseas 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.
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 Vasa Retail Overseas supply chain. Even after few cautionary changes, Vasa Retail Overseas is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vasa Retail Overseas vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Vasa Retail Overseas has a high cash cycle compare to other players in the Office Supplies industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Need for greater diversity
– Vasa Retail Overseas 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 Vasa Retail Overseas is dominated by functional specialists. It is not different from other players in the Office Supplies industry, but Vasa Retail Overseas needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vasa Retail Overseas to focus more on services in the Office Supplies industry rather than just following the product oriented approach.
Aligning sales with marketing
– From the outside it seems that Vasa Retail Overseas needs to have more collaboration between its sales team and marketing team. Sales professionals in the Office Supplies industry have deep experience in developing customer relationships. Marketing department at Vasa Retail Overseas can leverage the sales team experience to cultivate customer relationships as Vasa Retail Overseas is planning to shift buying processes online.
High bargaining power of channel partners in Office Supplies industry
– because of the regulatory requirements in India, Vasa Retail Overseas 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 Office Supplies industry.
Vasa Retail Overseas Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Vasa Retail Overseas are -
Manufacturing automation
– Vasa Retail Overseas can use the latest technology developments to improve its manufacturing and designing process in Office Supplies 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Vasa Retail Overseas in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Office Supplies industry, and it will provide faster access to the consumers.
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. Vasa Retail Overseas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Vasa Retail Overseas 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.
Developing new processes and practices
– Vasa Retail Overseas can develop new processes and procedures in Office Supplies 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 Vasa Retail Overseas has opened avenues for new revenue streams for the organization in Office Supplies industry. This can help Vasa Retail Overseas to build a more holistic ecosystem for Vasa Retail Overseas products in the Office Supplies industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Office Supplies industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Vasa Retail Overseas in the Office Supplies industry. Now Vasa Retail Overseas can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Vasa Retail Overseas 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 Office Supplies industry.
Better consumer reach
– The expansion of the 5G network will help Vasa Retail Overseas to increase its market reach. Vasa Retail Overseas 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.
Buying journey improvements
– Vasa Retail Overseas can improve the customer journey of consumers in the Office Supplies 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vasa Retail Overseas 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 Vasa Retail Overseas to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vasa Retail Overseas 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 Vasa Retail Overseas to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Vasa Retail Overseas can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Vasa Retail Overseas External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Vasa Retail Overseas are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Vasa Retail Overseas may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Office Supplies sector.
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.
Increasing wage structure of Vasa Retail Overseas
– 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 Vasa Retail Overseas.
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 Vasa Retail Overseas business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Office Supplies industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Vasa Retail Overseas can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Vasa Retail Overseas 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 Office Supplies industry regulations.
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. Vasa Retail Overseas 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.
Environmental challenges
– Vasa Retail Overseas 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. Vasa Retail Overseas can take advantage of this fund but it will also bring new competitors in the Office Supplies industry.
High dependence on third party suppliers
– Vasa Retail Overseas 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.
Stagnating economy with rate increase
– Vasa Retail Overseas 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 Office Supplies industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vasa Retail Overseas in Office Supplies industry. The Office Supplies 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.
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 Vasa Retail Overseas in the Office Supplies sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Vasa Retail Overseas Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Vasa Retail Overseas 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 Vasa Retail Overseas 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 Vasa Retail Overseas 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 Vasa Retail Overseas 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 Vasa Retail Overseas needs to make to build a sustainable competitive advantage.