Bet Shemesh Engines (BSEN) SWOT Analysis / TOWS Matrix / MBA Resources
Aerospace & Defense
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Bet Shemesh Engines (Israel)
Based on various researches at Oak Spring University , Bet Shemesh Engines is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing,
increasing energy prices, increasing commodity prices, etc
Introduction to SWOT Analysis of Bet Shemesh Engines
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Bet Shemesh Engines can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bet Shemesh Engines, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bet Shemesh Engines 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 Bet Shemesh Engines can be done for the following purposes –
1. Strategic planning of Bet Shemesh Engines
2. Improving business portfolio management of Bet Shemesh Engines
3. Assessing feasibility of the new initiative in Israel
4. Making a Aerospace & Defense sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bet Shemesh Engines
Strengths of Bet Shemesh Engines | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bet Shemesh Engines are -
Cross disciplinary teams
– Horizontal connected teams at the Bet Shemesh Engines 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.
Learning organization
- Bet Shemesh Engines 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 Bet Shemesh Engines is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Bet Shemesh Engines emphasize – knowledge, initiative, and innovation.
High brand equity
– Bet Shemesh Engines has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bet Shemesh Engines to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Bet Shemesh Engines has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bet Shemesh Engines 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.
Superior customer experience
– The customer experience strategy of Bet Shemesh Engines in Aerospace & Defense industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Bet Shemesh Engines in the Capital Goods sector have low bargaining power. Bet Shemesh Engines has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bet Shemesh Engines to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Aerospace & Defense industry
- digital transformation varies from industry to industry. For Bet Shemesh Engines digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bet Shemesh Engines 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.
Sustainable margins compare to other players in Aerospace & Defense industry
– Bet Shemesh Engines has clearly differentiated products in the market place. This has enabled Bet Shemesh Engines to fetch slight price premium compare to the competitors in the Aerospace & Defense industry. The sustainable margins have also helped Bet Shemesh Engines to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Bet Shemesh Engines 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.
Operational resilience
– The operational resilience strategy of Bet Shemesh Engines comprises – understanding the underlying the factors in the Aerospace & Defense 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.
Diverse revenue streams
– Bet Shemesh Engines is present in almost all the verticals within the Aerospace & Defense industry. This has provided Bet Shemesh Engines 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.
Highly skilled collaborators
– Bet Shemesh Engines has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Aerospace & Defense industry. Secondly the value chain collaborators of Bet Shemesh Engines have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Bet Shemesh Engines | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bet Shemesh Engines are -
Slow to strategic competitive environment developments
– As Bet Shemesh Engines is one of the leading players in the Aerospace & Defense industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Aerospace & Defense industry in last five years.
Employees’ less understanding of Bet Shemesh Engines strategy
– From the outside it seems that the employees of Bet Shemesh Engines 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.
Aligning sales with marketing
– From the outside it seems that Bet Shemesh Engines needs to have more collaboration between its sales team and marketing team. Sales professionals in the Aerospace & Defense industry have deep experience in developing customer relationships. Marketing department at Bet Shemesh Engines can leverage the sales team experience to cultivate customer relationships as Bet Shemesh Engines is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bet Shemesh Engines is slow explore the new channels of communication. These new channels of communication can help Bet Shemesh Engines to provide better information regarding Aerospace & Defense products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Bet Shemesh Engines, in the dynamic environment of Aerospace & Defense industry it has struggled to respond to the nimble upstart competition. Bet Shemesh Engines has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, Bet Shemesh Engines has high operating costs in the Aerospace & Defense industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bet Shemesh Engines lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Bet Shemesh Engines has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Aerospace & Defense industry over the last five years. Bet Shemesh Engines 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 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 Bet Shemesh Engines supply chain. Even after few cautionary changes, Bet Shemesh Engines is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bet Shemesh Engines vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Bet Shemesh Engines, it seems that company is thinking out the frontier risks that can impact Aerospace & Defense 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.
High cash cycle compare to competitors
Bet Shemesh Engines has a high cash cycle compare to other players in the Aerospace & Defense industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Bet Shemesh Engines products
– To increase the profitability and margins on the products, Bet Shemesh Engines needs to provide more differentiated products than what it is currently offering in the marketplace.
Bet Shemesh Engines Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Bet Shemesh Engines are -
Loyalty marketing
– Bet Shemesh Engines 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
– Bet Shemesh Engines has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Aerospace & Defense sector. This continuous investment in analytics has enabled Bet Shemesh Engines to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bet Shemesh Engines to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bet Shemesh Engines in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Aerospace & Defense industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Bet Shemesh Engines to increase its market reach. Bet Shemesh Engines 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.
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. Bet Shemesh Engines 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 Bet Shemesh Engines has opened avenues for new revenue streams for the organization in Aerospace & Defense industry. This can help Bet Shemesh Engines to build a more holistic ecosystem for Bet Shemesh Engines products in the Aerospace & Defense industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Bet Shemesh Engines can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bet Shemesh Engines is facing challenges because of the dominance of functional experts in the organization. Bet Shemesh Engines can utilize new technology in the field of Aerospace & Defense industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions in Aerospace & Defense industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bet Shemesh Engines in the Aerospace & Defense industry. Now Bet Shemesh Engines can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Bet Shemesh Engines can use the latest technology developments to improve its manufacturing and designing process in Aerospace & Defense 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Aerospace & Defense industry, but it has also influenced the consumer preferences. Bet Shemesh Engines can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bet Shemesh Engines can use these opportunities to build new business models that can help the communities that Bet Shemesh Engines operates in. Secondly it can use opportunities from government spending in Aerospace & Defense sector.
Building a culture of innovation
– managers at Bet Shemesh Engines 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 Aerospace & Defense industry.
Threats Bet Shemesh Engines External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Bet Shemesh Engines are -
Consumer confidence and its impact on Bet Shemesh Engines 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 Aerospace & Defense industry and other sectors.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bet Shemesh Engines in Aerospace & Defense industry. The Aerospace & Defense 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bet Shemesh Engines 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 Bet Shemesh Engines 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 Bet Shemesh Engines.
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 Bet Shemesh Engines in the Aerospace & Defense sector and impact the bottomline 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. Bet Shemesh Engines needs to understand the core reasons impacting the Aerospace & Defense industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Bet Shemesh Engines 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 acceleration in Forth Industrial Revolution
– Bet Shemesh Engines has witnessed rapid integration of technology during Covid-19 in the Aerospace & Defense industry. As one of the leading players in the industry, Bet Shemesh Engines needs to keep up with the evolution of technology in the Aerospace & Defense 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.
Shortening product life cycle
– it is one of the major threat that Bet Shemesh Engines is facing in Aerospace & Defense sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Bet Shemesh Engines business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Bet Shemesh Engines 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. Bet Shemesh Engines can take advantage of this fund but it will also bring new competitors in the Aerospace & Defense industry.
Weighted SWOT Analysis of Bet Shemesh Engines Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Bet Shemesh Engines 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 Bet Shemesh Engines 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 Bet Shemesh Engines 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 Bet Shemesh Engines 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 Bet Shemesh Engines needs to make to build a sustainable competitive advantage.