SWOT Analysis / TOWS Matrix for Al-Bad Massuot Yitzhak (Israel)
Based on various researches at Oak Spring University , Al-Bad Massuot Yitzhak is operating in a macro-environment that has been destablized by – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, challanges to central banks by blockchain based private currencies, wage bills are increasing,
talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Al-Bad Massuot Yitzhak
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Al-Bad Massuot Yitzhak can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Al-Bad Massuot Yitzhak, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak can be done for the following purposes –
1. Strategic planning of Al-Bad Massuot Yitzhak
2. Improving business portfolio management of Al-Bad Massuot Yitzhak
3. Assessing feasibility of the new initiative in Israel
4. Making a Textiles - Non Apparel sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Al-Bad Massuot Yitzhak
Strengths of Al-Bad Massuot Yitzhak | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Al-Bad Massuot Yitzhak are -
Ability to lead change in Textiles - Non Apparel
– Al-Bad Massuot Yitzhak is one of the leading players in the Textiles - Non Apparel industry in Israel. Over the years it has not only transformed the business landscape in the Textiles - Non Apparel industry in Israel but also across the existing markets. The ability to lead change has enabled Al-Bad Massuot Yitzhak in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Al-Bad Massuot Yitzhak in Textiles - Non Apparel industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Al-Bad Massuot Yitzhak is present in almost all the verticals within the Textiles - Non Apparel industry. This has provided Al-Bad Massuot Yitzhak 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.
Innovation driven organization
– Al-Bad Massuot Yitzhak is one of the most innovative firm in Textiles - Non Apparel sector.
Digital Transformation in Textiles - Non Apparel industry
- digital transformation varies from industry to industry. For Al-Bad Massuot Yitzhak digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Al-Bad Massuot Yitzhak 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.
Organizational Resilience of Al-Bad Massuot Yitzhak
– The covid-19 pandemic has put organizational resilience at the centre of everthing Al-Bad Massuot Yitzhak does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Al-Bad Massuot Yitzhak has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Al-Bad Massuot Yitzhak staying ahead in the Textiles - Non Apparel 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 Al-Bad Massuot Yitzhak 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.
High switching costs
– The high switching costs that Al-Bad Massuot Yitzhak 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.
Sustainable margins compare to other players in Textiles - Non Apparel industry
– Al-Bad Massuot Yitzhak has clearly differentiated products in the market place. This has enabled Al-Bad Massuot Yitzhak to fetch slight price premium compare to the competitors in the Textiles - Non Apparel industry. The sustainable margins have also helped Al-Bad Massuot Yitzhak to invest into research and development (R&D) and innovation.
Learning organization
- Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Al-Bad Massuot Yitzhak emphasize – knowledge, initiative, and innovation.
High brand equity
– Al-Bad Massuot Yitzhak has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Al-Bad Massuot Yitzhak to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Al-Bad Massuot Yitzhak | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Al-Bad Massuot Yitzhak are -
Aligning sales with marketing
– From the outside it seems that Al-Bad Massuot Yitzhak needs to have more collaboration between its sales team and marketing team. Sales professionals in the Textiles - Non Apparel industry have deep experience in developing customer relationships. Marketing department at Al-Bad Massuot Yitzhak can leverage the sales team experience to cultivate customer relationships as Al-Bad Massuot Yitzhak is planning to shift buying processes online.
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 Al-Bad Massuot Yitzhak supply chain. Even after few cautionary changes, Al-Bad Massuot Yitzhak is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Al-Bad Massuot Yitzhak vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Al-Bad Massuot Yitzhak has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Textiles - Non Apparel industry using digital technology.
No frontier risks strategy
– From the 10K / annual statement of Al-Bad Massuot Yitzhak, it seems that company is thinking out the frontier risks that can impact Textiles - Non Apparel 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.
Skills based hiring in Textiles - Non Apparel industry
– The stress on hiring functional specialists at Al-Bad Massuot Yitzhak 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 Israel, Al-Bad Massuot Yitzhak needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Al-Bad Massuot Yitzhak is one of the leading players in the Textiles - Non Apparel industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Textiles - Non Apparel industry in last five years.
Lack of clear differentiation of Al-Bad Massuot Yitzhak products
– To increase the profitability and margins on the products, Al-Bad Massuot Yitzhak needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Al-Bad Massuot Yitzhak is dominated by functional specialists. It is not different from other players in the Textiles - Non Apparel industry, but Al-Bad Massuot Yitzhak needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Al-Bad Massuot Yitzhak to focus more on services in the Textiles - Non Apparel industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Al-Bad Massuot Yitzhak has high operating costs in the Textiles - Non Apparel industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Al-Bad Massuot Yitzhak lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Al-Bad Massuot Yitzhak has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Textiles - Non Apparel industry over the last five years. Al-Bad Massuot Yitzhak 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.
Al-Bad Massuot Yitzhak Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Al-Bad Massuot Yitzhak are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Al-Bad Massuot Yitzhak 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.
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 Al-Bad Massuot Yitzhak 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.
Better consumer reach
– The expansion of the 5G network will help Al-Bad Massuot Yitzhak to increase its market reach. Al-Bad Massuot Yitzhak 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.
Leveraging digital technologies
– Al-Bad Massuot Yitzhak 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.
Developing new processes and practices
– Al-Bad Massuot Yitzhak can develop new processes and procedures in Textiles - Non Apparel 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 Al-Bad Massuot Yitzhak has opened avenues for new revenue streams for the organization in Textiles - Non Apparel industry. This can help Al-Bad Massuot Yitzhak to build a more holistic ecosystem for Al-Bad Massuot Yitzhak products in the Textiles - Non Apparel industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Al-Bad Massuot Yitzhak can use the latest technology developments to improve its manufacturing and designing process in Textiles - Non Apparel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Al-Bad Massuot Yitzhak is facing challenges because of the dominance of functional experts in the organization. Al-Bad Massuot Yitzhak can utilize new technology in the field of Textiles - Non Apparel industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Al-Bad Massuot Yitzhak has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Textiles - Non Apparel sector. This continuous investment in analytics has enabled Al-Bad Massuot Yitzhak to build a competitive advantage using analytics. The analytics driven competitive advantage can help Al-Bad Massuot Yitzhak to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Al-Bad Massuot Yitzhak can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Al-Bad Massuot Yitzhak 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.
Use of Bitcoin and other crypto currencies for transactions in Textiles - Non Apparel industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Al-Bad Massuot Yitzhak in the Textiles - Non Apparel industry. Now Al-Bad Massuot Yitzhak can target international markets with far fewer capital restrictions requirements than the existing system.
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. Al-Bad Massuot Yitzhak can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Al-Bad Massuot Yitzhak External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Al-Bad Massuot Yitzhak are -
High dependence on third party suppliers
– Al-Bad Massuot Yitzhak 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Al-Bad Massuot Yitzhak may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Textiles - Non Apparel sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Al-Bad Massuot Yitzhak.
Consumer confidence and its impact on Al-Bad Massuot Yitzhak 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 Textiles - Non Apparel industry and other sectors.
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 Al-Bad Massuot Yitzhak in the Textiles - Non Apparel sector and impact the bottomline 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.
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 Al-Bad Massuot Yitzhak business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Al-Bad Massuot Yitzhak
– 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 Al-Bad Massuot Yitzhak.
Regulatory challenges
– Al-Bad Massuot Yitzhak 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 Textiles - Non Apparel industry regulations.
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. Al-Bad Massuot Yitzhak 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Al-Bad Massuot Yitzhak in Textiles - Non Apparel industry. The Textiles - Non Apparel 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 acceleration in Forth Industrial Revolution
– Al-Bad Massuot Yitzhak has witnessed rapid integration of technology during Covid-19 in the Textiles - Non Apparel industry. As one of the leading players in the industry, Al-Bad Massuot Yitzhak needs to keep up with the evolution of technology in the Textiles - Non Apparel 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 Al-Bad Massuot Yitzhak is facing in Textiles - Non Apparel sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Al-Bad Massuot Yitzhak Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak needs to make to build a sustainable competitive advantage.