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, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing commodity prices, there is backlash against globalization, talent flight as more people leaving formal jobs,
increasing household debt because of falling income levels, there is increasing trade war between United States & China, 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 -
Low bargaining power of suppliers
– Suppliers of Al-Bad Massuot Yitzhak in the Consumer Cyclical sector have low bargaining power. Al-Bad Massuot Yitzhak has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Al-Bad Massuot Yitzhak to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management in the Textiles - Non Apparel industry
– Al-Bad Massuot Yitzhak is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Al-Bad Massuot Yitzhak has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Textiles - Non Apparel industry. Secondly the value chain collaborators of Al-Bad Massuot Yitzhak have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Al-Bad Massuot Yitzhak has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Al-Bad Massuot Yitzhak 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.
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.
Training and development
– Al-Bad Massuot Yitzhak has one of the best training and development program in Consumer 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.
Operational resilience
– The operational resilience strategy of Al-Bad Massuot Yitzhak comprises – understanding the underlying the factors in the Textiles - Non Apparel 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.
Ability to recruit top talent
– Al-Bad Massuot Yitzhak is one of the leading players in the Textiles - Non Apparel industry in Israel. It is in a position to attract the best talent available in Israel. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
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 -
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.
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.
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.
Products dominated business model
– Even though Al-Bad Massuot Yitzhak has some of the most successful models in the Textiles - Non Apparel industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Al-Bad Massuot Yitzhak should strive to include more intangible value offerings along with its core products and services.
High dependence on Al-Bad Massuot Yitzhak ‘s star products
– The top 2 products and services of Al-Bad Massuot Yitzhak still accounts for major business revenue. This dependence on star products in Textiles - Non Apparel industry has resulted into insufficient focus on developing new products, even though Al-Bad Massuot Yitzhak has relatively successful track record of launching new products.
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.
High cash cycle compare to competitors
Al-Bad Massuot Yitzhak has a high cash cycle compare to other players in the Textiles - Non Apparel industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 bargaining power of channel partners in Textiles - Non Apparel industry
– because of the regulatory requirements in Israel, Al-Bad Massuot Yitzhak 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 Textiles - Non Apparel industry.
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.
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.
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 -
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.
Building a culture of innovation
– managers at Al-Bad Massuot Yitzhak 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 Textiles - Non Apparel industry.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak to hire the very best people irrespective of their geographical location.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Al-Bad Massuot Yitzhak in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Textiles - Non Apparel industry, and it will provide faster access to the consumers.
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.
Buying journey improvements
– Al-Bad Massuot Yitzhak can improve the customer journey of consumers in the Textiles - Non Apparel 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Al-Bad Massuot Yitzhak can use these opportunities to build new business models that can help the communities that Al-Bad Massuot Yitzhak operates in. Secondly it can use opportunities from government spending in Textiles - Non Apparel sector.
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.
Loyalty marketing
– Al-Bad Massuot Yitzhak 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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Textiles - Non Apparel industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Al-Bad Massuot Yitzhak can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Al-Bad Massuot Yitzhak can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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 -
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.
Environmental challenges
– Al-Bad Massuot Yitzhak 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. Al-Bad Massuot Yitzhak can take advantage of this fund but it will also bring new competitors in the Textiles - Non Apparel industry.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Textiles - Non Apparel industry are lowering. It can presents Al-Bad Massuot Yitzhak with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Textiles - Non Apparel sector.
Stagnating economy with rate increase
– Al-Bad Massuot Yitzhak 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 Textiles - Non Apparel industry.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak prominent markets.
Easy access to finance
– Easy access to finance in Textiles - Non Apparel industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Al-Bad Massuot Yitzhak can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.