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 – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, increasing commodity prices, wage bills are increasing, there is increasing trade war between United States & China, increasing transportation and logistics costs,
cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
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.
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.
Innovation driven organization
– Al-Bad Massuot Yitzhak is one of the most innovative firm in Textiles - Non Apparel sector.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
Workers concerns about automation
– As automation is fast increasing in the Textiles - Non Apparel industry, Al-Bad Massuot Yitzhak needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Al-Bad Massuot Yitzhak is slow explore the new channels of communication. These new channels of communication can help Al-Bad Massuot Yitzhak to provide better information regarding Textiles - Non Apparel products and services. It can also build an online community to further reach out to potential customers.
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.
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.
Need for greater diversity
– Al-Bad Massuot Yitzhak 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.
Ability to respond to the competition
– As the decision making is very deliberative at Al-Bad Massuot Yitzhak, in the dynamic environment of Textiles - Non Apparel industry it has struggled to respond to the nimble upstart competition. Al-Bad Massuot Yitzhak has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
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 -
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Al-Bad Massuot Yitzhak 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 Al-Bad Massuot Yitzhak 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 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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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. Al-Bad Massuot Yitzhak needs to understand the core reasons impacting the Textiles - Non Apparel industry. This will help it in building a better workplace.
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.