GEDI Gruppo Editoriale (GEDI) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for GEDI Gruppo Editoriale (Italy)

Based on various researches at Oak Spring University , GEDI Gruppo Editoriale is operating in a macro-environment that has been destablized by – there is backlash against globalization, increasing commodity prices, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

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Introduction to SWOT Analysis of GEDI Gruppo Editoriale

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that GEDI Gruppo Editoriale can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the GEDI Gruppo Editoriale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which GEDI Gruppo Editoriale 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of GEDI Gruppo Editoriale can be done for the following purposes –
1. Strategic planning of GEDI Gruppo Editoriale
2. Improving business portfolio management of GEDI Gruppo Editoriale
3. Assessing feasibility of the new initiative in Italy
4. Making a Printing & Publishing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of GEDI Gruppo Editoriale

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Strengths of GEDI Gruppo Editoriale | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of GEDI Gruppo Editoriale are -

Superior customer experience

– The customer experience strategy of GEDI Gruppo Editoriale in Printing & Publishing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to lead change in Printing & Publishing

– GEDI Gruppo Editoriale is one of the leading players in the Printing & Publishing industry in Italy. Over the years it has not only transformed the business landscape in the Printing & Publishing industry in Italy but also across the existing markets. The ability to lead change has enabled GEDI Gruppo Editoriale in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

– GEDI Gruppo Editoriale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled GEDI Gruppo Editoriale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to recruit top talent

– GEDI Gruppo Editoriale is one of the leading players in the Printing & Publishing industry in Italy. It is in a position to attract the best talent available in Italy. The firm has a robust talent identification program that helps in identifying the brightest.

Low bargaining power of suppliers

– Suppliers of GEDI Gruppo Editoriale in the Services sector have low bargaining power. GEDI Gruppo Editoriale has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps GEDI Gruppo Editoriale to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Printing & Publishing industry

– GEDI Gruppo Editoriale has clearly differentiated products in the market place. This has enabled GEDI Gruppo Editoriale to fetch slight price premium compare to the competitors in the Printing & Publishing industry. The sustainable margins have also helped GEDI Gruppo Editoriale to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– GEDI Gruppo Editoriale has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – GEDI Gruppo Editoriale staying ahead in the Printing & Publishing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High switching costs

– The high switching costs that GEDI Gruppo Editoriale 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.

Innovation driven organization

– GEDI Gruppo Editoriale is one of the most innovative firm in Printing & Publishing sector.

Cross disciplinary teams

– Horizontal connected teams at the GEDI Gruppo Editoriale 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.

Highly skilled collaborators

– GEDI Gruppo Editoriale has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Printing & Publishing industry. Secondly the value chain collaborators of GEDI Gruppo Editoriale have helped the firm to develop new products and bring them quickly to the marketplace.

Successful track record of launching new products

– GEDI Gruppo Editoriale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. GEDI Gruppo Editoriale 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.

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Weaknesses of GEDI Gruppo Editoriale | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of GEDI Gruppo Editoriale are -

High bargaining power of channel partners in Printing & Publishing industry

– because of the regulatory requirements in Italy, GEDI Gruppo Editoriale 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 Printing & Publishing industry.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, GEDI Gruppo Editoriale is slow explore the new channels of communication. These new channels of communication can help GEDI Gruppo Editoriale to provide better information regarding Printing & Publishing products and services. It can also build an online community to further reach out to potential customers.

Aligning sales with marketing

– From the outside it seems that GEDI Gruppo Editoriale needs to have more collaboration between its sales team and marketing team. Sales professionals in the Printing & Publishing industry have deep experience in developing customer relationships. Marketing department at GEDI Gruppo Editoriale can leverage the sales team experience to cultivate customer relationships as GEDI Gruppo Editoriale is planning to shift buying processes online.

Need for greater diversity

– GEDI Gruppo Editoriale 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.

No frontier risks strategy

– From the 10K / annual statement of GEDI Gruppo Editoriale, it seems that company is thinking out the frontier risks that can impact Printing & Publishing 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 GEDI Gruppo Editoriale supply chain. Even after few cautionary changes, GEDI Gruppo Editoriale is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left GEDI Gruppo Editoriale vulnerable to further global disruptions in South East Asia.

Interest costs

– Compare to the competition, GEDI Gruppo Editoriale has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Skills based hiring in Printing & Publishing industry

– The stress on hiring functional specialists at GEDI Gruppo Editoriale 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.

Products dominated business model

– Even though GEDI Gruppo Editoriale has some of the most successful models in the Printing & Publishing industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. GEDI Gruppo Editoriale should strive to include more intangible value offerings along with its core products and services.

Compensation and incentives

– The revenue per employee of GEDI Gruppo Editoriale is just above the Printing & Publishing industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Employees’ less understanding of GEDI Gruppo Editoriale strategy

– From the outside it seems that the employees of GEDI Gruppo Editoriale 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.

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GEDI Gruppo Editoriale Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of GEDI Gruppo Editoriale are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, GEDI Gruppo Editoriale is facing challenges because of the dominance of functional experts in the organization. GEDI Gruppo Editoriale can utilize new technology in the field of Printing & Publishing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Printing & Publishing industry, but it has also influenced the consumer preferences. GEDI Gruppo Editoriale can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects GEDI Gruppo Editoriale can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Learning at scale

– Online learning technologies has now opened space for GEDI Gruppo Editoriale 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.

Manufacturing automation

– GEDI Gruppo Editoriale can use the latest technology developments to improve its manufacturing and designing process in Printing & Publishing 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.

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 GEDI Gruppo Editoriale 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

– GEDI Gruppo Editoriale has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Printing & Publishing sector. This continuous investment in analytics has enabled GEDI Gruppo Editoriale to build a competitive advantage using analytics. The analytics driven competitive advantage can help GEDI Gruppo Editoriale to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Use of Bitcoin and other crypto currencies for transactions in Printing & Publishing industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for GEDI Gruppo Editoriale in the Printing & Publishing industry. Now GEDI Gruppo Editoriale can target international markets with far fewer capital restrictions requirements than the existing system.

Developing new processes and practices

– GEDI Gruppo Editoriale can develop new processes and procedures in Printing & Publishing 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Printing & Publishing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. GEDI Gruppo Editoriale 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. GEDI Gruppo Editoriale 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.

Loyalty marketing

– GEDI Gruppo Editoriale 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, GEDI Gruppo Editoriale 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.

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Threats GEDI Gruppo Editoriale External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of GEDI Gruppo Editoriale are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for GEDI Gruppo Editoriale in Printing & Publishing industry. The Printing & Publishing 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 wage structure of GEDI Gruppo Editoriale

– 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 GEDI Gruppo Editoriale.

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 GEDI Gruppo Editoriale.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Printing & Publishing industry are lowering. It can presents GEDI Gruppo Editoriale with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing & Publishing sector.

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. GEDI Gruppo Editoriale needs to understand the core reasons impacting the Printing & Publishing industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– GEDI Gruppo Editoriale has witnessed rapid integration of technology during Covid-19 in the Printing & Publishing industry. As one of the leading players in the industry, GEDI Gruppo Editoriale needs to keep up with the evolution of technology in the Printing & Publishing 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.

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 GEDI Gruppo Editoriale in the Printing & Publishing 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, GEDI Gruppo Editoriale may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Printing & Publishing sector.

Regulatory challenges

– GEDI Gruppo Editoriale 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 Printing & Publishing industry regulations.

Easy access to finance

– Easy access to finance in Printing & Publishing industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. GEDI Gruppo Editoriale can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Consumer confidence and its impact on GEDI Gruppo Editoriale 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 Printing & Publishing industry and other sectors.

Environmental challenges

– GEDI Gruppo Editoriale 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. GEDI Gruppo Editoriale can take advantage of this fund but it will also bring new competitors in the Printing & Publishing industry.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale prominent markets.

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Weighted SWOT Analysis of GEDI Gruppo Editoriale Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale 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 GEDI Gruppo Editoriale needs to make to build a sustainable competitive advantage.

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