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 – competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing commodity prices, increasing energy prices, 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 -

Analytics focus

– GEDI Gruppo Editoriale is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Printing & Publishing industry. The technology infrastructure of Italy is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

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.

Organizational Resilience of GEDI Gruppo Editoriale

– The covid-19 pandemic has put organizational resilience at the centre of everthing GEDI Gruppo Editoriale does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Training and development

– GEDI Gruppo Editoriale has one of the best training and development program in Services 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 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.

Diverse revenue streams

– GEDI Gruppo Editoriale is present in almost all the verticals within the Printing & Publishing industry. This has provided GEDI Gruppo Editoriale 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.

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.

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.

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.

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.

Digital Transformation in Printing & Publishing industry

- digital transformation varies from industry to industry. For GEDI Gruppo Editoriale digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. GEDI Gruppo Editoriale 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.

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.

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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 -

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.

Ability to respond to the competition

– As the decision making is very deliberative at GEDI Gruppo Editoriale, in the dynamic environment of Printing & Publishing industry it has struggled to respond to the nimble upstart competition. GEDI Gruppo Editoriale has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow decision making process

– As mentioned earlier in the report, GEDI Gruppo Editoriale has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Printing & Publishing industry over the last five years. GEDI Gruppo Editoriale 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.

Workers concerns about automation

– As automation is fast increasing in the Printing & Publishing industry, GEDI Gruppo Editoriale 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.

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.

High operating costs

– Compare to the competitors, GEDI Gruppo Editoriale has high operating costs in the Printing & Publishing industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract GEDI Gruppo Editoriale lucrative customers.

Capital Spending Reduction

– Even during the low interest decade, GEDI Gruppo Editoriale 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 Printing & Publishing industry using digital technology.

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.

High cash cycle compare to competitors

GEDI Gruppo Editoriale has a high cash cycle compare to other players in the Printing & Publishing industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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.

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.

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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 -

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.

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. GEDI Gruppo Editoriale can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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.

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, GEDI Gruppo Editoriale can use these opportunities to build new business models that can help the communities that GEDI Gruppo Editoriale operates in. Secondly it can use opportunities from government spending in Printing & Publishing sector.

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.

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.

Creating value in data economy

– The success of analytics program of GEDI Gruppo Editoriale has opened avenues for new revenue streams for the organization in Printing & Publishing industry. This can help GEDI Gruppo Editoriale to build a more holistic ecosystem for GEDI Gruppo Editoriale products in the Printing & Publishing industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– GEDI Gruppo Editoriale can improve the customer journey of consumers in the Printing & Publishing 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.

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.

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.

Better consumer reach

– The expansion of the 5G network will help GEDI Gruppo Editoriale to increase its market reach. GEDI Gruppo Editoriale 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.

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.

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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 -

Stagnating economy with rate increase

– GEDI Gruppo Editoriale 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 Printing & Publishing industry.

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 dependence on third party suppliers

– GEDI Gruppo Editoriale 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.

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.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for 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.

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.

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.

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.

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.

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.

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. GEDI Gruppo Editoriale 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.

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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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