SWOT Analysis / TOWS Matrix for Assiteca SpA Internazionale (Italy)
Based on various researches at Oak Spring University , Assiteca SpA Internazionale is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing commodity prices, increasing energy prices, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc
Introduction to SWOT Analysis of Assiteca SpA Internazionale
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Assiteca SpA Internazionale can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Assiteca SpA Internazionale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Assiteca SpA Internazionale 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 Assiteca SpA Internazionale can be done for the following purposes –
1. Strategic planning of Assiteca SpA Internazionale
2. Improving business portfolio management of Assiteca SpA Internazionale
3. Assessing feasibility of the new initiative in Italy
4. Making a Insurance (Miscellaneous) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Assiteca SpA Internazionale
Strengths of Assiteca SpA Internazionale | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Assiteca SpA Internazionale are -
Ability to lead change in Insurance (Miscellaneous)
– Assiteca SpA Internazionale is one of the leading players in the Insurance (Miscellaneous) industry in Italy. Over the years it has not only transformed the business landscape in the Insurance (Miscellaneous) industry in Italy but also across the existing markets. The ability to lead change has enabled Assiteca SpA Internazionale in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Assiteca SpA Internazionale has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Miscellaneous) industry. Secondly the value chain collaborators of Assiteca SpA Internazionale have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Assiteca SpA Internazionale 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 Assiteca SpA Internazionale is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Assiteca SpA Internazionale emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Assiteca SpA Internazionale
– The covid-19 pandemic has put organizational resilience at the centre of everthing Assiteca SpA Internazionale does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Assiteca SpA Internazionale in Insurance (Miscellaneous) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Assiteca SpA Internazionale has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Assiteca SpA Internazionale staying ahead in the Insurance (Miscellaneous) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Assiteca SpA Internazionale 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 Insurance (Miscellaneous) 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 Insurance (Miscellaneous) industry
– Assiteca SpA Internazionale has clearly differentiated products in the market place. This has enabled Assiteca SpA Internazionale to fetch slight price premium compare to the competitors in the Insurance (Miscellaneous) industry. The sustainable margins have also helped Assiteca SpA Internazionale to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Assiteca SpA Internazionale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Assiteca SpA Internazionale 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.
Training and development
– Assiteca SpA Internazionale has one of the best training and development program in Financial 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
– Assiteca SpA Internazionale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Assiteca SpA Internazionale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Assiteca SpA Internazionale in the Financial sector have low bargaining power. Assiteca SpA Internazionale has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Assiteca SpA Internazionale to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Assiteca SpA Internazionale | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Assiteca SpA Internazionale are -
Interest costs
– Compare to the competition, Assiteca SpA Internazionale 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.
No frontier risks strategy
– From the 10K / annual statement of Assiteca SpA Internazionale, it seems that company is thinking out the frontier risks that can impact Insurance (Miscellaneous) 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 cash cycle compare to competitors
Assiteca SpA Internazionale has a high cash cycle compare to other players in the Insurance (Miscellaneous) 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 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 Assiteca SpA Internazionale supply chain. Even after few cautionary changes, Assiteca SpA Internazionale is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Assiteca SpA Internazionale vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Assiteca SpA Internazionale is one of the leading players in the Insurance (Miscellaneous) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Insurance (Miscellaneous) industry in last five years.
Skills based hiring in Insurance (Miscellaneous) industry
– The stress on hiring functional specialists at Assiteca SpA Internazionale 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.
Compensation and incentives
– The revenue per employee of Assiteca SpA Internazionale is just above the Insurance (Miscellaneous) 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.
Products dominated business model
– Even though Assiteca SpA Internazionale has some of the most successful models in the Insurance (Miscellaneous) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Assiteca SpA Internazionale should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners in Insurance (Miscellaneous) industry
– because of the regulatory requirements in Italy, Assiteca SpA Internazionale 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 Insurance (Miscellaneous) industry.
High operating costs
– Compare to the competitors, Assiteca SpA Internazionale has high operating costs in the Insurance (Miscellaneous) industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Assiteca SpA Internazionale lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Assiteca SpA Internazionale has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Insurance (Miscellaneous) industry over the last five years. Assiteca SpA Internazionale 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.
Assiteca SpA Internazionale Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Assiteca SpA Internazionale are -
Loyalty marketing
– Assiteca SpA Internazionale 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.
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. Assiteca SpA Internazionale can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Assiteca SpA Internazionale is facing challenges because of the dominance of functional experts in the organization. Assiteca SpA Internazionale can utilize new technology in the field of Insurance (Miscellaneous) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Assiteca SpA Internazionale can improve the customer journey of consumers in the Insurance (Miscellaneous) 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.
Leveraging digital technologies
– Assiteca SpA Internazionale can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Developing new processes and practices
– Assiteca SpA Internazionale can develop new processes and procedures in Insurance (Miscellaneous) 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.
Building a culture of innovation
– managers at Assiteca SpA Internazionale 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 Insurance (Miscellaneous) industry.
Use of Bitcoin and other crypto currencies for transactions in Insurance (Miscellaneous) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Assiteca SpA Internazionale in the Insurance (Miscellaneous) industry. Now Assiteca SpA Internazionale can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Assiteca SpA Internazionale can use the latest technology developments to improve its manufacturing and designing process in Insurance (Miscellaneous) 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Miscellaneous) industry, but it has also influenced the consumer preferences. Assiteca SpA Internazionale can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Assiteca SpA Internazionale 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 Assiteca SpA Internazionale to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Assiteca SpA Internazionale has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Miscellaneous) sector. This continuous investment in analytics has enabled Assiteca SpA Internazionale to build a competitive advantage using analytics. The analytics driven competitive advantage can help Assiteca SpA Internazionale to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Assiteca SpA Internazionale in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Insurance (Miscellaneous) industry, and it will provide faster access to the consumers.
Threats Assiteca SpA Internazionale External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Assiteca SpA Internazionale are -
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 Assiteca SpA Internazionale business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Assiteca SpA Internazionale 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. Assiteca SpA Internazionale can take advantage of this fund but it will also bring new competitors in the Insurance (Miscellaneous) industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Assiteca SpA Internazionale may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Insurance (Miscellaneous) sector.
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 Assiteca SpA Internazionale in the Insurance (Miscellaneous) sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Assiteca SpA Internazionale 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 Assiteca SpA Internazionale prominent markets.
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 Assiteca SpA Internazionale.
Increasing wage structure of Assiteca SpA Internazionale
– 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 Assiteca SpA Internazionale.
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.
Easy access to finance
– Easy access to finance in Insurance (Miscellaneous) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Assiteca SpA Internazionale can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Assiteca SpA Internazionale 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.
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. Assiteca SpA Internazionale needs to understand the core reasons impacting the Insurance (Miscellaneous) industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Assiteca SpA Internazionale has witnessed rapid integration of technology during Covid-19 in the Insurance (Miscellaneous) industry. As one of the leading players in the industry, Assiteca SpA Internazionale needs to keep up with the evolution of technology in the Insurance (Miscellaneous) 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.
Weighted SWOT Analysis of Assiteca SpA Internazionale Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Assiteca SpA Internazionale 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 Assiteca SpA Internazionale 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 Assiteca SpA Internazionale 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 Assiteca SpA Internazionale 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 Assiteca SpA Internazionale needs to make to build a sustainable competitive advantage.