I Grandi Viaggi (IGV) SWOT Analysis / TOWS Matrix / MBA Resources
Hotels & Motels
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for I Grandi Viaggi (Italy)
Based on various researches at Oak Spring University , I Grandi Viaggi is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing energy prices, wage bills are increasing, technology disruption, geopolitical disruptions, central banks are concerned over increasing inflation,
increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that I Grandi Viaggi can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the I Grandi Viaggi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which I Grandi Viaggi 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 I Grandi Viaggi can be done for the following purposes –
1. Strategic planning of I Grandi Viaggi
2. Improving business portfolio management of I Grandi Viaggi
3. Assessing feasibility of the new initiative in Italy
4. Making a Hotels & Motels sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of I Grandi Viaggi
Strengths of I Grandi Viaggi | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of I Grandi Viaggi are -
Analytics focus
– I Grandi Viaggi 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 Hotels & Motels 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.
Organizational Resilience of I Grandi Viaggi
– The covid-19 pandemic has put organizational resilience at the centre of everthing I Grandi Viaggi 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 I Grandi Viaggi in Hotels & Motels industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– I Grandi Viaggi has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Hotels & Motels industry. Secondly the value chain collaborators of I Grandi Viaggi have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– I Grandi Viaggi is one of the most innovative firm in Hotels & Motels sector.
Training and development
– I Grandi Viaggi 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.
Ability to recruit top talent
– I Grandi Viaggi is one of the leading players in the Hotels & Motels 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.
High brand equity
– I Grandi Viaggi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled I Grandi Viaggi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy of I Grandi Viaggi comprises – understanding the underlying the factors in the Hotels & Motels 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.
Successful track record of launching new products
– I Grandi Viaggi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. I Grandi Viaggi 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 I Grandi Viaggi in the Services sector have low bargaining power. I Grandi Viaggi has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps I Grandi Viaggi to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Hotels & Motels industry
– I Grandi Viaggi has clearly differentiated products in the market place. This has enabled I Grandi Viaggi to fetch slight price premium compare to the competitors in the Hotels & Motels industry. The sustainable margins have also helped I Grandi Viaggi to invest into research and development (R&D) and innovation.
Weaknesses of I Grandi Viaggi | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of I Grandi Viaggi are -
Skills based hiring in Hotels & Motels industry
– The stress on hiring functional specialists at I Grandi Viaggi 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.
Capital Spending Reduction
– Even during the low interest decade, I Grandi Viaggi 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 Hotels & Motels industry using digital technology.
Products dominated business model
– Even though I Grandi Viaggi has some of the most successful models in the Hotels & Motels industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. I Grandi Viaggi should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative at I Grandi Viaggi, in the dynamic environment of Hotels & Motels industry it has struggled to respond to the nimble upstart competition. I Grandi Viaggi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of I Grandi Viaggi is dominated by functional specialists. It is not different from other players in the Hotels & Motels industry, but I Grandi Viaggi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help I Grandi Viaggi to focus more on services in the Hotels & Motels industry rather than just following the product oriented approach.
High bargaining power of channel partners in Hotels & Motels industry
– because of the regulatory requirements in Italy, I Grandi Viaggi 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 Hotels & Motels 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 I Grandi Viaggi supply chain. Even after few cautionary changes, I Grandi Viaggi is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left I Grandi Viaggi vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of I Grandi Viaggi strategy
– From the outside it seems that the employees of I Grandi Viaggi 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 I Grandi Viaggi needs to have more collaboration between its sales team and marketing team. Sales professionals in the Hotels & Motels industry have deep experience in developing customer relationships. Marketing department at I Grandi Viaggi can leverage the sales team experience to cultivate customer relationships as I Grandi Viaggi is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, I Grandi Viaggi is slow explore the new channels of communication. These new channels of communication can help I Grandi Viaggi to provide better information regarding Hotels & Motels products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the Hotels & Motels industry, I Grandi Viaggi 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.
I Grandi Viaggi Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of I Grandi Viaggi are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Hotels & Motels industry, but it has also influenced the consumer preferences. I Grandi Viaggi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help I Grandi Viaggi to increase its market reach. I Grandi Viaggi 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.
Building a culture of innovation
– managers at I Grandi Viaggi 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 Hotels & Motels industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, I Grandi Viaggi 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.
Using analytics as competitive advantage
– I Grandi Viaggi has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Hotels & Motels sector. This continuous investment in analytics has enabled I Grandi Viaggi to build a competitive advantage using analytics. The analytics driven competitive advantage can help I Grandi Viaggi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for I Grandi Viaggi 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
– I Grandi Viaggi can use the latest technology developments to improve its manufacturing and designing process in Hotels & Motels 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, I Grandi Viaggi is facing challenges because of the dominance of functional experts in the organization. I Grandi Viaggi can utilize new technology in the field of Hotels & Motels industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for I Grandi Viaggi 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 I Grandi Viaggi to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, I Grandi Viaggi can use these opportunities to build new business models that can help the communities that I Grandi Viaggi operates in. Secondly it can use opportunities from government spending in Hotels & Motels sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, I Grandi Viaggi 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 I Grandi Viaggi to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Hotels & Motels industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for I Grandi Viaggi in the Hotels & Motels industry. Now I Grandi Viaggi can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– I Grandi Viaggi can develop new processes and procedures in Hotels & Motels 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.
Threats I Grandi Viaggi External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of I Grandi Viaggi are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Hotels & Motels industry are lowering. It can presents I Grandi Viaggi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Hotels & Motels sector.
Environmental challenges
– I Grandi Viaggi 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. I Grandi Viaggi can take advantage of this fund but it will also bring new competitors in the Hotels & Motels industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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. I Grandi Viaggi 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.
Technology acceleration in Forth Industrial Revolution
– I Grandi Viaggi has witnessed rapid integration of technology during Covid-19 in the Hotels & Motels industry. As one of the leading players in the industry, I Grandi Viaggi needs to keep up with the evolution of technology in the Hotels & Motels 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.
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 I Grandi Viaggi.
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 I Grandi Viaggi in the Hotels & Motels sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of I Grandi Viaggi business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– I Grandi Viaggi 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. I Grandi Viaggi needs to understand the core reasons impacting the Hotels & Motels industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, I Grandi Viaggi 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 I Grandi Viaggi prominent markets.
Shortening product life cycle
– it is one of the major threat that I Grandi Viaggi is facing in Hotels & Motels sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– I Grandi Viaggi 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 Hotels & Motels industry regulations.
Weighted SWOT Analysis of I Grandi Viaggi Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at I Grandi Viaggi 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 I Grandi Viaggi 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 I Grandi Viaggi 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 I Grandi Viaggi 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 I Grandi Viaggi needs to make to build a sustainable competitive advantage.