Indoor Skydive AUS Group (IDZ) SWOT Analysis / TOWS Matrix / MBA Resources
Recreational Activities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Indoor Skydive AUS Group (Australia)
Based on various researches at Oak Spring University , Indoor Skydive AUS Group is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing commodity prices, there is backlash against globalization, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Indoor Skydive AUS Group
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Indoor Skydive AUS Group can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Indoor Skydive AUS Group, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Indoor Skydive AUS Group 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 Indoor Skydive AUS Group can be done for the following purposes –
1. Strategic planning of Indoor Skydive AUS Group
2. Improving business portfolio management of Indoor Skydive AUS Group
3. Assessing feasibility of the new initiative in Australia
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Indoor Skydive AUS Group
Strengths of Indoor Skydive AUS Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Indoor Skydive AUS Group are -
Digital Transformation in Recreational Activities industry
- digital transformation varies from industry to industry. For Indoor Skydive AUS Group digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Indoor Skydive AUS Group 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.
Sustainable margins compare to other players in Recreational Activities industry
– Indoor Skydive AUS Group has clearly differentiated products in the market place. This has enabled Indoor Skydive AUS Group to fetch slight price premium compare to the competitors in the Recreational Activities industry. The sustainable margins have also helped Indoor Skydive AUS Group to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Indoor Skydive AUS Group is present in almost all the verticals within the Recreational Activities industry. This has provided Indoor Skydive AUS Group 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.
Innovation driven organization
– Indoor Skydive AUS Group is one of the most innovative firm in Recreational Activities sector.
Learning organization
- Indoor Skydive AUS Group 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 Indoor Skydive AUS Group is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Indoor Skydive AUS Group emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Indoor Skydive AUS Group in the Services sector have low bargaining power. Indoor Skydive AUS Group has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Indoor Skydive AUS Group to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Indoor Skydive AUS Group 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.
Training and development
– Indoor Skydive AUS Group 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
– Indoor Skydive AUS Group is one of the leading players in the Recreational Activities industry in Australia. It is in a position to attract the best talent available in Australia. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Indoor Skydive AUS Group has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Indoor Skydive AUS Group to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Recreational Activities
– Indoor Skydive AUS Group is one of the leading players in the Recreational Activities industry in Australia. Over the years it has not only transformed the business landscape in the Recreational Activities industry in Australia but also across the existing markets. The ability to lead change has enabled Indoor Skydive AUS Group in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management in the Recreational Activities industry
– Indoor Skydive AUS Group is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of Indoor Skydive AUS Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Indoor Skydive AUS Group are -
Increasing silos among functional specialists
– The organizational structure of Indoor Skydive AUS Group is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but Indoor Skydive AUS Group needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Indoor Skydive AUS Group to focus more on services in the Recreational Activities industry rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Indoor Skydive AUS Group has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Recreational Activities industry over the last five years. Indoor Skydive AUS Group 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.
Employees’ less understanding of Indoor Skydive AUS Group strategy
– From the outside it seems that the employees of Indoor Skydive AUS Group 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.
Products dominated business model
– Even though Indoor Skydive AUS Group has some of the most successful models in the Recreational Activities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Indoor Skydive AUS Group should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Indoor Skydive AUS Group 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Indoor Skydive AUS Group is slow explore the new channels of communication. These new channels of communication can help Indoor Skydive AUS Group to provide better information regarding Recreational Activities products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Indoor Skydive AUS Group products
– To increase the profitability and margins on the products, Indoor Skydive AUS Group needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Indoor Skydive AUS Group supply chain. Even after few cautionary changes, Indoor Skydive AUS Group is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Indoor Skydive AUS Group vulnerable to further global disruptions in South East Asia.
High dependence on Indoor Skydive AUS Group ‘s star products
– The top 2 products and services of Indoor Skydive AUS Group still accounts for major business revenue. This dependence on star products in Recreational Activities industry has resulted into insufficient focus on developing new products, even though Indoor Skydive AUS Group has relatively successful track record of launching new products.
High cash cycle compare to competitors
Indoor Skydive AUS Group has a high cash cycle compare to other players in the Recreational Activities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, Indoor Skydive AUS Group has high operating costs in the Recreational Activities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Indoor Skydive AUS Group lucrative customers.
Indoor Skydive AUS Group Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Indoor Skydive AUS Group are -
Using analytics as competitive advantage
– Indoor Skydive AUS Group has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Recreational Activities sector. This continuous investment in analytics has enabled Indoor Skydive AUS Group to build a competitive advantage using analytics. The analytics driven competitive advantage can help Indoor Skydive AUS Group to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Indoor Skydive AUS Group can use these opportunities to build new business models that can help the communities that Indoor Skydive AUS Group operates in. Secondly it can use opportunities from government spending in Recreational Activities sector.
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. Indoor Skydive AUS Group can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Indoor Skydive AUS Group 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 Indoor Skydive AUS Group to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Recreational Activities industry, but it has also influenced the consumer preferences. Indoor Skydive AUS Group 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 Recreational Activities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Indoor Skydive AUS Group in the Recreational Activities industry. Now Indoor Skydive AUS Group can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Indoor Skydive AUS Group 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, Indoor Skydive AUS Group 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Indoor Skydive AUS Group is facing challenges because of the dominance of functional experts in the organization. Indoor Skydive AUS Group can utilize new technology in the field of Recreational Activities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 Indoor Skydive AUS Group 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.
Buying journey improvements
– Indoor Skydive AUS Group can improve the customer journey of consumers in the Recreational Activities 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Indoor Skydive AUS Group in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Recreational Activities industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Indoor Skydive AUS Group 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 Indoor Skydive AUS Group to hire the very best people irrespective of their geographical location.
Threats Indoor Skydive AUS Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Indoor Skydive AUS Group are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Indoor Skydive AUS Group in Recreational Activities industry. The Recreational Activities 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 Indoor Skydive AUS Group
– 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 Indoor Skydive AUS Group.
Regulatory challenges
– Indoor Skydive AUS Group 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 Recreational Activities industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Indoor Skydive AUS Group may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Recreational Activities sector.
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 Indoor Skydive AUS Group.
Environmental challenges
– Indoor Skydive AUS Group 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. Indoor Skydive AUS Group can take advantage of this fund but it will also bring new competitors in the Recreational Activities industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Recreational Activities industry are lowering. It can presents Indoor Skydive AUS Group with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Activities sector.
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. Indoor Skydive AUS Group 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.
Consumer confidence and its impact on Indoor Skydive AUS Group 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 Recreational Activities industry and other sectors.
High dependence on third party suppliers
– Indoor Skydive AUS Group 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.
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.
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 Indoor Skydive AUS Group business can come under increasing regulations regarding data privacy, data security, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Indoor Skydive AUS Group in the Recreational Activities sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Indoor Skydive AUS Group Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Indoor Skydive AUS Group 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 Indoor Skydive AUS Group 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 Indoor Skydive AUS Group 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 Indoor Skydive AUS Group 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 Indoor Skydive AUS Group needs to make to build a sustainable competitive advantage.