Based on various researches at Oak Spring University , Gornictwo Naftowe Gazownictwo is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, there is backlash against globalization,
digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Gornictwo Naftowe Gazownictwo
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Gornictwo Naftowe Gazownictwo can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gornictwo Naftowe Gazownictwo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo can be done for the following purposes –
1. Strategic planning of Gornictwo Naftowe Gazownictwo
2. Improving business portfolio management of Gornictwo Naftowe Gazownictwo
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Natural Gas Utilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gornictwo Naftowe Gazownictwo
Strengths of Gornictwo Naftowe Gazownictwo | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gornictwo Naftowe Gazownictwo are -
Analytics focus
– Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry. The technology infrastructure of United Kingdom 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.
Superior customer experience
– The customer experience strategy of Gornictwo Naftowe Gazownictwo in Natural Gas Utilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Gornictwo Naftowe Gazownictwo emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Gornictwo Naftowe Gazownictwo is one of the leading players in the Natural Gas Utilities industry in United Kingdom. It is in a position to attract the best talent available in United Kingdom. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Gornictwo Naftowe Gazownictwo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gornictwo Naftowe Gazownictwo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Natural Gas Utilities
– Gornictwo Naftowe Gazownictwo is one of the leading players in the Natural Gas Utilities industry in United Kingdom. Over the years it has not only transformed the business landscape in the Natural Gas Utilities industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry
– Gornictwo Naftowe Gazownictwo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Natural Gas Utilities industry
- digital transformation varies from industry to industry. For Gornictwo Naftowe Gazownictwo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gornictwo Naftowe Gazownictwo 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.
Highly skilled collaborators
– Gornictwo Naftowe Gazownictwo has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Natural Gas Utilities industry. Secondly the value chain collaborators of Gornictwo Naftowe Gazownictwo have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Gornictwo Naftowe Gazownictwo 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
– Gornictwo Naftowe Gazownictwo is present in almost all the verticals within the Natural Gas Utilities industry. This has provided Gornictwo Naftowe Gazownictwo 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.
Cross disciplinary teams
– Horizontal connected teams at the Gornictwo Naftowe Gazownictwo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses of Gornictwo Naftowe Gazownictwo | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gornictwo Naftowe Gazownictwo are -
Slow to strategic competitive environment developments
– As Gornictwo Naftowe Gazownictwo is one of the leading players in the Natural Gas Utilities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Natural Gas Utilities industry in last five years.
Low market penetration in new markets
– Outside its home market of United Kingdom, Gornictwo Naftowe Gazownictwo needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– From the 10K / annual statement of Gornictwo Naftowe Gazownictwo, it seems that company is thinking out the frontier risks that can impact Natural Gas Utilities 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.
Compensation and incentives
– The revenue per employee of Gornictwo Naftowe Gazownictwo is just above the Natural Gas Utilities 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.
Ability to respond to the competition
– As the decision making is very deliberative at Gornictwo Naftowe Gazownictwo, in the dynamic environment of Natural Gas Utilities industry it has struggled to respond to the nimble upstart competition. Gornictwo Naftowe Gazownictwo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on Gornictwo Naftowe Gazownictwo ‘s star products
– The top 2 products and services of Gornictwo Naftowe Gazownictwo still accounts for major business revenue. This dependence on star products in Natural Gas Utilities industry has resulted into insufficient focus on developing new products, even though Gornictwo Naftowe Gazownictwo has relatively successful track record of launching new products.
Lack of clear differentiation of Gornictwo Naftowe Gazownictwo products
– To increase the profitability and margins on the products, Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo supply chain. Even after few cautionary changes, Gornictwo Naftowe Gazownictwo is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gornictwo Naftowe Gazownictwo vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Gornictwo Naftowe Gazownictwo is dominated by functional specialists. It is not different from other players in the Natural Gas Utilities industry, but Gornictwo Naftowe Gazownictwo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gornictwo Naftowe Gazownictwo to focus more on services in the Natural Gas Utilities industry rather than just following the product oriented approach.
Employees’ less understanding of Gornictwo Naftowe Gazownictwo strategy
– From the outside it seems that the employees of Gornictwo Naftowe Gazownictwo 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.
High operating costs
– Compare to the competitors, Gornictwo Naftowe Gazownictwo has high operating costs in the Natural Gas Utilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Gornictwo Naftowe Gazownictwo lucrative customers.
Gornictwo Naftowe Gazownictwo Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Gornictwo Naftowe Gazownictwo are -
Buying journey improvements
– Gornictwo Naftowe Gazownictwo can improve the customer journey of consumers in the Natural Gas Utilities 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.
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. Gornictwo Naftowe Gazownictwo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Gornictwo Naftowe Gazownictwo can develop new processes and procedures in Natural Gas Utilities 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 Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gornictwo Naftowe Gazownictwo is facing challenges because of the dominance of functional experts in the organization. Gornictwo Naftowe Gazownictwo can utilize new technology in the field of Natural Gas Utilities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Gornictwo Naftowe Gazownictwo can use the latest technology developments to improve its manufacturing and designing process in Natural Gas Utilities 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Natural Gas Utilities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gornictwo Naftowe Gazownictwo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Gornictwo Naftowe Gazownictwo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gornictwo Naftowe Gazownictwo 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.
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 Gornictwo Naftowe Gazownictwo 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Gornictwo Naftowe Gazownictwo 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Natural Gas Utilities industry, but it has also influenced the consumer preferences. Gornictwo Naftowe Gazownictwo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Gornictwo Naftowe Gazownictwo has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Natural Gas Utilities sector. This continuous investment in analytics has enabled Gornictwo Naftowe Gazownictwo to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gornictwo Naftowe Gazownictwo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Gornictwo Naftowe Gazownictwo External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Gornictwo Naftowe Gazownictwo are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Natural Gas Utilities industry are lowering. It can presents Gornictwo Naftowe Gazownictwo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Natural Gas Utilities sector.
Increasing wage structure of Gornictwo Naftowe Gazownictwo
– 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 Gornictwo Naftowe Gazownictwo.
Environmental challenges
– Gornictwo Naftowe Gazownictwo 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. Gornictwo Naftowe Gazownictwo can take advantage of this fund but it will also bring new competitors in the Natural Gas Utilities industry.
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.
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 Gornictwo Naftowe Gazownictwo in the Natural Gas Utilities sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Gornictwo Naftowe Gazownictwo has witnessed rapid integration of technology during Covid-19 in the Natural Gas Utilities industry. As one of the leading players in the industry, Gornictwo Naftowe Gazownictwo needs to keep up with the evolution of technology in the Natural Gas Utilities 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.
Stagnating economy with rate increase
– Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry.
Shortening product life cycle
– it is one of the major threat that Gornictwo Naftowe Gazownictwo is facing in Natural Gas Utilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry regulations.
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. Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry and other sectors.
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 Gornictwo Naftowe Gazownictwo business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Gornictwo Naftowe Gazownictwo Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo needs to make to build a sustainable competitive advantage.