Based on various researches at Oak Spring University , Gornictwo Naftowe Gazownictwo is operating in a macro-environment that has been destablized by – there is backlash against globalization, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Low bargaining power of suppliers
– Suppliers of Gornictwo Naftowe Gazownictwo in the Utilities sector have low bargaining power. Gornictwo Naftowe Gazownictwo has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gornictwo Naftowe Gazownictwo to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
Effective Research and Development (R&D)
– Gornictwo Naftowe Gazownictwo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Gornictwo Naftowe Gazownictwo staying ahead in the Natural Gas Utilities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of Gornictwo Naftowe Gazownictwo comprises – understanding the underlying the factors in the Natural Gas Utilities 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.
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.
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.
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.
Training and development
– Gornictwo Naftowe Gazownictwo has one of the best training and development program in Utilities 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
– 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.
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.
Organizational Resilience of Gornictwo Naftowe Gazownictwo
– The covid-19 pandemic has put organizational resilience at the centre of everthing Gornictwo Naftowe Gazownictwo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
Interest costs
– Compare to the competition, Gornictwo Naftowe Gazownictwo 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.
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.
Aligning sales with marketing
– From the outside it seems that Gornictwo Naftowe Gazownictwo needs to have more collaboration between its sales team and marketing team. Sales professionals in the Natural Gas Utilities industry have deep experience in developing customer relationships. Marketing department at Gornictwo Naftowe Gazownictwo can leverage the sales team experience to cultivate customer relationships as Gornictwo Naftowe Gazownictwo is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the Natural Gas Utilities industry, Gornictwo Naftowe Gazownictwo 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Gornictwo Naftowe Gazownictwo has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Natural Gas Utilities industry over the last five years. Gornictwo Naftowe Gazownictwo 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.
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.
Products dominated business model
– Even though Gornictwo Naftowe Gazownictwo has some of the most successful models in the Natural Gas Utilities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Gornictwo Naftowe Gazownictwo should strive to include more intangible value offerings along with its core products and services.
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.
Need for greater diversity
– Gornictwo Naftowe Gazownictwo 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gornictwo Naftowe Gazownictwo can use these opportunities to build new business models that can help the communities that Gornictwo Naftowe Gazownictwo operates in. Secondly it can use opportunities from government spending in Natural Gas Utilities sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gornictwo Naftowe Gazownictwo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Natural Gas Utilities industry, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gornictwo Naftowe Gazownictwo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gornictwo Naftowe Gazownictwo 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 Gornictwo Naftowe Gazownictwo to hire the very best people irrespective of their geographical location.
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.
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.
Creating value in data economy
– The success of analytics program of Gornictwo Naftowe Gazownictwo has opened avenues for new revenue streams for the organization in Natural Gas Utilities industry. This can help Gornictwo Naftowe Gazownictwo to build a more holistic ecosystem for Gornictwo Naftowe Gazownictwo products in the Natural Gas Utilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Gornictwo Naftowe Gazownictwo to increase its market reach. Gornictwo Naftowe Gazownictwo 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.
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 -
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.
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.
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.
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.
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. Gornictwo Naftowe Gazownictwo needs to understand the core reasons impacting the Natural Gas Utilities industry. This will help it in building a better workplace.
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.
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.
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.
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.
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 Gornictwo Naftowe Gazownictwo.
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.
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.
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.