Based on various researches at Oak Spring University , Gornictwo Naftowe Gazownictwo is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
cloud computing is disrupting traditional business models, 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 -
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.
Successful track record of launching new products
– Gornictwo Naftowe Gazownictwo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gornictwo Naftowe Gazownictwo 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.
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.
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.
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.
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.
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.
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.
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.
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.
Sustainable margins compare to other players in Natural Gas Utilities industry
– Gornictwo Naftowe Gazownictwo has clearly differentiated products in the market place. This has enabled Gornictwo Naftowe Gazownictwo to fetch slight price premium compare to the competitors in the Natural Gas Utilities industry. The sustainable margins have also helped Gornictwo Naftowe Gazownictwo to invest into research and development (R&D) and innovation.
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 -
Capital Spending Reduction
– Even during the low interest decade, Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry using digital technology.
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.
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.
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.
Skills based hiring in Natural Gas Utilities industry
– The stress on hiring functional specialists at Gornictwo Naftowe Gazownictwo 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.
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.
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.
High cash cycle compare to competitors
Gornictwo Naftowe Gazownictwo has a high cash cycle compare to other players in the Natural Gas Utilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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.
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 bargaining power of channel partners in Natural Gas Utilities industry
– because of the regulatory requirements in United Kingdom, Gornictwo Naftowe Gazownictwo 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 Natural Gas Utilities industry.
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 -
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.
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.
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.
Loyalty marketing
– Gornictwo Naftowe Gazownictwo 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.
Leveraging digital technologies
– Gornictwo Naftowe Gazownictwo can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
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.
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.
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.
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.
Use of Bitcoin and other crypto currencies for transactions in Natural Gas Utilities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Gornictwo Naftowe Gazownictwo in the Natural Gas Utilities industry. Now Gornictwo Naftowe Gazownictwo can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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 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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Gornictwo Naftowe Gazownictwo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Natural Gas Utilities sector.
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.
Easy access to finance
– Easy access to finance in Natural Gas Utilities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gornictwo Naftowe Gazownictwo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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.
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.
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.
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.
