Based on various researches at Oak Spring University , Etablissementen Fr Colruyt is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, there is backlash against globalization, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Etablissementen Fr Colruyt
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Etablissementen Fr Colruyt can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Etablissementen Fr Colruyt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt can be done for the following purposes –
1. Strategic planning of Etablissementen Fr Colruyt
2. Improving business portfolio management of Etablissementen Fr Colruyt
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Retail (Grocery) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Etablissementen Fr Colruyt
Strengths of Etablissementen Fr Colruyt | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Etablissementen Fr Colruyt are -
Analytics focus
– Etablissementen Fr Colruyt 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 Retail (Grocery) 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.
High switching costs
– The high switching costs that Etablissementen Fr Colruyt 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
– Etablissementen Fr Colruyt is present in almost all the verticals within the Retail (Grocery) industry. This has provided Etablissementen Fr Colruyt 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.
Ability to lead change in Retail (Grocery)
– Etablissementen Fr Colruyt is one of the leading players in the Retail (Grocery) industry in United Kingdom. Over the years it has not only transformed the business landscape in the Retail (Grocery) industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Etablissementen Fr Colruyt in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Etablissementen Fr Colruyt in the Services sector have low bargaining power. Etablissementen Fr Colruyt has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Etablissementen Fr Colruyt to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Retail (Grocery) industry
- digital transformation varies from industry to industry. For Etablissementen Fr Colruyt digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Etablissementen Fr Colruyt 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.
Organizational Resilience of Etablissementen Fr Colruyt
– The covid-19 pandemic has put organizational resilience at the centre of everthing Etablissementen Fr Colruyt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Etablissementen Fr Colruyt has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Retail (Grocery) industry. Secondly the value chain collaborators of Etablissementen Fr Colruyt have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Etablissementen Fr Colruyt emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Retail (Grocery) industry
– Etablissementen Fr Colruyt is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Etablissementen Fr Colruyt is one of the most innovative firm in Retail (Grocery) sector.
Successful track record of launching new products
– Etablissementen Fr Colruyt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Etablissementen Fr Colruyt 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.
Weaknesses of Etablissementen Fr Colruyt | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Etablissementen Fr Colruyt are -
High bargaining power of channel partners in Retail (Grocery) industry
– because of the regulatory requirements in United Kingdom, Etablissementen Fr Colruyt 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 Retail (Grocery) industry.
Skills based hiring in Retail (Grocery) industry
– The stress on hiring functional specialists at Etablissementen Fr Colruyt 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.
Interest costs
– Compare to the competition, Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt products
– To increase the profitability and margins on the products, Etablissementen Fr Colruyt needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of United Kingdom, Etablissementen Fr Colruyt needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Etablissementen Fr Colruyt has some of the most successful models in the Retail (Grocery) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Etablissementen Fr Colruyt should strive to include more intangible value offerings along with its core products and services.
High dependence on Etablissementen Fr Colruyt ‘s star products
– The top 2 products and services of Etablissementen Fr Colruyt still accounts for major business revenue. This dependence on star products in Retail (Grocery) industry has resulted into insufficient focus on developing new products, even though Etablissementen Fr Colruyt has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Etablissementen Fr Colruyt is dominated by functional specialists. It is not different from other players in the Retail (Grocery) industry, but Etablissementen Fr Colruyt needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Etablissementen Fr Colruyt to focus more on services in the Retail (Grocery) industry rather than just following the product oriented approach.
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 Etablissementen Fr Colruyt supply chain. Even after few cautionary changes, Etablissementen Fr Colruyt is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Etablissementen Fr Colruyt vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative at Etablissementen Fr Colruyt, in the dynamic environment of Retail (Grocery) industry it has struggled to respond to the nimble upstart competition. Etablissementen Fr Colruyt has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Etablissementen Fr Colruyt is one of the leading players in the Retail (Grocery) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Retail (Grocery) industry in last five years.
Etablissementen Fr Colruyt Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Etablissementen Fr Colruyt are -
Better consumer reach
– The expansion of the 5G network will help Etablissementen Fr Colruyt to increase its market reach. Etablissementen Fr Colruyt 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Etablissementen Fr Colruyt 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Etablissementen Fr Colruyt can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Retail (Grocery) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Etablissementen Fr Colruyt in the Retail (Grocery) industry. Now Etablissementen Fr Colruyt can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Etablissementen Fr Colruyt can use these opportunities to build new business models that can help the communities that Etablissementen Fr Colruyt operates in. Secondly it can use opportunities from government spending in Retail (Grocery) sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Retail (Grocery) industry, but it has also influenced the consumer preferences. Etablissementen Fr Colruyt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Etablissementen Fr Colruyt can develop new processes and procedures in Retail (Grocery) 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.
Manufacturing automation
– Etablissementen Fr Colruyt can use the latest technology developments to improve its manufacturing and designing process in Retail (Grocery) 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.
Learning at scale
– Online learning technologies has now opened space for Etablissementen Fr Colruyt 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Etablissementen Fr Colruyt is facing challenges because of the dominance of functional experts in the organization. Etablissementen Fr Colruyt can utilize new technology in the field of Retail (Grocery) 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 Etablissementen Fr Colruyt has opened avenues for new revenue streams for the organization in Retail (Grocery) industry. This can help Etablissementen Fr Colruyt to build a more holistic ecosystem for Etablissementen Fr Colruyt products in the Retail (Grocery) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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. Etablissementen Fr Colruyt can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Etablissementen Fr Colruyt External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Etablissementen Fr Colruyt are -
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 Etablissementen Fr Colruyt in the Retail (Grocery) sector and impact the bottomline of the organization.
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.
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 Etablissementen Fr Colruyt business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Etablissementen Fr Colruyt may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Retail (Grocery) sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Etablissementen Fr Colruyt in Retail (Grocery) industry. The Retail (Grocery) 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 Etablissementen Fr Colruyt
– 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 Etablissementen Fr Colruyt.
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. Etablissementen Fr Colruyt needs to understand the core reasons impacting the Retail (Grocery) industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Etablissementen Fr Colruyt 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 Retail (Grocery) industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Retail (Grocery) industry are lowering. It can presents Etablissementen Fr Colruyt with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Retail (Grocery) 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. Etablissementen Fr Colruyt 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt prominent markets.
Regulatory challenges
– Etablissementen Fr Colruyt 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 Retail (Grocery) industry regulations.
Environmental challenges
– Etablissementen Fr Colruyt 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. Etablissementen Fr Colruyt can take advantage of this fund but it will also bring new competitors in the Retail (Grocery) industry.
Weighted SWOT Analysis of Etablissementen Fr Colruyt Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt 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 Etablissementen Fr Colruyt needs to make to build a sustainable competitive advantage.
