Based on various researches at Oak Spring University , Magnitogorskiy Metallurgichesk DRC is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Magnitogorskiy Metallurgichesk DRC
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Magnitogorskiy Metallurgichesk DRC can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Magnitogorskiy Metallurgichesk DRC, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC can be done for the following purposes –
1. Strategic planning of Magnitogorskiy Metallurgichesk DRC
2. Improving business portfolio management of Magnitogorskiy Metallurgichesk DRC
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Magnitogorskiy Metallurgichesk DRC
Strengths of Magnitogorskiy Metallurgichesk DRC | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Magnitogorskiy Metallurgichesk DRC are -
High brand equity
– Magnitogorskiy Metallurgichesk DRC has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Magnitogorskiy Metallurgichesk DRC to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Magnitogorskiy Metallurgichesk DRC is one of the most innovative firm in sector.
Sustainable margins compare to other players in industry
– Magnitogorskiy Metallurgichesk DRC has clearly differentiated products in the market place. This has enabled Magnitogorskiy Metallurgichesk DRC to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Magnitogorskiy Metallurgichesk DRC to invest into research and development (R&D) and innovation.
Organizational Resilience of Magnitogorskiy Metallurgichesk DRC
– The covid-19 pandemic has put organizational resilience at the centre of everthing Magnitogorskiy Metallurgichesk DRC does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Magnitogorskiy Metallurgichesk DRC is one of the leading players in the 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.
Superior customer experience
– The customer experience strategy of Magnitogorskiy Metallurgichesk DRC in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Magnitogorskiy Metallurgichesk DRC 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 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.
Learning organization
- Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Magnitogorskiy Metallurgichesk DRC emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the industry
– Magnitogorskiy Metallurgichesk DRC is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Magnitogorskiy Metallurgichesk DRC has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Magnitogorskiy Metallurgichesk DRC 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.
Effective Research and Development (R&D)
– Magnitogorskiy Metallurgichesk DRC has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Magnitogorskiy Metallurgichesk DRC staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Magnitogorskiy Metallurgichesk DRC digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Magnitogorskiy Metallurgichesk DRC 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.
Weaknesses of Magnitogorskiy Metallurgichesk DRC | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Magnitogorskiy Metallurgichesk DRC are -
Capital Spending Reduction
– Even during the low interest decade, Magnitogorskiy Metallurgichesk DRC 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 industry using digital technology.
High operating costs
– Compare to the competitors, Magnitogorskiy Metallurgichesk DRC has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Magnitogorskiy Metallurgichesk DRC lucrative customers.
Products dominated business model
– Even though Magnitogorskiy Metallurgichesk DRC has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Magnitogorskiy Metallurgichesk DRC should strive to include more intangible value offerings along with its core products and services.
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 Magnitogorskiy Metallurgichesk DRC supply chain. Even after few cautionary changes, Magnitogorskiy Metallurgichesk DRC is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Magnitogorskiy Metallurgichesk DRC vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Magnitogorskiy Metallurgichesk DRC, it seems that company is thinking out the frontier risks that can impact 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.
Interest costs
– Compare to the competition, Magnitogorskiy Metallurgichesk DRC 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 bargaining power of channel partners in industry
– because of the regulatory requirements in United Kingdom, Magnitogorskiy Metallurgichesk DRC 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 industry.
Slow to strategic competitive environment developments
– As Magnitogorskiy Metallurgichesk DRC is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Magnitogorskiy Metallurgichesk DRC is slow explore the new channels of communication. These new channels of communication can help Magnitogorskiy Metallurgichesk DRC to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Magnitogorskiy Metallurgichesk DRC is dominated by functional specialists. It is not different from other players in the industry, but Magnitogorskiy Metallurgichesk DRC needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Magnitogorskiy Metallurgichesk DRC to focus more on services in the industry rather than just following the product oriented approach.
Need for greater diversity
– Magnitogorskiy Metallurgichesk DRC 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.
Magnitogorskiy Metallurgichesk DRC Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Magnitogorskiy Metallurgichesk DRC are -
Learning at scale
– Online learning technologies has now opened space for Magnitogorskiy Metallurgichesk DRC 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Magnitogorskiy Metallurgichesk DRC can improve the customer journey of consumers in the 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Magnitogorskiy Metallurgichesk DRC can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Magnitogorskiy Metallurgichesk DRC in the industry. Now Magnitogorskiy Metallurgichesk DRC can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Magnitogorskiy Metallurgichesk DRC 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. Magnitogorskiy Metallurgichesk DRC 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.
Developing new processes and practices
– Magnitogorskiy Metallurgichesk DRC can develop new processes and procedures in 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Magnitogorskiy Metallurgichesk DRC can use these opportunities to build new business models that can help the communities that Magnitogorskiy Metallurgichesk DRC operates in. Secondly it can use opportunities from government spending in sector.
Leveraging digital technologies
– Magnitogorskiy Metallurgichesk DRC 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.
Building a culture of innovation
– managers at Magnitogorskiy Metallurgichesk DRC 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 industry.
Loyalty marketing
– Magnitogorskiy Metallurgichesk DRC has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Magnitogorskiy Metallurgichesk DRC can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Magnitogorskiy Metallurgichesk DRC is facing challenges because of the dominance of functional experts in the organization. Magnitogorskiy Metallurgichesk DRC can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Magnitogorskiy Metallurgichesk DRC External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Magnitogorskiy Metallurgichesk DRC are -
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Magnitogorskiy Metallurgichesk DRC can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Magnitogorskiy Metallurgichesk DRC may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Regulatory challenges
– Magnitogorskiy Metallurgichesk DRC 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 industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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. Magnitogorskiy Metallurgichesk DRC needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Environmental challenges
– Magnitogorskiy Metallurgichesk DRC 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. Magnitogorskiy Metallurgichesk DRC can take advantage of this fund but it will also bring new competitors in the industry.
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 Magnitogorskiy Metallurgichesk DRC business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Magnitogorskiy Metallurgichesk DRC is facing in 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 Magnitogorskiy Metallurgichesk DRC in the sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Magnitogorskiy Metallurgichesk DRC with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Magnitogorskiy Metallurgichesk DRC has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Magnitogorskiy Metallurgichesk DRC needs to keep up with the evolution of technology in the 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.
Increasing wage structure of Magnitogorskiy Metallurgichesk DRC
– 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 Magnitogorskiy Metallurgichesk DRC.
Consumer confidence and its impact on Magnitogorskiy Metallurgichesk DRC 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 industry and other sectors.
Weighted SWOT Analysis of Magnitogorskiy Metallurgichesk DRC Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC 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 Magnitogorskiy Metallurgichesk DRC needs to make to build a sustainable competitive advantage.