Mayr-Melnhof Karton AG (0NZ7) SWOT Analysis / TOWS Matrix / MBA Resources
Containers & Packaging
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Mayr-Melnhof Karton AG (United Kingdom)
Based on various researches at Oak Spring University , Mayr-Melnhof Karton AG 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%, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing commodity prices, supply chains are disrupted by pandemic , wage bills are increasing,
there is backlash against globalization, increasing energy prices, etc
Introduction to SWOT Analysis of Mayr-Melnhof Karton AG
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mayr-Melnhof Karton AG can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mayr-Melnhof Karton AG, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG can be done for the following purposes –
1. Strategic planning of Mayr-Melnhof Karton AG
2. Improving business portfolio management of Mayr-Melnhof Karton AG
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Containers & Packaging sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mayr-Melnhof Karton AG
Strengths of Mayr-Melnhof Karton AG | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mayr-Melnhof Karton AG are -
Low bargaining power of suppliers
– Suppliers of Mayr-Melnhof Karton AG in the Basic Materials sector have low bargaining power. Mayr-Melnhof Karton AG has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mayr-Melnhof Karton AG to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Mayr-Melnhof Karton AG emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Mayr-Melnhof Karton AG
– The covid-19 pandemic has put organizational resilience at the centre of everthing Mayr-Melnhof Karton AG does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Containers & Packaging
– Mayr-Melnhof Karton AG is one of the leading players in the Containers & Packaging industry in United Kingdom. Over the years it has not only transformed the business landscape in the Containers & Packaging industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Mayr-Melnhof Karton AG in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Mayr-Melnhof Karton AG has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mayr-Melnhof Karton AG 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.
High brand equity
– Mayr-Melnhof Karton AG has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mayr-Melnhof Karton AG to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Containers & Packaging industry
– Mayr-Melnhof Karton AG has clearly differentiated products in the market place. This has enabled Mayr-Melnhof Karton AG to fetch slight price premium compare to the competitors in the Containers & Packaging industry. The sustainable margins have also helped Mayr-Melnhof Karton AG to invest into research and development (R&D) and innovation.
Digital Transformation in Containers & Packaging industry
- digital transformation varies from industry to industry. For Mayr-Melnhof Karton AG digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mayr-Melnhof Karton AG 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.
Diverse revenue streams
– Mayr-Melnhof Karton AG is present in almost all the verticals within the Containers & Packaging industry. This has provided Mayr-Melnhof Karton AG 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.
Training and development
– Mayr-Melnhof Karton AG has one of the best training and development program in Basic Materials 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.
Superior customer experience
– The customer experience strategy of Mayr-Melnhof Karton AG in Containers & Packaging industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Mayr-Melnhof Karton AG is one of the leading players in the Containers & Packaging 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.
Weaknesses of Mayr-Melnhof Karton AG | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mayr-Melnhof Karton AG are -
Compensation and incentives
– The revenue per employee of Mayr-Melnhof Karton AG is just above the Containers & Packaging 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.
Skills based hiring in Containers & Packaging industry
– The stress on hiring functional specialists at Mayr-Melnhof Karton AG 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.
High operating costs
– Compare to the competitors, Mayr-Melnhof Karton AG has high operating costs in the Containers & Packaging industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mayr-Melnhof Karton AG lucrative customers.
No frontier risks strategy
– From the 10K / annual statement of Mayr-Melnhof Karton AG, it seems that company is thinking out the frontier risks that can impact Containers & Packaging 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.
Increasing silos among functional specialists
– The organizational structure of Mayr-Melnhof Karton AG is dominated by functional specialists. It is not different from other players in the Containers & Packaging industry, but Mayr-Melnhof Karton AG needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mayr-Melnhof Karton AG to focus more on services in the Containers & Packaging industry rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Mayr-Melnhof Karton AG is one of the leading players in the Containers & Packaging industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Containers & Packaging industry in last five years.
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 Mayr-Melnhof Karton AG supply chain. Even after few cautionary changes, Mayr-Melnhof Karton AG is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mayr-Melnhof Karton AG vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Mayr-Melnhof Karton AG has a high cash cycle compare to other players in the Containers & Packaging 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mayr-Melnhof Karton AG is slow explore the new channels of communication. These new channels of communication can help Mayr-Melnhof Karton AG to provide better information regarding Containers & Packaging products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Mayr-Melnhof Karton AG, in the dynamic environment of Containers & Packaging industry it has struggled to respond to the nimble upstart competition. Mayr-Melnhof Karton AG has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Mayr-Melnhof Karton AG 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 Containers & Packaging industry using digital technology.
Mayr-Melnhof Karton AG Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Mayr-Melnhof Karton AG are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mayr-Melnhof Karton AG to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Leveraging digital technologies
– Mayr-Melnhof Karton AG 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mayr-Melnhof Karton AG can use these opportunities to build new business models that can help the communities that Mayr-Melnhof Karton AG operates in. Secondly it can use opportunities from government spending in Containers & Packaging sector.
Developing new processes and practices
– Mayr-Melnhof Karton AG can develop new processes and procedures in Containers & Packaging 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.
Use of Bitcoin and other crypto currencies for transactions in Containers & Packaging industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mayr-Melnhof Karton AG in the Containers & Packaging industry. Now Mayr-Melnhof Karton AG 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, Mayr-Melnhof Karton AG is facing challenges because of the dominance of functional experts in the organization. Mayr-Melnhof Karton AG can utilize new technology in the field of Containers & Packaging industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Mayr-Melnhof Karton AG can use the latest technology developments to improve its manufacturing and designing process in Containers & Packaging 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.
Creating value in data economy
– The success of analytics program of Mayr-Melnhof Karton AG has opened avenues for new revenue streams for the organization in Containers & Packaging industry. This can help Mayr-Melnhof Karton AG to build a more holistic ecosystem for Mayr-Melnhof Karton AG products in the Containers & Packaging industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Mayr-Melnhof Karton AG has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Containers & Packaging sector. This continuous investment in analytics has enabled Mayr-Melnhof Karton AG to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mayr-Melnhof Karton AG to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Containers & Packaging industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mayr-Melnhof Karton AG 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. Mayr-Melnhof Karton AG can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mayr-Melnhof Karton AG 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.
Learning at scale
– Online learning technologies has now opened space for Mayr-Melnhof Karton AG 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.
Threats Mayr-Melnhof Karton AG External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Mayr-Melnhof Karton AG are -
Stagnating economy with rate increase
– Mayr-Melnhof Karton AG 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 Containers & Packaging industry.
Technology acceleration in Forth Industrial Revolution
– Mayr-Melnhof Karton AG has witnessed rapid integration of technology during Covid-19 in the Containers & Packaging industry. As one of the leading players in the industry, Mayr-Melnhof Karton AG needs to keep up with the evolution of technology in the Containers & Packaging 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.
Consumer confidence and its impact on Mayr-Melnhof Karton AG 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 Containers & Packaging industry and other sectors.
Regulatory challenges
– Mayr-Melnhof Karton AG 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 Containers & Packaging 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.
Shortening product life cycle
– it is one of the major threat that Mayr-Melnhof Karton AG is facing in Containers & Packaging sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Mayr-Melnhof Karton AG business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Containers & Packaging industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mayr-Melnhof Karton AG can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Mayr-Melnhof Karton AG needs to understand the core reasons impacting the Containers & Packaging industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG prominent markets.
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. Mayr-Melnhof Karton AG 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Mayr-Melnhof Karton AG may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Containers & Packaging sector.
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 Mayr-Melnhof Karton AG in the Containers & Packaging sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Mayr-Melnhof Karton AG Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG 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 Mayr-Melnhof Karton AG needs to make to build a sustainable competitive advantage.