Papeles Y Cartones (0FR0) SWOT Analysis / TOWS Matrix / MBA Resources
Paper & Paper Products
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Papeles Y Cartones (United Kingdom)
Based on various researches at Oak Spring University , Papeles Y Cartones is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, geopolitical disruptions, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China,
banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Papeles Y Cartones
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Papeles Y Cartones can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Papeles Y Cartones, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Papeles Y Cartones 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 Papeles Y Cartones can be done for the following purposes –
1. Strategic planning of Papeles Y Cartones
2. Improving business portfolio management of Papeles Y Cartones
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Paper & Paper Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Papeles Y Cartones
Strengths of Papeles Y Cartones | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Papeles Y Cartones are -
Effective Research and Development (R&D)
– Papeles Y Cartones has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Papeles Y Cartones staying ahead in the Paper & Paper Products industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Paper & Paper Products industry
- digital transformation varies from industry to industry. For Papeles Y Cartones digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Papeles Y Cartones 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.
Analytics focus
– Papeles Y Cartones 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 Paper & Paper Products 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.
Highly skilled collaborators
– Papeles Y Cartones has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Paper & Paper Products industry. Secondly the value chain collaborators of Papeles Y Cartones have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Papeles Y Cartones 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.
Successful track record of launching new products
– Papeles Y Cartones has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Papeles Y Cartones 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.
Sustainable margins compare to other players in Paper & Paper Products industry
– Papeles Y Cartones has clearly differentiated products in the market place. This has enabled Papeles Y Cartones to fetch slight price premium compare to the competitors in the Paper & Paper Products industry. The sustainable margins have also helped Papeles Y Cartones to invest into research and development (R&D) and innovation.
Organizational Resilience of Papeles Y Cartones
– The covid-19 pandemic has put organizational resilience at the centre of everthing Papeles Y Cartones does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Papeles Y Cartones in the Basic Materials sector have low bargaining power. Papeles Y Cartones has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Papeles Y Cartones to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Papeles Y Cartones 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 Papeles Y Cartones is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Papeles Y Cartones emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Papeles Y Cartones in Paper & Paper Products industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Papeles Y Cartones has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Papeles Y Cartones to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Papeles Y Cartones | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Papeles Y Cartones are -
Ability to respond to the competition
– As the decision making is very deliberative at Papeles Y Cartones, in the dynamic environment of Paper & Paper Products industry it has struggled to respond to the nimble upstart competition. Papeles Y Cartones has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Papeles Y Cartones 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 Papeles Y Cartones products
– To increase the profitability and margins on the products, Papeles Y Cartones needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on Papeles Y Cartones ‘s star products
– The top 2 products and services of Papeles Y Cartones still accounts for major business revenue. This dependence on star products in Paper & Paper Products industry has resulted into insufficient focus on developing new products, even though Papeles Y Cartones has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Papeles Y Cartones is one of the leading players in the Paper & Paper Products industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Paper & Paper Products industry in last five years.
High bargaining power of channel partners in Paper & Paper Products industry
– because of the regulatory requirements in United Kingdom, Papeles Y Cartones 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 Paper & Paper Products industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Papeles Y Cartones is slow explore the new channels of communication. These new channels of communication can help Papeles Y Cartones to provide better information regarding Paper & Paper Products products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– From the outside it seems that Papeles Y Cartones needs to have more collaboration between its sales team and marketing team. Sales professionals in the Paper & Paper Products industry have deep experience in developing customer relationships. Marketing department at Papeles Y Cartones can leverage the sales team experience to cultivate customer relationships as Papeles Y Cartones is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Papeles Y Cartones has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Paper & Paper Products industry over the last five years. Papeles Y Cartones even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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 Papeles Y Cartones supply chain. Even after few cautionary changes, Papeles Y Cartones is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Papeles Y Cartones vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Papeles Y Cartones 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.
Papeles Y Cartones Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Papeles Y Cartones are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Papeles Y Cartones 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 Papeles Y Cartones to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Papeles Y Cartones has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Paper & Paper Products sector. This continuous investment in analytics has enabled Papeles Y Cartones to build a competitive advantage using analytics. The analytics driven competitive advantage can help Papeles Y Cartones 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. Papeles Y Cartones can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Papeles Y Cartones to increase its market reach. Papeles Y Cartones 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Paper & Paper Products industry, but it has also influenced the consumer preferences. Papeles Y Cartones 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 Paper & Paper Products industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Papeles Y Cartones in the Paper & Paper Products industry. Now Papeles Y Cartones can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Papeles Y Cartones can use these opportunities to build new business models that can help the communities that Papeles Y Cartones operates in. Secondly it can use opportunities from government spending in Paper & Paper Products sector.
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 Papeles Y Cartones 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Papeles Y Cartones can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Papeles Y Cartones in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Paper & Paper Products industry, and it will provide faster access to the consumers.
Leveraging digital technologies
– Papeles Y Cartones 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.
Creating value in data economy
– The success of analytics program of Papeles Y Cartones has opened avenues for new revenue streams for the organization in Paper & Paper Products industry. This can help Papeles Y Cartones to build a more holistic ecosystem for Papeles Y Cartones products in the Paper & Paper Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Papeles Y Cartones can use the latest technology developments to improve its manufacturing and designing process in Paper & Paper Products 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.
Threats Papeles Y Cartones External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Papeles Y Cartones are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Papeles Y Cartones may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Paper & Paper Products sector.
Shortening product life cycle
– it is one of the major threat that Papeles Y Cartones is facing in Paper & Paper Products sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Papeles Y Cartones in Paper & Paper Products industry. The Paper & Paper Products 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.
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 Papeles Y Cartones.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Papeles Y Cartones 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 Papeles Y Cartones prominent markets.
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.
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. Papeles Y Cartones 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.
Easy access to finance
– Easy access to finance in Paper & Paper Products industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Papeles Y Cartones can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Papeles Y Cartones 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. Papeles Y Cartones can take advantage of this fund but it will also bring new competitors in the Paper & Paper Products industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Paper & Paper Products industry are lowering. It can presents Papeles Y Cartones with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Paper & Paper Products sector.
Technology acceleration in Forth Industrial Revolution
– Papeles Y Cartones has witnessed rapid integration of technology during Covid-19 in the Paper & Paper Products industry. As one of the leading players in the industry, Papeles Y Cartones needs to keep up with the evolution of technology in the Paper & Paper Products 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 Papeles Y Cartones 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 Paper & Paper Products industry and other sectors.
Increasing wage structure of Papeles Y Cartones
– 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 Papeles Y Cartones.
Weighted SWOT Analysis of Papeles Y Cartones Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Papeles Y Cartones 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 Papeles Y Cartones 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 Papeles Y Cartones 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 Papeles Y Cartones 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 Papeles Y Cartones needs to make to build a sustainable competitive advantage.
