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Construcciones y Auxiliar (0RKF) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Construcciones y Auxiliar (United Kingdom)


Based on various researches at Oak Spring University , Construcciones y Auxiliar is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, technology disruption, geopolitical disruptions, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, etc



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Introduction to SWOT Analysis of Construcciones y Auxiliar


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Construcciones y Auxiliar can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Construcciones y Auxiliar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Construcciones y Auxiliar 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 Construcciones y Auxiliar can be done for the following purposes –
1. Strategic planning of Construcciones y Auxiliar
2. Improving business portfolio management of Construcciones y Auxiliar
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Railroads sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Construcciones y Auxiliar




Strengths of Construcciones y Auxiliar | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Construcciones y Auxiliar are -

Low bargaining power of suppliers

– Suppliers of Construcciones y Auxiliar in the Transportation sector have low bargaining power. Construcciones y Auxiliar has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Construcciones y Auxiliar to manage not only supply disruptions but also source products at highly competitive prices.

High brand equity

– Construcciones y Auxiliar has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Construcciones y Auxiliar to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Construcciones y Auxiliar has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Railroads industry. Secondly the value chain collaborators of Construcciones y Auxiliar have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to lead change in Railroads

– Construcciones y Auxiliar is one of the leading players in the Railroads industry in United Kingdom. Over the years it has not only transformed the business landscape in the Railroads industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Construcciones y Auxiliar in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Digital Transformation in Railroads industry

- digital transformation varies from industry to industry. For Construcciones y Auxiliar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Construcciones y Auxiliar 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.

Superior customer experience

– The customer experience strategy of Construcciones y Auxiliar in Railroads industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Training and development

– Construcciones y Auxiliar has one of the best training and development program in Transportation 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.

Operational resilience

– The operational resilience strategy of Construcciones y Auxiliar comprises – understanding the underlying the factors in the Railroads industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Innovation driven organization

– Construcciones y Auxiliar is one of the most innovative firm in Railroads sector.

Ability to recruit top talent

– Construcciones y Auxiliar is one of the leading players in the Railroads 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.

Sustainable margins compare to other players in Railroads industry

– Construcciones y Auxiliar has clearly differentiated products in the market place. This has enabled Construcciones y Auxiliar to fetch slight price premium compare to the competitors in the Railroads industry. The sustainable margins have also helped Construcciones y Auxiliar to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Construcciones y Auxiliar has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Construcciones y Auxiliar 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 Construcciones y Auxiliar | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Construcciones y Auxiliar are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Construcciones y Auxiliar is slow explore the new channels of communication. These new channels of communication can help Construcciones y Auxiliar to provide better information regarding Railroads products and services. It can also build an online community to further reach out to potential customers.

Interest costs

– Compare to the competition, Construcciones y Auxiliar 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.

Slow decision making process

– As mentioned earlier in the report, Construcciones y Auxiliar has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Railroads industry over the last five years. Construcciones y Auxiliar 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 cash cycle compare to competitors

Construcciones y Auxiliar has a high cash cycle compare to other players in the Railroads industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High dependence on Construcciones y Auxiliar ‘s star products

– The top 2 products and services of Construcciones y Auxiliar still accounts for major business revenue. This dependence on star products in Railroads industry has resulted into insufficient focus on developing new products, even though Construcciones y Auxiliar has relatively successful track record of launching new products.

Workers concerns about automation

– As automation is fast increasing in the Railroads industry, Construcciones y Auxiliar needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

High operating costs

– Compare to the competitors, Construcciones y Auxiliar has high operating costs in the Railroads industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Construcciones y Auxiliar lucrative customers.

Slow to strategic competitive environment developments

– As Construcciones y Auxiliar is one of the leading players in the Railroads industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Railroads industry in last five years.

Aligning sales with marketing

– From the outside it seems that Construcciones y Auxiliar needs to have more collaboration between its sales team and marketing team. Sales professionals in the Railroads industry have deep experience in developing customer relationships. Marketing department at Construcciones y Auxiliar can leverage the sales team experience to cultivate customer relationships as Construcciones y Auxiliar is planning to shift buying processes online.

Products dominated business model

– Even though Construcciones y Auxiliar has some of the most successful models in the Railroads industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Construcciones y Auxiliar should strive to include more intangible value offerings along with its core products and services.

Need for greater diversity

– Construcciones y Auxiliar 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.




Construcciones y Auxiliar Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Construcciones y Auxiliar are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Construcciones y Auxiliar 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 Construcciones y Auxiliar to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Construcciones y Auxiliar can use these opportunities to build new business models that can help the communities that Construcciones y Auxiliar operates in. Secondly it can use opportunities from government spending in Railroads sector.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Construcciones y Auxiliar can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Creating value in data economy

– The success of analytics program of Construcciones y Auxiliar has opened avenues for new revenue streams for the organization in Railroads industry. This can help Construcciones y Auxiliar to build a more holistic ecosystem for Construcciones y Auxiliar products in the Railroads industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Loyalty marketing

– Construcciones y Auxiliar 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.

Manufacturing automation

– Construcciones y Auxiliar can use the latest technology developments to improve its manufacturing and designing process in Railroads 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 Construcciones y Auxiliar 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.

Developing new processes and practices

– Construcciones y Auxiliar can develop new processes and procedures in Railroads 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.

Building a culture of innovation

– managers at Construcciones y Auxiliar 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 Railroads industry.

Use of Bitcoin and other crypto currencies for transactions in Railroads industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Construcciones y Auxiliar in the Railroads industry. Now Construcciones y Auxiliar can target international markets with far fewer capital restrictions requirements than the existing system.

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 Construcciones y Auxiliar 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Construcciones y Auxiliar is facing challenges because of the dominance of functional experts in the organization. Construcciones y Auxiliar can utilize new technology in the field of Railroads industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Leveraging digital technologies

– Construcciones y Auxiliar 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.




Threats Construcciones y Auxiliar External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Construcciones y Auxiliar are -

Consumer confidence and its impact on Construcciones y Auxiliar 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 Railroads industry and other sectors.

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 Construcciones y Auxiliar.

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 Construcciones y Auxiliar 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, Construcciones y Auxiliar may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Railroads sector.

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.

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 Construcciones y Auxiliar in the Railroads sector and impact the bottomline of the organization.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Construcciones y Auxiliar 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 Construcciones y Auxiliar prominent markets.

Shortening product life cycle

– it is one of the major threat that Construcciones y Auxiliar is facing in Railroads sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Environmental challenges

– Construcciones y Auxiliar 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. Construcciones y Auxiliar can take advantage of this fund but it will also bring new competitors in the Railroads industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Railroads industry are lowering. It can presents Construcciones y Auxiliar with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Railroads sector.

Technology acceleration in Forth Industrial Revolution

– Construcciones y Auxiliar has witnessed rapid integration of technology during Covid-19 in the Railroads industry. As one of the leading players in the industry, Construcciones y Auxiliar needs to keep up with the evolution of technology in the Railroads 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.

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. Construcciones y Auxiliar 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 wage structure of Construcciones y Auxiliar

– 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 Construcciones y Auxiliar.




Weighted SWOT Analysis of Construcciones y Auxiliar Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Construcciones y Auxiliar 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 Construcciones y Auxiliar 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 Construcciones y Auxiliar 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 Construcciones y Auxiliar 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 Construcciones y Auxiliar needs to make to build a sustainable competitive advantage.



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