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 – there is increasing trade war between United States & China, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, wage bills are increasing, geopolitical disruptions, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , there is backlash against globalization, etc

---

---

---

---

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 -

Organizational Resilience of Construcciones y Auxiliar

– The covid-19 pandemic has put organizational resilience at the centre of everthing Construcciones y Auxiliar does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

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.

Effective Research and Development (R&D)

– Construcciones y Auxiliar has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Construcciones y Auxiliar staying ahead in the Railroads industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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.

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.

Strong track record of project management in the Railroads industry

– Construcciones y Auxiliar is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Innovation driven organization

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

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.

Analytics focus

– Construcciones y Auxiliar 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 Railroads industry. The technology infrastructure of United Kingdom is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

High switching costs

– The high switching costs that Construcciones y Auxiliar has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

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.

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.

---

---

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 -

High bargaining power of channel partners in Railroads industry

– because of the regulatory requirements in United Kingdom, Construcciones y Auxiliar 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 Railroads industry.

Increasing silos among functional specialists

– The organizational structure of Construcciones y Auxiliar is dominated by functional specialists. It is not different from other players in the Railroads industry, but Construcciones y Auxiliar needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Construcciones y Auxiliar to focus more on services in the Railroads industry rather than just following the product oriented approach.

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.

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.

Capital Spending Reduction

– Even during the low interest decade, Construcciones y Auxiliar 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 Railroads industry using digital technology.

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.

Compensation and incentives

– The revenue per employee of Construcciones y Auxiliar is just above the Railroads 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.

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 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.

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.

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.

---

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 -

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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Construcciones y Auxiliar 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Construcciones y Auxiliar 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 Construcciones y Auxiliar to hire the very best people irrespective of their geographical location.

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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Railroads industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Construcciones y Auxiliar 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. Construcciones y Auxiliar 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.

Better consumer reach

– The expansion of the 5G network will help Construcciones y Auxiliar to increase its market reach. Construcciones y Auxiliar 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.

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.

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.

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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Construcciones y Auxiliar in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Railroads industry, and it will provide faster access to the consumers.

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.

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.

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.

---

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 -

Regulatory challenges

– Construcciones y Auxiliar 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 Railroads 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.

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.

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 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Construcciones y Auxiliar in Railroads industry. The Railroads 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.

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.

Stagnating economy with rate increase

– Construcciones y Auxiliar 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 Railroads industry.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Construcciones y Auxiliar business can come under increasing regulations regarding data privacy, data security, etc.

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.

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.

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.

---

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.

--- ---