eDreams Odigeo SA (0QS9) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for eDreams Odigeo SA (United Kingdom)

Based on various researches at Oak Spring University , eDreams Odigeo SA is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing transportation and logistics costs, geopolitical disruptions, etc

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Introduction to SWOT Analysis of eDreams Odigeo SA

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that eDreams Odigeo SA can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the eDreams Odigeo SA, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which eDreams Odigeo SA 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of eDreams Odigeo SA can be done for the following purposes –
1. Strategic planning of eDreams Odigeo SA
2. Improving business portfolio management of eDreams Odigeo SA
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Personal Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of eDreams Odigeo SA

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Strengths of eDreams Odigeo SA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of eDreams Odigeo SA are -

Ability to lead change in Personal Services

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

Low bargaining power of suppliers

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

Superior customer experience

– The customer experience strategy of eDreams Odigeo SA in Personal Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Analytics focus

– eDreams Odigeo SA 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 Personal Services 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.

Effective Research and Development (R&D)

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

Organizational Resilience of eDreams Odigeo SA

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

Strong track record of project management in the Personal Services industry

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

High brand equity

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

Sustainable margins compare to other players in Personal Services industry

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

Highly skilled collaborators

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

Digital Transformation in Personal Services industry

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

Innovation driven organization

– eDreams Odigeo SA is one of the most innovative firm in Personal Services sector.

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Weaknesses of eDreams Odigeo SA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of eDreams Odigeo SA are -

Employees’ less understanding of eDreams Odigeo SA strategy

– From the outside it seems that the employees of eDreams Odigeo SA don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Slow to strategic competitive environment developments

– As eDreams Odigeo SA is one of the leading players in the Personal Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Personal Services industry in last five years.

No frontier risks strategy

– From the 10K / annual statement of eDreams Odigeo SA, it seems that company is thinking out the frontier risks that can impact Personal Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Interest costs

– Compare to the competition, eDreams Odigeo SA has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

High bargaining power of channel partners in Personal Services industry

– because of the regulatory requirements in United Kingdom, eDreams Odigeo SA 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 Personal Services industry.

Increasing silos among functional specialists

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

Workers concerns about automation

– As automation is fast increasing in the Personal Services industry, eDreams Odigeo SA 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.

Slow to harness new channels of communication

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

Low market penetration in new markets

– Outside its home market of United Kingdom, eDreams Odigeo SA needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Ability to respond to the competition

– As the decision making is very deliberative at eDreams Odigeo SA, in the dynamic environment of Personal Services industry it has struggled to respond to the nimble upstart competition. eDreams Odigeo SA has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow decision making process

– As mentioned earlier in the report, eDreams Odigeo SA has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Personal Services industry over the last five years. eDreams Odigeo SA 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.

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eDreams Odigeo SA Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of eDreams Odigeo SA are -

Reforming the budgeting process

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

Use of Bitcoin and other crypto currencies for transactions in Personal Services industry

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

Lowering marketing communication costs

– 5G expansion will open new opportunities for eDreams Odigeo SA in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Personal Services industry, and it will provide faster access to the consumers.

Leveraging digital technologies

– eDreams Odigeo SA 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.

Harnessing reconfiguration of the global supply chains

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

Redefining models of collaboration and team work

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

Buying journey improvements

– eDreams Odigeo SA can improve the customer journey of consumers in the Personal Services industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Increase in government spending

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

Remote work and new talent hiring opportunities

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

Building a culture of innovation

– managers at eDreams Odigeo SA 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 Personal Services industry.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Personal Services industry, but it has also influenced the consumer preferences. eDreams Odigeo SA can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Creating value in data economy

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

Low interest rates

– Even though inflation is raising its head in most developed economies, eDreams Odigeo SA 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.

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Threats eDreams Odigeo SA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of eDreams Odigeo SA are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for eDreams Odigeo SA in Personal Services industry. The Personal Services 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.

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 eDreams Odigeo SA 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 Personal Services industry are lowering. It can presents eDreams Odigeo SA with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Personal Services sector.

Increasing wage structure of eDreams Odigeo SA

– 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 eDreams Odigeo SA.

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. eDreams Odigeo SA 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 Personal Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. eDreams Odigeo SA can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, eDreams Odigeo SA 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 eDreams Odigeo SA prominent markets.

Shortening product life cycle

– it is one of the major threat that eDreams Odigeo SA is facing in Personal Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, eDreams Odigeo SA may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Personal Services sector.

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. eDreams Odigeo SA needs to understand the core reasons impacting the Personal Services industry. This will help it in building a better workplace.

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.

High dependence on third party suppliers

– eDreams Odigeo SA high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

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Weighted SWOT Analysis of eDreams Odigeo SA Template, Example

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

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