BRADESCO PN EJ N1 (BBDC4) SWOT Analysis / TOWS Matrix / MBA Resources
Money Center Banks
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for BRADESCO PN EJ N1 (Brazil)
Based on various researches at Oak Spring University , BRADESCO PN EJ N1 is operating in a macro-environment that has been destablized by – geopolitical disruptions, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of BRADESCO PN EJ N1
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BRADESCO PN EJ N1 can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BRADESCO PN EJ N1, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 can be done for the following purposes –
1. Strategic planning of BRADESCO PN EJ N1
2. Improving business portfolio management of BRADESCO PN EJ N1
3. Assessing feasibility of the new initiative in Brazil
4. Making a Money Center Banks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of BRADESCO PN EJ N1
Strengths of BRADESCO PN EJ N1 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BRADESCO PN EJ N1 are -
Diverse revenue streams
– BRADESCO PN EJ N1 is present in almost all the verticals within the Money Center Banks industry. This has provided BRADESCO PN EJ N1 a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High switching costs
– The high switching costs that BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 in the Financial sector have low bargaining power. BRADESCO PN EJ N1 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps BRADESCO PN EJ N1 to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– BRADESCO PN EJ N1 is one of the most innovative firm in Money Center Banks sector.
Strong track record of project management in the Money Center Banks industry
– BRADESCO PN EJ N1 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of BRADESCO PN EJ N1 in Money Center Banks industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– BRADESCO PN EJ N1 has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Money Center Banks industry. Secondly the value chain collaborators of BRADESCO PN EJ N1 have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– BRADESCO PN EJ N1 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. BRADESCO PN EJ N1 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.
Learning organization
- BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at BRADESCO PN EJ N1 emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– BRADESCO PN EJ N1 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – BRADESCO PN EJ N1 staying ahead in the Money Center Banks industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of BRADESCO PN EJ N1 comprises – understanding the underlying the factors in the Money Center Banks 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.
Ability to recruit top talent
– BRADESCO PN EJ N1 is one of the leading players in the Money Center Banks industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses of BRADESCO PN EJ N1 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BRADESCO PN EJ N1 are -
No frontier risks strategy
– From the 10K / annual statement of BRADESCO PN EJ N1, it seems that company is thinking out the frontier risks that can impact Money Center Banks 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.
Slow decision making process
– As mentioned earlier in the report, BRADESCO PN EJ N1 has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Money Center Banks industry over the last five years. BRADESCO PN EJ N1 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.
Lack of clear differentiation of BRADESCO PN EJ N1 products
– To increase the profitability and margins on the products, BRADESCO PN EJ N1 needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring in Money Center Banks industry
– The stress on hiring functional specialists at BRADESCO PN EJ N1 has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ less understanding of BRADESCO PN EJ N1 strategy
– From the outside it seems that the employees of BRADESCO PN EJ N1 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.
High cash cycle compare to competitors
BRADESCO PN EJ N1 has a high cash cycle compare to other players in the Money Center Banks 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 bargaining power of channel partners in Money Center Banks industry
– because of the regulatory requirements in Brazil, BRADESCO PN EJ N1 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 Money Center Banks industry.
High operating costs
– Compare to the competitors, BRADESCO PN EJ N1 has high operating costs in the Money Center Banks industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract BRADESCO PN EJ N1 lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the Money Center Banks industry, BRADESCO PN EJ N1 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 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 BRADESCO PN EJ N1 supply chain. Even after few cautionary changes, BRADESCO PN EJ N1 is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left BRADESCO PN EJ N1 vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of BRADESCO PN EJ N1 is dominated by functional specialists. It is not different from other players in the Money Center Banks industry, but BRADESCO PN EJ N1 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help BRADESCO PN EJ N1 to focus more on services in the Money Center Banks industry rather than just following the product oriented approach.
BRADESCO PN EJ N1 Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BRADESCO PN EJ N1 are -
Developing new processes and practices
– BRADESCO PN EJ N1 can develop new processes and procedures in Money Center Banks 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at BRADESCO PN EJ N1 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 Money Center Banks industry.
Buying journey improvements
– BRADESCO PN EJ N1 can improve the customer journey of consumers in the Money Center Banks 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Money Center Banks industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. BRADESCO PN EJ N1 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. BRADESCO PN EJ N1 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for BRADESCO PN EJ N1 in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Money Center Banks industry, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– BRADESCO PN EJ N1 has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Money Center Banks sector. This continuous investment in analytics has enabled BRADESCO PN EJ N1 to build a competitive advantage using analytics. The analytics driven competitive advantage can help BRADESCO PN EJ N1 to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– BRADESCO PN EJ N1 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Money Center Banks industry, but it has also influenced the consumer preferences. BRADESCO PN EJ N1 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, BRADESCO PN EJ N1 can use these opportunities to build new business models that can help the communities that BRADESCO PN EJ N1 operates in. Secondly it can use opportunities from government spending in Money Center Banks sector.
Learning at scale
– Online learning technologies has now opened space for BRADESCO PN EJ N1 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.
Use of Bitcoin and other crypto currencies for transactions in Money Center Banks industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for BRADESCO PN EJ N1 in the Money Center Banks industry. Now BRADESCO PN EJ N1 can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 to hire the very best people irrespective of their geographical location.
Threats BRADESCO PN EJ N1 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BRADESCO PN EJ N1 are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, BRADESCO PN EJ N1 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Money Center Banks sector.
Regulatory challenges
– BRADESCO PN EJ N1 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 Money Center Banks industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Money Center Banks industry are lowering. It can presents BRADESCO PN EJ N1 with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Money Center Banks sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BRADESCO PN EJ N1 in Money Center Banks industry. The Money Center Banks 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.
Consumer confidence and its impact on BRADESCO PN EJ N1 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 Money Center Banks industry and other sectors.
Shortening product life cycle
– it is one of the major threat that BRADESCO PN EJ N1 is facing in Money Center Banks sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 prominent markets.
Technology acceleration in Forth Industrial Revolution
– BRADESCO PN EJ N1 has witnessed rapid integration of technology during Covid-19 in the Money Center Banks industry. As one of the leading players in the industry, BRADESCO PN EJ N1 needs to keep up with the evolution of technology in the Money Center Banks 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.
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 BRADESCO PN EJ N1 business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– BRADESCO PN EJ N1 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. BRADESCO PN EJ N1 can take advantage of this fund but it will also bring new competitors in the Money Center Banks industry.
Stagnating economy with rate increase
– BRADESCO PN EJ N1 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 Money Center Banks industry.
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. BRADESCO PN EJ N1 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.
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.
Weighted SWOT Analysis of BRADESCO PN EJ N1 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 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 BRADESCO PN EJ N1 needs to make to build a sustainable competitive advantage.