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 – increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, wage bills are increasing, 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 -
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.
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.
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.
Analytics focus
– BRADESCO PN EJ N1 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 Money Center Banks industry. The technology infrastructure of Brazil 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.
Ability to lead change in Money Center Banks
– BRADESCO PN EJ N1 is one of the leading players in the Money Center Banks industry in Brazil. Over the years it has not only transformed the business landscape in the Money Center Banks industry in Brazil but also across the existing markets. The ability to lead change has enabled BRADESCO PN EJ N1 in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Training and development
– BRADESCO PN EJ N1 has one of the best training and development program in Financial 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.
Sustainable margins compare to other players in Money Center Banks industry
– BRADESCO PN EJ N1 has clearly differentiated products in the market place. This has enabled BRADESCO PN EJ N1 to fetch slight price premium compare to the competitors in the Money Center Banks industry. The sustainable margins have also helped BRADESCO PN EJ N1 to invest into research and development (R&D) and innovation.
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.
High brand equity
– BRADESCO PN EJ N1 has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled BRADESCO PN EJ N1 to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Money Center Banks industry
- digital transformation varies from industry to industry. For BRADESCO PN EJ N1 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. BRADESCO PN EJ N1 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 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 -
Products dominated business model
– Even though BRADESCO PN EJ N1 has some of the most successful models in the Money Center Banks industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. BRADESCO PN EJ N1 should strive to include more intangible value offerings along with its core products and services.
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.
Need for greater diversity
– BRADESCO PN EJ N1 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.
Slow to strategic competitive environment developments
– As BRADESCO PN EJ N1 is one of the leading players in the Money Center Banks industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Money Center Banks industry in last five years.
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.
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.
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.
Aligning sales with marketing
– From the outside it seems that BRADESCO PN EJ N1 needs to have more collaboration between its sales team and marketing team. Sales professionals in the Money Center Banks industry have deep experience in developing customer relationships. Marketing department at BRADESCO PN EJ N1 can leverage the sales team experience to cultivate customer relationships as BRADESCO PN EJ N1 is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Brazil, BRADESCO PN EJ N1 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 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.
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 -
Better consumer reach
– The expansion of the 5G network will help BRADESCO PN EJ N1 to increase its market reach. BRADESCO PN EJ N1 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 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, BRADESCO PN EJ N1 is facing challenges because of the dominance of functional experts in the organization. BRADESCO PN EJ N1 can utilize new technology in the field of Money Center Banks industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of BRADESCO PN EJ N1 has opened avenues for new revenue streams for the organization in Money Center Banks industry. This can help BRADESCO PN EJ N1 to build a more holistic ecosystem for BRADESCO PN EJ N1 products in the Money Center Banks industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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 BRADESCO PN EJ N1 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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, BRADESCO PN EJ N1 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.
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.
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.
Loyalty marketing
– BRADESCO PN EJ N1 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.
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 -
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 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. BRADESCO PN EJ N1 needs to understand the core reasons impacting the Money Center Banks industry. This will help it in building a better workplace.
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.
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 BRADESCO PN EJ N1.
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.
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.
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.
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.
High dependence on third party suppliers
– BRADESCO PN EJ N1 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.
Easy access to finance
– Easy access to finance in Money Center Banks industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. BRADESCO PN EJ N1 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.