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 energy prices, cloud computing is disrupting traditional business models, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, etc
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- 100% Plagiarism Free
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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 -
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.
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.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the BRADESCO PN EJ N1 are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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.
Innovation driven organization
– BRADESCO PN EJ N1 is one of the most innovative firm in Money Center Banks sector.
Organizational Resilience of BRADESCO PN EJ N1
– The covid-19 pandemic has put organizational resilience at the centre of everthing BRADESCO PN EJ N1 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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 -
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.
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.
High dependence on BRADESCO PN EJ N1 ‘s star products
– The top 2 products and services of BRADESCO PN EJ N1 still accounts for major business revenue. This dependence on star products in Money Center Banks industry has resulted into insufficient focus on developing new products, even though BRADESCO PN EJ N1 has relatively successful track record of launching new products.
– Compare to the competition, BRADESCO PN EJ N1 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.
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 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 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.
Ability to respond to the competition
– As the decision making is very deliberative at BRADESCO PN EJ N1, in the dynamic environment of Money Center Banks industry it has struggled to respond to the nimble upstart competition. BRADESCO PN EJ N1 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, 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.
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 -
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects BRADESCO PN EJ N1 can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. BRADESCO PN EJ N1 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
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.
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.
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.
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.
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 -
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 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.
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.
– 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 BRADESCO PN EJ N1 in the Money Center Banks sector and impact the bottomline of the organization.
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.
– 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.
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.
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.
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.
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.
Increasing wage structure of BRADESCO PN EJ N1
– 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 BRADESCO PN EJ N1.
– 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.
– 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.
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.