BBSEGURIDADE ON NM (BBSE3) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for BBSEGURIDADE ON NM (Brazil)

Based on various researches at Oak Spring University , BBSEGURIDADE ON NM is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, wage bills are increasing, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, there is backlash against globalization, etc

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Introduction to SWOT Analysis of BBSEGURIDADE ON NM

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BBSEGURIDADE ON NM can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BBSEGURIDADE ON NM, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BBSEGURIDADE ON NM 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 BBSEGURIDADE ON NM can be done for the following purposes –
1. Strategic planning of BBSEGURIDADE ON NM
2. Improving business portfolio management of BBSEGURIDADE ON NM
3. Assessing feasibility of the new initiative in Brazil
4. Making a Insurance (Life) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of BBSEGURIDADE ON NM

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Strengths of BBSEGURIDADE ON NM | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of BBSEGURIDADE ON NM are -

Ability to lead change in Insurance (Life)

– BBSEGURIDADE ON NM is one of the leading players in the Insurance (Life) industry in Brazil. Over the years it has not only transformed the business landscape in the Insurance (Life) industry in Brazil but also across the existing markets. The ability to lead change has enabled BBSEGURIDADE ON NM in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Superior customer experience

– The customer experience strategy of BBSEGURIDADE ON NM in Insurance (Life) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Insurance (Life) industry

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

Diverse revenue streams

– BBSEGURIDADE ON NM is present in almost all the verticals within the Insurance (Life) industry. This has provided BBSEGURIDADE ON NM 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.

Effective Research and Development (R&D)

– BBSEGURIDADE ON NM has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – BBSEGURIDADE ON NM staying ahead in the Insurance (Life) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Analytics focus

– BBSEGURIDADE ON NM 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 Insurance (Life) 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.

Learning organization

- BBSEGURIDADE ON NM 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 BBSEGURIDADE ON NM is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at BBSEGURIDADE ON NM emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

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

Highly skilled collaborators

– BBSEGURIDADE ON NM has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Life) industry. Secondly the value chain collaborators of BBSEGURIDADE ON NM have helped the firm to develop new products and bring them quickly to the marketplace.

Operational resilience

– The operational resilience strategy of BBSEGURIDADE ON NM comprises – understanding the underlying the factors in the Insurance (Life) 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.

Strong track record of project management in the Insurance (Life) industry

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

Ability to recruit top talent

– BBSEGURIDADE ON NM is one of the leading players in the Insurance (Life) 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.

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Weaknesses of BBSEGURIDADE ON NM | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of BBSEGURIDADE ON NM are -

Low market penetration in new markets

– Outside its home market of Brazil, BBSEGURIDADE ON NM needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High operating costs

– Compare to the competitors, BBSEGURIDADE ON NM has high operating costs in the Insurance (Life) industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract BBSEGURIDADE ON NM lucrative customers.

Slow decision making process

– As mentioned earlier in the report, BBSEGURIDADE ON NM has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Insurance (Life) industry over the last five years. BBSEGURIDADE ON NM 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.

Interest costs

– Compare to the competition, BBSEGURIDADE ON NM 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.

Products dominated business model

– Even though BBSEGURIDADE ON NM has some of the most successful models in the Insurance (Life) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. BBSEGURIDADE ON NM should strive to include more intangible value offerings along with its core products and services.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, BBSEGURIDADE ON NM is slow explore the new channels of communication. These new channels of communication can help BBSEGURIDADE ON NM to provide better information regarding Insurance (Life) products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

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

No frontier risks strategy

– From the 10K / annual statement of BBSEGURIDADE ON NM, it seems that company is thinking out the frontier risks that can impact Insurance (Life) 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.

Need for greater diversity

– BBSEGURIDADE ON NM 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 BBSEGURIDADE ON NM ‘s star products

– The top 2 products and services of BBSEGURIDADE ON NM still accounts for major business revenue. This dependence on star products in Insurance (Life) industry has resulted into insufficient focus on developing new products, even though BBSEGURIDADE ON NM has relatively successful track record of launching new products.

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 BBSEGURIDADE ON NM supply chain. Even after few cautionary changes, BBSEGURIDADE ON NM is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left BBSEGURIDADE ON NM vulnerable to further global disruptions in South East Asia.

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BBSEGURIDADE ON NM Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of BBSEGURIDADE ON NM are -

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, BBSEGURIDADE ON NM can use these opportunities to build new business models that can help the communities that BBSEGURIDADE ON NM operates in. Secondly it can use opportunities from government spending in Insurance (Life) sector.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Insurance (Life) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. BBSEGURIDADE ON NM 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. BBSEGURIDADE ON NM 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 BBSEGURIDADE ON NM to increase its market reach. BBSEGURIDADE ON NM 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.

Developing new processes and practices

– BBSEGURIDADE ON NM can develop new processes and procedures in Insurance (Life) 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.

Manufacturing automation

– BBSEGURIDADE ON NM can use the latest technology developments to improve its manufacturing and designing process in Insurance (Life) 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.

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. BBSEGURIDADE ON NM can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for BBSEGURIDADE ON NM in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Insurance (Life) industry, and it will provide faster access to the consumers.

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 BBSEGURIDADE ON NM 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.

Loyalty marketing

– BBSEGURIDADE ON NM 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.

Learning at scale

– Online learning technologies has now opened space for BBSEGURIDADE ON NM 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.

Buying journey improvements

– BBSEGURIDADE ON NM can improve the customer journey of consumers in the Insurance (Life) 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, BBSEGURIDADE ON NM 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.

Leveraging digital technologies

– BBSEGURIDADE ON NM 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.

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Threats BBSEGURIDADE ON NM External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of BBSEGURIDADE ON NM are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, BBSEGURIDADE ON NM 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 BBSEGURIDADE ON NM prominent markets.

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 BBSEGURIDADE ON NM in the Insurance (Life) sector and impact the bottomline of the organization.

Technology acceleration in Forth Industrial Revolution

– BBSEGURIDADE ON NM has witnessed rapid integration of technology during Covid-19 in the Insurance (Life) industry. As one of the leading players in the industry, BBSEGURIDADE ON NM needs to keep up with the evolution of technology in the Insurance (Life) 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.

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 wage structure of BBSEGURIDADE ON NM

– 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 BBSEGURIDADE ON NM.

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 BBSEGURIDADE ON NM business can come under increasing regulations regarding data privacy, data security, etc.

Easy access to finance

– Easy access to finance in Insurance (Life) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. BBSEGURIDADE ON NM can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for BBSEGURIDADE ON NM in Insurance (Life) industry. The Insurance (Life) 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.

Shortening product life cycle

– it is one of the major threat that BBSEGURIDADE ON NM is facing in Insurance (Life) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– BBSEGURIDADE ON NM 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 Insurance (Life) industry regulations.

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. BBSEGURIDADE ON NM 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.

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. BBSEGURIDADE ON NM needs to understand the core reasons impacting the Insurance (Life) industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, BBSEGURIDADE ON NM may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Insurance (Life) sector.

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Weighted SWOT Analysis of BBSEGURIDADE ON NM Template, Example

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

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