CVC BRASIL ON NM (CVCB3) SWOT Analysis / TOWS Matrix / MBA Resources
Personal Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for CVC BRASIL ON NM (Brazil)
Based on various researches at Oak Spring University , CVC BRASIL ON NM is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing household debt because of falling income levels, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions,
increasing transportation and logistics costs, talent flight as more people leaving formal jobs, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that CVC BRASIL ON NM can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the CVC BRASIL ON NM, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which CVC BRASIL 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of CVC BRASIL ON NM can be done for the following purposes –
1. Strategic planning of CVC BRASIL ON NM
2. Improving business portfolio management of CVC BRASIL ON NM
3. Assessing feasibility of the new initiative in Brazil
4. Making a Personal Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of CVC BRASIL ON NM
Strengths of CVC BRASIL ON NM | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of CVC BRASIL ON NM are -
Ability to lead change in Personal Services
– CVC BRASIL ON NM is one of the leading players in the Personal Services industry in Brazil. Over the years it has not only transformed the business landscape in the Personal Services industry in Brazil but also across the existing markets. The ability to lead change has enabled CVC BRASIL ON NM in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy of CVC BRASIL ON NM comprises – understanding the underlying the factors in the Personal Services 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
– CVC BRASIL ON NM has one of the best training and development program in Services 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 CVC BRASIL ON NM 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.
Digital Transformation in Personal Services industry
- digital transformation varies from industry to industry. For CVC BRASIL ON NM digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. CVC BRASIL 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.
Learning organization
- CVC BRASIL 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 CVC BRASIL ON NM is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at CVC BRASIL ON NM emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Personal Services industry
– CVC BRASIL ON NM has clearly differentiated products in the market place. This has enabled CVC BRASIL ON NM to fetch slight price premium compare to the competitors in the Personal Services industry. The sustainable margins have also helped CVC BRASIL ON NM to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of CVC BRASIL ON NM in the Services sector have low bargaining power. CVC BRASIL ON NM has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps CVC BRASIL ON NM to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– CVC BRASIL ON NM has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. CVC BRASIL ON NM 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
– CVC BRASIL ON NM has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled CVC BRASIL ON NM to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– CVC BRASIL 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 Personal Services industry. Secondly the value chain collaborators of CVC BRASIL ON NM have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that CVC BRASIL ON NM 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.
Weaknesses of CVC BRASIL ON NM | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CVC BRASIL ON NM are -
Workers concerns about automation
– As automation is fast increasing in the Personal Services industry, CVC BRASIL ON NM 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 CVC BRASIL ON NM ‘s star products
– The top 2 products and services of CVC BRASIL ON NM still accounts for major business revenue. This dependence on star products in Personal Services industry has resulted into insufficient focus on developing new products, even though CVC BRASIL ON NM has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, CVC BRASIL ON NM is slow explore the new channels of communication. These new channels of communication can help CVC BRASIL ON NM to provide better information regarding Personal Services products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, CVC BRASIL 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 Personal Services industry over the last five years. CVC BRASIL 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.
Increasing silos among functional specialists
– The organizational structure of CVC BRASIL ON NM is dominated by functional specialists. It is not different from other players in the Personal Services industry, but CVC BRASIL ON NM needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help CVC BRASIL ON NM to focus more on services in the Personal Services industry rather than just following the product oriented approach.
Lack of clear differentiation of CVC BRASIL ON NM products
– To increase the profitability and margins on the products, CVC BRASIL ON NM needs to provide more differentiated products than what it is currently offering in the marketplace.
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 CVC BRASIL ON NM supply chain. Even after few cautionary changes, CVC BRASIL ON NM is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left CVC BRASIL ON NM vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners in Personal Services industry
– because of the regulatory requirements in Brazil, CVC BRASIL ON NM is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Personal Services industry.
High cash cycle compare to competitors
CVC BRASIL ON NM has a high cash cycle compare to other players in the Personal Services 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 operating costs
– Compare to the competitors, CVC BRASIL ON NM has high operating costs in the Personal Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract CVC BRASIL ON NM lucrative customers.
Aligning sales with marketing
– From the outside it seems that CVC BRASIL ON NM needs to have more collaboration between its sales team and marketing team. Sales professionals in the Personal Services industry have deep experience in developing customer relationships. Marketing department at CVC BRASIL ON NM can leverage the sales team experience to cultivate customer relationships as CVC BRASIL ON NM is planning to shift buying processes online.
CVC BRASIL ON NM Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of CVC BRASIL ON NM are -
Manufacturing automation
– CVC BRASIL ON NM can use the latest technology developments to improve its manufacturing and designing process in Personal Services 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.
Better consumer reach
– The expansion of the 5G network will help CVC BRASIL ON NM to increase its market reach. CVC BRASIL 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, CVC BRASIL ON NM is facing challenges because of the dominance of functional experts in the organization. CVC BRASIL ON NM can utilize new technology in the field of Personal Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, CVC BRASIL 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for CVC BRASIL ON NM 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 CVC BRASIL ON NM to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of CVC BRASIL ON NM has opened avenues for new revenue streams for the organization in Personal Services industry. This can help CVC BRASIL ON NM to build a more holistic ecosystem for CVC BRASIL ON NM products in the Personal Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– CVC BRASIL 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.
Building a culture of innovation
– managers at CVC BRASIL ON NM can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Personal Services industry.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Personal Services industry, but it has also influenced the consumer preferences. CVC BRASIL ON NM can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Personal Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. CVC BRASIL 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. CVC BRASIL 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for CVC BRASIL 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 Personal Services industry, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects CVC BRASIL ON NM can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– CVC BRASIL 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.
Threats CVC BRASIL ON NM External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of CVC BRASIL ON NM 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.
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 CVC BRASIL ON NM business can come under increasing regulations regarding data privacy, data security, etc.
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. CVC BRASIL ON NM needs to understand the core reasons impacting the Personal Services industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– CVC BRASIL ON NM has witnessed rapid integration of technology during Covid-19 in the Personal Services industry. As one of the leading players in the industry, CVC BRASIL ON NM needs to keep up with the evolution of technology in the Personal Services 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.
Shortening product life cycle
– it is one of the major threat that CVC BRASIL ON NM is facing in Personal Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, CVC BRASIL 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 Personal Services sector.
Regulatory challenges
– CVC BRASIL 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 Personal Services industry regulations.
High dependence on third party suppliers
– CVC BRASIL ON NM 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 Personal Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. CVC BRASIL 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.
Increasing wage structure of CVC BRASIL 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 CVC BRASIL ON NM.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Personal Services industry are lowering. It can presents CVC BRASIL ON NM with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Personal Services sector.
Consumer confidence and its impact on CVC BRASIL ON NM 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 Personal Services industry and other sectors.
Weighted SWOT Analysis of CVC BRASIL ON NM Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at CVC BRASIL 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 CVC BRASIL 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 CVC BRASIL 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 CVC BRASIL 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 CVC BRASIL ON NM needs to make to build a sustainable competitive advantage.