ESTACIO PART ON (ESTC3) SWOT Analysis / TOWS Matrix / MBA Resources
Schools
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for ESTACIO PART ON (Brazil)
Based on various researches at Oak Spring University , ESTACIO PART ON is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing energy prices, central banks are concerned over increasing inflation, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ESTACIO PART ON can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ESTACIO PART ON, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ESTACIO PART ON 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 ESTACIO PART ON can be done for the following purposes –
1. Strategic planning of ESTACIO PART ON
2. Improving business portfolio management of ESTACIO PART ON
3. Assessing feasibility of the new initiative in Brazil
4. Making a Schools sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of ESTACIO PART ON
Strengths of ESTACIO PART ON | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of ESTACIO PART ON are -
Training and development
– ESTACIO PART ON 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.
Low bargaining power of suppliers
– Suppliers of ESTACIO PART ON in the Services sector have low bargaining power. ESTACIO PART ON has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps ESTACIO PART ON to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– ESTACIO PART ON is one of the leading players in the Schools 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.
Diverse revenue streams
– ESTACIO PART ON is present in almost all the verticals within the Schools industry. This has provided ESTACIO PART ON 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.
Analytics focus
– ESTACIO PART ON 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 Schools 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.
Digital Transformation in Schools industry
- digital transformation varies from industry to industry. For ESTACIO PART ON digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. ESTACIO PART ON 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.
Innovation driven organization
– ESTACIO PART ON is one of the most innovative firm in Schools sector.
Operational resilience
– The operational resilience strategy of ESTACIO PART ON comprises – understanding the underlying the factors in the Schools 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.
Learning organization
- ESTACIO PART ON 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 ESTACIO PART ON is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at ESTACIO PART ON emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Schools industry
– ESTACIO PART ON has clearly differentiated products in the market place. This has enabled ESTACIO PART ON to fetch slight price premium compare to the competitors in the Schools industry. The sustainable margins have also helped ESTACIO PART ON to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– ESTACIO PART ON has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Schools industry. Secondly the value chain collaborators of ESTACIO PART ON have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– ESTACIO PART ON has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – ESTACIO PART ON staying ahead in the Schools industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of ESTACIO PART ON | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ESTACIO PART ON are -
Increasing silos among functional specialists
– The organizational structure of ESTACIO PART ON is dominated by functional specialists. It is not different from other players in the Schools industry, but ESTACIO PART ON needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help ESTACIO PART ON to focus more on services in the Schools industry rather than just following the product oriented approach.
High bargaining power of channel partners in Schools industry
– because of the regulatory requirements in Brazil, ESTACIO PART ON 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 Schools industry.
Need for greater diversity
– ESTACIO PART ON 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.
Employees’ less understanding of ESTACIO PART ON strategy
– From the outside it seems that the employees of ESTACIO PART ON 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.
Interest costs
– Compare to the competition, ESTACIO PART ON 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.
Slow decision making process
– As mentioned earlier in the report, ESTACIO PART ON has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Schools industry over the last five years. ESTACIO PART ON 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.
Skills based hiring in Schools industry
– The stress on hiring functional specialists at ESTACIO PART ON has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at ESTACIO PART ON, in the dynamic environment of Schools industry it has struggled to respond to the nimble upstart competition. ESTACIO PART ON has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, ESTACIO PART ON has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Schools industry using digital technology.
High cash cycle compare to competitors
ESTACIO PART ON has a high cash cycle compare to other players in the Schools industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the Schools industry, ESTACIO PART ON 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.
ESTACIO PART ON Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of ESTACIO PART ON are -
Low interest rates
– Even though inflation is raising its head in most developed economies, ESTACIO PART ON 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.
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. ESTACIO PART ON can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– ESTACIO PART ON has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Schools sector. This continuous investment in analytics has enabled ESTACIO PART ON to build a competitive advantage using analytics. The analytics driven competitive advantage can help ESTACIO PART ON to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Schools industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for ESTACIO PART ON in the Schools industry. Now ESTACIO PART ON can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– ESTACIO PART ON can use the latest technology developments to improve its manufacturing and designing process in Schools 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Schools industry, but it has also influenced the consumer preferences. ESTACIO PART ON can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of ESTACIO PART ON has opened avenues for new revenue streams for the organization in Schools industry. This can help ESTACIO PART ON to build a more holistic ecosystem for ESTACIO PART ON products in the Schools industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, ESTACIO PART ON can use these opportunities to build new business models that can help the communities that ESTACIO PART ON operates in. Secondly it can use opportunities from government spending in Schools sector.
Loyalty marketing
– ESTACIO PART ON 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.
Better consumer reach
– The expansion of the 5G network will help ESTACIO PART ON to increase its market reach. ESTACIO PART ON 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
– ESTACIO PART ON can develop new processes and procedures in Schools industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, ESTACIO PART ON can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help ESTACIO PART ON to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for ESTACIO PART ON 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 ESTACIO PART ON to hire the very best people irrespective of their geographical location.
Threats ESTACIO PART ON External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of ESTACIO PART ON are -
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 ESTACIO PART ON in the Schools 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 ESTACIO PART ON business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– ESTACIO PART ON 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. ESTACIO PART ON can take advantage of this fund but it will also bring new competitors in the Schools industry.
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. ESTACIO PART ON needs to understand the core reasons impacting the Schools industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, ESTACIO PART ON 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 ESTACIO PART ON prominent markets.
Technology acceleration in Forth Industrial Revolution
– ESTACIO PART ON has witnessed rapid integration of technology during Covid-19 in the Schools industry. As one of the leading players in the industry, ESTACIO PART ON needs to keep up with the evolution of technology in the Schools 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.
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. ESTACIO PART ON 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.
Increasing wage structure of ESTACIO PART ON
– 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 ESTACIO PART ON.
Shortening product life cycle
– it is one of the major threat that ESTACIO PART ON is facing in Schools 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, ESTACIO PART ON may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Schools sector.
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.
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 ESTACIO PART ON.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Schools industry are lowering. It can presents ESTACIO PART ON with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Schools sector.
Weighted SWOT Analysis of ESTACIO PART ON Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ESTACIO PART ON 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 ESTACIO PART ON 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 ESTACIO PART ON 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 ESTACIO PART ON 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 ESTACIO PART ON needs to make to build a sustainable competitive advantage.