Grand Banks Yachts Ltd (GBYL) SWOT Analysis / TOWS Matrix / MBA Resources
Recreational Products
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Grand Banks Yachts Ltd (Singapore)
Based on various researches at Oak Spring University , Grand Banks Yachts Ltd is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing commodity prices, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%,
wage bills are increasing, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Grand Banks Yachts Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Grand Banks Yachts Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Grand Banks Yachts Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd can be done for the following purposes –
1. Strategic planning of Grand Banks Yachts Ltd
2. Improving business portfolio management of Grand Banks Yachts Ltd
3. Assessing feasibility of the new initiative in Singapore
4. Making a Recreational Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Grand Banks Yachts Ltd
Strengths of Grand Banks Yachts Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Grand Banks Yachts Ltd are -
Learning organization
- Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Grand Banks Yachts Ltd emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Grand Banks Yachts Ltd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Grand Banks Yachts Ltd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the Recreational Products industry
– Grand Banks Yachts Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Grand Banks Yachts Ltd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Recreational Products industry. Secondly the value chain collaborators of Grand Banks Yachts Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Grand Banks Yachts Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Grand Banks Yachts Ltd 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.
Low bargaining power of suppliers
– Suppliers of Grand Banks Yachts Ltd in the Consumer Cyclical sector have low bargaining power. Grand Banks Yachts Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Grand Banks Yachts Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Grand Banks Yachts Ltd is present in almost all the verticals within the Recreational Products industry. This has provided Grand Banks Yachts Ltd 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.
Training and development
– Grand Banks Yachts Ltd has one of the best training and development program in Consumer Cyclical 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.
Superior customer experience
– The customer experience strategy of Grand Banks Yachts Ltd in Recreational Products industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy of Grand Banks Yachts Ltd comprises – understanding the underlying the factors in the Recreational Products 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.
Ability to lead change in Recreational Products
– Grand Banks Yachts Ltd is one of the leading players in the Recreational Products industry in Singapore. Over the years it has not only transformed the business landscape in the Recreational Products industry in Singapore but also across the existing markets. The ability to lead change has enabled Grand Banks Yachts Ltd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Grand Banks Yachts Ltd is one of the most innovative firm in Recreational Products sector.
Weaknesses of Grand Banks Yachts Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Grand Banks Yachts Ltd are -
Aligning sales with marketing
– From the outside it seems that Grand Banks Yachts Ltd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Products industry have deep experience in developing customer relationships. Marketing department at Grand Banks Yachts Ltd can leverage the sales team experience to cultivate customer relationships as Grand Banks Yachts Ltd is planning to shift buying processes online.
No frontier risks strategy
– From the 10K / annual statement of Grand Banks Yachts Ltd, it seems that company is thinking out the frontier risks that can impact Recreational Products 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.
Capital Spending Reduction
– Even during the low interest decade, Grand Banks Yachts Ltd 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 Recreational Products industry using digital technology.
High dependence on Grand Banks Yachts Ltd ‘s star products
– The top 2 products and services of Grand Banks Yachts Ltd still accounts for major business revenue. This dependence on star products in Recreational Products industry has resulted into insufficient focus on developing new products, even though Grand Banks Yachts Ltd has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Grand Banks Yachts Ltd, in the dynamic environment of Recreational Products industry it has struggled to respond to the nimble upstart competition. Grand Banks Yachts Ltd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Grand Banks Yachts Ltd has a high cash cycle compare to other players in the Recreational Products industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ less understanding of Grand Banks Yachts Ltd strategy
– From the outside it seems that the employees of Grand Banks Yachts Ltd 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.
High bargaining power of channel partners in Recreational Products industry
– because of the regulatory requirements in Singapore, Grand Banks Yachts Ltd 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 Recreational Products industry.
Increasing silos among functional specialists
– The organizational structure of Grand Banks Yachts Ltd is dominated by functional specialists. It is not different from other players in the Recreational Products industry, but Grand Banks Yachts Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Grand Banks Yachts Ltd to focus more on services in the Recreational Products industry rather than just following the product oriented approach.
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 Grand Banks Yachts Ltd supply chain. Even after few cautionary changes, Grand Banks Yachts Ltd is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Grand Banks Yachts Ltd vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Singapore, Grand Banks Yachts Ltd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Grand Banks Yachts Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Grand Banks Yachts Ltd are -
Using analytics as competitive advantage
– Grand Banks Yachts Ltd has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Recreational Products sector. This continuous investment in analytics has enabled Grand Banks Yachts Ltd to build a competitive advantage using analytics. The analytics driven competitive advantage can help Grand Banks Yachts Ltd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Grand Banks Yachts Ltd has opened avenues for new revenue streams for the organization in Recreational Products industry. This can help Grand Banks Yachts Ltd to build a more holistic ecosystem for Grand Banks Yachts Ltd products in the Recreational Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Grand Banks Yachts Ltd can improve the customer journey of consumers in the Recreational Products 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, Grand Banks Yachts Ltd 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
– Grand Banks Yachts Ltd 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Grand Banks Yachts Ltd 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.
Building a culture of innovation
– managers at Grand Banks Yachts Ltd 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 Recreational Products industry.
Better consumer reach
– The expansion of the 5G network will help Grand Banks Yachts Ltd to increase its market reach. Grand Banks Yachts Ltd 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, Grand Banks Yachts Ltd is facing challenges because of the dominance of functional experts in the organization. Grand Banks Yachts Ltd can utilize new technology in the field of Recreational Products industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Grand Banks Yachts Ltd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Grand Banks Yachts Ltd 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Recreational Products industry, but it has also influenced the consumer preferences. Grand Banks Yachts Ltd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Grand Banks Yachts Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Grand Banks Yachts Ltd are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Recreational Products industry are lowering. It can presents Grand Banks Yachts Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Products sector.
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. Grand Banks Yachts Ltd 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.
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.
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 Grand Banks Yachts Ltd in the Recreational Products 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 Grand Banks Yachts Ltd business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Grand Banks Yachts Ltd in Recreational Products industry. The Recreational Products 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.
High dependence on third party suppliers
– Grand Banks Yachts Ltd 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 Recreational Products industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Grand Banks Yachts Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Grand Banks Yachts Ltd has witnessed rapid integration of technology during Covid-19 in the Recreational Products industry. As one of the leading players in the industry, Grand Banks Yachts Ltd needs to keep up with the evolution of technology in the Recreational Products 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.
Regulatory challenges
– Grand Banks Yachts Ltd 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 Recreational Products industry regulations.
Environmental challenges
– Grand Banks Yachts Ltd 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. Grand Banks Yachts Ltd can take advantage of this fund but it will also bring new competitors in the Recreational Products industry.
Increasing wage structure of Grand Banks Yachts Ltd
– 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 Grand Banks Yachts Ltd.
Weighted SWOT Analysis of Grand Banks Yachts Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd 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 Grand Banks Yachts Ltd needs to make to build a sustainable competitive advantage.