Bidvest Group Ltd, The (BVTJ) SWOT Analysis / TOWS Matrix / MBA Resources
Food Processing
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Bidvest Group Ltd, The (South Africa)
Based on various researches at Oak Spring University , Bidvest Group Ltd, The is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, wage bills are increasing, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Bidvest Group Ltd, The
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Bidvest Group Ltd, The can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bidvest Group Ltd, The, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bidvest Group Ltd, The 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 Bidvest Group Ltd, The can be done for the following purposes –
1. Strategic planning of Bidvest Group Ltd, The
2. Improving business portfolio management of Bidvest Group Ltd, The
3. Assessing feasibility of the new initiative in South Africa
4. Making a Food Processing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bidvest Group Ltd, The
Strengths of Bidvest Group Ltd, The | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bidvest Group Ltd, The are -
Innovation driven organization
– Bidvest Group Ltd, The is one of the most innovative firm in Food Processing sector.
Strong track record of project management in the Food Processing industry
– Bidvest Group Ltd, The 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
– Bidvest Group Ltd, The has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Food Processing industry. Secondly the value chain collaborators of Bidvest Group Ltd, The have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Bidvest Group Ltd, The in the Consumer/Non-Cyclical sector have low bargaining power. Bidvest Group Ltd, The has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bidvest Group Ltd, The to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Bidvest Group Ltd, The 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 Food Processing industry. The technology infrastructure of South Africa 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.
Sustainable margins compare to other players in Food Processing industry
– Bidvest Group Ltd, The has clearly differentiated products in the market place. This has enabled Bidvest Group Ltd, The to fetch slight price premium compare to the competitors in the Food Processing industry. The sustainable margins have also helped Bidvest Group Ltd, The to invest into research and development (R&D) and innovation.
Organizational Resilience of Bidvest Group Ltd, The
– The covid-19 pandemic has put organizational resilience at the centre of everthing Bidvest Group Ltd, The does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Food Processing industry
- digital transformation varies from industry to industry. For Bidvest Group Ltd, The digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bidvest Group Ltd, The 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.
High switching costs
– The high switching costs that Bidvest Group Ltd, The 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.
Diverse revenue streams
– Bidvest Group Ltd, The is present in almost all the verticals within the Food Processing industry. This has provided Bidvest Group Ltd, The 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.
Operational resilience
– The operational resilience strategy of Bidvest Group Ltd, The comprises – understanding the underlying the factors in the Food Processing 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
- Bidvest Group Ltd, The 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 Bidvest Group Ltd, The is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Bidvest Group Ltd, The emphasize – knowledge, initiative, and innovation.
Weaknesses of Bidvest Group Ltd, The | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bidvest Group Ltd, The are -
Skills based hiring in Food Processing industry
– The stress on hiring functional specialists at Bidvest Group Ltd, The 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.
High operating costs
– Compare to the competitors, Bidvest Group Ltd, The has high operating costs in the Food Processing industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bidvest Group Ltd, The lucrative customers.
Products dominated business model
– Even though Bidvest Group Ltd, The has some of the most successful models in the Food Processing industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Bidvest Group Ltd, The should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Bidvest Group Ltd, The is one of the leading players in the Food Processing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Food Processing industry in last five years.
Low market penetration in new markets
– Outside its home market of South Africa, Bidvest Group Ltd, The needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at Bidvest Group Ltd, The, in the dynamic environment of Food Processing industry it has struggled to respond to the nimble upstart competition. Bidvest Group Ltd, The has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Bidvest Group Ltd, The supply chain. Even after few cautionary changes, Bidvest Group Ltd, The is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bidvest Group Ltd, The vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Bidvest Group Ltd, The is dominated by functional specialists. It is not different from other players in the Food Processing industry, but Bidvest Group Ltd, The needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bidvest Group Ltd, The to focus more on services in the Food Processing industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Food Processing industry, Bidvest Group Ltd, The 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.
Need for greater diversity
– Bidvest Group Ltd, The 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 cash cycle compare to competitors
Bidvest Group Ltd, The has a high cash cycle compare to other players in the Food Processing industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Bidvest Group Ltd, The Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Bidvest Group Ltd, The are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bidvest Group Ltd, The is facing challenges because of the dominance of functional experts in the organization. Bidvest Group Ltd, The can utilize new technology in the field of Food Processing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Bidvest Group Ltd, The can use the latest technology developments to improve its manufacturing and designing process in Food Processing 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.
Learning at scale
– Online learning technologies has now opened space for Bidvest Group Ltd, The 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bidvest Group Ltd, The 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.
Using analytics as competitive advantage
– Bidvest Group Ltd, The has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Food Processing sector. This continuous investment in analytics has enabled Bidvest Group Ltd, The to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bidvest Group Ltd, The 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 Bidvest Group Ltd, The has opened avenues for new revenue streams for the organization in Food Processing industry. This can help Bidvest Group Ltd, The to build a more holistic ecosystem for Bidvest Group Ltd, The products in the Food Processing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Food Processing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bidvest Group Ltd, The in the Food Processing industry. Now Bidvest Group Ltd, The can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Bidvest Group Ltd, The can improve the customer journey of consumers in the Food Processing 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.
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. Bidvest Group Ltd, The can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Bidvest Group Ltd, The 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Food Processing industry, but it has also influenced the consumer preferences. Bidvest Group Ltd, The can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Bidvest Group Ltd, The 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bidvest Group Ltd, The 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 Bidvest Group Ltd, The to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Bidvest Group Ltd, The External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Bidvest Group Ltd, The 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bidvest Group Ltd, The in Food Processing industry. The Food Processing 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.
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 Bidvest Group Ltd, The in the Food Processing sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Bidvest Group Ltd, The is facing in Food Processing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bidvest Group Ltd, The 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 Bidvest Group Ltd, The prominent markets.
High dependence on third party suppliers
– Bidvest Group Ltd, The 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Food Processing industry are lowering. It can presents Bidvest Group Ltd, The with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Food Processing sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Bidvest Group Ltd, The may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Food Processing sector.
Technology acceleration in Forth Industrial Revolution
– Bidvest Group Ltd, The has witnessed rapid integration of technology during Covid-19 in the Food Processing industry. As one of the leading players in the industry, Bidvest Group Ltd, The needs to keep up with the evolution of technology in the Food Processing 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.
Stagnating economy with rate increase
– Bidvest Group Ltd, The can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Food Processing industry.
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 Bidvest Group Ltd, The business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Bidvest Group Ltd, The 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 Food Processing industry and other sectors.
Weighted SWOT Analysis of Bidvest Group Ltd, The Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Bidvest Group Ltd, The 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 Bidvest Group Ltd, The 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 Bidvest Group Ltd, The 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 Bidvest Group Ltd, The 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 Bidvest Group Ltd, The needs to make to build a sustainable competitive advantage.