Duke Energy Intl Geracao Para (GEPA4) SWOT Analysis / TOWS Matrix / MBA Resources
Electric Utilities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Duke Energy Intl Geracao Para (Brazil)
Based on various researches at Oak Spring University , Duke Energy Intl Geracao Para is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, technology disruption, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Duke Energy Intl Geracao Para
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Duke Energy Intl Geracao Para can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Duke Energy Intl Geracao Para, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para can be done for the following purposes –
1. Strategic planning of Duke Energy Intl Geracao Para
2. Improving business portfolio management of Duke Energy Intl Geracao Para
3. Assessing feasibility of the new initiative in Brazil
4. Making a Electric Utilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Duke Energy Intl Geracao Para
Strengths of Duke Energy Intl Geracao Para | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Duke Energy Intl Geracao Para are -
Operational resilience
– The operational resilience strategy of Duke Energy Intl Geracao Para comprises – understanding the underlying the factors in the Electric Utilities 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.
Successful track record of launching new products
– Duke Energy Intl Geracao Para has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Duke Energy Intl Geracao Para 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.
Sustainable margins compare to other players in Electric Utilities industry
– Duke Energy Intl Geracao Para has clearly differentiated products in the market place. This has enabled Duke Energy Intl Geracao Para to fetch slight price premium compare to the competitors in the Electric Utilities industry. The sustainable margins have also helped Duke Energy Intl Geracao Para to invest into research and development (R&D) and innovation.
Digital Transformation in Electric Utilities industry
- digital transformation varies from industry to industry. For Duke Energy Intl Geracao Para digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Duke Energy Intl Geracao Para 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 brand equity
– Duke Energy Intl Geracao Para has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Duke Energy Intl Geracao Para to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Duke Energy Intl Geracao Para in Electric Utilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Duke Energy Intl Geracao Para has one of the best training and development program in Utilities 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.
Highly skilled collaborators
– Duke Energy Intl Geracao Para has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Electric Utilities industry. Secondly the value chain collaborators of Duke Energy Intl Geracao Para have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Duke Energy Intl Geracao Para has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Duke Energy Intl Geracao Para staying ahead in the Electric Utilities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Duke Energy Intl Geracao Para is present in almost all the verticals within the Electric Utilities industry. This has provided Duke Energy Intl Geracao Para 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.
Low bargaining power of suppliers
– Suppliers of Duke Energy Intl Geracao Para in the Utilities sector have low bargaining power. Duke Energy Intl Geracao Para has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Duke Energy Intl Geracao Para to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Duke Energy Intl Geracao Para 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.
Weaknesses of Duke Energy Intl Geracao Para | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Duke Energy Intl Geracao Para are -
High bargaining power of channel partners in Electric Utilities industry
– because of the regulatory requirements in Brazil, Duke Energy Intl Geracao Para 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 Electric Utilities industry.
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 Duke Energy Intl Geracao Para supply chain. Even after few cautionary changes, Duke Energy Intl Geracao Para is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Duke Energy Intl Geracao Para vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Duke Energy Intl Geracao Para 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 Electric Utilities industry using digital technology.
Interest costs
– Compare to the competition, Duke Energy Intl Geracao Para 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.
No frontier risks strategy
– From the 10K / annual statement of Duke Energy Intl Geracao Para, it seems that company is thinking out the frontier risks that can impact Electric Utilities 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.
High cash cycle compare to competitors
Duke Energy Intl Geracao Para has a high cash cycle compare to other players in the Electric Utilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Aligning sales with marketing
– From the outside it seems that Duke Energy Intl Geracao Para needs to have more collaboration between its sales team and marketing team. Sales professionals in the Electric Utilities industry have deep experience in developing customer relationships. Marketing department at Duke Energy Intl Geracao Para can leverage the sales team experience to cultivate customer relationships as Duke Energy Intl Geracao Para is planning to shift buying processes online.
High operating costs
– Compare to the competitors, Duke Energy Intl Geracao Para has high operating costs in the Electric Utilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Duke Energy Intl Geracao Para lucrative customers.
High dependence on Duke Energy Intl Geracao Para ‘s star products
– The top 2 products and services of Duke Energy Intl Geracao Para still accounts for major business revenue. This dependence on star products in Electric Utilities industry has resulted into insufficient focus on developing new products, even though Duke Energy Intl Geracao Para has relatively successful track record of launching new products.
Need for greater diversity
– Duke Energy Intl Geracao Para 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Duke Energy Intl Geracao Para is slow explore the new channels of communication. These new channels of communication can help Duke Energy Intl Geracao Para to provide better information regarding Electric Utilities products and services. It can also build an online community to further reach out to potential customers.
Duke Energy Intl Geracao Para Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Duke Energy Intl Geracao Para are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Duke Energy Intl Geracao Para has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Electric Utilities sector. This continuous investment in analytics has enabled Duke Energy Intl Geracao Para to build a competitive advantage using analytics. The analytics driven competitive advantage can help Duke Energy Intl Geracao Para to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Duke Energy Intl Geracao Para can use the latest technology developments to improve its manufacturing and designing process in Electric Utilities 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.
Building a culture of innovation
– managers at Duke Energy Intl Geracao Para 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 Electric Utilities industry.
Developing new processes and practices
– Duke Energy Intl Geracao Para can develop new processes and procedures in Electric Utilities 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.
Use of Bitcoin and other crypto currencies for transactions in Electric Utilities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Duke Energy Intl Geracao Para in the Electric Utilities industry. Now Duke Energy Intl Geracao Para can target international markets with far fewer capital restrictions requirements than the existing system.
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. Duke Energy Intl Geracao Para can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Duke Energy Intl Geracao Para can improve the customer journey of consumers in the Electric Utilities 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Duke Energy Intl Geracao Para in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Electric Utilities industry, and it will provide faster access to the consumers.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Duke Energy Intl Geracao Para 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.
Creating value in data economy
– The success of analytics program of Duke Energy Intl Geracao Para has opened avenues for new revenue streams for the organization in Electric Utilities industry. This can help Duke Energy Intl Geracao Para to build a more holistic ecosystem for Duke Energy Intl Geracao Para products in the Electric Utilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Duke Energy Intl Geracao Para to increase its market reach. Duke Energy Intl Geracao Para 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Duke Energy Intl Geracao Para are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Duke Energy Intl Geracao Para may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Electric Utilities sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para prominent markets.
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. Duke Energy Intl Geracao Para needs to understand the core reasons impacting the Electric Utilities industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Duke Energy Intl Geracao Para 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 Electric Utilities industry.
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.
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. Duke Energy Intl Geracao Para 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.
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.
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 Duke Energy Intl Geracao Para in the Electric Utilities sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Electric Utilities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Duke Energy Intl Geracao Para can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Duke Energy Intl Geracao Para 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 Electric Utilities industry regulations.
High dependence on third party suppliers
– Duke Energy Intl Geracao Para 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.
Technology acceleration in Forth Industrial Revolution
– Duke Energy Intl Geracao Para has witnessed rapid integration of technology during Covid-19 in the Electric Utilities industry. As one of the leading players in the industry, Duke Energy Intl Geracao Para needs to keep up with the evolution of technology in the Electric Utilities 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Electric Utilities industry are lowering. It can presents Duke Energy Intl Geracao Para with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Electric Utilities sector.
Weighted SWOT Analysis of Duke Energy Intl Geracao Para Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para 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 Duke Energy Intl Geracao Para needs to make to build a sustainable competitive advantage.