Telecomunicacoes Brasileira SA Pref (TELB4) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Telecomunicacoes Brasileira SA Pref (Brazil)

Based on various researches at Oak Spring University , Telecomunicacoes Brasileira SA Pref is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, geopolitical disruptions, wage bills are increasing, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of Telecomunicacoes Brasileira SA Pref

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Telecomunicacoes Brasileira SA Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telecomunicacoes Brasileira SA Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telecomunicacoes Brasileira SA Pref 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Telecomunicacoes Brasileira SA Pref can be done for the following purposes –
1. Strategic planning of Telecomunicacoes Brasileira SA Pref
2. Improving business portfolio management of Telecomunicacoes Brasileira SA Pref
3. Assessing feasibility of the new initiative in Brazil
4. Making a Communications Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Telecomunicacoes Brasileira SA Pref

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Strengths of Telecomunicacoes Brasileira SA Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Telecomunicacoes Brasileira SA Pref are -

Learning organization

- Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Telecomunicacoes Brasileira SA Pref emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Telecomunicacoes Brasileira SA Pref

– The covid-19 pandemic has put organizational resilience at the centre of everthing Telecomunicacoes Brasileira SA Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Operational resilience

– The operational resilience strategy of Telecomunicacoes Brasileira SA Pref comprises – understanding the underlying the factors in the Communications Services industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Highly skilled collaborators

– Telecomunicacoes Brasileira SA Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Communications Services industry. Secondly the value chain collaborators of Telecomunicacoes Brasileira SA Pref have helped the firm to develop new products and bring them quickly to the marketplace.

Training and development

– Telecomunicacoes Brasileira SA Pref 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.

Innovation driven organization

– Telecomunicacoes Brasileira SA Pref is one of the most innovative firm in Communications Services sector.

Strong track record of project management in the Communications Services industry

– Telecomunicacoes Brasileira SA Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to recruit top talent

– Telecomunicacoes Brasileira SA Pref is one of the leading players in the Communications Services 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.

Low bargaining power of suppliers

– Suppliers of Telecomunicacoes Brasileira SA Pref in the Services sector have low bargaining power. Telecomunicacoes Brasileira SA Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telecomunicacoes Brasileira SA Pref to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Telecomunicacoes Brasileira SA Pref 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.

Diverse revenue streams

– Telecomunicacoes Brasileira SA Pref is present in almost all the verticals within the Communications Services industry. This has provided Telecomunicacoes Brasileira SA Pref 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.

Effective Research and Development (R&D)

– Telecomunicacoes Brasileira SA Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Telecomunicacoes Brasileira SA Pref staying ahead in the Communications Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses of Telecomunicacoes Brasileira SA Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Telecomunicacoes Brasileira SA Pref are -

High operating costs

– Compare to the competitors, Telecomunicacoes Brasileira SA Pref has high operating costs in the Communications Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Telecomunicacoes Brasileira SA Pref lucrative customers.

Low market penetration in new markets

– Outside its home market of Brazil, Telecomunicacoes Brasileira SA Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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 Telecomunicacoes Brasileira SA Pref supply chain. Even after few cautionary changes, Telecomunicacoes Brasileira SA Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Telecomunicacoes Brasileira SA Pref vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners in Communications Services industry

– because of the regulatory requirements in Brazil, Telecomunicacoes Brasileira SA Pref 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 Communications Services industry.

Employees’ less understanding of Telecomunicacoes Brasileira SA Pref strategy

– From the outside it seems that the employees of Telecomunicacoes Brasileira SA Pref 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.

Lack of clear differentiation of Telecomunicacoes Brasileira SA Pref products

– To increase the profitability and margins on the products, Telecomunicacoes Brasileira SA Pref needs to provide more differentiated products than what it is currently offering in the marketplace.

Skills based hiring in Communications Services industry

– The stress on hiring functional specialists at Telecomunicacoes Brasileira SA Pref 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 dependence on Telecomunicacoes Brasileira SA Pref ‘s star products

– The top 2 products and services of Telecomunicacoes Brasileira SA Pref still accounts for major business revenue. This dependence on star products in Communications Services industry has resulted into insufficient focus on developing new products, even though Telecomunicacoes Brasileira SA Pref has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Telecomunicacoes Brasileira SA Pref is slow explore the new channels of communication. These new channels of communication can help Telecomunicacoes Brasileira SA Pref to provide better information regarding Communications Services products and services. It can also build an online community to further reach out to potential customers.

Products dominated business model

– Even though Telecomunicacoes Brasileira SA Pref has some of the most successful models in the Communications Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Telecomunicacoes Brasileira SA Pref should strive to include more intangible value offerings along with its core products and services.

No frontier risks strategy

– From the 10K / annual statement of Telecomunicacoes Brasileira SA Pref, it seems that company is thinking out the frontier risks that can impact Communications Services 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.

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Telecomunicacoes Brasileira SA Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Telecomunicacoes Brasileira SA Pref are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Telecomunicacoes Brasileira SA Pref in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communications Services industry, and it will provide faster access to the consumers.

Loyalty marketing

– Telecomunicacoes Brasileira SA Pref 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Telecomunicacoes Brasileira SA Pref 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.

Developing new processes and practices

– Telecomunicacoes Brasileira SA Pref can develop new processes and procedures in Communications Services 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Telecomunicacoes Brasileira SA Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Using analytics as competitive advantage

– Telecomunicacoes Brasileira SA Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Communications Services sector. This continuous investment in analytics has enabled Telecomunicacoes Brasileira SA Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telecomunicacoes Brasileira SA Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Communications Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Telecomunicacoes Brasileira SA Pref can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Telecomunicacoes Brasileira SA Pref can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Creating value in data economy

– The success of analytics program of Telecomunicacoes Brasileira SA Pref has opened avenues for new revenue streams for the organization in Communications Services industry. This can help Telecomunicacoes Brasileira SA Pref to build a more holistic ecosystem for Telecomunicacoes Brasileira SA Pref products in the Communications Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Communications Services industry, but it has also influenced the consumer preferences. Telecomunicacoes Brasileira SA Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Buying journey improvements

– Telecomunicacoes Brasileira SA Pref can improve the customer journey of consumers in the Communications Services 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. Telecomunicacoes Brasileira SA Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Better consumer reach

– The expansion of the 5G network will help Telecomunicacoes Brasileira SA Pref to increase its market reach. Telecomunicacoes Brasileira SA Pref 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.

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Threats Telecomunicacoes Brasileira SA Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Telecomunicacoes Brasileira SA Pref are -

High dependence on third party suppliers

– Telecomunicacoes Brasileira SA Pref 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.

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. Telecomunicacoes Brasileira SA Pref 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.

Regulatory challenges

– Telecomunicacoes Brasileira SA Pref 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 Communications Services industry regulations.

Stagnating economy with rate increase

– Telecomunicacoes Brasileira SA Pref 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 Communications Services industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Communications Services industry are lowering. It can presents Telecomunicacoes Brasileira SA Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Communications Services sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref prominent markets.

Shortening product life cycle

– it is one of the major threat that Telecomunicacoes Brasileira SA Pref is facing in Communications Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 Telecomunicacoes Brasileira SA Pref.

Easy access to finance

– Easy access to finance in Communications Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Telecomunicacoes Brasileira SA Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Telecomunicacoes Brasileira SA Pref may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communications Services sector.

Environmental challenges

– Telecomunicacoes Brasileira SA Pref 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. Telecomunicacoes Brasileira SA Pref can take advantage of this fund but it will also bring new competitors in the Communications Services industry.

Increasing wage structure of Telecomunicacoes Brasileira SA Pref

– 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 Telecomunicacoes Brasileira SA Pref.

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Weighted SWOT Analysis of Telecomunicacoes Brasileira SA Pref Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref 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 Telecomunicacoes Brasileira SA Pref needs to make to build a sustainable competitive advantage.

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