TIME FOR FUN ON (SHOW3) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for TIME FOR FUN ON (Brazil)

Based on various researches at Oak Spring University , TIME FOR FUN ON is operating in a macro-environment that has been destablized by – increasing energy prices, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, there is increasing trade war between United States & China, geopolitical disruptions, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of TIME FOR FUN ON

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

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of TIME FOR FUN ON can be done for the following purposes –
1. Strategic planning of TIME FOR FUN ON
2. Improving business portfolio management of TIME FOR FUN ON
3. Assessing feasibility of the new initiative in Brazil
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of TIME FOR FUN ON

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Strengths of TIME FOR FUN ON | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of TIME FOR FUN ON are -

Strong track record of project management in the Recreational Activities industry

– TIME FOR FUN ON is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Low bargaining power of suppliers

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

High switching costs

– The high switching costs that TIME FOR FUN ON 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.

Innovation driven organization

– TIME FOR FUN ON is one of the most innovative firm in Recreational Activities sector.

Digital Transformation in Recreational Activities industry

- digital transformation varies from industry to industry. For TIME FOR FUN ON digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. TIME FOR FUN ON has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Learning organization

- TIME FOR FUN ON is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at TIME FOR FUN ON is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at TIME FOR FUN ON emphasize – knowledge, initiative, and innovation.

Analytics focus

– TIME FOR FUN ON is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Recreational Activities industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

High brand equity

– TIME FOR FUN ON has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled TIME FOR FUN ON to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Organizational Resilience of TIME FOR FUN ON

– The covid-19 pandemic has put organizational resilience at the centre of everthing TIME FOR FUN ON does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– TIME FOR FUN ON is one of the leading players in the Recreational Activities 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.

Ability to lead change in Recreational Activities

– TIME FOR FUN ON is one of the leading players in the Recreational Activities industry in Brazil. Over the years it has not only transformed the business landscape in the Recreational Activities industry in Brazil but also across the existing markets. The ability to lead change has enabled TIME FOR FUN ON in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Effective Research and Development (R&D)

– TIME FOR FUN ON has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – TIME FOR FUN ON staying ahead in the Recreational Activities 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 TIME FOR FUN ON | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of TIME FOR FUN ON are -

High cash cycle compare to competitors

TIME FOR FUN ON has a high cash cycle compare to other players in the Recreational Activities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Skills based hiring in Recreational Activities industry

– The stress on hiring functional specialists at TIME FOR FUN ON has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Products dominated business model

– Even though TIME FOR FUN ON has some of the most successful models in the Recreational Activities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. TIME FOR FUN ON should strive to include more intangible value offerings along with its core products and services.

Slow decision making process

– As mentioned earlier in the report, TIME FOR FUN ON has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Recreational Activities industry over the last five years. TIME FOR FUN ON even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Increasing silos among functional specialists

– The organizational structure of TIME FOR FUN ON is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but TIME FOR FUN ON needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help TIME FOR FUN ON to focus more on services in the Recreational Activities industry rather than just following the product oriented approach.

Workers concerns about automation

– As automation is fast increasing in the Recreational Activities industry, TIME FOR FUN ON needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Aligning sales with marketing

– From the outside it seems that TIME FOR FUN ON needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Activities industry have deep experience in developing customer relationships. Marketing department at TIME FOR FUN ON can leverage the sales team experience to cultivate customer relationships as TIME FOR FUN ON is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As TIME FOR FUN ON is one of the leading players in the Recreational Activities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Recreational Activities industry in last five years.

High dependence on TIME FOR FUN ON ‘s star products

– The top 2 products and services of TIME FOR FUN ON still accounts for major business revenue. This dependence on star products in Recreational Activities industry has resulted into insufficient focus on developing new products, even though TIME FOR FUN ON has relatively successful track record of launching new products.

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

Low market penetration in new markets

– Outside its home market of Brazil, TIME FOR FUN ON needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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TIME FOR FUN ON Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of TIME FOR FUN ON are -

Creating value in data economy

– The success of analytics program of TIME FOR FUN ON has opened avenues for new revenue streams for the organization in Recreational Activities industry. This can help TIME FOR FUN ON to build a more holistic ecosystem for TIME FOR FUN ON products in the Recreational Activities industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 TIME FOR FUN ON 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.

Reforming the budgeting process

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

Leveraging digital technologies

– TIME FOR FUN ON 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, TIME FOR FUN ON can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for TIME FOR FUN ON to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for TIME FOR FUN ON to hire the very best people irrespective of their geographical location.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, TIME FOR FUN ON can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help TIME FOR FUN ON to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help TIME FOR FUN ON to increase its market reach. TIME FOR FUN ON will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Lowering marketing communication costs

– 5G expansion will open new opportunities for TIME FOR FUN ON in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Recreational Activities industry, and it will provide faster access to the consumers.

Loyalty marketing

– TIME FOR FUN ON has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Building a culture of innovation

– managers at TIME FOR FUN ON 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 Activities industry.

Buying journey improvements

– TIME FOR FUN ON can improve the customer journey of consumers in the Recreational Activities 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Recreational Activities industry, but it has also influenced the consumer preferences. TIME FOR FUN ON can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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Threats TIME FOR FUN ON External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of TIME FOR FUN ON are -

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 TIME FOR FUN ON business can come under increasing regulations regarding data privacy, data security, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, TIME FOR FUN ON may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Recreational Activities 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. TIME FOR FUN ON will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

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.

Technology acceleration in Forth Industrial Revolution

– TIME FOR FUN ON has witnessed rapid integration of technology during Covid-19 in the Recreational Activities industry. As one of the leading players in the industry, TIME FOR FUN ON needs to keep up with the evolution of technology in the Recreational Activities 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

– TIME FOR FUN ON 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 Activities industry regulations.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Recreational Activities industry are lowering. It can presents TIME FOR FUN ON with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Activities sector.

Easy access to finance

– Easy access to finance in Recreational Activities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. TIME FOR FUN ON can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing wage structure of TIME FOR FUN ON

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of TIME FOR FUN ON.

Environmental challenges

– TIME FOR FUN ON needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. TIME FOR FUN ON can take advantage of this fund but it will also bring new competitors in the Recreational Activities industry.

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 TIME FOR FUN ON.

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. TIME FOR FUN ON needs to understand the core reasons impacting the Recreational Activities industry. This will help it in building a better workplace.

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.

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Weighted SWOT Analysis of TIME FOR FUN ON Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at TIME FOR FUN ON needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of TIME FOR FUN ON is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of TIME FOR FUN ON is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of TIME FOR FUN ON to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that TIME FOR FUN ON needs to make to build a sustainable competitive advantage.

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