SWOT Analysis / TOWS Matrix for Josapar Joaquim Oliveira (Brazil)
Based on various researches at Oak Spring University , Josapar Joaquim Oliveira is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, central banks are concerned over increasing inflation, increasing commodity prices, increasing energy prices, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Josapar Joaquim Oliveira
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Josapar Joaquim Oliveira can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Josapar Joaquim Oliveira, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira can be done for the following purposes –
1. Strategic planning of Josapar Joaquim Oliveira
2. Improving business portfolio management of Josapar Joaquim Oliveira
3. Assessing feasibility of the new initiative in Brazil
4. Making a Food Processing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Josapar Joaquim Oliveira
Strengths of Josapar Joaquim Oliveira | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Josapar Joaquim Oliveira are -
Low bargaining power of suppliers
– Suppliers of Josapar Joaquim Oliveira in the Consumer/Non-Cyclical sector have low bargaining power. Josapar Joaquim Oliveira has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Josapar Joaquim Oliveira to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management in the Food Processing industry
– Josapar Joaquim Oliveira is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Josapar Joaquim Oliveira in Food Processing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Josapar Joaquim Oliveira has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Josapar Joaquim Oliveira 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.
Digital Transformation in Food Processing industry
- digital transformation varies from industry to industry. For Josapar Joaquim Oliveira digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Josapar Joaquim Oliveira 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.
Effective Research and Development (R&D)
– Josapar Joaquim Oliveira has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Josapar Joaquim Oliveira staying ahead in the Food Processing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Josapar Joaquim Oliveira 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 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.
Training and development
– Josapar Joaquim Oliveira has one of the best training and development program in Consumer/Non-Cyclical industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Food Processing
– Josapar Joaquim Oliveira is one of the leading players in the Food Processing industry in Brazil. Over the years it has not only transformed the business landscape in the Food Processing industry in Brazil but also across the existing markets. The ability to lead change has enabled Josapar Joaquim Oliveira in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Josapar Joaquim Oliveira has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Josapar Joaquim Oliveira to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Josapar Joaquim Oliveira is one of the most innovative firm in Food Processing sector.
Weaknesses of Josapar Joaquim Oliveira | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Josapar Joaquim Oliveira are -
Compensation and incentives
– The revenue per employee of Josapar Joaquim Oliveira is just above the Food Processing industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Lack of clear differentiation of Josapar Joaquim Oliveira products
– To increase the profitability and margins on the products, Josapar Joaquim Oliveira needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Josapar Joaquim Oliveira 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. Josapar Joaquim Oliveira should strive to include more intangible value offerings along with its core products and services.
Employees’ less understanding of Josapar Joaquim Oliveira strategy
– From the outside it seems that the employees of Josapar Joaquim Oliveira 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.
Ability to respond to the competition
– As the decision making is very deliberative at Josapar Joaquim Oliveira, in the dynamic environment of Food Processing industry it has struggled to respond to the nimble upstart competition. Josapar Joaquim Oliveira has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Josapar Joaquim Oliveira 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 Food Processing industry using digital technology.
Aligning sales with marketing
– From the outside it seems that Josapar Joaquim Oliveira needs to have more collaboration between its sales team and marketing team. Sales professionals in the Food Processing industry have deep experience in developing customer relationships. Marketing department at Josapar Joaquim Oliveira can leverage the sales team experience to cultivate customer relationships as Josapar Joaquim Oliveira is planning to shift buying processes online.
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 Josapar Joaquim Oliveira supply chain. Even after few cautionary changes, Josapar Joaquim Oliveira is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Josapar Joaquim Oliveira vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Josapar Joaquim Oliveira 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.
No frontier risks strategy
– From the 10K / annual statement of Josapar Joaquim Oliveira, it seems that company is thinking out the frontier risks that can impact Food Processing 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 bargaining power of channel partners in Food Processing industry
– because of the regulatory requirements in Brazil, Josapar Joaquim Oliveira 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 Food Processing industry.
Josapar Joaquim Oliveira Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Josapar Joaquim Oliveira are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Josapar Joaquim Oliveira 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.
Manufacturing automation
– Josapar Joaquim Oliveira 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.
Leveraging digital technologies
– Josapar Joaquim Oliveira 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.
Loyalty marketing
– Josapar Joaquim Oliveira 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.
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 Josapar Joaquim Oliveira in the Food Processing industry. Now Josapar Joaquim Oliveira can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Josapar Joaquim Oliveira in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Food Processing industry, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Josapar Joaquim Oliveira 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 Food Processing industry.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Josapar Joaquim Oliveira can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Food Processing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Josapar Joaquim Oliveira 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. Josapar Joaquim Oliveira 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.
Developing new processes and practices
– Josapar Joaquim Oliveira can develop new processes and procedures in Food Processing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Josapar Joaquim Oliveira is facing challenges because of the dominance of functional experts in the organization. Josapar Joaquim Oliveira 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.
Creating value in data economy
– The success of analytics program of Josapar Joaquim Oliveira has opened avenues for new revenue streams for the organization in Food Processing industry. This can help Josapar Joaquim Oliveira to build a more holistic ecosystem for Josapar Joaquim Oliveira products in the Food Processing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Josapar Joaquim Oliveira External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Josapar Joaquim Oliveira are -
High dependence on third party suppliers
– Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Food Processing sector.
Technology acceleration in Forth Industrial Revolution
– Josapar Joaquim Oliveira has witnessed rapid integration of technology during Covid-19 in the Food Processing industry. As one of the leading players in the industry, Josapar Joaquim Oliveira 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.
Increasing wage structure of Josapar Joaquim Oliveira
– 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 Josapar Joaquim Oliveira.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Josapar Joaquim Oliveira 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Josapar Joaquim Oliveira 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.
Stagnating economy with rate increase
– Josapar Joaquim Oliveira 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.
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. Josapar Joaquim Oliveira 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.
Environmental challenges
– Josapar Joaquim Oliveira 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. Josapar Joaquim Oliveira can take advantage of this fund but it will also bring new competitors in the Food Processing industry.
Easy access to finance
– Easy access to finance in Food Processing industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Josapar Joaquim Oliveira can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira prominent markets.
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.
Weighted SWOT Analysis of Josapar Joaquim Oliveira Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira 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 Josapar Joaquim Oliveira needs to make to build a sustainable competitive advantage.