POSITIVO INF ON (POSI3) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for POSITIVO INF ON (Brazil)

Based on various researches at Oak Spring University , POSITIVO INF ON is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, etc

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Introduction to SWOT Analysis of POSITIVO INF ON

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that POSITIVO INF ON can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the POSITIVO INF ON, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which POSITIVO INF 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 POSITIVO INF ON can be done for the following purposes –
1. Strategic planning of POSITIVO INF ON
2. Improving business portfolio management of POSITIVO INF ON
3. Assessing feasibility of the new initiative in Brazil
4. Making a Computer Hardware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of POSITIVO INF ON

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Strengths of POSITIVO INF ON | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of POSITIVO INF ON are -

Effective Research and Development (R&D)

– POSITIVO INF ON has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – POSITIVO INF ON staying ahead in the Computer Hardware industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Sustainable margins compare to other players in Computer Hardware industry

– POSITIVO INF ON has clearly differentiated products in the market place. This has enabled POSITIVO INF ON to fetch slight price premium compare to the competitors in the Computer Hardware industry. The sustainable margins have also helped POSITIVO INF ON to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the POSITIVO INF ON 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.

Learning organization

- POSITIVO INF 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 POSITIVO INF ON is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at POSITIVO INF ON emphasize – knowledge, initiative, and innovation.

Operational resilience

– The operational resilience strategy of POSITIVO INF ON comprises – understanding the underlying the factors in the Computer Hardware 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.

Ability to lead change in Computer Hardware

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

Digital Transformation in Computer Hardware industry

- digital transformation varies from industry to industry. For POSITIVO INF ON digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. POSITIVO INF 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.

Low bargaining power of suppliers

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

Organizational Resilience of POSITIVO INF ON

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

Analytics focus

– POSITIVO INF 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 Computer Hardware 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.

Superior customer experience

– The customer experience strategy of POSITIVO INF ON in Computer Hardware industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– POSITIVO INF ON is present in almost all the verticals within the Computer Hardware industry. This has provided POSITIVO INF ON 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.

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Weaknesses of POSITIVO INF ON | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of POSITIVO INF ON are -

Products dominated business model

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

High operating costs

– Compare to the competitors, POSITIVO INF ON has high operating costs in the Computer Hardware industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract POSITIVO INF ON lucrative customers.

Skills based hiring in Computer Hardware industry

– The stress on hiring functional specialists at POSITIVO INF 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.

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

Aligning sales with marketing

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

Slow to strategic competitive environment developments

– As POSITIVO INF ON is one of the leading players in the Computer Hardware industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Computer Hardware industry in last five years.

Ability to respond to the competition

– As the decision making is very deliberative at POSITIVO INF ON, in the dynamic environment of Computer Hardware industry it has struggled to respond to the nimble upstart competition. POSITIVO INF ON has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Lack of clear differentiation of POSITIVO INF ON products

– To increase the profitability and margins on the products, POSITIVO INF ON needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

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

No frontier risks strategy

– From the 10K / annual statement of POSITIVO INF ON, it seems that company is thinking out the frontier risks that can impact Computer Hardware 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

POSITIVO INF ON has a high cash cycle compare to other players in the Computer Hardware industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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POSITIVO INF ON Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of POSITIVO INF ON are -

Better consumer reach

– The expansion of the 5G network will help POSITIVO INF ON to increase its market reach. POSITIVO INF 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.

Buying journey improvements

– POSITIVO INF ON can improve the customer journey of consumers in the Computer Hardware 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.

Manufacturing automation

– POSITIVO INF ON can use the latest technology developments to improve its manufacturing and designing process in Computer Hardware 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for POSITIVO INF 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 POSITIVO INF ON to hire the very best people irrespective of their geographical location.

Lowering marketing communication costs

– 5G expansion will open new opportunities for POSITIVO INF 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 Computer Hardware industry, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for POSITIVO INF ON to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Building a culture of innovation

– managers at POSITIVO INF 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 Computer Hardware industry.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Computer Hardware industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. POSITIVO INF ON 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. POSITIVO INF ON 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.

Finding new ways to collaborate

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

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, POSITIVO INF 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, POSITIVO INF ON is facing challenges because of the dominance of functional experts in the organization. POSITIVO INF ON can utilize new technology in the field of Computer Hardware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, POSITIVO INF 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 POSITIVO INF 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.

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Threats POSITIVO INF ON External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of POSITIVO INF ON are -

High dependence on third party suppliers

– POSITIVO INF ON 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.

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 POSITIVO INF ON business can come under increasing regulations regarding data privacy, data security, etc.

Consumer confidence and its impact on POSITIVO INF ON demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Computer Hardware industry and other sectors.

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.

Easy access to finance

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

Stagnating economy with rate increase

– POSITIVO INF ON 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 Computer Hardware industry.

Barriers of entry lowering

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

Increasing wage structure of POSITIVO INF 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 POSITIVO INF ON.

Environmental challenges

– POSITIVO INF 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. POSITIVO INF ON can take advantage of this fund but it will also bring new competitors in the Computer Hardware 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 POSITIVO INF 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. POSITIVO INF ON needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, POSITIVO INF 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 Computer Hardware sector.

Technology acceleration in Forth Industrial Revolution

– POSITIVO INF ON has witnessed rapid integration of technology during Covid-19 in the Computer Hardware industry. As one of the leading players in the industry, POSITIVO INF ON needs to keep up with the evolution of technology in the Computer Hardware 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.

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Weighted SWOT Analysis of POSITIVO INF ON Template, Example

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

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