IDEIASNET ON (IDNT3) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for IDEIASNET ON (Brazil)

Based on various researches at Oak Spring University , IDEIASNET ON is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, technology disruption, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, etc

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Introduction to SWOT Analysis of IDEIASNET ON

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that IDEIASNET ON can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the IDEIASNET ON, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which IDEIASNET 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 IDEIASNET ON can be done for the following purposes –
1. Strategic planning of IDEIASNET ON
2. Improving business portfolio management of IDEIASNET 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 IDEIASNET ON

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

The strengths of IDEIASNET ON are -

Diverse revenue streams

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

Superior customer experience

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

Cross disciplinary teams

– Horizontal connected teams at the IDEIASNET 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

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

Operational resilience

– The operational resilience strategy of IDEIASNET 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

– IDEIASNET 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 IDEIASNET ON in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

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

Strong track record of project management in the Computer Hardware industry

– IDEIASNET 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.

Innovation driven organization

– IDEIASNET ON is one of the most innovative firm in Computer Hardware sector.

Analytics focus

– IDEIASNET 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.

Digital Transformation in Computer Hardware industry

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

Successful track record of launching new products

– IDEIASNET ON has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. IDEIASNET ON 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.

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

The weaknesses of IDEIASNET ON are -

High dependence on IDEIASNET ON ‘s star products

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

Lack of clear differentiation of IDEIASNET ON products

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

High cash cycle compare to competitors

IDEIASNET 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.

Slow to strategic competitive environment developments

– As IDEIASNET 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.

Skills based hiring in Computer Hardware industry

– The stress on hiring functional specialists at IDEIASNET 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.

Need for greater diversity

– IDEIASNET ON 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.

Aligning sales with marketing

– From the outside it seems that IDEIASNET 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 IDEIASNET ON can leverage the sales team experience to cultivate customer relationships as IDEIASNET ON is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the Computer Hardware industry, IDEIASNET 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.

Products dominated business model

– Even though IDEIASNET 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. IDEIASNET ON should strive to include more intangible value offerings along with its core products and services.

Increasing silos among functional specialists

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

Capital Spending Reduction

– Even during the low interest decade, IDEIASNET ON 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 Computer Hardware industry using digital technology.

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

The opportunities of IDEIASNET ON are -

Buying journey improvements

– IDEIASNET 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.

Better consumer reach

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

Creating value in data economy

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

Developing new processes and practices

– IDEIASNET ON can develop new processes and procedures in Computer Hardware 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, IDEIASNET ON is facing challenges because of the dominance of functional experts in the organization. IDEIASNET 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.

Remote work and new talent hiring opportunities

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

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, IDEIASNET ON can use these opportunities to build new business models that can help the communities that IDEIASNET ON operates in. Secondly it can use opportunities from government spending in Computer Hardware sector.

Using analytics as competitive advantage

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

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. IDEIASNET ON can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Use of Bitcoin and other crypto currencies for transactions in Computer Hardware industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for IDEIASNET ON in the Computer Hardware industry. Now IDEIASNET ON can target international markets with far fewer capital restrictions requirements than the existing system.

Learning at scale

– Online learning technologies has now opened space for IDEIASNET 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.

Harnessing reconfiguration of the global supply chains

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

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 IDEIASNET 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.

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

The threats of IDEIASNET ON are -

Shortening product life cycle

– it is one of the major threat that IDEIASNET ON is facing in Computer Hardware sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing wage structure of IDEIASNET 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 IDEIASNET ON.

Stagnating economy with rate increase

– IDEIASNET 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.

Consumer confidence and its impact on IDEIASNET 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.

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

Environmental challenges

– IDEIASNET 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. IDEIASNET ON can take advantage of this fund but it will also bring new competitors in the Computer Hardware industry.

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. IDEIASNET ON needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.

Regulatory challenges

– IDEIASNET 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 Computer Hardware industry regulations.

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.

Technology acceleration in Forth Industrial Revolution

– IDEIASNET ON has witnessed rapid integration of technology during Covid-19 in the Computer Hardware industry. As one of the leading players in the industry, IDEIASNET 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.

High dependence on third party suppliers

– IDEIASNET 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.

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.

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 IDEIASNET ON.

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Weighted SWOT Analysis of IDEIASNET ON Template, Example

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

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