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 – technology disruption, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, geopolitical disruptions, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, 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 -

Effective Research and Development (R&D)

– IDEIASNET ON has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – IDEIASNET 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.

Highly skilled collaborators

– IDEIASNET ON has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Computer Hardware industry. Secondly the value chain collaborators of IDEIASNET ON have helped the firm to develop new products and bring them quickly to the marketplace.

High switching costs

– The high switching costs that IDEIASNET 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.

Training and development

– IDEIASNET ON has one of the best training and development program in Technology 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.

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.

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.

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.

Low bargaining power of suppliers

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

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.

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.

Organizational Resilience of IDEIASNET ON

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

Innovation driven organization

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

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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 -

Compensation and incentives

– The revenue per employee of IDEIASNET ON is just above the Computer Hardware 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.

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

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.

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.

Slow decision making process

– As mentioned earlier in the report, IDEIASNET 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 Computer Hardware industry over the last five years. IDEIASNET 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.

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.

No frontier risks strategy

– From the 10K / annual statement of IDEIASNET 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 operating costs

– Compare to the competitors, IDEIASNET 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 IDEIASNET ON lucrative customers.

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.

High bargaining power of channel partners in Computer Hardware industry

– because of the regulatory requirements in Brazil, IDEIASNET ON 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 Computer Hardware industry.

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 -

Manufacturing automation

– IDEIASNET 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.

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.

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.

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.

Leveraging digital technologies

– IDEIASNET 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.

Reforming the budgeting process

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

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.

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.

Loyalty marketing

– IDEIASNET 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.

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.

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.

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.

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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 -

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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Computer Hardware industry are lowering. It can presents IDEIASNET 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.

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.

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.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, IDEIASNET 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.

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.

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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, IDEIASNET ON 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 IDEIASNET ON prominent markets.

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.

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. IDEIASNET 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for IDEIASNET ON in Computer Hardware industry. The Computer Hardware 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.

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.

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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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