METAL IGUACU PN (MTIG4) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for METAL IGUACU PN (Brazil)

Based on various researches at Oak Spring University , METAL IGUACU PN is operating in a macro-environment that has been destablized by – technology disruption, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of METAL IGUACU PN

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

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Strengths of METAL IGUACU PN | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of METAL IGUACU PN are -

Innovation driven organization

– METAL IGUACU PN is one of the most innovative firm in Containers & Packaging sector.

Learning organization

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

Effective Research and Development (R&D)

– METAL IGUACU PN has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – METAL IGUACU PN staying ahead in the Containers & Packaging industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Training and development

– METAL IGUACU PN has one of the best training and development program in Basic Materials 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 Containers & Packaging

– METAL IGUACU PN is one of the leading players in the Containers & Packaging industry in Brazil. Over the years it has not only transformed the business landscape in the Containers & Packaging industry in Brazil but also across the existing markets. The ability to lead change has enabled METAL IGUACU PN in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Digital Transformation in Containers & Packaging industry

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

Operational resilience

– The operational resilience strategy of METAL IGUACU PN comprises – understanding the underlying the factors in the Containers & Packaging 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.

Sustainable margins compare to other players in Containers & Packaging industry

– METAL IGUACU PN has clearly differentiated products in the market place. This has enabled METAL IGUACU PN to fetch slight price premium compare to the competitors in the Containers & Packaging industry. The sustainable margins have also helped METAL IGUACU PN to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the METAL IGUACU PN 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 recruit top talent

– METAL IGUACU PN is one of the leading players in the Containers & Packaging industry in Brazil. It is in a position to attract the best talent available in Brazil. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of METAL IGUACU PN

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

High brand equity

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

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Weaknesses of METAL IGUACU PN | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of METAL IGUACU PN are -

No frontier risks strategy

– From the 10K / annual statement of METAL IGUACU PN, it seems that company is thinking out the frontier risks that can impact Containers & Packaging 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.

Increasing silos among functional specialists

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

High cash cycle compare to competitors

METAL IGUACU PN has a high cash cycle compare to other players in the Containers & Packaging industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Aligning sales with marketing

– From the outside it seems that METAL IGUACU PN needs to have more collaboration between its sales team and marketing team. Sales professionals in the Containers & Packaging industry have deep experience in developing customer relationships. Marketing department at METAL IGUACU PN can leverage the sales team experience to cultivate customer relationships as METAL IGUACU PN is planning to shift buying processes online.

High operating costs

– Compare to the competitors, METAL IGUACU PN has high operating costs in the Containers & Packaging industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract METAL IGUACU PN lucrative customers.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, METAL IGUACU PN is slow explore the new channels of communication. These new channels of communication can help METAL IGUACU PN to provide better information regarding Containers & Packaging products and services. It can also build an online community to further reach out to potential customers.

Lack of clear differentiation of METAL IGUACU PN products

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

Ability to respond to the competition

– As the decision making is very deliberative at METAL IGUACU PN, in the dynamic environment of Containers & Packaging industry it has struggled to respond to the nimble upstart competition. METAL IGUACU PN has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Need for greater diversity

– METAL IGUACU PN 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.

Workers concerns about automation

– As automation is fast increasing in the Containers & Packaging industry, METAL IGUACU PN 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.

High bargaining power of channel partners in Containers & Packaging industry

– because of the regulatory requirements in Brazil, METAL IGUACU PN 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 Containers & Packaging industry.

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METAL IGUACU PN Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of METAL IGUACU PN are -

Buying journey improvements

– METAL IGUACU PN can improve the customer journey of consumers in the Containers & Packaging 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.

Use of Bitcoin and other crypto currencies for transactions in Containers & Packaging industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for METAL IGUACU PN in the Containers & Packaging industry. Now METAL IGUACU PN can target international markets with far fewer capital restrictions requirements than the existing system.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Containers & Packaging industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. METAL IGUACU PN 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. METAL IGUACU PN 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.

Reforming the budgeting process

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

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, METAL IGUACU PN can use these opportunities to build new business models that can help the communities that METAL IGUACU PN operates in. Secondly it can use opportunities from government spending in Containers & Packaging sector.

Loyalty marketing

– METAL IGUACU PN 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.

Better consumer reach

– The expansion of the 5G network will help METAL IGUACU PN to increase its market reach. METAL IGUACU PN 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, METAL IGUACU PN 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 METAL IGUACU PN to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Creating value in data economy

– The success of analytics program of METAL IGUACU PN has opened avenues for new revenue streams for the organization in Containers & Packaging industry. This can help METAL IGUACU PN to build a more holistic ecosystem for METAL IGUACU PN products in the Containers & Packaging industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Leveraging digital technologies

– METAL IGUACU PN 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.

Learning at scale

– Online learning technologies has now opened space for METAL IGUACU PN 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.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. METAL IGUACU PN can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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 METAL IGUACU PN 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 METAL IGUACU PN External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of METAL IGUACU PN are -

Technology acceleration in Forth Industrial Revolution

– METAL IGUACU PN has witnessed rapid integration of technology during Covid-19 in the Containers & Packaging industry. As one of the leading players in the industry, METAL IGUACU PN needs to keep up with the evolution of technology in the Containers & Packaging 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.

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. METAL IGUACU PN 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.

Easy access to finance

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

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for METAL IGUACU PN in the Containers & Packaging sector and impact the bottomline of the organization.

Stagnating economy with rate increase

– METAL IGUACU PN 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 Containers & Packaging industry.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, METAL IGUACU PN 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 METAL IGUACU PN 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.

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 METAL IGUACU PN business can come under increasing regulations regarding data privacy, data security, etc.

High dependence on third party suppliers

– METAL IGUACU PN 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.

Environmental challenges

– METAL IGUACU PN 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. METAL IGUACU PN can take advantage of this fund but it will also bring new competitors in the Containers & Packaging industry.

Regulatory challenges

– METAL IGUACU PN 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 Containers & Packaging industry regulations.

Consumer confidence and its impact on METAL IGUACU PN 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 Containers & Packaging industry and other sectors.

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Weighted SWOT Analysis of METAL IGUACU PN Template, Example

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

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