FIP Infra-Estr BB Votorantim Ener Sustentavel III (ESUT11) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FIP Infra-Estr BB Votorantim Ener Sustentavel III (Brazil)
Based on various researches at Oak Spring University , FIP Infra-Estr BB Votorantim Ener Sustentavel III is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , technology disruption, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices, central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of FIP Infra-Estr BB Votorantim Ener Sustentavel III
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FIP Infra-Estr BB Votorantim Ener Sustentavel III can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FIP Infra-Estr BB Votorantim Ener Sustentavel III, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FIP Infra-Estr BB Votorantim Ener Sustentavel III operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of FIP Infra-Estr BB Votorantim Ener Sustentavel III can be done for the following purposes –
1. Strategic planning of FIP Infra-Estr BB Votorantim Ener Sustentavel III
2. Improving business portfolio management of FIP Infra-Estr BB Votorantim Ener Sustentavel III
3. Assessing feasibility of the new initiative in Brazil
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of FIP Infra-Estr BB Votorantim Ener Sustentavel III
Strengths of FIP Infra-Estr BB Votorantim Ener Sustentavel III | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FIP Infra-Estr BB Votorantim Ener Sustentavel III are -
Training and development
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has one of the best training and development program in 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.
Superior customer experience
– The customer experience strategy of FIP Infra-Estr BB Votorantim Ener Sustentavel III in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 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.
Low bargaining power of suppliers
– Suppliers of FIP Infra-Estr BB Votorantim Ener Sustentavel III in the sector have low bargaining power. FIP Infra-Estr BB Votorantim Ener Sustentavel III has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FIP Infra-Estr BB Votorantim Ener Sustentavel III to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of FIP Infra-Estr BB Votorantim Ener Sustentavel III have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Diverse revenue streams
– FIP Infra-Estr BB Votorantim Ener Sustentavel III is present in almost all the verticals within the industry. This has provided FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
High brand equity
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel III to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For FIP Infra-Estr BB Votorantim Ener Sustentavel III digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Learning organization
- FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at FIP Infra-Estr BB Votorantim Ener Sustentavel III emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FIP Infra-Estr BB Votorantim Ener Sustentavel III staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of FIP Infra-Estr BB Votorantim Ener Sustentavel III | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FIP Infra-Estr BB Votorantim Ener Sustentavel III are -
Ability to respond to the competition
– As the decision making is very deliberative at FIP Infra-Estr BB Votorantim Ener Sustentavel III, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. FIP Infra-Estr BB Votorantim Ener Sustentavel III has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel III supply chain. Even after few cautionary changes, FIP Infra-Estr BB Votorantim Ener Sustentavel III is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FIP Infra-Estr BB Votorantim Ener Sustentavel III vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, FIP Infra-Estr BB Votorantim Ener Sustentavel III has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FIP Infra-Estr BB Votorantim Ener Sustentavel III lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry using digital technology.
Compensation and incentives
– The revenue per employee of FIP Infra-Estr BB Votorantim Ener Sustentavel III is just above the 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 bargaining power of channel partners in industry
– because of the regulatory requirements in Brazil, FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry.
Slow to strategic competitive environment developments
– As FIP Infra-Estr BB Votorantim Ener Sustentavel III is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
FIP Infra-Estr BB Votorantim Ener Sustentavel III has a high cash cycle compare to other players in the 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 decision making process
– As mentioned earlier in the report, FIP Infra-Estr BB Votorantim Ener Sustentavel III has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Need for greater diversity
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Lack of clear differentiation of FIP Infra-Estr BB Votorantim Ener Sustentavel III products
– To increase the profitability and margins on the products, FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to provide more differentiated products than what it is currently offering in the marketplace.
FIP Infra-Estr BB Votorantim Ener Sustentavel III Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FIP Infra-Estr BB Votorantim Ener Sustentavel III are -
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel III in the industry. Now FIP Infra-Estr BB Votorantim Ener Sustentavel III can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, FIP Infra-Estr BB Votorantim Ener Sustentavel III is facing challenges because of the dominance of functional experts in the organization. FIP Infra-Estr BB Votorantim Ener Sustentavel III can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel III can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry, but it has also influenced the consumer preferences. FIP Infra-Estr BB Votorantim Ener Sustentavel III can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel III in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Leveraging digital technologies
– FIP Infra-Estr BB Votorantim Ener Sustentavel III can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Loyalty marketing
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FIP Infra-Estr BB Votorantim Ener Sustentavel III can use these opportunities to build new business models that can help the communities that FIP Infra-Estr BB Votorantim Ener Sustentavel III operates in. Secondly it can use opportunities from government spending in sector.
Creating value in data economy
– The success of analytics program of FIP Infra-Estr BB Votorantim Ener Sustentavel III has opened avenues for new revenue streams for the organization in industry. This can help FIP Infra-Estr BB Votorantim Ener Sustentavel III to build a more holistic ecosystem for FIP Infra-Estr BB Votorantim Ener Sustentavel III products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– FIP Infra-Estr BB Votorantim Ener Sustentavel III can develop new processes and procedures in 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.
Learning at scale
– Online learning technologies has now opened space for FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Threats FIP Infra-Estr BB Votorantim Ener Sustentavel III External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FIP Infra-Estr BB Votorantim Ener Sustentavel III are -
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 FIP Infra-Estr BB Votorantim Ener Sustentavel III in the sector and impact the bottomline of the organization.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel III in industry. The 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.
High dependence on third party suppliers
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
Technology acceleration in Forth Industrial Revolution
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to keep up with the evolution of technology in the sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of FIP Infra-Estr BB Votorantim Ener Sustentavel III
– 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III.
Stagnating economy with rate increase
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, FIP Infra-Estr BB Votorantim Ener Sustentavel III may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents FIP Infra-Estr BB Votorantim Ener Sustentavel III with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel III.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel III business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of FIP Infra-Estr BB Votorantim Ener Sustentavel III Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to make to build a sustainable competitive advantage.