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 – central banks are concerned over increasing inflation, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, 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 -
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.
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.
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.
Innovation driven organization
– FIP Infra-Estr BB Votorantim Ener Sustentavel III is one of the most innovative firm in sector.
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.
Operational resilience
– The operational resilience strategy of FIP Infra-Estr BB Votorantim Ener Sustentavel III comprises – understanding the underlying the factors in the 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.
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.
Sustainable margins compare to other players in industry
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has clearly differentiated products in the market place. This has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel III to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped FIP Infra-Estr BB Votorantim Ener Sustentavel III to invest into research and development (R&D) and innovation.
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.
Strong track record of project management in the industry
– FIP Infra-Estr BB Votorantim Ener Sustentavel III is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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 -
Skills based hiring in industry
– The stress on hiring functional specialists at FIP Infra-Estr BB Votorantim Ener Sustentavel III 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.
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.
Low market penetration in new markets
– Outside its home market of Brazil, FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though FIP Infra-Estr BB Votorantim Ener Sustentavel III has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. FIP Infra-Estr BB Votorantim Ener Sustentavel III should strive to include more intangible value offerings along with its core products and services.
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.
Interest costs
– Compare to the competition, FIP Infra-Estr BB Votorantim Ener Sustentavel III has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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.
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.
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.
Aligning sales with marketing
– From the outside it seems that FIP Infra-Estr BB Votorantim Ener Sustentavel III needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at FIP Infra-Estr BB Votorantim Ener Sustentavel III can leverage the sales team experience to cultivate customer relationships as FIP Infra-Estr BB Votorantim Ener Sustentavel III is planning to shift buying processes online.
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.
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 -
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects FIP Infra-Estr BB Votorantim Ener Sustentavel III can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Manufacturing automation
– FIP Infra-Estr BB Votorantim Ener Sustentavel III can use the latest technology developments to improve its manufacturing and designing process in sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for 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.
Building a culture of innovation
– managers at FIP Infra-Estr BB Votorantim Ener Sustentavel III can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the industry.
Using analytics as competitive advantage
– FIP Infra-Estr BB Votorantim Ener Sustentavel III has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel III to build a competitive advantage using analytics. The analytics driven competitive advantage can help FIP Infra-Estr BB Votorantim Ener Sustentavel III to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, FIP Infra-Estr BB Votorantim Ener Sustentavel III can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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 -
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 FIP Infra-Estr BB Votorantim Ener Sustentavel III prominent markets.
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.
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.
Shortening product life cycle
– it is one of the major threat that FIP Infra-Estr BB Votorantim Ener Sustentavel III is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
Consumer confidence and its impact on FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry and other sectors.
Regulatory challenges
– FIP Infra-Estr BB Votorantim Ener Sustentavel III 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 industry regulations.
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.
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.