Alianza Trust Renda Imobiliaria (ALZR11) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Alianza Trust Renda Imobiliaria (Brazil)
Based on various researches at Oak Spring University , Alianza Trust Renda Imobiliaria is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing energy prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Alianza Trust Renda Imobiliaria
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Alianza Trust Renda Imobiliaria can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Alianza Trust Renda Imobiliaria, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria can be done for the following purposes –
1. Strategic planning of Alianza Trust Renda Imobiliaria
2. Improving business portfolio management of Alianza Trust Renda Imobiliaria
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 Alianza Trust Renda Imobiliaria
Strengths of Alianza Trust Renda Imobiliaria | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Alianza Trust Renda Imobiliaria are -
Cross disciplinary teams
– Horizontal connected teams at the Alianza Trust Renda Imobiliaria 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.
Effective Research and Development (R&D)
– Alianza Trust Renda Imobiliaria has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Alianza Trust Renda Imobiliaria staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in
– Alianza Trust Renda Imobiliaria is one of the leading players in the industry in Brazil. Over the years it has not only transformed the business landscape in the industry in Brazil but also across the existing markets. The ability to lead change has enabled Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria in the sector have low bargaining power. Alianza Trust Renda Imobiliaria has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Alianza Trust Renda Imobiliaria to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Alianza Trust Renda Imobiliaria in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the industry
– Alianza Trust Renda Imobiliaria is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Alianza Trust Renda Imobiliaria 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.
Innovation driven organization
– Alianza Trust Renda Imobiliaria is one of the most innovative firm in sector.
Training and development
– Alianza Trust Renda Imobiliaria 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.
Operational resilience
– The operational resilience strategy of Alianza Trust Renda Imobiliaria 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.
Learning organization
- Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Alianza Trust Renda Imobiliaria emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Alianza Trust Renda Imobiliaria
– The covid-19 pandemic has put organizational resilience at the centre of everthing Alianza Trust Renda Imobiliaria does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Alianza Trust Renda Imobiliaria | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Alianza Trust Renda Imobiliaria are -
Increasing silos among functional specialists
– The organizational structure of Alianza Trust Renda Imobiliaria is dominated by functional specialists. It is not different from other players in the industry, but Alianza Trust Renda Imobiliaria needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Alianza Trust Renda Imobiliaria to focus more on services in the industry rather than just following the product oriented approach.
High dependence on Alianza Trust Renda Imobiliaria ‘s star products
– The top 2 products and services of Alianza Trust Renda Imobiliaria still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Alianza Trust Renda Imobiliaria has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the industry, Alianza Trust Renda Imobiliaria 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.
Capital Spending Reduction
– Even during the low interest decade, Alianza Trust Renda Imobiliaria 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.
Ability to respond to the competition
– As the decision making is very deliberative at Alianza Trust Renda Imobiliaria, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Alianza Trust Renda Imobiliaria has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria can leverage the sales team experience to cultivate customer relationships as Alianza Trust Renda Imobiliaria is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Brazil, Alianza Trust Renda Imobiliaria needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Alianza Trust Renda Imobiliaria 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.
Need for greater diversity
– Alianza Trust Renda Imobiliaria 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.
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 Alianza Trust Renda Imobiliaria supply chain. Even after few cautionary changes, Alianza Trust Renda Imobiliaria is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Alianza Trust Renda Imobiliaria vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Alianza Trust Renda Imobiliaria 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.
Alianza Trust Renda Imobiliaria Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Alianza Trust Renda Imobiliaria are -
Better consumer reach
– The expansion of the 5G network will help Alianza Trust Renda Imobiliaria to increase its market reach. Alianza Trust Renda Imobiliaria 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.
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. Alianza Trust Renda Imobiliaria can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Alianza Trust Renda Imobiliaria 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.
Loyalty marketing
– Alianza Trust Renda Imobiliaria 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Alianza Trust Renda Imobiliaria can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Alianza Trust Renda Imobiliaria 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.
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. Alianza Trust Renda Imobiliaria 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. Alianza Trust Renda Imobiliaria 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.
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 Alianza Trust Renda Imobiliaria in the industry. Now Alianza Trust Renda Imobiliaria can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Alianza Trust Renda Imobiliaria can use these opportunities to build new business models that can help the communities that Alianza Trust Renda Imobiliaria operates in. Secondly it can use opportunities from government spending in sector.
Learning at scale
– Online learning technologies has now opened space for Alianza Trust Renda Imobiliaria 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Alianza Trust Renda Imobiliaria is facing challenges because of the dominance of functional experts in the organization. Alianza Trust Renda Imobiliaria 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.
Developing new processes and practices
– Alianza Trust Renda Imobiliaria 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria to hire the very best people irrespective of their geographical location.
Threats Alianza Trust Renda Imobiliaria External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Alianza Trust Renda Imobiliaria 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. Alianza Trust Renda Imobiliaria needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Regulatory challenges
– Alianza Trust Renda Imobiliaria 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.
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. Alianza Trust Renda Imobiliaria 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Alianza Trust Renda Imobiliaria with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Alianza Trust Renda Imobiliaria 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.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Alianza Trust Renda Imobiliaria can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Alianza Trust Renda Imobiliaria 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.
Technology acceleration in Forth Industrial Revolution
– Alianza Trust Renda Imobiliaria has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Alianza Trust Renda Imobiliaria 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.
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 Alianza Trust Renda Imobiliaria in the sector and impact the bottomline of the organization.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Alianza Trust Renda Imobiliaria 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.
Stagnating economy with rate increase
– Alianza Trust Renda Imobiliaria 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.
Increasing wage structure of Alianza Trust Renda Imobiliaria
– 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 Alianza Trust Renda Imobiliaria.
Weighted SWOT Analysis of Alianza Trust Renda Imobiliaria Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria needs to make to build a sustainable competitive advantage.