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 – technology disruption, challanges to central banks by blockchain based private currencies, increasing energy prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, 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 -
Successful track record of launching new products
– Alianza Trust Renda Imobiliaria has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Alianza Trust Renda Imobiliaria 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.
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.
Diverse revenue streams
– Alianza Trust Renda Imobiliaria is present in almost all the verticals within the industry. This has provided Alianza Trust Renda Imobiliaria 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.
Ability to recruit top talent
– Alianza Trust Renda Imobiliaria is one of the leading players in the 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.
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.
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.
Innovation driven organization
– Alianza Trust Renda Imobiliaria is one of the most innovative firm in sector.
Sustainable margins compare to other players in industry
– Alianza Trust Renda Imobiliaria has clearly differentiated products in the market place. This has enabled Alianza Trust Renda Imobiliaria to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Alianza Trust Renda Imobiliaria to invest into research and development (R&D) and innovation.
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.
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.
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 -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Alianza Trust Renda Imobiliaria is slow explore the new channels of communication. These new channels of communication can help Alianza Trust Renda Imobiliaria to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Alianza Trust Renda Imobiliaria 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. Alianza Trust Renda Imobiliaria should strive to include more intangible value offerings along with its core products and services.
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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in Brazil, Alianza Trust Renda Imobiliaria 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.
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.
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.
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 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.
Slow decision making process
– As mentioned earlier in the report, Alianza Trust Renda Imobiliaria 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. Alianza Trust Renda Imobiliaria 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.
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.
Compensation and incentives
– The revenue per employee of Alianza Trust Renda Imobiliaria 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.
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 -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
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.
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.
Leveraging digital technologies
– Alianza Trust Renda Imobiliaria 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Alianza Trust Renda Imobiliaria 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.
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.
Creating value in data economy
– The success of analytics program of Alianza Trust Renda Imobiliaria has opened avenues for new revenue streams for the organization in industry. This can help Alianza Trust Renda Imobiliaria to build a more holistic ecosystem for Alianza Trust Renda Imobiliaria products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria to build a competitive advantage using analytics. The analytics driven competitive advantage can help Alianza Trust Renda Imobiliaria to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Alianza Trust Renda Imobiliaria can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
Consumer confidence and its impact on Alianza Trust Renda Imobiliaria 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.
Shortening product life cycle
– it is one of the major threat that Alianza Trust Renda Imobiliaria is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
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.
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.
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.
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.
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 Alianza Trust Renda Imobiliaria business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Alianza Trust Renda Imobiliaria 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 Alianza Trust Renda Imobiliaria prominent markets.
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.