PlayAGS (AGS) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for PlayAGS (United States)

Based on various researches at Oak Spring University , PlayAGS is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , increasing transportation and logistics costs, increasing energy prices, there is backlash against globalization, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of PlayAGS

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that PlayAGS can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the PlayAGS, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which PlayAGS operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of PlayAGS can be done for the following purposes –
1. Strategic planning of PlayAGS
2. Improving business portfolio management of PlayAGS
3. Assessing feasibility of the new initiative in United States
4. Making a Computer Hardware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of PlayAGS

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Strengths of PlayAGS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of PlayAGS are -

Superior customer experience

– The customer experience strategy of PlayAGS in Computer Hardware industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Learning organization

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

Digital Transformation in Computer Hardware industry

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

Strong track record of project management in the Computer Hardware industry

– PlayAGS 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)

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

Innovation driven organization

– PlayAGS is one of the most innovative firm in Computer Hardware sector.

Organizational Resilience of PlayAGS

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

Ability to lead change in Computer Hardware

– PlayAGS is one of the leading players in the Computer Hardware industry in United States. Over the years it has not only transformed the business landscape in the Computer Hardware industry in United States but also across the existing markets. The ability to lead change has enabled PlayAGS in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

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

High switching costs

– The high switching costs that PlayAGS 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.

Highly skilled collaborators

– PlayAGS has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Computer Hardware industry. Secondly the value chain collaborators of PlayAGS have helped the firm to develop new products and bring them quickly to the marketplace.

Sustainable margins compare to other players in Computer Hardware industry

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

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Weaknesses of PlayAGS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of PlayAGS are -

High dependence on PlayAGS ‘s star products

– The top 2 products and services of PlayAGS still accounts for major business revenue. This dependence on star products in Computer Hardware industry has resulted into insufficient focus on developing new products, even though PlayAGS has relatively successful track record of launching new products.

Increasing silos among functional specialists

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

Low market penetration in new markets

– Outside its home market of United States, PlayAGS needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High operating costs

– Compare to the competitors, PlayAGS has high operating costs in the Computer Hardware industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract PlayAGS lucrative customers.

Employees’ less understanding of PlayAGS strategy

– From the outside it seems that the employees of PlayAGS don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Skills based hiring in Computer Hardware industry

– The stress on hiring functional specialists at PlayAGS 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 PlayAGS is just above the Computer Hardware 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.

Slow to harness new channels of communication

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

Aligning sales with marketing

– From the outside it seems that PlayAGS needs to have more collaboration between its sales team and marketing team. Sales professionals in the Computer Hardware industry have deep experience in developing customer relationships. Marketing department at PlayAGS can leverage the sales team experience to cultivate customer relationships as PlayAGS 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 PlayAGS supply chain. Even after few cautionary changes, PlayAGS is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left PlayAGS vulnerable to further global disruptions in South East Asia.

Slow to strategic competitive environment developments

– As PlayAGS is one of the leading players in the Computer Hardware industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Computer Hardware industry in last five years.

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PlayAGS Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of PlayAGS are -

Building a culture of innovation

– managers at PlayAGS 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 Computer Hardware industry.

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, PlayAGS 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.

Better consumer reach

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

Buying journey improvements

– PlayAGS can improve the customer journey of consumers in the Computer Hardware industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

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. PlayAGS can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Leveraging digital technologies

– PlayAGS 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.

Creating value in data economy

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

Developing new processes and practices

– PlayAGS can develop new processes and procedures in Computer Hardware 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.

Manufacturing automation

– PlayAGS can use the latest technology developments to improve its manufacturing and designing process in Computer Hardware 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, PlayAGS is facing challenges because of the dominance of functional experts in the organization. PlayAGS can utilize new technology in the field of Computer Hardware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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, PlayAGS can use these opportunities to build new business models that can help the communities that PlayAGS operates in. Secondly it can use opportunities from government spending in Computer Hardware sector.

Harnessing reconfiguration of the global supply chains

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

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Threats PlayAGS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of PlayAGS 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 PlayAGS in the Computer Hardware 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.

Increasing wage structure of PlayAGS

– 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 PlayAGS.

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.

Easy access to finance

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

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. PlayAGS needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.

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. PlayAGS 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.

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 PlayAGS business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– PlayAGS needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. PlayAGS can take advantage of this fund but it will also bring new competitors in the Computer Hardware industry.

Shortening product life cycle

– it is one of the major threat that PlayAGS is facing in Computer Hardware sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, PlayAGS may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Computer Hardware sector.

High dependence on third party suppliers

– PlayAGS 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 Computer Hardware industry are lowering. It can presents PlayAGS with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Hardware sector.

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Weighted SWOT Analysis of PlayAGS Template, Example

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

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