Multigestao Renda Comercial (DRIT11B) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Multigestao Renda Comercial (Brazil)

Based on various researches at Oak Spring University , Multigestao Renda Comercial is operating in a macro-environment that has been destablized by – wage bills are increasing, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, geopolitical disruptions, increasing energy prices, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc

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Introduction to SWOT Analysis of Multigestao Renda Comercial

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Multigestao Renda Comercial can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Multigestao Renda Comercial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Multigestao Renda Comercial 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 Multigestao Renda Comercial can be done for the following purposes –
1. Strategic planning of Multigestao Renda Comercial
2. Improving business portfolio management of Multigestao Renda Comercial
3. Assessing feasibility of the new initiative in Brazil
4. Making a NA sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Multigestao Renda Comercial

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Strengths of Multigestao Renda Comercial | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Multigestao Renda Comercial are -

Effective Research and Development (R&D)

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

High brand equity

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

Successful track record of launching new products

– Multigestao Renda Comercial has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Multigestao Renda Comercial 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.

Learning organization

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

Diverse revenue streams

– Multigestao Renda Comercial is present in almost all the verticals within the NA industry. This has provided Multigestao Renda Comercial a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

High switching costs

– The high switching costs that Multigestao Renda Comercial 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.

Cross disciplinary teams

– Horizontal connected teams at the Multigestao Renda Comercial 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.

Analytics focus

– Multigestao Renda Comercial 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 NA 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.

Innovation driven organization

– Multigestao Renda Comercial is one of the most innovative firm in NA sector.

Operational resilience

– The operational resilience strategy of Multigestao Renda Comercial comprises – understanding the underlying the factors in the NA 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.

Sustainable margins compare to other players in NA industry

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

Digital Transformation in NA industry

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

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Weaknesses of Multigestao Renda Comercial | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Multigestao Renda Comercial are -

High bargaining power of channel partners in NA industry

– because of the regulatory requirements in Brazil, Multigestao Renda Comercial 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 NA industry.

Lack of clear differentiation of Multigestao Renda Comercial products

– To increase the profitability and margins on the products, Multigestao Renda Comercial needs to provide more differentiated products than what it is currently offering in the marketplace.

Employees’ less understanding of Multigestao Renda Comercial strategy

– From the outside it seems that the employees of Multigestao Renda Comercial 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.

Workers concerns about automation

– As automation is fast increasing in the NA industry, Multigestao Renda Comercial 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.

High cash cycle compare to competitors

Multigestao Renda Comercial has a high cash cycle compare to other players in the NA industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Need for greater diversity

– Multigestao Renda Comercial 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.

Increasing silos among functional specialists

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

Aligning sales with marketing

– From the outside it seems that Multigestao Renda Comercial needs to have more collaboration between its sales team and marketing team. Sales professionals in the NA industry have deep experience in developing customer relationships. Marketing department at Multigestao Renda Comercial can leverage the sales team experience to cultivate customer relationships as Multigestao Renda Comercial is planning to shift buying processes online.

Interest costs

– Compare to the competition, Multigestao Renda Comercial 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.

Low market penetration in new markets

– Outside its home market of Brazil, Multigestao Renda Comercial needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Products dominated business model

– Even though Multigestao Renda Comercial has some of the most successful models in the NA industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Multigestao Renda Comercial should strive to include more intangible value offerings along with its core products and services.

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Multigestao Renda Comercial Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Multigestao Renda Comercial are -

Developing new processes and practices

– Multigestao Renda Comercial can develop new processes and procedures in NA industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Learning at scale

– Online learning technologies has now opened space for Multigestao Renda Comercial 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

– Multigestao Renda Comercial can use the latest technology developments to improve its manufacturing and designing process in NA 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, Multigestao Renda Comercial is facing challenges because of the dominance of functional experts in the organization. Multigestao Renda Comercial can utilize new technology in the field of NA 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, Multigestao Renda Comercial can use these opportunities to build new business models that can help the communities that Multigestao Renda Comercial operates in. Secondly it can use opportunities from government spending in NA sector.

Building a culture of innovation

– managers at Multigestao Renda Comercial 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 NA industry.

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. Multigestao Renda Comercial can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Using analytics as competitive advantage

– Multigestao Renda Comercial has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in NA sector. This continuous investment in analytics has enabled Multigestao Renda Comercial to build a competitive advantage using analytics. The analytics driven competitive advantage can help Multigestao Renda Comercial to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

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

Reforming the budgeting process

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

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the NA industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Multigestao Renda Comercial 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. Multigestao Renda Comercial 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Multigestao Renda Comercial 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.

Loyalty marketing

– Multigestao Renda Comercial 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.

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Threats Multigestao Renda Comercial External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Multigestao Renda Comercial are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents Multigestao Renda Comercial with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.

Easy access to finance

– Easy access to finance in NA industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Multigestao Renda Comercial 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 Multigestao Renda Comercial in NA industry. The NA 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 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.

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.

Regulatory challenges

– Multigestao Renda Comercial 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 NA industry regulations.

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 Multigestao Renda Comercial in the NA sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Multigestao Renda Comercial 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 Multigestao Renda Comercial is facing in NA 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. Multigestao Renda Comercial will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Multigestao Renda Comercial.

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. Multigestao Renda Comercial needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.

Learning curve for new practices

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

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Weighted SWOT Analysis of Multigestao Renda Comercial Template, Example

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

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