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 – increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, geopolitical disruptions, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, etc

---

---

---

---

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.

---

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

---

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 -

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.

Ability to lead change in NA

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

Ability to recruit top talent

– Multigestao Renda Comercial is one of the leading players in the NA 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.

Low bargaining power of suppliers

– Suppliers of Multigestao Renda Comercial in the NA sector have low bargaining power. Multigestao Renda Comercial has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Multigestao Renda Comercial to manage not only supply disruptions but also source products at highly competitive prices.

Organizational Resilience of Multigestao Renda Comercial

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

Innovation driven organization

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

Superior customer experience

– The customer experience strategy of Multigestao Renda Comercial in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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.

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.

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.

Highly skilled collaborators

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

---

---

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 -

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.

Ability to respond to the competition

– As the decision making is very deliberative at Multigestao Renda Comercial, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. Multigestao Renda Comercial has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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.

Compensation and incentives

– The revenue per employee of Multigestao Renda Comercial is just above the NA 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 strategic competitive environment developments

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

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.

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.

Capital Spending Reduction

– Even during the low interest decade, Multigestao Renda Comercial 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 NA industry using digital technology.

Slow decision making process

– As mentioned earlier in the report, Multigestao Renda Comercial has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the NA industry over the last five years. Multigestao Renda Comercial 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.

Skills based hiring in NA industry

– The stress on hiring functional specialists at Multigestao Renda Comercial 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.

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.

---

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 -

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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Multigestao Renda Comercial in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the NA industry, and it will provide faster access to the consumers.

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.

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.

Harnessing reconfiguration of the global supply chains

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

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.

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 Multigestao Renda Comercial 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Multigestao Renda Comercial 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 Multigestao Renda Comercial to hire the very best people irrespective of their geographical location.

Leveraging digital technologies

– Multigestao Renda Comercial 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.

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.

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.

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.

---

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 -

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.

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 Multigestao Renda Comercial business can come under increasing regulations regarding data privacy, data security, etc.

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.

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.

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.

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.

Environmental challenges

– Multigestao Renda Comercial 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. Multigestao Renda Comercial can take advantage of this fund but it will also bring new competitors in the NA industry.

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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Multigestao Renda Comercial 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 Multigestao Renda Comercial prominent markets.

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.

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.

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.

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.

---

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.

--- ---