Based on various researches at Oak Spring University , FII RBR ALPHA Fundo is operating in a macro-environment that has been destablized by – technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, geopolitical disruptions, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of FII RBR ALPHA Fundo
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII RBR ALPHA Fundo can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII RBR ALPHA Fundo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo can be done for the following purposes –
1. Strategic planning of FII RBR ALPHA Fundo
2. Improving business portfolio management of FII RBR ALPHA Fundo
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 FII RBR ALPHA Fundo
Strengths of FII RBR ALPHA Fundo | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII RBR ALPHA Fundo are -
Analytics focus
– FII RBR ALPHA Fundo 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.
Organizational Resilience of FII RBR ALPHA Fundo
– The covid-19 pandemic has put organizational resilience at the centre of everthing FII RBR ALPHA Fundo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that FII RBR ALPHA Fundo 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.
Successful track record of launching new products
– FII RBR ALPHA Fundo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII RBR ALPHA Fundo 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.
Ability to recruit top talent
– FII RBR ALPHA Fundo 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.
Sustainable margins compare to other players in NA industry
– FII RBR ALPHA Fundo has clearly differentiated products in the market place. This has enabled FII RBR ALPHA Fundo to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII RBR ALPHA Fundo to invest into research and development (R&D) and innovation.
Diverse revenue streams
– FII RBR ALPHA Fundo is present in almost all the verticals within the NA industry. This has provided FII RBR ALPHA Fundo 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.
Cross disciplinary teams
– Horizontal connected teams at the FII RBR ALPHA Fundo 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.
Highly skilled collaborators
– FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in NA
– FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– FII RBR ALPHA Fundo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII RBR ALPHA Fundo 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
– FII RBR ALPHA Fundo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII RBR ALPHA Fundo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of FII RBR ALPHA Fundo | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII RBR ALPHA Fundo are -
Slow to strategic competitive environment developments
– As FII RBR ALPHA Fundo 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, FII RBR ALPHA Fundo is slow explore the new channels of communication. These new channels of communication can help FII RBR ALPHA Fundo to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of FII RBR ALPHA Fundo 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.
Workers concerns about automation
– As automation is fast increasing in the NA industry, FII RBR ALPHA Fundo 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.
Low market penetration in new markets
– Outside its home market of Brazil, FII RBR ALPHA Fundo needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, FII RBR ALPHA Fundo 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.
Ability to respond to the competition
– As the decision making is very deliberative at FII RBR ALPHA Fundo, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo is dominated by functional specialists. It is not different from other players in the NA industry, but FII RBR ALPHA Fundo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help FII RBR ALPHA Fundo to focus more on services in the NA industry rather than just following the product oriented approach.
No frontier risks strategy
– From the 10K / annual statement of FII RBR ALPHA Fundo, it seems that company is thinking out the frontier risks that can impact NA industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Products dominated business model
– Even though FII RBR ALPHA Fundo 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. FII RBR ALPHA Fundo should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, FII RBR ALPHA Fundo has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FII RBR ALPHA Fundo lucrative customers.
FII RBR ALPHA Fundo Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII RBR ALPHA Fundo are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help FII RBR ALPHA Fundo to increase its market reach. FII RBR ALPHA Fundo 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in NA industry, but it has also influenced the consumer preferences. FII RBR ALPHA Fundo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 FII RBR ALPHA Fundo 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.
Loyalty marketing
– FII RBR ALPHA Fundo 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.
Buying journey improvements
– FII RBR ALPHA Fundo can improve the customer journey of consumers in the NA 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.
Leveraging digital technologies
– FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo has opened avenues for new revenue streams for the organization in NA industry. This can help FII RBR ALPHA Fundo to build a more holistic ecosystem for FII RBR ALPHA Fundo products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo to hire the very best people irrespective of their geographical location.
Manufacturing automation
– FII RBR ALPHA Fundo 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FII RBR ALPHA Fundo 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FII RBR ALPHA Fundo can use these opportunities to build new business models that can help the communities that FII RBR ALPHA Fundo operates in. Secondly it can use opportunities from government spending in NA sector.
Developing new processes and practices
– FII RBR ALPHA Fundo 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.
Threats FII RBR ALPHA Fundo External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII RBR ALPHA Fundo are -
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.
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 FII RBR ALPHA Fundo in the NA sector and impact the bottomline of the organization.
Regulatory challenges
– FII RBR ALPHA Fundo 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.
High dependence on third party suppliers
– FII RBR ALPHA Fundo 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.
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. FII RBR ALPHA Fundo needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Environmental challenges
– FII RBR ALPHA Fundo 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. FII RBR ALPHA Fundo can take advantage of this fund but it will also bring new competitors in the NA industry.
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 FII RBR ALPHA Fundo business can come under increasing regulations regarding data privacy, data security, etc.
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 FII RBR ALPHA Fundo.
Increasing wage structure of FII RBR ALPHA Fundo
– 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 FII RBR ALPHA Fundo.
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. FII RBR ALPHA Fundo 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.
Shortening product life cycle
– it is one of the major threat that FII RBR ALPHA Fundo is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FII RBR ALPHA Fundo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
Weighted SWOT Analysis of FII RBR ALPHA Fundo Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo 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 FII RBR ALPHA Fundo needs to make to build a sustainable competitive advantage.
