Fuente Internacional de Servicios para Turistas (FSTU11) SWOT Analysis / TOWS Matrix / MBA Resources
NA
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fuente Internacional de Servicios para Turistas (Brazil)
Based on various researches at Oak Spring University , Fuente Internacional de Servicios para Turistas is operating in a macro-environment that has been destablized by – technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Fuente Internacional de Servicios para Turistas
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fuente Internacional de Servicios para Turistas can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fuente Internacional de Servicios para Turistas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas can be done for the following purposes –
1. Strategic planning of Fuente Internacional de Servicios para Turistas
2. Improving business portfolio management of Fuente Internacional de Servicios para Turistas
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 Fuente Internacional de Servicios para Turistas
Strengths of Fuente Internacional de Servicios para Turistas | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fuente Internacional de Servicios para Turistas are -
Highly skilled collaborators
– Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Fuente Internacional de Servicios para Turistas has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fuente Internacional de Servicios para Turistas 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.
Sustainable margins compare to other players in NA industry
– Fuente Internacional de Servicios para Turistas has clearly differentiated products in the market place. This has enabled Fuente Internacional de Servicios para Turistas to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped Fuente Internacional de Servicios para Turistas to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Fuente Internacional de Servicios para Turistas 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.
High brand equity
– Fuente Internacional de Servicios para Turistas has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fuente Internacional de Servicios para Turistas to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Fuente Internacional de Servicios para Turistas in the NA sector have low bargaining power. Fuente Internacional de Servicios para Turistas has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fuente Internacional de Servicios para Turistas to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Fuente Internacional de Servicios para Turistas
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fuente Internacional de Servicios para Turistas does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Fuente Internacional de Servicios para Turistas 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.
Strong track record of project management in the NA industry
– Fuente Internacional de Servicios para Turistas is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Fuente Internacional de Servicios para Turistas 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.
Superior customer experience
– The customer experience strategy of Fuente Internacional de Servicios para Turistas in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in NA
– Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Fuente Internacional de Servicios para Turistas | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fuente Internacional de Servicios para Turistas are -
Aligning sales with marketing
– From the outside it seems that Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas can leverage the sales team experience to cultivate customer relationships as Fuente Internacional de Servicios para Turistas is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Fuente Internacional de Servicios para Turistas 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 dependence on Fuente Internacional de Servicios para Turistas ‘s star products
– The top 2 products and services of Fuente Internacional de Servicios para Turistas still accounts for major business revenue. This dependence on star products in NA industry has resulted into insufficient focus on developing new products, even though Fuente Internacional de Servicios para Turistas has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Fuente Internacional de Servicios para Turistas 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.
Need for greater diversity
– Fuente Internacional de Servicios para Turistas 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.
Lack of clear differentiation of Fuente Internacional de Servicios para Turistas products
– To increase the profitability and margins on the products, Fuente Internacional de Servicios para Turistas needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Fuente Internacional de Servicios para Turistas 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. Fuente Internacional de Servicios para Turistas should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– From the 10K / annual statement of Fuente Internacional de Servicios para Turistas, 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.
Workers concerns about automation
– As automation is fast increasing in the NA industry, Fuente Internacional de Servicios para Turistas 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
Fuente Internacional de Servicios para Turistas 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.
High operating costs
– Compare to the competitors, Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas lucrative customers.
Fuente Internacional de Servicios para Turistas Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fuente Internacional de Servicios para Turistas are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Fuente Internacional de Servicios para Turistas 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.
Building a culture of innovation
– managers at Fuente Internacional de Servicios para Turistas 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.
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 Fuente Internacional de Servicios para Turistas 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.
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. Fuente Internacional de Servicios para Turistas 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. Fuente Internacional de Servicios para Turistas 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.
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. Fuente Internacional de Servicios para Turistas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fuente Internacional de Servicios para Turistas to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fuente Internacional de Servicios para Turistas is facing challenges because of the dominance of functional experts in the organization. Fuente Internacional de Servicios para Turistas 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.
Learning at scale
– Online learning technologies has now opened space for Fuente Internacional de Servicios para Turistas 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas to increase its market reach. Fuente Internacional de Servicios para Turistas 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fuente Internacional de Servicios para Turistas are -
Increasing wage structure of Fuente Internacional de Servicios para Turistas
– 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 Fuente Internacional de Servicios para Turistas.
Environmental challenges
– Fuente Internacional de Servicios para Turistas 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. Fuente Internacional de Servicios para Turistas can take advantage of this fund but it will also bring new competitors in the NA industry.
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.
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. Fuente Internacional de Servicios para Turistas 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas prominent markets.
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 Fuente Internacional de Servicios para Turistas in the NA sector and impact the bottomline of the organization.
Regulatory challenges
– Fuente Internacional de Servicios para Turistas 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
– Fuente Internacional de Servicios para Turistas 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.
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.
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. Fuente Internacional de Servicios para Turistas needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Fuente Internacional de Servicios para Turistas is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas 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 Fuente Internacional de Servicios para Turistas needs to make to build a sustainable competitive advantage.