SWOT Analysis / TOWS Matrix for FII CSHG LOG (Brazil)
Based on various researches at Oak Spring University , FII CSHG LOG is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, 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 household debt because of falling income levels, supply chains are disrupted by pandemic , etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII CSHG LOG can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII CSHG LOG, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII CSHG LOG 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 CSHG LOG can be done for the following purposes –
1. Strategic planning of FII CSHG LOG
2. Improving business portfolio management of FII CSHG LOG
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 CSHG LOG
Strengths of FII CSHG LOG | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII CSHG LOG are -
Innovation driven organization
– FII CSHG LOG is one of the most innovative firm in NA sector.
Superior customer experience
– The customer experience strategy of FII CSHG LOG in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– FII CSHG LOG 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 CSHG LOG have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of FII CSHG LOG
– The covid-19 pandemic has put organizational resilience at the centre of everthing FII CSHG LOG does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– FII CSHG LOG has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII CSHG LOG 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.
Sustainable margins compare to other players in NA industry
– FII CSHG LOG has clearly differentiated products in the market place. This has enabled FII CSHG LOG to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII CSHG LOG to invest into research and development (R&D) and innovation.
High brand equity
– FII CSHG LOG has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII CSHG LOG to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– FII CSHG LOG 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.
Ability to recruit top talent
– FII CSHG LOG 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.
Diverse revenue streams
– FII CSHG LOG is present in almost all the verticals within the NA industry. This has provided FII CSHG LOG 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.
Operational resilience
– The operational resilience strategy of FII CSHG LOG 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.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For FII CSHG LOG digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FII CSHG LOG 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.
Weaknesses of FII CSHG LOG | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII CSHG LOG are -
High operating costs
– Compare to the competitors, FII CSHG LOG 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 CSHG LOG lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at FII CSHG LOG, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FII CSHG LOG has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in NA industry
– The stress on hiring functional specialists at FII CSHG LOG 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.
High cash cycle compare to competitors
FII CSHG LOG 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
– FII CSHG LOG 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.
No frontier risks strategy
– From the 10K / annual statement of FII CSHG LOG, 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, FII CSHG LOG 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.
Aligning sales with marketing
– From the outside it seems that FII CSHG LOG 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 FII CSHG LOG can leverage the sales team experience to cultivate customer relationships as FII CSHG LOG is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of FII CSHG LOG supply chain. Even after few cautionary changes, FII CSHG LOG is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FII CSHG LOG vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Brazil, FII CSHG LOG needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of FII CSHG LOG products
– To increase the profitability and margins on the products, FII CSHG LOG needs to provide more differentiated products than what it is currently offering in the marketplace.
FII CSHG LOG Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII CSHG LOG are -
Low interest rates
– Even though inflation is raising its head in most developed economies, FII CSHG LOG 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.
Learning at scale
– Online learning technologies has now opened space for FII CSHG LOG 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.
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. FII CSHG LOG can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 CSHG LOG can use these opportunities to build new business models that can help the communities that FII CSHG LOG operates in. Secondly it can use opportunities from government spending in NA sector.
Leveraging digital technologies
– FII CSHG LOG 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.
Building a culture of innovation
– managers at FII CSHG LOG 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.
Using analytics as competitive advantage
– FII CSHG LOG 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 FII CSHG LOG to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII CSHG LOG 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 FII CSHG LOG has opened avenues for new revenue streams for the organization in NA industry. This can help FII CSHG LOG to build a more holistic ecosystem for FII CSHG LOG products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FII CSHG LOG 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 CSHG LOG to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. FII CSHG LOG 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. FII CSHG LOG 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.
Better consumer reach
– The expansion of the 5G network will help FII CSHG LOG to increase its market reach. FII CSHG LOG will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– FII CSHG LOG 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.
Use of Bitcoin and other crypto currencies for transactions in NA industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FII CSHG LOG in the NA industry. Now FII CSHG LOG can target international markets with far fewer capital restrictions requirements than the existing system.
Threats FII CSHG LOG External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII CSHG LOG are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for FII CSHG LOG in the NA sector and impact the bottomline 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.
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 CSHG LOG 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 FII CSHG LOG.
Technology acceleration in Forth Industrial Revolution
– FII CSHG LOG has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FII CSHG LOG needs to keep up with the evolution of technology in the NA sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– FII CSHG LOG 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 CSHG LOG can take advantage of this fund but it will also bring new competitors in the NA industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FII CSHG LOG 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.
Consumer confidence and its impact on FII CSHG LOG demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in NA industry and other sectors.
Regulatory challenges
– FII CSHG LOG 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.
Shortening product life cycle
– it is one of the major threat that FII CSHG LOG 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 CSHG LOG with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, FII CSHG LOG 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 FII CSHG LOG prominent markets.
Weighted SWOT Analysis of FII CSHG LOG Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII CSHG LOG 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 CSHG LOG 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 CSHG LOG 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 CSHG LOG 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 CSHG LOG needs to make to build a sustainable competitive advantage.
