Fundo de Investimento da Amazonia (FNAM11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fundo de Investimento da Amazonia (Brazil)
Based on various researches at Oak Spring University , Fundo de Investimento da Amazonia is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing commodity prices, wage bills are increasing, there is backlash against globalization, technology disruption,
supply chains are disrupted by pandemic , increasing energy prices, etc
Introduction to SWOT Analysis of Fundo de Investimento da Amazonia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fundo de Investimento da Amazonia can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fundo de Investimento da Amazonia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia can be done for the following purposes –
1. Strategic planning of Fundo de Investimento da Amazonia
2. Improving business portfolio management of Fundo de Investimento da Amazonia
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 Fundo de Investimento da Amazonia
Strengths of Fundo de Investimento da Amazonia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fundo de Investimento da Amazonia are -
Strong track record of project management in the NA industry
– Fundo de Investimento da Amazonia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Fundo de Investimento da Amazonia 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.
Sustainable margins compare to other players in NA industry
– Fundo de Investimento da Amazonia has clearly differentiated products in the market place. This has enabled Fundo de Investimento da Amazonia to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped Fundo de Investimento da Amazonia to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Fundo de Investimento da Amazonia is present in almost all the verticals within the NA industry. This has provided Fundo de Investimento da Amazonia 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.
Training and development
– Fundo de Investimento da Amazonia has one of the best training and development program in NA industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Fundo de Investimento da Amazonia is one of the most innovative firm in NA sector.
Cross disciplinary teams
– Horizontal connected teams at the Fundo de Investimento da Amazonia 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.
Low bargaining power of suppliers
– Suppliers of Fundo de Investimento da Amazonia in the NA sector have low bargaining power. Fundo de Investimento da Amazonia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fundo de Investimento da Amazonia to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Fundo de Investimento da Amazonia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fundo de Investimento da Amazonia 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.
Highly skilled collaborators
– Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Fundo de Investimento da Amazonia has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Fundo de Investimento da Amazonia 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.
Superior customer experience
– The customer experience strategy of Fundo de Investimento da Amazonia in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Fundo de Investimento da Amazonia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fundo de Investimento da Amazonia are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fundo de Investimento da Amazonia is slow explore the new channels of communication. These new channels of communication can help Fundo de Investimento da Amazonia to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Fundo de Investimento da Amazonia 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.
Ability to respond to the competition
– As the decision making is very deliberative at Fundo de Investimento da Amazonia, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. Fundo de Investimento da Amazonia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Fundo de Investimento da Amazonia products
– To increase the profitability and margins on the products, Fundo de Investimento da Amazonia needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Fundo de Investimento da Amazonia 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.
Aligning sales with marketing
– From the outside it seems that Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia can leverage the sales team experience to cultivate customer relationships as Fundo de Investimento da Amazonia is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Fundo de Investimento da Amazonia 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.
Capital Spending Reduction
– Even during the low interest decade, Fundo de Investimento da Amazonia 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.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, Fundo de Investimento da Amazonia 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.
Workers concerns about automation
– As automation is fast increasing in the NA industry, Fundo de Investimento da Amazonia 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.
No frontier risks strategy
– From the 10K / annual statement of Fundo de Investimento da Amazonia, 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.
Fundo de Investimento da Amazonia Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fundo de Investimento da Amazonia are -
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. Fundo de Investimento da Amazonia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fundo de Investimento da Amazonia 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.
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. Fundo de Investimento da Amazonia 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. Fundo de Investimento da Amazonia 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.
Buying journey improvements
– Fundo de Investimento da Amazonia 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fundo de Investimento da Amazonia can use these opportunities to build new business models that can help the communities that Fundo de Investimento da Amazonia operates in. Secondly it can use opportunities from government spending in NA sector.
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 Fundo de Investimento da Amazonia 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fundo de Investimento da Amazonia is facing challenges because of the dominance of functional experts in the organization. Fundo de Investimento da Amazonia 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.
Creating value in data economy
– The success of analytics program of Fundo de Investimento da Amazonia has opened avenues for new revenue streams for the organization in NA industry. This can help Fundo de Investimento da Amazonia to build a more holistic ecosystem for Fundo de Investimento da Amazonia products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Fundo de Investimento da Amazonia 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
– Fundo de Investimento da Amazonia 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Fundo de Investimento da Amazonia to increase its market reach. Fundo de Investimento da Amazonia 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.
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. Fundo de Investimento da Amazonia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Fundo de Investimento da Amazonia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fundo de Investimento da Amazonia are -
Increasing wage structure of Fundo de Investimento da Amazonia
– 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 Fundo de Investimento da Amazonia.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fundo de Investimento da Amazonia 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.
High dependence on third party suppliers
– Fundo de Investimento da Amazonia 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.
Consumer confidence and its impact on Fundo de Investimento da Amazonia 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.
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 Fundo de Investimento da Amazonia.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents Fundo de Investimento da Amazonia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
Easy access to finance
– Easy access to finance in NA industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Fundo de Investimento da Amazonia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Fundo de Investimento da Amazonia has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, Fundo de Investimento da Amazonia 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.
Regulatory challenges
– Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Fundo de Investimento da Amazonia 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.
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.
Weighted SWOT Analysis of Fundo de Investimento da Amazonia Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia 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 Fundo de Investimento da Amazonia needs to make to build a sustainable competitive advantage.