Based on various researches at Oak Spring University , Fundo Investimento Imobil Merito is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, there is backlash against globalization,
increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Fundo Investimento Imobil Merito
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fundo Investimento Imobil Merito can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fundo Investimento Imobil Merito, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fundo Investimento Imobil Merito 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 Investimento Imobil Merito can be done for the following purposes –
1. Strategic planning of Fundo Investimento Imobil Merito
2. Improving business portfolio management of Fundo Investimento Imobil Merito
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 Investimento Imobil Merito
Strengths of Fundo Investimento Imobil Merito | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fundo Investimento Imobil Merito are -
Training and development
– Fundo Investimento Imobil Merito 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.
Effective Research and Development (R&D)
– Fundo Investimento Imobil Merito has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Fundo Investimento Imobil Merito 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
– Fundo Investimento Imobil Merito has clearly differentiated products in the market place. This has enabled Fundo Investimento Imobil Merito to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped Fundo Investimento Imobil Merito to invest into research and development (R&D) and innovation.
Analytics focus
– Fundo Investimento Imobil Merito is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the NA industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Fundo Investimento Imobil Merito has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fundo Investimento Imobil Merito to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Fundo Investimento Imobil Merito 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
– Fundo Investimento Imobil Merito 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 Investimento Imobil Merito have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in NA
– Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Fundo Investimento Imobil Merito in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Fundo Investimento Imobil Merito 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.
Organizational Resilience of Fundo Investimento Imobil Merito
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fundo Investimento Imobil Merito does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Fundo Investimento Imobil Merito is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Fundo Investimento Imobil Merito is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fundo Investimento Imobil Merito emphasize – knowledge, initiative, and innovation.
Weaknesses of Fundo Investimento Imobil Merito | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fundo Investimento Imobil Merito are -
Ability to respond to the competition
– As the decision making is very deliberative at Fundo Investimento Imobil Merito, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. Fundo Investimento Imobil Merito has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Fundo Investimento Imobil Merito 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.
Compensation and incentives
– The revenue per employee of Fundo Investimento Imobil Merito 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.
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 Fundo Investimento Imobil Merito supply chain. Even after few cautionary changes, Fundo Investimento Imobil Merito is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fundo Investimento Imobil Merito vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of Fundo Investimento Imobil Merito strategy
– From the outside it seems that the employees of Fundo Investimento Imobil Merito don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Fundo Investimento Imobil Merito is dominated by functional specialists. It is not different from other players in the NA industry, but Fundo Investimento Imobil Merito needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fundo Investimento Imobil Merito to focus more on services in the NA industry rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Fundo Investimento Imobil Merito 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.
Products dominated business model
– Even though Fundo Investimento Imobil Merito 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. Fundo Investimento Imobil Merito should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Fundo Investimento Imobil Merito 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.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, Fundo Investimento Imobil Merito 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.
Lack of clear differentiation of Fundo Investimento Imobil Merito products
– To increase the profitability and margins on the products, Fundo Investimento Imobil Merito needs to provide more differentiated products than what it is currently offering in the marketplace.
Fundo Investimento Imobil Merito Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fundo Investimento Imobil Merito are -
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the NA industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Fundo Investimento Imobil Merito 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 Investimento Imobil Merito 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.
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 Investimento Imobil Merito 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fundo Investimento Imobil Merito 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.
Buying journey improvements
– Fundo Investimento Imobil Merito 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.
Better consumer reach
– The expansion of the 5G network will help Fundo Investimento Imobil Merito to increase its market reach. Fundo Investimento Imobil Merito 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fundo Investimento Imobil Merito can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Fundo Investimento Imobil Merito 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.
Loyalty marketing
– Fundo Investimento Imobil Merito 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fundo Investimento Imobil Merito is facing challenges because of the dominance of functional experts in the organization. Fundo Investimento Imobil Merito 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 Investimento Imobil Merito has opened avenues for new revenue streams for the organization in NA industry. This can help Fundo Investimento Imobil Merito to build a more holistic ecosystem for Fundo Investimento Imobil Merito products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Fundo Investimento Imobil Merito 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 Investimento Imobil Merito 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.
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 Investimento Imobil Merito can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Fundo Investimento Imobil Merito External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fundo Investimento Imobil Merito are -
Regulatory challenges
– Fundo Investimento Imobil Merito 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
– Fundo Investimento Imobil Merito 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.
Shortening product life cycle
– it is one of the major threat that Fundo Investimento Imobil Merito is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Fundo Investimento Imobil Merito in the NA sector and impact the bottomline 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. Fundo Investimento Imobil Merito needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Fundo Investimento Imobil Merito can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the NA industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents Fundo Investimento Imobil Merito with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fundo Investimento Imobil Merito may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of NA sector.
Increasing wage structure of Fundo Investimento Imobil Merito
– 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 Investimento Imobil Merito.
Environmental challenges
– Fundo Investimento Imobil Merito 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. Fundo Investimento Imobil Merito can take advantage of this fund but it will also bring new competitors in the NA industry.
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 Investimento Imobil Merito can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito prominent markets.
Weighted SWOT Analysis of Fundo Investimento Imobil Merito Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fundo Investimento Imobil Merito 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 Investimento Imobil Merito 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 Investimento Imobil Merito 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 Investimento Imobil Merito 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 Investimento Imobil Merito needs to make to build a sustainable competitive advantage.
