Based on various researches at Oak Spring University , Fundo Investimento Imobil Merito is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is backlash against globalization, increasing household debt because of falling income levels, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%,
there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Strong track record of project management in the NA industry
– Fundo Investimento Imobil Merito is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
High switching costs
– The high switching costs that Fundo Investimento Imobil Merito 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.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For Fundo Investimento Imobil Merito digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fundo Investimento Imobil Merito 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.
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.
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.
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.
Operational resilience
– The operational resilience strategy of Fundo Investimento Imobil Merito 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.
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.
Successful track record of launching new products
– Fundo Investimento Imobil Merito has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fundo Investimento Imobil Merito 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.
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.
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.
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 -
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.
High dependence on Fundo Investimento Imobil Merito ‘s star products
– The top 2 products and services of Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Fundo Investimento Imobil Merito has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the NA industry over the last five years. Fundo Investimento Imobil Merito even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fundo Investimento Imobil Merito is slow explore the new channels of communication. These new channels of communication can help Fundo Investimento Imobil Merito to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito lucrative customers.
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.
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.
No frontier risks strategy
– From the 10K / annual statement of Fundo Investimento Imobil Merito, 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.
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.
Low market penetration in new markets
– Outside its home market of Brazil, Fundo Investimento Imobil Merito needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fundo Investimento Imobil Merito 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 Investimento Imobil Merito to hire the very best people irrespective of their geographical location.
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.
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.
Manufacturing automation
– Fundo Investimento Imobil Merito 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.
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 Investimento Imobil Merito can use these opportunities to build new business models that can help the communities that Fundo Investimento Imobil Merito operates in. Secondly it can use opportunities from government spending in NA sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fundo Investimento Imobil Merito 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.
Building a culture of innovation
– managers at Fundo Investimento Imobil Merito 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.
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.
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.
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 -
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 Investimento Imobil Merito 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fundo Investimento Imobil Merito 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.
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.
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.
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.
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.
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.
Consumer confidence and its impact on Fundo Investimento Imobil Merito 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.
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.
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.
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.
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.