Based on various researches at Oak Spring University , Fundo Investimento Imobil Merito is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, geopolitical disruptions, challanges to central banks by blockchain based private currencies,
wage bills are increasing, 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 -
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.
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.
Diverse revenue streams
– Fundo Investimento Imobil Merito is present in almost all the verticals within the NA industry. This has provided Fundo Investimento Imobil Merito 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.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Fundo Investimento Imobil Merito in the NA sector have low bargaining power. Fundo Investimento Imobil Merito has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fundo Investimento Imobil Merito to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Fundo Investimento Imobil Merito is one of the most innovative firm in NA sector.
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.
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.
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.
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 -
Aligning sales with marketing
– From the outside it seems that Fundo Investimento Imobil Merito 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 Investimento Imobil Merito can leverage the sales team experience to cultivate customer relationships as Fundo Investimento Imobil Merito is planning to shift buying processes online.
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.
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.
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.
Need for greater diversity
– Fundo Investimento Imobil Merito 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.
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.
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.
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.
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 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.
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 -
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.
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.
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.
Using analytics as competitive advantage
– Fundo Investimento Imobil Merito 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 Fundo Investimento Imobil Merito to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fundo Investimento Imobil Merito to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
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.
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.
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.
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 Investimento Imobil Merito can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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 -
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.
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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Fundo Investimento Imobil Merito business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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.
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 Investimento Imobil Merito.
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.
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.
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.
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.
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.