FII Banrisul Novas Fronteiras (BNFS11) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for FII Banrisul Novas Fronteiras (Brazil)

Based on various researches at Oak Spring University , FII Banrisul Novas Fronteiras is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, there is increasing trade war between United States & China, etc

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Introduction to SWOT Analysis of FII Banrisul Novas Fronteiras

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII Banrisul Novas Fronteiras can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII Banrisul Novas Fronteiras, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII Banrisul Novas Fronteiras 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of FII Banrisul Novas Fronteiras can be done for the following purposes –
1. Strategic planning of FII Banrisul Novas Fronteiras
2. Improving business portfolio management of FII Banrisul Novas Fronteiras
3. Assessing feasibility of the new initiative in Brazil
4. Making a NA sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of FII Banrisul Novas Fronteiras

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Strengths of FII Banrisul Novas Fronteiras | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of FII Banrisul Novas Fronteiras are -

Operational resilience

– The operational resilience strategy of FII Banrisul Novas Fronteiras 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.

Analytics focus

– FII Banrisul Novas Fronteiras 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.

Successful track record of launching new products

– FII Banrisul Novas Fronteiras has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII Banrisul Novas Fronteiras 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.

Diverse revenue streams

– FII Banrisul Novas Fronteiras is present in almost all the verticals within the NA industry. This has provided FII Banrisul Novas Fronteiras 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.

Innovation driven organization

– FII Banrisul Novas Fronteiras is one of the most innovative firm in NA sector.

Highly skilled collaborators

– FII Banrisul Novas Fronteiras has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive NA industry. Secondly the value chain collaborators of FII Banrisul Novas Fronteiras have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management in the NA industry

– FII Banrisul Novas Fronteiras is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Ability to lead change in NA

– FII Banrisul Novas Fronteiras 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 FII Banrisul Novas Fronteiras in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

– FII Banrisul Novas Fronteiras has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII Banrisul Novas Fronteiras to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of FII Banrisul Novas Fronteiras in the NA sector have low bargaining power. FII Banrisul Novas Fronteiras has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FII Banrisul Novas Fronteiras to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of FII Banrisul Novas Fronteiras in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to recruit top talent

– FII Banrisul Novas Fronteiras 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.

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Weaknesses of FII Banrisul Novas Fronteiras | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of FII Banrisul Novas Fronteiras are -

High cash cycle compare to competitors

FII Banrisul Novas Fronteiras 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.

Products dominated business model

– Even though FII Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras should strive to include more intangible value offerings along with its core products and services.

Lack of clear differentiation of FII Banrisul Novas Fronteiras products

– To increase the profitability and margins on the products, FII Banrisul Novas Fronteiras needs to provide more differentiated products than what it is currently offering in the marketplace.

High operating costs

– Compare to the competitors, FII Banrisul Novas Fronteiras has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FII Banrisul Novas Fronteiras lucrative customers.

No frontier risks strategy

– From the 10K / annual statement of FII Banrisul Novas Fronteiras, 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.

Aligning sales with marketing

– From the outside it seems that FII Banrisul Novas Fronteiras needs to have more collaboration between its sales team and marketing team. Sales professionals in the NA industry have deep experience in developing customer relationships. Marketing department at FII Banrisul Novas Fronteiras can leverage the sales team experience to cultivate customer relationships as FII Banrisul Novas Fronteiras is planning to shift buying processes online.

High bargaining power of channel partners in NA industry

– because of the regulatory requirements in Brazil, FII Banrisul Novas Fronteiras 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.

Need for greater diversity

– FII Banrisul Novas Fronteiras 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.

Interest costs

– Compare to the competition, FII Banrisul Novas Fronteiras 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.

Slow decision making process

– As mentioned earlier in the report, FII Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras 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.

Skills based hiring in NA industry

– The stress on hiring functional specialists at FII Banrisul Novas Fronteiras has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

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FII Banrisul Novas Fronteiras Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of FII Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. FII Banrisul Novas Fronteiras 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.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. FII Banrisul Novas Fronteiras can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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 FII Banrisul Novas Fronteiras 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.

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. FII Banrisul Novas Fronteiras can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Using analytics as competitive advantage

– FII Banrisul Novas Fronteiras has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in NA sector. This continuous investment in analytics has enabled FII Banrisul Novas Fronteiras to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII Banrisul Novas Fronteiras to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Building a culture of innovation

– managers at FII Banrisul Novas Fronteiras 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 FII Banrisul Novas Fronteiras to increase its market reach. FII Banrisul Novas Fronteiras 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 FII Banrisul Novas Fronteiras can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Creating value in data economy

– The success of analytics program of FII Banrisul Novas Fronteiras has opened avenues for new revenue streams for the organization in NA industry. This can help FII Banrisul Novas Fronteiras to build a more holistic ecosystem for FII Banrisul Novas Fronteiras products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– FII Banrisul Novas Fronteiras 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.

Developing new processes and practices

– FII Banrisul Novas Fronteiras 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.

Use of Bitcoin and other crypto currencies for transactions in NA industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FII Banrisul Novas Fronteiras in the NA industry. Now FII Banrisul Novas Fronteiras can target international markets with far fewer capital restrictions requirements than the existing system.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FII Banrisul Novas Fronteiras can use these opportunities to build new business models that can help the communities that FII Banrisul Novas Fronteiras operates in. Secondly it can use opportunities from government spending in NA sector.

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Threats FII Banrisul Novas Fronteiras External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of FII Banrisul Novas Fronteiras are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FII Banrisul Novas Fronteiras 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. FII Banrisul Novas Fronteiras 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

– FII Banrisul Novas Fronteiras has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FII Banrisul Novas Fronteiras 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.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for FII Banrisul Novas Fronteiras in the NA sector and impact the bottomline of the organization.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, FII Banrisul Novas Fronteiras 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 international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, FII Banrisul Novas Fronteiras can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate FII Banrisul Novas Fronteiras prominent markets.

High dependence on third party suppliers

– FII Banrisul Novas Fronteiras 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.

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.

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.

Environmental challenges

– FII Banrisul Novas Fronteiras needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. FII Banrisul Novas Fronteiras can take advantage of this fund but it will also bring new competitors in the NA industry.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of FII Banrisul Novas Fronteiras.

Increasing wage structure of FII Banrisul Novas Fronteiras

– 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 FII Banrisul Novas Fronteiras.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. FII Banrisul Novas Fronteiras needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of FII Banrisul Novas Fronteiras Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII Banrisul Novas Fronteiras needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of FII Banrisul Novas Fronteiras is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of FII Banrisul Novas Fronteiras is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of FII Banrisul Novas Fronteiras to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that FII Banrisul Novas Fronteiras needs to make to build a sustainable competitive advantage.

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