Based on various researches at Oak Spring University , BM Brascan Lajes Corp is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, geopolitical disruptions,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of BM Brascan Lajes Corp
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BM Brascan Lajes Corp can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BM Brascan Lajes Corp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BM Brascan Lajes Corp 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 BM Brascan Lajes Corp can be done for the following purposes –
1. Strategic planning of BM Brascan Lajes Corp
2. Improving business portfolio management of BM Brascan Lajes Corp
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 BM Brascan Lajes Corp
Strengths of BM Brascan Lajes Corp | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BM Brascan Lajes Corp are -
Low bargaining power of suppliers
– Suppliers of BM Brascan Lajes Corp in the NA sector have low bargaining power. BM Brascan Lajes Corp has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps BM Brascan Lajes Corp to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in NA industry
– BM Brascan Lajes Corp has clearly differentiated products in the market place. This has enabled BM Brascan Lajes Corp to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped BM Brascan Lajes Corp to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that BM Brascan Lajes Corp 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.
Superior customer experience
– The customer experience strategy of BM Brascan Lajes Corp in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- BM Brascan Lajes Corp 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 BM Brascan Lajes Corp is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at BM Brascan Lajes Corp emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– BM Brascan Lajes Corp is one of the most innovative firm in NA sector.
Ability to recruit top talent
– BM Brascan Lajes Corp 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.
Analytics focus
– BM Brascan Lajes Corp 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.
Ability to lead change in NA
– BM Brascan Lajes Corp 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 BM Brascan Lajes Corp in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– BM Brascan Lajes Corp has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – BM Brascan Lajes Corp 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.
Diverse revenue streams
– BM Brascan Lajes Corp is present in almost all the verticals within the NA industry. This has provided BM Brascan Lajes Corp 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.
Successful track record of launching new products
– BM Brascan Lajes Corp has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. BM Brascan Lajes Corp 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.
Weaknesses of BM Brascan Lajes Corp | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BM Brascan Lajes Corp are -
Aligning sales with marketing
– From the outside it seems that BM Brascan Lajes Corp 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 BM Brascan Lajes Corp can leverage the sales team experience to cultivate customer relationships as BM Brascan Lajes Corp is planning to shift buying processes online.
Need for greater diversity
– BM Brascan Lajes Corp 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.
Lack of clear differentiation of BM Brascan Lajes Corp products
– To increase the profitability and margins on the products, BM Brascan Lajes Corp needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, BM Brascan Lajes Corp 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 BM Brascan Lajes Corp lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, BM Brascan Lajes Corp 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.
Low market penetration in new markets
– Outside its home market of Brazil, BM Brascan Lajes Corp needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, BM Brascan Lajes Corp is slow explore the new channels of communication. These new channels of communication can help BM Brascan Lajes Corp to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As BM Brascan Lajes Corp is one of the leading players in the NA industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the NA industry in last five years.
Employees’ less understanding of BM Brascan Lajes Corp strategy
– From the outside it seems that the employees of BM Brascan Lajes Corp 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.
Compensation and incentives
– The revenue per employee of BM Brascan Lajes Corp 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 bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, BM Brascan Lajes Corp 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.
BM Brascan Lajes Corp Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BM Brascan Lajes Corp are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in NA industry, but it has also influenced the consumer preferences. BM Brascan Lajes Corp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for BM Brascan Lajes Corp 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.
Leveraging digital technologies
– BM Brascan Lajes Corp 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.
Buying journey improvements
– BM Brascan Lajes Corp 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.
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. BM Brascan Lajes Corp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of BM Brascan Lajes Corp has opened avenues for new revenue streams for the organization in NA industry. This can help BM Brascan Lajes Corp to build a more holistic ecosystem for BM Brascan Lajes Corp products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, 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 BM Brascan Lajes Corp in the NA industry. Now BM Brascan Lajes Corp 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, BM Brascan Lajes Corp can use these opportunities to build new business models that can help the communities that BM Brascan Lajes Corp operates in. Secondly it can use opportunities from government spending in NA sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help BM Brascan Lajes Corp 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.
Building a culture of innovation
– managers at BM Brascan Lajes Corp 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.
Manufacturing automation
– BM Brascan Lajes Corp 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.
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. BM Brascan Lajes Corp 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. BM Brascan Lajes Corp 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, BM Brascan Lajes Corp 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 BM Brascan Lajes Corp to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats BM Brascan Lajes Corp External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BM Brascan Lajes Corp are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents BM Brascan Lajes Corp 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, BM Brascan Lajes Corp 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.
Shortening product life cycle
– it is one of the major threat that BM Brascan Lajes Corp is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 BM Brascan Lajes Corp business can come under increasing regulations regarding data privacy, data security, etc.
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 BM Brascan Lajes Corp in the NA sector and impact the bottomline of the organization.
High dependence on third party suppliers
– BM Brascan Lajes Corp 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.
Technology acceleration in Forth Industrial Revolution
– BM Brascan Lajes Corp has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, BM Brascan Lajes Corp 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, BM Brascan Lajes Corp 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 BM Brascan Lajes Corp prominent markets.
Stagnating economy with rate increase
– BM Brascan Lajes Corp 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.
Regulatory challenges
– BM Brascan Lajes Corp 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.
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. BM Brascan Lajes Corp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. BM Brascan Lajes Corp needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Weighted SWOT Analysis of BM Brascan Lajes Corp Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BM Brascan Lajes Corp 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 BM Brascan Lajes Corp 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 BM Brascan Lajes Corp 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 BM Brascan Lajes Corp 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 BM Brascan Lajes Corp needs to make to build a sustainable competitive advantage.