Based on various researches at Oak Spring University , BM Brascan Lajes Corp is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies,
increasing commodity prices, wage bills are increasing, 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 -
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.
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.
Innovation driven organization
– BM Brascan Lajes Corp is one of the most innovative firm in NA sector.
Operational resilience
– The operational resilience strategy of BM Brascan Lajes Corp 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 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.
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.
High brand equity
– BM Brascan Lajes Corp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled BM Brascan Lajes Corp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For BM Brascan Lajes Corp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. BM Brascan Lajes Corp 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.
Organizational Resilience of BM Brascan Lajes Corp
– The covid-19 pandemic has put organizational resilience at the centre of everthing BM Brascan Lajes Corp does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– BM Brascan Lajes Corp 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the BM Brascan Lajes Corp 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.
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 -
Workers concerns about automation
– As automation is fast increasing in the NA industry, BM Brascan Lajes Corp needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 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.
Ability to respond to the competition
– As the decision making is very deliberative at BM Brascan Lajes Corp, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. BM Brascan Lajes Corp has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of BM Brascan Lajes Corp is dominated by functional specialists. It is not different from other players in the NA industry, but BM Brascan Lajes Corp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help BM Brascan Lajes Corp to focus more on services in the NA industry rather than just following the product oriented approach.
High cash cycle compare to competitors
BM Brascan Lajes Corp 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.
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.
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.
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.
Skills based hiring in NA industry
– The stress on hiring functional specialists at BM Brascan Lajes Corp 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.
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 -
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, BM Brascan Lajes Corp is facing challenges because of the dominance of functional experts in the organization. BM Brascan Lajes Corp 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects BM Brascan Lajes Corp 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 BM Brascan Lajes Corp 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 BM Brascan Lajes Corp to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, BM Brascan Lajes Corp 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.
Loyalty marketing
– BM Brascan Lajes Corp 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.
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.
Better consumer reach
– The expansion of the 5G network will help BM Brascan Lajes Corp to increase its market reach. BM Brascan Lajes Corp 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.
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.
Developing new processes and practices
– BM Brascan Lajes Corp 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.
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.
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.
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 -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BM Brascan Lajes Corp 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.
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.
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.
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.
Consumer confidence and its impact on BM Brascan Lajes Corp 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.
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 BM Brascan Lajes Corp.
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.
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.
Environmental challenges
– BM Brascan Lajes Corp 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. BM Brascan Lajes Corp can take advantage of this fund but it will also bring new competitors in the NA industry.
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.
Increasing wage structure of BM Brascan Lajes Corp
– 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 BM Brascan Lajes Corp.
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.
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.
