BB Seguridade Participacoes SA (BBSEY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for BB Seguridade Participacoes SA (United States)
Based on various researches at Oak Spring University , BB Seguridade Participacoes SA is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, wage bills are increasing, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of BB Seguridade Participacoes SA
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BB Seguridade Participacoes SA can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BB Seguridade Participacoes SA, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA can be done for the following purposes –
1. Strategic planning of BB Seguridade Participacoes SA
2. Improving business portfolio management of BB Seguridade Participacoes SA
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of BB Seguridade Participacoes SA
Strengths of BB Seguridade Participacoes SA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BB Seguridade Participacoes SA are -
Successful track record of launching new products
– BB Seguridade Participacoes SA has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. BB Seguridade Participacoes SA 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For BB Seguridade Participacoes SA digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA
– The covid-19 pandemic has put organizational resilience at the centre of everthing BB Seguridade Participacoes SA does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– BB Seguridade Participacoes SA is present in almost all the verticals within the industry. This has provided BB Seguridade Participacoes SA 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.
Training and development
– BB Seguridade Participacoes SA has one of the best training and development program in 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.
Cross disciplinary teams
– Horizontal connected teams at the BB Seguridade Participacoes SA 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.
Operational resilience
– The operational resilience strategy of BB Seguridade Participacoes SA comprises – understanding the underlying the factors in the 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
– BB Seguridade Participacoes SA is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled BB Seguridade Participacoes SA in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of BB Seguridade Participacoes SA in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– BB Seguridade Participacoes SA is one of the most innovative firm in sector.
Highly skilled collaborators
– BB Seguridade Participacoes SA has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of BB Seguridade Participacoes SA have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of BB Seguridade Participacoes SA in the sector have low bargaining power. BB Seguridade Participacoes SA has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps BB Seguridade Participacoes SA to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of BB Seguridade Participacoes SA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BB Seguridade Participacoes SA are -
Skills based hiring in industry
– The stress on hiring functional specialists at BB Seguridade Participacoes SA 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.
Increasing silos among functional specialists
– The organizational structure of BB Seguridade Participacoes SA is dominated by functional specialists. It is not different from other players in the industry, but BB Seguridade Participacoes SA needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help BB Seguridade Participacoes SA to focus more on services in the industry rather than just following the product oriented approach.
Need for greater diversity
– BB Seguridade Participacoes SA 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.
Ability to respond to the competition
– As the decision making is very deliberative at BB Seguridade Participacoes SA, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. BB Seguridade Participacoes SA has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on BB Seguridade Participacoes SA ‘s star products
– The top 2 products and services of BB Seguridade Participacoes SA still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though BB Seguridade Participacoes SA has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, BB Seguridade Participacoes SA 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 industry using digital technology.
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 BB Seguridade Participacoes SA supply chain. Even after few cautionary changes, BB Seguridade Participacoes SA is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left BB Seguridade Participacoes SA vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of BB Seguridade Participacoes SA is just above the 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.
Aligning sales with marketing
– From the outside it seems that BB Seguridade Participacoes SA needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at BB Seguridade Participacoes SA can leverage the sales team experience to cultivate customer relationships as BB Seguridade Participacoes SA is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, BB Seguridade Participacoes SA has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. BB Seguridade Participacoes SA 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.
Lack of clear differentiation of BB Seguridade Participacoes SA products
– To increase the profitability and margins on the products, BB Seguridade Participacoes SA needs to provide more differentiated products than what it is currently offering in the marketplace.
BB Seguridade Participacoes SA Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BB Seguridade Participacoes SA are -
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for BB Seguridade Participacoes SA in the industry. Now BB Seguridade Participacoes SA can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, BB Seguridade Participacoes SA 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.
Learning at scale
– Online learning technologies has now opened space for BB Seguridade Participacoes SA 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.
Better consumer reach
– The expansion of the 5G network will help BB Seguridade Participacoes SA to increase its market reach. BB Seguridade Participacoes SA 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. BB Seguridade Participacoes SA can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects BB Seguridade Participacoes SA can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– BB Seguridade Participacoes SA 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. BB Seguridade Participacoes SA 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. BB Seguridade Participacoes SA 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.
Creating value in data economy
– The success of analytics program of BB Seguridade Participacoes SA has opened avenues for new revenue streams for the organization in industry. This can help BB Seguridade Participacoes SA to build a more holistic ecosystem for BB Seguridade Participacoes SA products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at BB Seguridade Participacoes SA 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 industry.
Leveraging digital technologies
– BB Seguridade Participacoes SA 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for BB Seguridade Participacoes SA in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA to hire the very best people irrespective of their geographical location.
Threats BB Seguridade Participacoes SA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BB Seguridade Participacoes SA are -
Increasing wage structure of BB Seguridade Participacoes SA
– 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 BB Seguridade Participacoes SA.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents BB Seguridade Participacoes SA with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– BB Seguridade Participacoes SA 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. BB Seguridade Participacoes SA can take advantage of this fund but it will also bring new competitors in the industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, BB Seguridade Participacoes SA may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. BB Seguridade Participacoes SA can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BB Seguridade Participacoes SA in industry. The 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.
Consumer confidence and its impact on BB Seguridade Participacoes SA 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 industry and other sectors.
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 BB Seguridade Participacoes SA in the sector and impact the bottomline of the organization.
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 BB Seguridade Participacoes SA.
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.
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. BB Seguridade Participacoes SA needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
High dependence on third party suppliers
– BB Seguridade Participacoes SA 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.
Weighted SWOT Analysis of BB Seguridade Participacoes SA Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA 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 BB Seguridade Participacoes SA needs to make to build a sustainable competitive advantage.