FIP Infra-Estr BB Votorantim Ener Sustentavel II A (ESUD11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FIP Infra-Estr BB Votorantim Ener Sustentavel II A (Brazil)
Based on various researches at Oak Spring University , FIP Infra-Estr BB Votorantim Ener Sustentavel II A is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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, wage bills are increasing, increasing household debt because of falling income levels,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of FIP Infra-Estr BB Votorantim Ener Sustentavel II A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FIP Infra-Estr BB Votorantim Ener Sustentavel II A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FIP Infra-Estr BB Votorantim Ener Sustentavel II A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A can be done for the following purposes –
1. Strategic planning of FIP Infra-Estr BB Votorantim Ener Sustentavel II A
2. Improving business portfolio management of FIP Infra-Estr BB Votorantim Ener Sustentavel II A
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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A
Strengths of FIP Infra-Estr BB Votorantim Ener Sustentavel II A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FIP Infra-Estr BB Votorantim Ener Sustentavel II A are -
Organizational Resilience of FIP Infra-Estr BB Votorantim Ener Sustentavel II A
– The covid-19 pandemic has put organizational resilience at the centre of everthing FIP Infra-Estr BB Votorantim Ener Sustentavel II A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the NA industry
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
High switching costs
– The high switching costs that FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 lead change in NA
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of FIP Infra-Estr BB Votorantim Ener Sustentavel II A in the NA sector have low bargaining power. FIP Infra-Estr BB Votorantim Ener Sustentavel II A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FIP Infra-Estr BB Votorantim Ener Sustentavel II A to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For FIP Infra-Estr BB Votorantim Ener Sustentavel II A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Sustainable margins compare to other players in NA industry
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has clearly differentiated products in the market place. This has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel II A to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FIP Infra-Estr BB Votorantim Ener Sustentavel II A to invest into research and development (R&D) and innovation.
Innovation driven organization
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A is one of the most innovative firm in NA sector.
Analytics focus
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel II A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A is present in almost all the verticals within the NA industry. This has provided FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Weaknesses of FIP Infra-Estr BB Votorantim Ener Sustentavel II A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FIP Infra-Estr BB Votorantim Ener Sustentavel II A are -
High dependence on FIP Infra-Estr BB Votorantim Ener Sustentavel II A ‘s star products
– The top 2 products and services of FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Need for greater diversity
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Aligning sales with marketing
– From the outside it seems that FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A can leverage the sales team experience to cultivate customer relationships as FIP Infra-Estr BB Votorantim Ener Sustentavel II A is planning to shift buying processes online.
High cash cycle compare to competitors
FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Slow decision making process
– As mentioned earlier in the report, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Ability to respond to the competition
– As the decision making is very deliberative at FIP Infra-Estr BB Votorantim Ener Sustentavel II A, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FIP Infra-Estr BB Votorantim Ener Sustentavel II A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Compensation and incentives
– The revenue per employee of FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Increasing silos among functional specialists
– The organizational structure of FIP Infra-Estr BB Votorantim Ener Sustentavel II A is dominated by functional specialists. It is not different from other players in the NA industry, but FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help FIP Infra-Estr BB Votorantim Ener Sustentavel II A to focus more on services in the NA industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, FIP Infra-Estr BB Votorantim Ener Sustentavel II A is slow explore the new channels of communication. These new channels of communication can help FIP Infra-Estr BB Votorantim Ener Sustentavel II A to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
FIP Infra-Estr BB Votorantim Ener Sustentavel II A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FIP Infra-Estr BB Votorantim Ener Sustentavel II A are -
Developing new processes and practices
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, FIP Infra-Estr BB Votorantim Ener Sustentavel II A is facing challenges because of the dominance of functional experts in the organization. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FIP Infra-Estr BB Votorantim Ener Sustentavel II A can use these opportunities to build new business models that can help the communities that FIP Infra-Estr BB Votorantim Ener Sustentavel II A operates in. Secondly it can use opportunities from government spending in NA sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects FIP Infra-Estr BB Votorantim Ener Sustentavel II A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A to increase its market reach. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Leveraging digital technologies
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Threats FIP Infra-Estr BB Votorantim Ener Sustentavel II A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FIP Infra-Estr BB Votorantim Ener Sustentavel II A are -
High dependence on third party suppliers
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Shortening product life cycle
– it is one of the major threat that FIP Infra-Estr BB Votorantim Ener Sustentavel II A is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FIP Infra-Estr BB Votorantim Ener Sustentavel II A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Consumer confidence and its impact on FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A in the NA sector and impact the bottomline of the organization.
Environmental challenges
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A can take advantage of this fund but it will also bring new competitors in the NA industry.
Increasing wage structure of FIP Infra-Estr BB Votorantim Ener Sustentavel II A
– 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A.
Weighted SWOT Analysis of FIP Infra-Estr BB Votorantim Ener Sustentavel II A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to make to build a sustainable competitive advantage.