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 – competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing commodity prices,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
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.
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.
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.
Highly skilled collaborators
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive NA industry. Secondly the value chain collaborators of FIP Infra-Estr BB Votorantim Ener Sustentavel II A have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of FIP Infra-Estr BB Votorantim Ener Sustentavel II A in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
Operational resilience
– The operational resilience strategy of FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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.
Ability to recruit top talent
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Learning organization
- FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at FIP Infra-Estr BB Votorantim Ener Sustentavel II A emphasize – knowledge, initiative, and innovation.
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 -
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.
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.
Products dominated business model
– Even though FIP Infra-Estr BB Votorantim Ener Sustentavel II A has some of the most successful models in the NA industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. FIP Infra-Estr BB Votorantim Ener Sustentavel II A should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Brazil, FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 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.
No frontier risks strategy
– From the 10K / annual statement of FIP Infra-Estr BB Votorantim Ener Sustentavel II A, it seems that company is thinking out the frontier risks that can impact NA industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
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.
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.
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 -
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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A in the NA industry. Now FIP Infra-Estr BB Votorantim Ener Sustentavel II A can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Using analytics as competitive advantage
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in NA sector. This continuous investment in analytics has enabled FIP Infra-Estr BB Votorantim Ener Sustentavel II A to build a competitive advantage using analytics. The analytics driven competitive advantage can help FIP Infra-Estr BB Votorantim Ener Sustentavel II A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A has opened avenues for new revenue streams for the organization in NA industry. This can help FIP Infra-Estr BB Votorantim Ener Sustentavel II A to build a more holistic ecosystem for FIP Infra-Estr BB Votorantim Ener Sustentavel II A products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, 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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A to hire the very best people irrespective of their geographical location.
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.
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.
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 -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. FIP Infra-Estr BB Votorantim Ener Sustentavel II A will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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.
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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.
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. FIP Infra-Estr BB Votorantim Ener Sustentavel II A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A prominent markets.
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.