FIP Infra-Estr BB Votorantim Ener Sustentavel II A (ESUD11) SWOT Analysis / TOWS Matrix / MBA Resources
NA
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 – banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing energy prices, geopolitical disruptions, increasing household debt because of falling income levels, there is increasing trade war between United States & China,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, 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 -
Innovation driven organization
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A is one of the most innovative firm in NA sector.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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.
Training and development
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 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.
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.
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.
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 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 FIP Infra-Estr BB Votorantim Ener Sustentavel II A supply chain. Even after few cautionary changes, FIP Infra-Estr BB Votorantim Ener Sustentavel II A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FIP Infra-Estr BB Votorantim Ener Sustentavel II A vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of FIP Infra-Estr BB Votorantim Ener Sustentavel II A strategy
– From the outside it seems that the employees of FIP Infra-Estr BB Votorantim Ener Sustentavel II A don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
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.
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 bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
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.
Lack of clear differentiation of FIP Infra-Estr BB Votorantim Ener Sustentavel II A products
– To increase the profitability and margins on the products, FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
High operating costs
– Compare to the competitors, FIP Infra-Estr BB Votorantim Ener Sustentavel II A has high operating costs in the NA industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract FIP Infra-Estr BB Votorantim Ener Sustentavel II A lucrative 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 -
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.
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.
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.
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.
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.
Loyalty marketing
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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 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.
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.
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.
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 -
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.
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.
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.
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 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.
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.
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.
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.
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 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.
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.
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.
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.
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.