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 – wage bills are increasing, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, technology disruption, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Successful track record of launching new products
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FIP Infra-Estr BB Votorantim Ener Sustentavel II A 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.
Innovation driven organization
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A is one of the most innovative firm in NA sector.
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 -
Workers concerns about automation
– As automation is fast increasing in the NA industry, FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Brazil, FIP Infra-Estr BB Votorantim Ener Sustentavel II A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Skills based hiring in NA industry
– The stress on hiring functional specialists at FIP Infra-Estr BB Votorantim Ener Sustentavel II A has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High 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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
Manufacturing automation
– FIP Infra-Estr BB Votorantim Ener Sustentavel II A can use the latest technology developments to improve its manufacturing and designing process in NA sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.