SWOT Analysis / TOWS Matrix for Bioneutra Internatio (United States)
Based on various researches at Oak Spring University , Bioneutra Internatio is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, technology disruption, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Bioneutra Internatio
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Bioneutra Internatio can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bioneutra Internatio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bioneutra Internatio 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 Bioneutra Internatio can be done for the following purposes –
1. Strategic planning of Bioneutra Internatio
2. Improving business portfolio management of Bioneutra Internatio
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bioneutra Internatio
Strengths of Bioneutra Internatio | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bioneutra Internatio are -
Innovation driven organization
– Bioneutra Internatio is one of the most innovative firm in sector.
Ability to lead change in
– Bioneutra Internatio is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Bioneutra Internatio in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Bioneutra Internatio 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.
Highly skilled collaborators
– Bioneutra Internatio has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Bioneutra Internatio have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Bioneutra Internatio has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bioneutra Internatio to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Bioneutra Internatio in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the industry
– Bioneutra Internatio is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Bioneutra Internatio in the sector have low bargaining power. Bioneutra Internatio has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bioneutra Internatio to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Bioneutra Internatio is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Bioneutra Internatio 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 Bioneutra Internatio is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Bioneutra Internatio emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in industry
– Bioneutra Internatio has clearly differentiated products in the market place. This has enabled Bioneutra Internatio to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Bioneutra Internatio to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Bioneutra Internatio has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Bioneutra Internatio staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Bioneutra Internatio | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bioneutra Internatio are -
Capital Spending Reduction
– Even during the low interest decade, Bioneutra Internatio has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As Bioneutra Internatio is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Skills based hiring in industry
– The stress on hiring functional specialists at Bioneutra Internatio 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.
Aligning sales with marketing
– From the outside it seems that Bioneutra Internatio needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Bioneutra Internatio can leverage the sales team experience to cultivate customer relationships as Bioneutra Internatio is planning to shift buying processes online.
Products dominated business model
– Even though Bioneutra Internatio has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Bioneutra Internatio should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Bioneutra Internatio 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.
Employees’ less understanding of Bioneutra Internatio strategy
– From the outside it seems that the employees of Bioneutra Internatio 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.
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 Bioneutra Internatio supply chain. Even after few cautionary changes, Bioneutra Internatio is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bioneutra Internatio vulnerable to further global disruptions in South East Asia.
High dependence on Bioneutra Internatio ‘s star products
– The top 2 products and services of Bioneutra Internatio still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Bioneutra Internatio has relatively successful track record of launching new products.
Lack of clear differentiation of Bioneutra Internatio products
– To increase the profitability and margins on the products, Bioneutra Internatio needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bioneutra Internatio is slow explore the new channels of communication. These new channels of communication can help Bioneutra Internatio to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Bioneutra Internatio Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Bioneutra Internatio are -
Buying journey improvements
– Bioneutra Internatio can improve the customer journey of consumers in the 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bioneutra Internatio 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 Bioneutra Internatio to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Bioneutra Internatio can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Bioneutra Internatio 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bioneutra Internatio in the industry. Now Bioneutra Internatio can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bioneutra Internatio is facing challenges because of the dominance of functional experts in the organization. Bioneutra Internatio can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Bioneutra Internatio can develop new processes and procedures in 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.
Creating value in data economy
– The success of analytics program of Bioneutra Internatio has opened avenues for new revenue streams for the organization in industry. This can help Bioneutra Internatio to build a more holistic ecosystem for Bioneutra Internatio products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Bioneutra Internatio can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the industry.
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 Bioneutra Internatio 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.
Learning at scale
– Online learning technologies has now opened space for Bioneutra Internatio 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bioneutra Internatio can use these opportunities to build new business models that can help the communities that Bioneutra Internatio operates in. Secondly it can use opportunities from government spending in sector.
Using analytics as competitive advantage
– Bioneutra Internatio has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Bioneutra Internatio to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bioneutra Internatio to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Bioneutra Internatio External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Bioneutra Internatio are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Bioneutra Internatio with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Bioneutra Internatio
– 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 Bioneutra Internatio.
Regulatory challenges
– Bioneutra Internatio 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 industry regulations.
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.
Consumer confidence and its impact on Bioneutra Internatio demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bioneutra Internatio in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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 Bioneutra Internatio.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bioneutra Internatio 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 Bioneutra Internatio prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Bioneutra Internatio may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
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 Bioneutra Internatio in the sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Bioneutra Internatio needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Environmental challenges
– Bioneutra Internatio 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. Bioneutra Internatio can take advantage of this fund but it will also bring new competitors in the industry.
Stagnating economy with rate increase
– Bioneutra Internatio 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 industry.
Weighted SWOT Analysis of Bioneutra Internatio Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Bioneutra Internatio 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 Bioneutra Internatio 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 Bioneutra Internatio 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 Bioneutra Internatio 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 Bioneutra Internatio needs to make to build a sustainable competitive advantage.