MMX Mineracao e Metalicos (MMXM11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for MMX Mineracao e Metalicos (Brazil)
Based on various researches at Oak Spring University , MMX Mineracao e Metalicos is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, 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%, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing energy prices,
increasing commodity prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of MMX Mineracao e Metalicos
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that MMX Mineracao e Metalicos can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the MMX Mineracao e Metalicos, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos can be done for the following purposes –
1. Strategic planning of MMX Mineracao e Metalicos
2. Improving business portfolio management of MMX Mineracao e Metalicos
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 MMX Mineracao e Metalicos
Strengths of MMX Mineracao e Metalicos | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of MMX Mineracao e Metalicos are -
Training and development
– MMX Mineracao e Metalicos 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.
Diverse revenue streams
– MMX Mineracao e Metalicos is present in almost all the verticals within the NA industry. This has provided MMX Mineracao e Metalicos 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.
Effective Research and Development (R&D)
– MMX Mineracao e Metalicos has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – MMX Mineracao e Metalicos 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.
Ability to lead change in NA
– MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at MMX Mineracao e Metalicos emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of MMX Mineracao e Metalicos in the NA sector have low bargaining power. MMX Mineracao e Metalicos has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps MMX Mineracao e Metalicos to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– MMX Mineracao e Metalicos is one of the most innovative firm in NA sector.
Highly skilled collaborators
– MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. MMX Mineracao e Metalicos 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.
High switching costs
– The high switching costs that MMX Mineracao e Metalicos 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.
Sustainable margins compare to other players in NA industry
– MMX Mineracao e Metalicos has clearly differentiated products in the market place. This has enabled MMX Mineracao e Metalicos to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped MMX Mineracao e Metalicos to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– MMX Mineracao e Metalicos 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.
Weaknesses of MMX Mineracao e Metalicos | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MMX Mineracao e Metalicos are -
Slow to strategic competitive environment developments
– As MMX Mineracao e Metalicos 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.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, MMX Mineracao e Metalicos 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, MMX Mineracao e Metalicos is slow explore the new channels of communication. These new channels of communication can help MMX Mineracao e Metalicos to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, MMX Mineracao e Metalicos 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.
High cash cycle compare to competitors
MMX Mineracao e Metalicos 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.
Compensation and incentives
– The revenue per employee of MMX Mineracao e Metalicos is just above the NA industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ less understanding of MMX Mineracao e Metalicos strategy
– From the outside it seems that the employees of MMX Mineracao e Metalicos 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.
Ability to respond to the competition
– As the decision making is very deliberative at MMX Mineracao e Metalicos, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos can leverage the sales team experience to cultivate customer relationships as MMX Mineracao e Metalicos is planning to shift buying processes online.
Need for greater diversity
– MMX Mineracao e Metalicos 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.
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 MMX Mineracao e Metalicos supply chain. Even after few cautionary changes, MMX Mineracao e Metalicos is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left MMX Mineracao e Metalicos vulnerable to further global disruptions in South East Asia.
MMX Mineracao e Metalicos Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of MMX Mineracao e Metalicos are -
Manufacturing automation
– MMX Mineracao e Metalicos 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, MMX Mineracao e Metalicos 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos to build a competitive advantage using analytics. The analytics driven competitive advantage can help MMX Mineracao e Metalicos to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 MMX Mineracao e Metalicos 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.
Loyalty marketing
– MMX Mineracao e Metalicos 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.
Creating value in data economy
– The success of analytics program of MMX Mineracao e Metalicos has opened avenues for new revenue streams for the organization in NA industry. This can help MMX Mineracao e Metalicos to build a more holistic ecosystem for MMX Mineracao e Metalicos products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– MMX Mineracao e Metalicos 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.
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. MMX Mineracao e Metalicos can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. MMX Mineracao e Metalicos 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. MMX Mineracao e Metalicos 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.
Leveraging digital technologies
– MMX Mineracao e Metalicos 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.
Better consumer reach
– The expansion of the 5G network will help MMX Mineracao e Metalicos to increase its market reach. MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of MMX Mineracao e Metalicos 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. MMX Mineracao e Metalicos 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.
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. MMX Mineracao e Metalicos needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that MMX Mineracao e Metalicos 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
– MMX Mineracao e Metalicos has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, MMX Mineracao e Metalicos 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.
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 MMX Mineracao e Metalicos in the NA sector and impact the bottomline of the organization.
High dependence on third party suppliers
– MMX Mineracao e Metalicos 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents MMX Mineracao e Metalicos with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
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 MMX Mineracao e Metalicos.
Environmental challenges
– MMX Mineracao e Metalicos 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. MMX Mineracao e Metalicos can take advantage of this fund but it will also bring new competitors in the NA industry.
Consumer confidence and its impact on MMX Mineracao e Metalicos 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. MMX Mineracao e Metalicos can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos prominent markets.
Weighted SWOT Analysis of MMX Mineracao e Metalicos Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos 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 MMX Mineracao e Metalicos needs to make to build a sustainable competitive advantage.
