FII RB Capital Desenvolvimento Residencial II (RBDS11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FII RB Capital Desenvolvimento Residencial II (Brazil)
Based on various researches at Oak Spring University , FII RB Capital Desenvolvimento Residencial II is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, there is backlash against globalization, technology disruption, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , wage bills are increasing,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of FII RB Capital Desenvolvimento Residencial II
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII RB Capital Desenvolvimento Residencial II can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII RB Capital Desenvolvimento Residencial II, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II can be done for the following purposes –
1. Strategic planning of FII RB Capital Desenvolvimento Residencial II
2. Improving business portfolio management of FII RB Capital Desenvolvimento Residencial II
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 FII RB Capital Desenvolvimento Residencial II
Strengths of FII RB Capital Desenvolvimento Residencial II | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII RB Capital Desenvolvimento Residencial II are -
Ability to recruit top talent
– FII RB Capital Desenvolvimento Residencial II 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.
Sustainable margins compare to other players in NA industry
– FII RB Capital Desenvolvimento Residencial II has clearly differentiated products in the market place. This has enabled FII RB Capital Desenvolvimento Residencial II to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped FII RB Capital Desenvolvimento Residencial II to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. FII RB Capital Desenvolvimento Residencial II 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.
Cross disciplinary teams
– Horizontal connected teams at the FII RB Capital Desenvolvimento Residencial II 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.
Effective Research and Development (R&D)
– FII RB Capital Desenvolvimento Residencial II has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII RB Capital Desenvolvimento Residencial II 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.
High brand equity
– FII RB Capital Desenvolvimento Residencial II has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII RB Capital Desenvolvimento Residencial II to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II 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.
Low bargaining power of suppliers
– Suppliers of FII RB Capital Desenvolvimento Residencial II in the NA sector have low bargaining power. FII RB Capital Desenvolvimento Residencial II has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps FII RB Capital Desenvolvimento Residencial II to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– FII RB Capital Desenvolvimento Residencial II has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII RB Capital Desenvolvimento Residencial II 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.
Strong track record of project management in the NA industry
– FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII RB Capital Desenvolvimento Residencial II are -
High operating costs
– Compare to the competitors, FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II lucrative customers.
Interest costs
– Compare to the competition, FII RB Capital Desenvolvimento Residencial II 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.
Lack of clear differentiation of FII RB Capital Desenvolvimento Residencial II products
– To increase the profitability and margins on the products, FII RB Capital Desenvolvimento Residencial II needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on FII RB Capital Desenvolvimento Residencial II ‘s star products
– The top 2 products and services of FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, FII RB Capital Desenvolvimento Residencial II is slow explore the new channels of communication. These new channels of communication can help FII RB Capital Desenvolvimento Residencial II to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Brazil, FII RB Capital Desenvolvimento Residencial II needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, FII RB Capital Desenvolvimento Residencial II 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. FII RB Capital Desenvolvimento Residencial II 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.
Ability to respond to the competition
– As the decision making is very deliberative at FII RB Capital Desenvolvimento Residencial II, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. FII RB Capital Desenvolvimento Residencial II has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 FII RB Capital Desenvolvimento Residencial II supply chain. Even after few cautionary changes, FII RB Capital Desenvolvimento Residencial II is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left FII RB Capital Desenvolvimento Residencial II vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of FII RB Capital Desenvolvimento Residencial II strategy
– From the outside it seems that the employees of FII RB Capital Desenvolvimento Residencial II 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.
Products dominated business model
– Even though FII RB Capital Desenvolvimento Residencial II 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. FII RB Capital Desenvolvimento Residencial II should strive to include more intangible value offerings along with its core products and services.
FII RB Capital Desenvolvimento Residencial II Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII RB Capital Desenvolvimento Residencial II are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, FII RB Capital Desenvolvimento Residencial II can use these opportunities to build new business models that can help the communities that FII RB Capital Desenvolvimento Residencial II operates in. Secondly it can use opportunities from government spending in NA sector.
Leveraging digital technologies
– FII RB Capital Desenvolvimento Residencial II 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, FII RB Capital Desenvolvimento Residencial II 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.
Building a culture of innovation
– managers at FII RB Capital Desenvolvimento Residencial II 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.
Use of Bitcoin and other crypto currencies for transactions in NA industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for FII RB Capital Desenvolvimento Residencial II in the NA industry. Now FII RB Capital Desenvolvimento Residencial II can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects FII RB Capital Desenvolvimento Residencial II can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII RB Capital Desenvolvimento Residencial II to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for FII RB Capital Desenvolvimento Residencial II 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, FII RB Capital Desenvolvimento Residencial II is facing challenges because of the dominance of functional experts in the organization. FII RB Capital Desenvolvimento Residencial II 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FII RB Capital Desenvolvimento Residencial II in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the NA industry, and it will provide faster access to the consumers.
Manufacturing automation
– FII RB Capital Desenvolvimento Residencial II 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.
Better consumer reach
– The expansion of the 5G network will help FII RB Capital Desenvolvimento Residencial II to increase its market reach. FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII RB Capital Desenvolvimento Residencial II 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. FII RB Capital Desenvolvimento Residencial II 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.
Consumer confidence and its impact on FII RB Capital Desenvolvimento Residencial II 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FII RB Capital Desenvolvimento Residencial II in NA industry. The NA industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– FII RB Capital Desenvolvimento Residencial II 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. FII RB Capital Desenvolvimento Residencial II can take advantage of this fund but it will also bring new competitors in the NA industry.
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 FII RB Capital Desenvolvimento Residencial II.
Shortening product life cycle
– it is one of the major threat that FII RB Capital Desenvolvimento Residencial II is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of FII RB Capital Desenvolvimento Residencial II
– 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 FII RB Capital Desenvolvimento Residencial II.
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.
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. FII RB Capital Desenvolvimento Residencial II needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents FII RB Capital Desenvolvimento Residencial II with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA 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 FII RB Capital Desenvolvimento Residencial II in the NA sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II prominent markets.
Stagnating economy with rate increase
– FII RB Capital Desenvolvimento Residencial II 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.
Weighted SWOT Analysis of FII RB Capital Desenvolvimento Residencial II Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II 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 FII RB Capital Desenvolvimento Residencial II needs to make to build a sustainable competitive advantage.
