BB Renda Corporativa (BCFF11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for BB Renda Corporativa (Brazil)
Based on various researches at Oak Spring University , BB Renda Corporativa is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models,
there is increasing trade war between United States & China, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of BB Renda Corporativa
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BB Renda Corporativa can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BB Renda Corporativa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BB Renda Corporativa 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 BB Renda Corporativa can be done for the following purposes –
1. Strategic planning of BB Renda Corporativa
2. Improving business portfolio management of BB Renda Corporativa
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 BB Renda Corporativa
Strengths of BB Renda Corporativa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BB Renda Corporativa are -
Strong track record of project management in the NA industry
– BB Renda Corporativa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of BB Renda Corporativa in NA industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– BB Renda Corporativa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – BB Renda Corporativa 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.
Analytics focus
– BB Renda Corporativa is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the NA industry. The technology infrastructure of Brazil is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in NA industry
– BB Renda Corporativa has clearly differentiated products in the market place. This has enabled BB Renda Corporativa to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped BB Renda Corporativa to invest into research and development (R&D) and innovation.
Innovation driven organization
– BB Renda Corporativa is one of the most innovative firm in NA sector.
Successful track record of launching new products
– BB Renda Corporativa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. BB Renda Corporativa 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.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For BB Renda Corporativa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. BB Renda Corporativa 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.
Ability to lead change in NA
– BB Renda Corporativa 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 BB Renda Corporativa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of BB Renda Corporativa in the NA sector have low bargaining power. BB Renda Corporativa has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps BB Renda Corporativa to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– BB Renda Corporativa is present in almost all the verticals within the NA industry. This has provided BB Renda Corporativa 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.
Cross disciplinary teams
– Horizontal connected teams at the BB Renda Corporativa 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.
Weaknesses of BB Renda Corporativa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BB Renda Corporativa are -
Slow to strategic competitive environment developments
– As BB Renda Corporativa 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.
Low market penetration in new markets
– Outside its home market of Brazil, BB Renda Corporativa needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on BB Renda Corporativa ‘s star products
– The top 2 products and services of BB Renda Corporativa 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 BB Renda Corporativa 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, BB Renda Corporativa is slow explore the new channels of communication. These new channels of communication can help BB Renda Corporativa to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of BB Renda Corporativa products
– To increase the profitability and margins on the products, BB Renda Corporativa needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of BB Renda Corporativa is dominated by functional specialists. It is not different from other players in the NA industry, but BB Renda Corporativa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help BB Renda Corporativa to focus more on services in the NA industry rather than just following the product oriented approach.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, BB Renda Corporativa 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.
Skills based hiring in NA industry
– The stress on hiring functional specialists at BB Renda Corporativa 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.
No frontier risks strategy
– From the 10K / annual statement of BB Renda Corporativa, it seems that company is thinking out the frontier risks that can impact NA industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ less understanding of BB Renda Corporativa strategy
– From the outside it seems that the employees of BB Renda Corporativa 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 operating costs
– Compare to the competitors, BB Renda Corporativa 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 BB Renda Corporativa lucrative customers.
BB Renda Corporativa Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BB Renda Corporativa are -
Using analytics as competitive advantage
– BB Renda Corporativa 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 BB Renda Corporativa to build a competitive advantage using analytics. The analytics driven competitive advantage can help BB Renda Corporativa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, BB Renda Corporativa can use these opportunities to build new business models that can help the communities that BB Renda Corporativa operates in. Secondly it can use opportunities from government spending in NA sector.
Better consumer reach
– The expansion of the 5G network will help BB Renda Corporativa to increase its market reach. BB Renda Corporativa 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, BB Renda Corporativa 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 BB Renda Corporativa to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– BB Renda Corporativa 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.
Manufacturing automation
– BB Renda Corporativa 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.
Leveraging digital technologies
– BB Renda Corporativa 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.
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. BB Renda Corporativa 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. BB Renda Corporativa 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.
Creating value in data economy
– The success of analytics program of BB Renda Corporativa has opened avenues for new revenue streams for the organization in NA industry. This can help BB Renda Corporativa to build a more holistic ecosystem for BB Renda Corporativa products in the NA industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects BB Renda Corporativa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at BB Renda Corporativa 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.
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 BB Renda Corporativa 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.
Developing new processes and practices
– BB Renda Corporativa 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 BB Renda Corporativa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BB Renda Corporativa are -
Regulatory challenges
– BB Renda Corporativa 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.
Shortening product life cycle
– it is one of the major threat that BB Renda Corporativa is facing in NA sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, BB Renda Corporativa 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.
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. BB Renda Corporativa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 BB Renda Corporativa in the NA sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to NA industry are lowering. It can presents BB Renda Corporativa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the NA sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, BB Renda Corporativa 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 BB Renda Corporativa prominent markets.
Increasing wage structure of BB Renda Corporativa
– 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 BB Renda Corporativa.
Stagnating economy with rate increase
– BB Renda Corporativa can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the NA industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of BB Renda Corporativa business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– BB Renda Corporativa 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.
Technology acceleration in Forth Industrial Revolution
– BB Renda Corporativa has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, BB Renda Corporativa 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BB Renda Corporativa 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.
Weighted SWOT Analysis of BB Renda Corporativa Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BB Renda Corporativa 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 BB Renda Corporativa 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 BB Renda Corporativa 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 BB Renda Corporativa 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 BB Renda Corporativa needs to make to build a sustainable competitive advantage.
