SWOT Analysis / TOWS Matrix for Edificio Ourinvest (Brazil)
Based on various researches at Oak Spring University , Edificio Ourinvest is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, geopolitical disruptions, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Edificio Ourinvest
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Edificio Ourinvest can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Edificio Ourinvest, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Edificio Ourinvest 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 Edificio Ourinvest can be done for the following purposes –
1. Strategic planning of Edificio Ourinvest
2. Improving business portfolio management of Edificio Ourinvest
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 Edificio Ourinvest
Strengths of Edificio Ourinvest | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Edificio Ourinvest are -
Ability to recruit top talent
– Edificio Ourinvest 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.
Low bargaining power of suppliers
– Suppliers of Edificio Ourinvest in the NA sector have low bargaining power. Edificio Ourinvest has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Edificio Ourinvest to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Edificio Ourinvest
– The covid-19 pandemic has put organizational resilience at the centre of everthing Edificio Ourinvest does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in NA industry
- digital transformation varies from industry to industry. For Edificio Ourinvest digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Edificio Ourinvest 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.
Highly skilled collaborators
– Edificio Ourinvest 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 Edificio Ourinvest have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Edificio Ourinvest is one of the most innovative firm in NA sector.
Effective Research and Development (R&D)
– Edificio Ourinvest has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Edificio Ourinvest 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.
Diverse revenue streams
– Edificio Ourinvest is present in almost all the verticals within the NA industry. This has provided Edificio Ourinvest 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.
Ability to lead change in NA
– Edificio Ourinvest 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 Edificio Ourinvest in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Edificio Ourinvest 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
– Edificio Ourinvest has clearly differentiated products in the market place. This has enabled Edificio Ourinvest to fetch slight price premium compare to the competitors in the NA industry. The sustainable margins have also helped Edificio Ourinvest to invest into research and development (R&D) and innovation.
Learning organization
- Edificio Ourinvest 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 Edificio Ourinvest is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Edificio Ourinvest emphasize – knowledge, initiative, and innovation.
Weaknesses of Edificio Ourinvest | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Edificio Ourinvest are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Edificio Ourinvest is slow explore the new channels of communication. These new channels of communication can help Edificio Ourinvest 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, Edificio Ourinvest 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.
Low market penetration in new markets
– Outside its home market of Brazil, Edificio Ourinvest needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Edificio Ourinvest is dominated by functional specialists. It is not different from other players in the NA industry, but Edificio Ourinvest needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Edificio Ourinvest to focus more on services in the NA industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Edificio Ourinvest 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.
Aligning sales with marketing
– From the outside it seems that Edificio Ourinvest 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 Edificio Ourinvest can leverage the sales team experience to cultivate customer relationships as Edificio Ourinvest is planning to shift buying processes online.
High cash cycle compare to competitors
Edificio Ourinvest 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.
Slow to strategic competitive environment developments
– As Edificio Ourinvest 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.
Ability to respond to the competition
– As the decision making is very deliberative at Edificio Ourinvest, in the dynamic environment of NA industry it has struggled to respond to the nimble upstart competition. Edificio Ourinvest has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in NA industry
– The stress on hiring functional specialists at Edificio Ourinvest 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.
Lack of clear differentiation of Edificio Ourinvest products
– To increase the profitability and margins on the products, Edificio Ourinvest needs to provide more differentiated products than what it is currently offering in the marketplace.
Edificio Ourinvest Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Edificio Ourinvest are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Edificio Ourinvest is facing challenges because of the dominance of functional experts in the organization. Edificio Ourinvest 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.
Loyalty marketing
– Edificio Ourinvest 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.
Buying journey improvements
– Edificio Ourinvest can improve the customer journey of consumers in the NA 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Edificio Ourinvest 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.
Leveraging digital technologies
– Edificio Ourinvest 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. Edificio Ourinvest 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. Edificio Ourinvest 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Edificio Ourinvest 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 Edificio Ourinvest to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Edificio Ourinvest 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Edificio Ourinvest 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 Edificio Ourinvest 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Edificio Ourinvest can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Edificio Ourinvest to increase its market reach. Edificio Ourinvest 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.
Using analytics as competitive advantage
– Edificio Ourinvest 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 Edificio Ourinvest to build a competitive advantage using analytics. The analytics driven competitive advantage can help Edificio Ourinvest to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Edificio Ourinvest External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Edificio Ourinvest are -
Shortening product life cycle
– it is one of the major threat that Edificio Ourinvest 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, Edificio Ourinvest 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.
Technology acceleration in Forth Industrial Revolution
– Edificio Ourinvest has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, Edificio Ourinvest 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 Edificio Ourinvest in the NA sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Edificio Ourinvest 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Edificio Ourinvest 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 Edificio Ourinvest prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Edificio Ourinvest 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.
Increasing wage structure of Edificio Ourinvest
– 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 Edificio Ourinvest.
Stagnating economy with rate increase
– Edificio Ourinvest 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.
Environmental challenges
– Edificio Ourinvest 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. Edificio Ourinvest can take advantage of this fund but it will also bring new competitors 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 Edificio Ourinvest business can come under increasing regulations regarding data privacy, data security, etc.
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 Edificio Ourinvest.
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. Edificio Ourinvest 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.
Weighted SWOT Analysis of Edificio Ourinvest Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Edificio Ourinvest 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 Edificio Ourinvest 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 Edificio Ourinvest 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 Edificio Ourinvest 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 Edificio Ourinvest needs to make to build a sustainable competitive advantage.