FII Caixa Rio Bravo (CXRI11) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for FII Caixa Rio Bravo (Brazil)
Based on various researches at Oak Spring University , FII Caixa Rio Bravo is operating in a macro-environment that has been destablized by – there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, technology disruption, wage bills are increasing,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of FII Caixa Rio Bravo
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that FII Caixa Rio Bravo can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the FII Caixa Rio Bravo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which FII Caixa Rio Bravo 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 Caixa Rio Bravo can be done for the following purposes –
1. Strategic planning of FII Caixa Rio Bravo
2. Improving business portfolio management of FII Caixa Rio Bravo
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 Caixa Rio Bravo
Strengths of FII Caixa Rio Bravo | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of FII Caixa Rio Bravo are -
Diverse revenue streams
– FII Caixa Rio Bravo is present in almost all the verticals within the NA industry. This has provided FII Caixa Rio Bravo 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.
Analytics focus
– FII Caixa Rio Bravo 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.
Highly skilled collaborators
– FII Caixa Rio Bravo 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 Caixa Rio Bravo have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– FII Caixa Rio Bravo is one of the most innovative firm in NA sector.
Organizational Resilience of FII Caixa Rio Bravo
– The covid-19 pandemic has put organizational resilience at the centre of everthing FII Caixa Rio Bravo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of FII Caixa Rio Bravo comprises – understanding the underlying the factors in the NA industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– FII Caixa Rio Bravo 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.
High brand equity
– FII Caixa Rio Bravo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled FII Caixa Rio Bravo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– FII Caixa Rio Bravo 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.
Learning organization
- FII Caixa Rio Bravo 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 FII Caixa Rio Bravo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at FII Caixa Rio Bravo emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– FII Caixa Rio Bravo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – FII Caixa Rio Bravo 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.
Successful track record of launching new products
– FII Caixa Rio Bravo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. FII Caixa Rio Bravo 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.
Weaknesses of FII Caixa Rio Bravo | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of FII Caixa Rio Bravo are -
No frontier risks strategy
– From the 10K / annual statement of FII Caixa Rio Bravo, 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.
High dependence on FII Caixa Rio Bravo ‘s star products
– The top 2 products and services of FII Caixa Rio Bravo 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 Caixa Rio Bravo 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 Caixa Rio Bravo is slow explore the new channels of communication. These new channels of communication can help FII Caixa Rio Bravo to provide better information regarding NA products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, FII Caixa Rio Bravo 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 Caixa Rio Bravo 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.
Capital Spending Reduction
– Even during the low interest decade, FII Caixa Rio Bravo has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the NA industry using digital technology.
Lack of clear differentiation of FII Caixa Rio Bravo products
– To increase the profitability and margins on the products, FII Caixa Rio Bravo needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, FII Caixa Rio Bravo 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 Caixa Rio Bravo lucrative customers.
Aligning sales with marketing
– From the outside it seems that FII Caixa Rio Bravo 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 FII Caixa Rio Bravo can leverage the sales team experience to cultivate customer relationships as FII Caixa Rio Bravo is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee of FII Caixa Rio Bravo 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.
High bargaining power of channel partners in NA industry
– because of the regulatory requirements in Brazil, FII Caixa Rio Bravo 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.
Employees’ less understanding of FII Caixa Rio Bravo strategy
– From the outside it seems that the employees of FII Caixa Rio Bravo 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.
FII Caixa Rio Bravo Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of FII Caixa Rio Bravo are -
Developing new processes and practices
– FII Caixa Rio Bravo 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.
Better consumer reach
– The expansion of the 5G network will help FII Caixa Rio Bravo to increase its market reach. FII Caixa Rio Bravo 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
– FII Caixa Rio Bravo 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 Caixa Rio Bravo to build a competitive advantage using analytics. The analytics driven competitive advantage can help FII Caixa Rio Bravo 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, FII Caixa Rio Bravo can use these opportunities to build new business models that can help the communities that FII Caixa Rio Bravo operates in. Secondly it can use opportunities from government spending in NA sector.
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 FII Caixa Rio Bravo 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.
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. FII Caixa Rio Bravo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, FII Caixa Rio Bravo 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.
Learning at scale
– Online learning technologies has now opened space for FII Caixa Rio Bravo 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 Caixa Rio Bravo is facing challenges because of the dominance of functional experts in the organization. FII Caixa Rio Bravo 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.
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. FII Caixa Rio Bravo 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. FII Caixa Rio Bravo 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.
Building a culture of innovation
– managers at FII Caixa Rio Bravo 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for FII Caixa Rio Bravo 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.
Loyalty marketing
– FII Caixa Rio Bravo 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.
Threats FII Caixa Rio Bravo External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of FII Caixa Rio Bravo are -
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 Caixa Rio Bravo needs to understand the core reasons impacting the NA industry. This will help it in building a better workplace.
Consumer confidence and its impact on FII Caixa Rio Bravo 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.
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.
Regulatory challenges
– FII Caixa Rio Bravo 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.
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 Caixa Rio Bravo 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.
Technology acceleration in Forth Industrial Revolution
– FII Caixa Rio Bravo has witnessed rapid integration of technology during Covid-19 in the NA industry. As one of the leading players in the industry, FII Caixa Rio Bravo 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.
Increasing wage structure of FII Caixa Rio Bravo
– 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 Caixa Rio Bravo.
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 FII Caixa Rio Bravo business can come under increasing regulations regarding data privacy, data security, etc.
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. FII Caixa Rio Bravo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– FII Caixa Rio Bravo 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 Caixa Rio Bravo can take advantage of this fund but it will also bring new competitors in the NA industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for FII Caixa Rio Bravo 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.
High dependence on third party suppliers
– FII Caixa Rio Bravo 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.
Stagnating economy with rate increase
– FII Caixa Rio Bravo 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 Caixa Rio Bravo Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at FII Caixa Rio Bravo 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 Caixa Rio Bravo 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 Caixa Rio Bravo 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 Caixa Rio Bravo 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 Caixa Rio Bravo needs to make to build a sustainable competitive advantage.