SWOT Analysis / TOWS Matrix for Ecoloclean Industrs (United States)
Based on various researches at Oak Spring University , Ecoloclean Industrs is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, wage bills are increasing, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Ecoloclean Industrs
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Ecoloclean Industrs can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ecoloclean Industrs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ecoloclean Industrs 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 Ecoloclean Industrs can be done for the following purposes –
1. Strategic planning of Ecoloclean Industrs
2. Improving business portfolio management of Ecoloclean Industrs
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ecoloclean Industrs
Strengths of Ecoloclean Industrs | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ecoloclean Industrs are -
Low bargaining power of suppliers
– Suppliers of Ecoloclean Industrs in the sector have low bargaining power. Ecoloclean Industrs has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ecoloclean Industrs to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management in the industry
– Ecoloclean Industrs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Ecoloclean Industrs is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Ecoloclean Industrs 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 Ecoloclean Industrs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Ecoloclean Industrs emphasize – knowledge, initiative, and innovation.
Training and development
– Ecoloclean Industrs has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Ecoloclean Industrs is present in almost all the verticals within the industry. This has provided Ecoloclean Industrs 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.
Successful track record of launching new products
– Ecoloclean Industrs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ecoloclean Industrs 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.
Innovation driven organization
– Ecoloclean Industrs is one of the most innovative firm in sector.
Cross disciplinary teams
– Horizontal connected teams at the Ecoloclean Industrs 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.
High brand equity
– Ecoloclean Industrs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ecoloclean Industrs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Ecoloclean Industrs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ecoloclean Industrs 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
– Ecoloclean Industrs has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Ecoloclean Industrs have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Ecoloclean Industrs | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ecoloclean Industrs are -
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Ecoloclean Industrs 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 industry.
Compensation and incentives
– The revenue per employee of Ecoloclean Industrs is just above the 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 operating costs
– Compare to the competitors, Ecoloclean Industrs has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ecoloclean Industrs lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the industry, Ecoloclean Industrs needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– From the outside it seems that Ecoloclean Industrs needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Ecoloclean Industrs can leverage the sales team experience to cultivate customer relationships as Ecoloclean Industrs is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Ecoloclean Industrs is dominated by functional specialists. It is not different from other players in the industry, but Ecoloclean Industrs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ecoloclean Industrs to focus more on services in the industry rather than just following the product oriented approach.
High dependence on Ecoloclean Industrs ‘s star products
– The top 2 products and services of Ecoloclean Industrs still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Ecoloclean Industrs has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Ecoloclean Industrs is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Need for greater diversity
– Ecoloclean Industrs has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Ecoloclean Industrs supply chain. Even after few cautionary changes, Ecoloclean Industrs is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ecoloclean Industrs vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Ecoloclean Industrs has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Ecoloclean Industrs should strive to include more intangible value offerings along with its core products and services.
Ecoloclean Industrs Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Ecoloclean Industrs are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ecoloclean Industrs in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ecoloclean Industrs to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Ecoloclean Industrs to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ecoloclean Industrs 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. Ecoloclean Industrs 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Ecoloclean Industrs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ecoloclean Industrs is facing challenges because of the dominance of functional experts in the organization. Ecoloclean Industrs can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Ecoloclean Industrs 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.
Buying journey improvements
– Ecoloclean Industrs can improve the customer journey of consumers in the 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ecoloclean Industrs 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.
Creating value in data economy
– The success of analytics program of Ecoloclean Industrs has opened avenues for new revenue streams for the organization in industry. This can help Ecoloclean Industrs to build a more holistic ecosystem for Ecoloclean Industrs products in the 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 Ecoloclean Industrs 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 Ecoloclean Industrs 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 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 Ecoloclean Industrs 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.
Better consumer reach
– The expansion of the 5G network will help Ecoloclean Industrs to increase its market reach. Ecoloclean Industrs 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 Ecoloclean Industrs External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Ecoloclean Industrs are -
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ecoloclean Industrs can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Ecoloclean Industrs needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ecoloclean Industrs 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 Ecoloclean Industrs prominent markets.
Technology acceleration in Forth Industrial Revolution
– Ecoloclean Industrs has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Ecoloclean Industrs needs to keep up with the evolution of technology in the 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.
Environmental challenges
– Ecoloclean Industrs 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. Ecoloclean Industrs can take advantage of this fund but it will also bring new competitors in the industry.
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. Ecoloclean Industrs 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Ecoloclean Industrs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Ecoloclean Industrs 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 industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Ecoloclean Industrs may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Shortening product life cycle
– it is one of the major threat that Ecoloclean Industrs is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ecoloclean Industrs in the sector and impact the bottomline of the organization.
Increasing wage structure of Ecoloclean Industrs
– 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 Ecoloclean Industrs.
Weighted SWOT Analysis of Ecoloclean Industrs Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Ecoloclean Industrs 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 Ecoloclean Industrs 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 Ecoloclean Industrs 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 Ecoloclean Industrs 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 Ecoloclean Industrs needs to make to build a sustainable competitive advantage.