Eco-Safe Systems Usa (ESFS) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Eco-Safe Systems Usa (United States)
Based on various researches at Oak Spring University , Eco-Safe Systems Usa is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Eco-Safe Systems Usa
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Eco-Safe Systems Usa can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eco-Safe Systems Usa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eco-Safe Systems Usa 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 Eco-Safe Systems Usa can be done for the following purposes –
1. Strategic planning of Eco-Safe Systems Usa
2. Improving business portfolio management of Eco-Safe Systems Usa
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 Eco-Safe Systems Usa
Strengths of Eco-Safe Systems Usa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eco-Safe Systems Usa are -
Diverse revenue streams
– Eco-Safe Systems Usa is present in almost all the verticals within the industry. This has provided Eco-Safe Systems Usa 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.
Low bargaining power of suppliers
– Suppliers of Eco-Safe Systems Usa in the sector have low bargaining power. Eco-Safe Systems Usa has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Eco-Safe Systems Usa to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Eco-Safe Systems Usa
– The covid-19 pandemic has put organizational resilience at the centre of everthing Eco-Safe Systems Usa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in
– Eco-Safe Systems Usa is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Eco-Safe Systems Usa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Eco-Safe Systems Usa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Eco-Safe Systems Usa 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.
High brand equity
– Eco-Safe Systems Usa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eco-Safe Systems Usa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Eco-Safe Systems Usa is one of the most innovative firm in sector.
Training and development
– Eco-Safe Systems Usa 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.
Sustainable margins compare to other players in industry
– Eco-Safe Systems Usa has clearly differentiated products in the market place. This has enabled Eco-Safe Systems Usa to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Eco-Safe Systems Usa to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Eco-Safe Systems Usa 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.
Superior customer experience
– The customer experience strategy of Eco-Safe Systems Usa in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy of Eco-Safe Systems Usa comprises – understanding the underlying the factors in the 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.
Weaknesses of Eco-Safe Systems Usa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eco-Safe Systems Usa are -
Low market penetration in new markets
– Outside its home market of United States, Eco-Safe Systems Usa needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring in industry
– The stress on hiring functional specialists at Eco-Safe Systems Usa 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.
Need for greater diversity
– Eco-Safe Systems Usa 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 Eco-Safe Systems Usa supply chain. Even after few cautionary changes, Eco-Safe Systems Usa is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Eco-Safe Systems Usa vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Eco-Safe Systems Usa 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.
High dependence on Eco-Safe Systems Usa ‘s star products
– The top 2 products and services of Eco-Safe Systems Usa still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Eco-Safe Systems Usa has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Eco-Safe Systems Usa 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 industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the industry, Eco-Safe Systems Usa 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.
Slow decision making process
– As mentioned earlier in the report, Eco-Safe Systems Usa has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Eco-Safe Systems Usa 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.
High operating costs
– Compare to the competitors, Eco-Safe Systems Usa 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 Eco-Safe Systems Usa lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at Eco-Safe Systems Usa, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Eco-Safe Systems Usa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Eco-Safe Systems Usa Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Eco-Safe Systems Usa are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Eco-Safe Systems Usa 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Eco-Safe Systems Usa in the industry. Now Eco-Safe Systems Usa can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Eco-Safe Systems Usa 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.
Manufacturing automation
– Eco-Safe Systems Usa can use the latest technology developments to improve its manufacturing and designing process in 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.
Building a culture of innovation
– managers at Eco-Safe Systems Usa 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Eco-Safe Systems Usa 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.
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. Eco-Safe Systems Usa 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. Eco-Safe Systems Usa 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.
Using analytics as competitive advantage
– Eco-Safe Systems Usa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Eco-Safe Systems Usa to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eco-Safe Systems Usa 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, Eco-Safe Systems Usa can use these opportunities to build new business models that can help the communities that Eco-Safe Systems Usa operates in. Secondly it can use opportunities from government spending in sector.
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. Eco-Safe Systems Usa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Eco-Safe Systems Usa can develop new processes and procedures in 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.
Learning at scale
– Online learning technologies has now opened space for Eco-Safe Systems Usa 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Eco-Safe Systems Usa 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 Eco-Safe Systems Usa to hire the very best people irrespective of their geographical location.
Threats Eco-Safe Systems Usa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Eco-Safe Systems Usa are -
Technology acceleration in Forth Industrial Revolution
– Eco-Safe Systems Usa has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Eco-Safe Systems Usa 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.
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. Eco-Safe Systems Usa 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 Eco-Safe Systems Usa 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 industry and other sectors.
Stagnating economy with rate increase
– Eco-Safe Systems Usa 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.
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. Eco-Safe Systems Usa needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Increasing wage structure of Eco-Safe Systems Usa
– 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 Eco-Safe Systems Usa.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Eco-Safe Systems Usa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Eco-Safe Systems Usa 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 Eco-Safe Systems Usa is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eco-Safe Systems Usa in industry. The 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.
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 Eco-Safe Systems Usa in the sector and impact the bottomline of the organization.
Regulatory challenges
– Eco-Safe Systems Usa 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 industry regulations.
High dependence on third party suppliers
– Eco-Safe Systems Usa 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.
Weighted SWOT Analysis of Eco-Safe Systems Usa Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Eco-Safe Systems Usa 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 Eco-Safe Systems Usa 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 Eco-Safe Systems Usa 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 Eco-Safe Systems Usa 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 Eco-Safe Systems Usa needs to make to build a sustainable competitive advantage.