Twenty-First Century Fox A (FOXA) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Twenty-First Century Fox A (United States)

Based on various researches at Oak Spring University , Twenty-First Century Fox A is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, increasing household debt because of falling income levels, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, technology disruption, increasing energy prices, wage bills are increasing, etc

---

---

---

---

Introduction to SWOT Analysis of Twenty-First Century Fox A

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Twenty-First Century Fox A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Twenty-First Century Fox A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Twenty-First Century Fox A 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 Twenty-First Century Fox A can be done for the following purposes –
1. Strategic planning of Twenty-First Century Fox A
2. Improving business portfolio management of Twenty-First Century Fox A
3. Assessing feasibility of the new initiative in United States
4. Making a Motion Pictures sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Twenty-First Century Fox A

---

Strengths of Twenty-First Century Fox A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Twenty-First Century Fox A are -

Ability to lead change in Motion Pictures

– Twenty-First Century Fox A is one of the leading players in the Motion Pictures industry in United States. Over the years it has not only transformed the business landscape in the Motion Pictures industry in United States but also across the existing markets. The ability to lead change has enabled Twenty-First Century Fox A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Ability to recruit top talent

– Twenty-First Century Fox A is one of the leading players in the Motion Pictures 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.

Successful track record of launching new products

– Twenty-First Century Fox A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Twenty-First Century Fox A 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

– Twenty-First Century Fox A is one of the most innovative firm in Motion Pictures sector.

Sustainable margins compare to other players in Motion Pictures industry

– Twenty-First Century Fox A has clearly differentiated products in the market place. This has enabled Twenty-First Century Fox A to fetch slight price premium compare to the competitors in the Motion Pictures industry. The sustainable margins have also helped Twenty-First Century Fox A to invest into research and development (R&D) and innovation.

Operational resilience

– The operational resilience strategy of Twenty-First Century Fox A comprises – understanding the underlying the factors in the Motion Pictures 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.

Learning organization

- Twenty-First Century Fox A 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 Twenty-First Century Fox A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Twenty-First Century Fox A emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Twenty-First Century Fox A is present in almost all the verticals within the Motion Pictures industry. This has provided Twenty-First Century Fox A 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 Twenty-First Century Fox A in the Services sector have low bargaining power. Twenty-First Century Fox A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Twenty-First Century Fox A to manage not only supply disruptions but also source products at highly competitive prices.

Strong track record of project management in the Motion Pictures industry

– Twenty-First Century Fox A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Twenty-First Century Fox A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Twenty-First Century Fox A staying ahead in the Motion Pictures industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High brand equity

– Twenty-First Century Fox A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Twenty-First Century Fox A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

---

---

Weaknesses of Twenty-First Century Fox A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Twenty-First Century Fox A are -

Lack of clear differentiation of Twenty-First Century Fox A products

– To increase the profitability and margins on the products, Twenty-First Century Fox A needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

– Outside its home market of United States, Twenty-First Century Fox A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Employees’ less understanding of Twenty-First Century Fox A strategy

– From the outside it seems that the employees of Twenty-First Century Fox A 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.

Ability to respond to the competition

– As the decision making is very deliberative at Twenty-First Century Fox A, in the dynamic environment of Motion Pictures industry it has struggled to respond to the nimble upstart competition. Twenty-First Century Fox A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Capital Spending Reduction

– Even during the low interest decade, Twenty-First Century Fox A 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 Motion Pictures industry using digital technology.

High dependence on Twenty-First Century Fox A ‘s star products

– The top 2 products and services of Twenty-First Century Fox A still accounts for major business revenue. This dependence on star products in Motion Pictures industry has resulted into insufficient focus on developing new products, even though Twenty-First Century Fox A has relatively successful track record of launching new products.

High bargaining power of channel partners in Motion Pictures industry

– because of the regulatory requirements in United States, Twenty-First Century Fox A 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 Motion Pictures industry.

Products dominated business model

– Even though Twenty-First Century Fox A has some of the most successful models in the Motion Pictures industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Twenty-First Century Fox A should strive to include more intangible value offerings along with its core products and services.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Twenty-First Century Fox A is slow explore the new channels of communication. These new channels of communication can help Twenty-First Century Fox A to provide better information regarding Motion Pictures products and services. It can also build an online community to further reach out to potential customers.

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 Twenty-First Century Fox A supply chain. Even after few cautionary changes, Twenty-First Century Fox A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Twenty-First Century Fox A vulnerable to further global disruptions in South East Asia.

Slow to strategic competitive environment developments

– As Twenty-First Century Fox A is one of the leading players in the Motion Pictures industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Motion Pictures industry in last five years.

---

Twenty-First Century Fox A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Twenty-First Century Fox A are -

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. Twenty-First Century Fox A can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Use of Bitcoin and other crypto currencies for transactions in Motion Pictures industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Twenty-First Century Fox A in the Motion Pictures industry. Now Twenty-First Century Fox A can target international markets with far fewer capital restrictions requirements than the existing system.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Motion Pictures industry, but it has also influenced the consumer preferences. Twenty-First Century Fox A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Using analytics as competitive advantage

– Twenty-First Century Fox A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Motion Pictures sector. This continuous investment in analytics has enabled Twenty-First Century Fox A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Twenty-First Century Fox A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Twenty-First Century Fox A is facing challenges because of the dominance of functional experts in the organization. Twenty-First Century Fox A can utilize new technology in the field of Motion Pictures industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Twenty-First Century Fox A 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 Twenty-First Century Fox A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Twenty-First Century Fox A 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 Twenty-First Century Fox A to hire the very best people irrespective of their geographical location.

Building a culture of innovation

– managers at Twenty-First Century Fox A 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 Motion Pictures industry.

Learning at scale

– Online learning technologies has now opened space for Twenty-First Century Fox A 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.

Developing new processes and practices

– Twenty-First Century Fox A can develop new processes and procedures in Motion Pictures 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.

Leveraging digital technologies

– Twenty-First Century Fox A 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.

Creating value in data economy

– The success of analytics program of Twenty-First Century Fox A has opened avenues for new revenue streams for the organization in Motion Pictures industry. This can help Twenty-First Century Fox A to build a more holistic ecosystem for Twenty-First Century Fox A products in the Motion Pictures industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Twenty-First Century Fox A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Motion Pictures industry, and it will provide faster access to the consumers.

---

Threats Twenty-First Century Fox A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Twenty-First Century Fox A are -

Stagnating economy with rate increase

– Twenty-First Century Fox A 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 Motion Pictures industry.

Shortening product life cycle

– it is one of the major threat that Twenty-First Century Fox A is facing in Motion Pictures sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Twenty-First Century Fox A 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 Twenty-First Century Fox A prominent markets.

Increasing wage structure of Twenty-First Century Fox A

– 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 Twenty-First Century Fox A.

Technology acceleration in Forth Industrial Revolution

– Twenty-First Century Fox A has witnessed rapid integration of technology during Covid-19 in the Motion Pictures industry. As one of the leading players in the industry, Twenty-First Century Fox A needs to keep up with the evolution of technology in the Motion Pictures 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

– Twenty-First Century Fox A 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. Twenty-First Century Fox A can take advantage of this fund but it will also bring new competitors in the Motion Pictures industry.

Easy access to finance

– Easy access to finance in Motion Pictures industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Twenty-First Century Fox A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Consumer confidence and its impact on Twenty-First Century Fox A 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 Motion Pictures industry and other sectors.

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. Twenty-First Century Fox A needs to understand the core reasons impacting the Motion Pictures industry. This will help it in building a better workplace.

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 Twenty-First Century Fox A.

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.

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. Twenty-First Century Fox A 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 Twenty-First Century Fox A Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Twenty-First Century Fox A 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 Twenty-First Century Fox A 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 Twenty-First Century Fox A 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 Twenty-First Century Fox A 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 Twenty-First Century Fox A needs to make to build a sustainable competitive advantage.

--- ---