Logistec Sub Vtg Cl B (LGTb) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Transportation
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Logistec Sub Vtg Cl B (Canada)
Based on various researches at Oak Spring University , Logistec Sub Vtg Cl B is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Logistec Sub Vtg Cl B
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Logistec Sub Vtg Cl B can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Logistec Sub Vtg Cl B, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B can be done for the following purposes –
1. Strategic planning of Logistec Sub Vtg Cl B
2. Improving business portfolio management of Logistec Sub Vtg Cl B
3. Assessing feasibility of the new initiative in Canada
4. Making a Misc. Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Logistec Sub Vtg Cl B
Strengths of Logistec Sub Vtg Cl B | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Logistec Sub Vtg Cl B are -
Analytics focus
– Logistec Sub Vtg Cl B 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 Misc. Transportation industry. The technology infrastructure of Canada 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.
Strong track record of project management in the Misc. Transportation industry
– Logistec Sub Vtg Cl B is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Logistec Sub Vtg Cl B comprises – understanding the underlying the factors in the Misc. Transportation 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.
Sustainable margins compare to other players in Misc. Transportation industry
– Logistec Sub Vtg Cl B has clearly differentiated products in the market place. This has enabled Logistec Sub Vtg Cl B to fetch slight price premium compare to the competitors in the Misc. Transportation industry. The sustainable margins have also helped Logistec Sub Vtg Cl B to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Logistec Sub Vtg Cl B has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Logistec Sub Vtg Cl B staying ahead in the Misc. Transportation industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Logistec Sub Vtg Cl B has one of the best training and development program in Transportation 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
– Logistec Sub Vtg Cl B has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Logistec Sub Vtg Cl B to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Logistec Sub Vtg Cl B is one of the most innovative firm in Misc. Transportation sector.
Superior customer experience
– The customer experience strategy of Logistec Sub Vtg Cl B in Misc. Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Misc. Transportation industry
- digital transformation varies from industry to industry. For Logistec Sub Vtg Cl B digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Logistec Sub Vtg Cl B 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.
Successful track record of launching new products
– Logistec Sub Vtg Cl B has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Logistec Sub Vtg Cl B 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.
Organizational Resilience of Logistec Sub Vtg Cl B
– The covid-19 pandemic has put organizational resilience at the centre of everthing Logistec Sub Vtg Cl B does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Logistec Sub Vtg Cl B | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Logistec Sub Vtg Cl B are -
Employees’ less understanding of Logistec Sub Vtg Cl B strategy
– From the outside it seems that the employees of Logistec Sub Vtg Cl B 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.
Slow to strategic competitive environment developments
– As Logistec Sub Vtg Cl B is one of the leading players in the Misc. Transportation industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Transportation industry in last five years.
Lack of clear differentiation of Logistec Sub Vtg Cl B products
– To increase the profitability and margins on the products, Logistec Sub Vtg Cl B needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative at Logistec Sub Vtg Cl B, in the dynamic environment of Misc. Transportation industry it has struggled to respond to the nimble upstart competition. Logistec Sub Vtg Cl B has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Logistec Sub Vtg Cl B has some of the most successful models in the Misc. Transportation industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Logistec Sub Vtg Cl B should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Canada, Logistec Sub Vtg Cl B needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Logistec Sub Vtg Cl B is slow explore the new channels of communication. These new channels of communication can help Logistec Sub Vtg Cl B to provide better information regarding Misc. Transportation products and services. It can also build an online community to further reach out to potential customers.
High dependence on Logistec Sub Vtg Cl B ‘s star products
– The top 2 products and services of Logistec Sub Vtg Cl B still accounts for major business revenue. This dependence on star products in Misc. Transportation industry has resulted into insufficient focus on developing new products, even though Logistec Sub Vtg Cl B has relatively successful track record of launching new products.
Need for greater diversity
– Logistec Sub Vtg Cl B 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 cash cycle compare to competitors
Logistec Sub Vtg Cl B has a high cash cycle compare to other players in the Misc. Transportation industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners in Misc. Transportation industry
– because of the regulatory requirements in Canada, Logistec Sub Vtg Cl B 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 Misc. Transportation industry.
Logistec Sub Vtg Cl B Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Logistec Sub Vtg Cl B are -
Better consumer reach
– The expansion of the 5G network will help Logistec Sub Vtg Cl B to increase its market reach. Logistec Sub Vtg Cl B 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.
Developing new processes and practices
– Logistec Sub Vtg Cl B can develop new processes and procedures in Misc. Transportation 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Logistec Sub Vtg Cl B can use these opportunities to build new business models that can help the communities that Logistec Sub Vtg Cl B operates in. Secondly it can use opportunities from government spending in Misc. Transportation sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Logistec Sub Vtg Cl B has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Transportation sector. This continuous investment in analytics has enabled Logistec Sub Vtg Cl B to build a competitive advantage using analytics. The analytics driven competitive advantage can help Logistec Sub Vtg Cl B to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Misc. Transportation industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Logistec Sub Vtg Cl B in the Misc. Transportation industry. Now Logistec Sub Vtg Cl B can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Logistec Sub Vtg Cl B 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 Misc. Transportation industry.
Buying journey improvements
– Logistec Sub Vtg Cl B can improve the customer journey of consumers in the Misc. Transportation 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.
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 Logistec Sub Vtg Cl B 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.
Learning at scale
– Online learning technologies has now opened space for Logistec Sub Vtg Cl B 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.
Creating value in data economy
– The success of analytics program of Logistec Sub Vtg Cl B has opened avenues for new revenue streams for the organization in Misc. Transportation industry. This can help Logistec Sub Vtg Cl B to build a more holistic ecosystem for Logistec Sub Vtg Cl B products in the Misc. Transportation 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 Logistec Sub Vtg Cl B can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Logistec Sub Vtg Cl B can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Logistec Sub Vtg Cl B External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Logistec Sub Vtg Cl B are -
Increasing wage structure of Logistec Sub Vtg Cl B
– 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 Logistec Sub Vtg Cl B.
Shortening product life cycle
– it is one of the major threat that Logistec Sub Vtg Cl B is facing in Misc. Transportation sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Transportation industry are lowering. It can presents Logistec Sub Vtg Cl B with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Transportation sector.
Consumer confidence and its impact on Logistec Sub Vtg Cl B 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 Misc. Transportation industry and other sectors.
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 Logistec Sub Vtg Cl B business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Logistec Sub Vtg Cl B has witnessed rapid integration of technology during Covid-19 in the Misc. Transportation industry. As one of the leading players in the industry, Logistec Sub Vtg Cl B needs to keep up with the evolution of technology in the Misc. Transportation 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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Logistec Sub Vtg Cl B in Misc. Transportation industry. The Misc. Transportation 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Logistec Sub Vtg Cl B may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Transportation sector.
Stagnating economy with rate increase
– Logistec Sub Vtg Cl B 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 Misc. Transportation industry.
Easy access to finance
– Easy access to finance in Misc. Transportation industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Logistec Sub Vtg Cl B can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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
– Logistec Sub Vtg Cl B 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 Misc. Transportation industry regulations.
Weighted SWOT Analysis of Logistec Sub Vtg Cl B Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B needs to make to build a sustainable competitive advantage.