Logistec Sub Vtg Cl B (LGTb) SWOT Analysis / TOWS Matrix / 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 – increasing transportation and logistics costs, wage bills are increasing, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc

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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.

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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

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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 -

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.

Ability to lead change in Misc. Transportation

– Logistec Sub Vtg Cl B is one of the leading players in the Misc. Transportation industry in Canada. Over the years it has not only transformed the business landscape in the Misc. Transportation industry in Canada but also across the existing markets. The ability to lead change has enabled Logistec Sub Vtg Cl B in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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.

High switching costs

– The high switching costs that Logistec Sub Vtg Cl B has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Low bargaining power of suppliers

– Suppliers of Logistec Sub Vtg Cl B in the Transportation sector have low bargaining power. Logistec Sub Vtg Cl B has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Logistec Sub Vtg Cl B to manage not only supply disruptions but also source products at highly competitive prices.

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.

Ability to recruit top talent

– Logistec Sub Vtg Cl B is one of the leading players in the Misc. Transportation industry in Canada. It is in a position to attract the best talent available in Canada. The firm has a robust talent identification program that helps in identifying the brightest.

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.

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.

Highly skilled collaborators

– Logistec Sub Vtg Cl B has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Transportation industry. Secondly the value chain collaborators of Logistec Sub Vtg Cl B have helped the firm to develop new products and bring them quickly to the marketplace.

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.

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.

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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 -

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.

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.

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.

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.

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.

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.

Workers concerns about automation

– As automation is fast increasing in the Misc. Transportation industry, Logistec Sub Vtg Cl B 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.

Increasing silos among functional specialists

– The organizational structure of Logistec Sub Vtg Cl B is dominated by functional specialists. It is not different from other players in the Misc. Transportation industry, but Logistec Sub Vtg Cl B needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Logistec Sub Vtg Cl B to focus more on services in the Misc. Transportation industry rather than just following the product oriented approach.

Interest costs

– Compare to the competition, Logistec Sub Vtg Cl B has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

High operating costs

– Compare to the competitors, Logistec Sub Vtg Cl B has high operating costs in the Misc. Transportation industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Logistec Sub Vtg Cl B lucrative customers.

Aligning sales with marketing

– From the outside it seems that Logistec Sub Vtg Cl B needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Transportation industry have deep experience in developing customer relationships. Marketing department at Logistec Sub Vtg Cl B can leverage the sales team experience to cultivate customer relationships as Logistec Sub Vtg Cl B is planning to shift buying processes online.

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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 -

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.

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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Logistec Sub Vtg Cl B in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Transportation industry, and it will provide faster access to the consumers.

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.

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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Logistec Sub Vtg Cl B 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Misc. Transportation industry, but it has also influenced the consumer preferences. Logistec Sub Vtg Cl B can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Loyalty marketing

– Logistec Sub Vtg Cl B 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Misc. Transportation industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Logistec Sub Vtg Cl B 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. Logistec Sub Vtg Cl B 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.

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.

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.

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.

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.

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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 -

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.

High dependence on third party suppliers

– Logistec Sub Vtg Cl B 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.

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.

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.

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.

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. Logistec Sub Vtg Cl B 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.

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.

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. Logistec Sub Vtg Cl B needs to understand the core reasons impacting the Misc. Transportation industry. This will help it in building a better workplace.

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.

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.

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.

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.

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.

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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.

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