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 household debt because of falling income levels, technology disruption, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, 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 -

Diverse revenue streams

– Logistec Sub Vtg Cl B is present in almost all the verticals within the Misc. Transportation industry. This has provided Logistec Sub Vtg Cl B 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.

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.

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.

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.

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.

Learning organization

- Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Logistec Sub Vtg Cl B emphasize – knowledge, initiative, and innovation.

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.

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.

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.

Cross disciplinary teams

– Horizontal connected teams at the Logistec Sub Vtg Cl B 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.

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.

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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 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.

Compensation and incentives

– The revenue per employee of Logistec Sub Vtg Cl B is just above the Misc. Transportation industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

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.

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.

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.

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.

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.

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.

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.

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.

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 Logistec Sub Vtg Cl B supply chain. Even after few cautionary changes, Logistec Sub Vtg Cl B is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Logistec Sub Vtg Cl B vulnerable to further global disruptions in South East Asia.

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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 -

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.

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.

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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Logistec Sub Vtg Cl B 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 Logistec Sub Vtg Cl B to hire the very best people irrespective of their geographical location.

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.

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.

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.

Leveraging digital technologies

– Logistec Sub Vtg Cl B 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.

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.

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.

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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Logistec Sub Vtg Cl B is facing challenges because of the dominance of functional experts in the organization. Logistec Sub Vtg Cl B can utilize new technology in the field of Misc. Transportation industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

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.

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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 -

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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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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