Michelin Cie Des Estb (MGDDY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Michelin Cie Des Estb (United States)
Based on various researches at Oak Spring University , Michelin Cie Des Estb is operating in a macro-environment that has been destablized by – increasing commodity prices, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, 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, etc
Introduction to SWOT Analysis of Michelin Cie Des Estb
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Michelin Cie Des Estb can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Michelin Cie Des Estb, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Michelin Cie Des Estb 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 Michelin Cie Des Estb can be done for the following purposes –
1. Strategic planning of Michelin Cie Des Estb
2. Improving business portfolio management of Michelin Cie Des Estb
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Michelin Cie Des Estb
Strengths of Michelin Cie Des Estb | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Michelin Cie Des Estb are -
Sustainable margins compare to other players in industry
– Michelin Cie Des Estb has clearly differentiated products in the market place. This has enabled Michelin Cie Des Estb to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Michelin Cie Des Estb to invest into research and development (R&D) and innovation.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Michelin Cie Des Estb digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Michelin Cie Des Estb 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.
Analytics focus
– Michelin Cie Des Estb 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 industry. The technology infrastructure of United States 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.
Ability to lead change in
– Michelin Cie Des Estb is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Michelin Cie Des Estb in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Michelin Cie Des Estb has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Michelin Cie Des Estb have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Michelin Cie Des Estb is one of the leading players in the 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.
Strong track record of project management in the industry
– Michelin Cie Des Estb is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Michelin Cie Des Estb in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Michelin Cie Des Estb 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 Michelin Cie Des Estb is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Michelin Cie Des Estb emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Michelin Cie Des Estb is one of the most innovative firm in sector.
Training and development
– Michelin Cie Des Estb has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Michelin Cie Des Estb has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Michelin Cie Des Estb staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Michelin Cie Des Estb | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Michelin Cie Des Estb are -
Workers concerns about automation
– As automation is fast increasing in the industry, Michelin Cie Des Estb 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.
High dependence on Michelin Cie Des Estb ‘s star products
– The top 2 products and services of Michelin Cie Des Estb still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Michelin Cie Des Estb has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Michelin Cie Des Estb, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Michelin Cie Des Estb has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of United States, Michelin Cie Des Estb needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Michelin Cie Des Estb needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Michelin Cie Des Estb can leverage the sales team experience to cultivate customer relationships as Michelin Cie Des Estb is planning to shift buying processes online.
Lack of clear differentiation of Michelin Cie Des Estb products
– To increase the profitability and margins on the products, Michelin Cie Des Estb needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Michelin Cie Des Estb has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Michelin Cie Des Estb should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Michelin Cie Des Estb is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Michelin Cie Des Estb has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High cash cycle compare to competitors
Michelin Cie Des Estb has a high cash cycle compare to other players in the 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 industry
– because of the regulatory requirements in United States, Michelin Cie Des Estb is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Michelin Cie Des Estb Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Michelin Cie Des Estb are -
Building a culture of innovation
– managers at Michelin Cie Des Estb can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the industry.
Leveraging digital technologies
– Michelin Cie Des Estb 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Michelin Cie Des Estb can use these opportunities to build new business models that can help the communities that Michelin Cie Des Estb operates in. Secondly it can use opportunities from government spending in sector.
Creating value in data economy
– The success of analytics program of Michelin Cie Des Estb has opened avenues for new revenue streams for the organization in industry. This can help Michelin Cie Des Estb to build a more holistic ecosystem for Michelin Cie Des Estb products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Michelin Cie Des Estb can improve the customer journey of consumers in the 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Michelin Cie Des Estb can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Michelin Cie Des Estb in the industry. Now Michelin Cie Des Estb can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Michelin Cie Des Estb 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 Michelin Cie Des Estb to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Michelin Cie Des Estb 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Michelin Cie Des Estb 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 Michelin Cie Des Estb to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Michelin Cie Des Estb can develop new processes and procedures in industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Michelin Cie Des Estb 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.
Better consumer reach
– The expansion of the 5G network will help Michelin Cie Des Estb to increase its market reach. Michelin Cie Des Estb 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.
Threats Michelin Cie Des Estb External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Michelin Cie Des Estb are -
Technology acceleration in Forth Industrial Revolution
– Michelin Cie Des Estb has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Michelin Cie Des Estb needs to keep up with the evolution of technology in the sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Michelin Cie Des Estb needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Consumer confidence and its impact on Michelin Cie Des Estb demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
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 Michelin Cie Des Estb.
Increasing wage structure of Michelin Cie Des Estb
– 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 Michelin Cie Des Estb.
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.
Shortening product life cycle
– it is one of the major threat that Michelin Cie Des Estb is facing in 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, Michelin Cie Des Estb 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 Michelin Cie Des Estb prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Michelin Cie Des Estb in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Michelin Cie Des Estb may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
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. Michelin Cie Des Estb 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Michelin Cie Des Estb with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Weighted SWOT Analysis of Michelin Cie Des Estb Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Michelin Cie Des Estb 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 Michelin Cie Des Estb 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 Michelin Cie Des Estb 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 Michelin Cie Des Estb 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 Michelin Cie Des Estb needs to make to build a sustainable competitive advantage.