Postmedia Network Canada A (PNCa) SWOT Analysis / TOWS Matrix / MBA Resources
Printing & Publishing
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Postmedia Network Canada A (Canada)
Based on various researches at Oak Spring University , Postmedia Network Canada A is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing energy prices, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Postmedia Network Canada A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Postmedia Network Canada A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Postmedia Network Canada A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Postmedia Network Canada A operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Postmedia Network Canada A can be done for the following purposes –
1. Strategic planning of Postmedia Network Canada A
2. Improving business portfolio management of Postmedia Network Canada A
3. Assessing feasibility of the new initiative in Canada
4. Making a Printing & Publishing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Postmedia Network Canada A
Strengths of Postmedia Network Canada A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Postmedia Network Canada A are -
Analytics focus
– Postmedia Network Canada A 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 Printing & Publishing 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.
Innovation driven organization
– Postmedia Network Canada A is one of the most innovative firm in Printing & Publishing sector.
Ability to lead change in Printing & Publishing
– Postmedia Network Canada A is one of the leading players in the Printing & Publishing industry in Canada. Over the years it has not only transformed the business landscape in the Printing & Publishing industry in Canada but also across the existing markets. The ability to lead change has enabled Postmedia Network Canada A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Printing & Publishing industry
- digital transformation varies from industry to industry. For Postmedia Network Canada A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Postmedia Network Canada A 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.
Strong track record of project management in the Printing & Publishing industry
– Postmedia Network Canada A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Postmedia Network Canada A in Printing & Publishing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Postmedia Network Canada A in the Services sector have low bargaining power. Postmedia Network Canada A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Postmedia Network Canada A to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Postmedia Network Canada A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Postmedia Network Canada A staying ahead in the Printing & Publishing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Postmedia Network Canada A 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.
Diverse revenue streams
– Postmedia Network Canada A is present in almost all the verticals within the Printing & Publishing industry. This has provided Postmedia Network Canada A a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Postmedia Network Canada A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Postmedia Network Canada A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Postmedia Network Canada A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Postmedia Network Canada A has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses of Postmedia Network Canada A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Postmedia Network Canada A are -
Aligning sales with marketing
– From the outside it seems that Postmedia Network Canada A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Printing & Publishing industry have deep experience in developing customer relationships. Marketing department at Postmedia Network Canada A can leverage the sales team experience to cultivate customer relationships as Postmedia Network Canada A is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Postmedia Network Canada A is dominated by functional specialists. It is not different from other players in the Printing & Publishing industry, but Postmedia Network Canada A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Postmedia Network Canada A to focus more on services in the Printing & Publishing industry rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Postmedia Network Canada A has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Printing & Publishing industry using digital technology.
Slow to strategic competitive environment developments
– As Postmedia Network Canada A is one of the leading players in the Printing & Publishing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Printing & Publishing industry in last five years.
Low market penetration in new markets
– Outside its home market of Canada, Postmedia Network Canada A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at Postmedia Network Canada A, in the dynamic environment of Printing & Publishing industry it has struggled to respond to the nimble upstart competition. Postmedia Network Canada A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in Printing & Publishing industry
– The stress on hiring functional specialists at Postmedia Network Canada A has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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 Postmedia Network Canada A supply chain. Even after few cautionary changes, Postmedia Network Canada A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Postmedia Network Canada A vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of Postmedia Network Canada A is just above the Printing & Publishing 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.
Interest costs
– Compare to the competition, Postmedia Network Canada A 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Postmedia Network Canada A is slow explore the new channels of communication. These new channels of communication can help Postmedia Network Canada A to provide better information regarding Printing & Publishing products and services. It can also build an online community to further reach out to potential customers.
Postmedia Network Canada A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Postmedia Network Canada A are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Postmedia Network Canada A 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Postmedia Network Canada A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Printing & Publishing industry, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Postmedia Network Canada A can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Postmedia Network Canada A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Postmedia Network Canada A to increase its market reach. Postmedia Network Canada A 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Postmedia Network Canada A to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Postmedia Network Canada A to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Postmedia Network Canada A is facing challenges because of the dominance of functional experts in the organization. Postmedia Network Canada A can utilize new technology in the field of Printing & Publishing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 Postmedia Network Canada A 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.
Using analytics as competitive advantage
– Postmedia Network Canada A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Printing & Publishing sector. This continuous investment in analytics has enabled Postmedia Network Canada A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Postmedia Network Canada A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Printing & Publishing industry, but it has also influenced the consumer preferences. Postmedia Network Canada A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Postmedia Network Canada A to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Use of Bitcoin and other crypto currencies for transactions in Printing & Publishing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Postmedia Network Canada A in the Printing & Publishing industry. Now Postmedia Network Canada A can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Postmedia Network Canada A has opened avenues for new revenue streams for the organization in Printing & Publishing industry. This can help Postmedia Network Canada A to build a more holistic ecosystem for Postmedia Network Canada A products in the Printing & Publishing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Postmedia Network Canada A can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Postmedia Network Canada A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Postmedia Network Canada A are -
Environmental challenges
– Postmedia Network Canada A needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Postmedia Network Canada A can take advantage of this fund but it will also bring new competitors in the Printing & Publishing industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Postmedia Network Canada A in the Printing & Publishing sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Postmedia Network Canada A can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Printing & Publishing industry.
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 Postmedia Network Canada A 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. Postmedia Network Canada A needs to understand the core reasons impacting the Printing & Publishing industry. This will help it in building a better workplace.
Increasing wage structure of Postmedia Network Canada A
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Postmedia Network Canada A.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Postmedia Network Canada A can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Postmedia Network Canada A prominent markets.
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 Postmedia Network Canada A.
Shortening product life cycle
– it is one of the major threat that Postmedia Network Canada A is facing in Printing & Publishing 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 Printing & Publishing industry are lowering. It can presents Postmedia Network Canada A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing & Publishing sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Postmedia Network Canada A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Printing & Publishing 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. Postmedia Network Canada A will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Postmedia Network Canada A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Postmedia Network Canada A needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Postmedia Network Canada A is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Postmedia Network Canada A is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Postmedia Network Canada A to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Postmedia Network Canada A needs to make to build a sustainable competitive advantage.