Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for NGL Energy Pref Class B (United States)
Based on various researches at Oak Spring University , NGL Energy Pref Class B is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, geopolitical disruptions, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic ,
wage bills are increasing, cloud computing is disrupting traditional business models, etc
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- 100% Plagiarism Free
- On Time Delivery | 27x7
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- 300 Words / Page
Introduction to SWOT Analysis of NGL Energy Pref Class B
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that NGL Energy Pref Class B can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the NGL Energy Pref Class B, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which NGL Energy Pref Class B operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of NGL Energy Pref Class B can be done for the following purposes –
1. Strategic planning of NGL Energy Pref Class B
2. Improving business portfolio management of NGL Energy Pref Class B
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 NGL Energy Pref Class B
Strengths of NGL Energy Pref Class B | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of NGL Energy Pref Class B are -
Superior customer experience
– The customer experience strategy of NGL Energy Pref Class B in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– NGL Energy Pref Class B has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – NGL Energy Pref Class B staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– NGL Energy Pref Class B has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. NGL Energy Pref Class B has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that NGL Energy Pref Class 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.
Ability to recruit top talent
– NGL Energy Pref Class B 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.
Sustainable margins compare to other players in industry
– NGL Energy Pref Class B has clearly differentiated products in the market place. This has enabled NGL Energy Pref Class B to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped NGL Energy Pref Class B to invest into research and development (R&D) and innovation.
Ability to lead change in
– NGL Energy Pref Class B 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 NGL Energy Pref Class B in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the NGL Energy Pref Class 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.
– The operational resilience strategy of NGL Energy Pref Class B comprises – understanding the underlying the factors in the 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.
Low bargaining power of suppliers
– Suppliers of NGL Energy Pref Class B in the sector have low bargaining power. NGL Energy Pref Class B has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps NGL Energy Pref Class B to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in industry
- digital transformation varies from industry to industry. For NGL Energy Pref Class B digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. NGL Energy Pref Class 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.
Innovation driven organization
– NGL Energy Pref Class B is one of the most innovative firm in sector.
Weaknesses of NGL Energy Pref Class B | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NGL Energy Pref Class B are -
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, NGL Energy Pref Class 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 industry.
High dependence on NGL Energy Pref Class B ‘s star products
– The top 2 products and services of NGL Energy Pref Class B still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though NGL Energy Pref Class B has relatively successful track record of launching new products.
Products dominated business model
– Even though NGL Energy Pref Class B 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. NGL Energy Pref Class B should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, NGL Energy Pref Class B has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract NGL Energy Pref Class B lucrative customers.
Skills based hiring in industry
– The stress on hiring functional specialists at NGL Energy Pref Class B 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.
Employees’ less understanding of NGL Energy Pref Class B strategy
– From the outside it seems that the employees of NGL Energy Pref Class 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.
Increasing silos among functional specialists
– The organizational structure of NGL Energy Pref Class B is dominated by functional specialists. It is not different from other players in the industry, but NGL Energy Pref Class B needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help NGL Energy Pref Class B to focus more on services in the industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of NGL Energy Pref Class B is just above the 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 decision making process
– As mentioned earlier in the report, NGL Energy Pref Class B has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. NGL Energy Pref Class B even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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 NGL Energy Pref Class B supply chain. Even after few cautionary changes, NGL Energy Pref Class B is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left NGL Energy Pref Class B vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, NGL Energy Pref Class B is slow explore the new channels of communication. These new channels of communication can help NGL Energy Pref Class B to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
NGL Energy Pref Class B Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of NGL Energy Pref Class B are -
Building a culture of innovation
– managers at NGL Energy Pref Class 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 industry.
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 NGL Energy Pref Class B in the industry. Now NGL Energy Pref Class B can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for NGL Energy Pref Class 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for NGL Energy Pref Class 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 NGL Energy Pref Class B to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, NGL Energy Pref Class B can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help NGL Energy Pref Class B to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– NGL Energy Pref Class B 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.
Leveraging digital technologies
– NGL Energy Pref Class 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, NGL Energy Pref Class 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.
Using analytics as competitive advantage
– NGL Energy Pref Class B has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled NGL Energy Pref Class B to build a competitive advantage using analytics. The analytics driven competitive advantage can help NGL Energy Pref Class B to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, NGL Energy Pref Class B can use these opportunities to build new business models that can help the communities that NGL Energy Pref Class B operates in. Secondly it can use opportunities from government spending in sector.
Creating value in data economy
– The success of analytics program of NGL Energy Pref Class B has opened avenues for new revenue streams for the organization in industry. This can help NGL Energy Pref Class B to build a more holistic ecosystem for NGL Energy Pref Class B products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help NGL Energy Pref Class B to increase its market reach. NGL Energy Pref Class 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, NGL Energy Pref Class B is facing challenges because of the dominance of functional experts in the organization. NGL Energy Pref Class B can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats NGL Energy Pref Class B External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of NGL Energy Pref Class B are -
Consumer confidence and its impact on NGL Energy Pref Class 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 industry and other sectors.
– NGL Energy Pref Class B 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. NGL Energy Pref Class B can take advantage of this fund but it will also bring new competitors in the industry.
Shortening product life cycle
– it is one of the major threat that NGL Energy Pref Class B is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of NGL Energy Pref Class 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 NGL Energy Pref Class B.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, NGL Energy Pref Class 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 sector.
– 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.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. NGL Energy Pref Class B can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for NGL Energy Pref Class B 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.
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. NGL Energy Pref Class B needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents NGL Energy Pref Class B with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– NGL Energy Pref Class 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.
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. NGL Energy Pref Class 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.
– NGL Energy Pref Class 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 industry regulations.
Weighted SWOT Analysis of NGL Energy Pref Class B Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at NGL Energy Pref Class 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 NGL Energy Pref Class 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 NGL Energy Pref Class 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 NGL Energy Pref Class 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 NGL Energy Pref Class B needs to make to build a sustainable competitive advantage.