NGL Energy Pref Class B (NGL_pb) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
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 – increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing energy prices, cloud computing is disrupting traditional business models, increasing transportation and logistics costs,
geopolitical disruptions, wage bills are increasing, etc
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 -
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.
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 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.
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.
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.
Highly skilled collaborators
– NGL Energy Pref Class B 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 NGL Energy Pref Class B have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of NGL Energy Pref Class B
– The covid-19 pandemic has put organizational resilience at the centre of everthing NGL Energy Pref Class B does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– NGL Energy Pref Class B is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the 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.
High brand equity
– NGL Energy Pref Class B has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled NGL Energy Pref Class B to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– NGL Energy Pref Class B is present in almost all the verticals within the industry. This has provided NGL Energy Pref Class 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.
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.
Operational resilience
– 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.
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 -
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.
Ability to respond to the competition
– As the decision making is very deliberative at NGL Energy Pref Class B, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. NGL Energy Pref Class B has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
High cash cycle compare to competitors
NGL Energy Pref Class B 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, 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.
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.
Workers concerns about automation
– As automation is fast increasing in the industry, NGL Energy Pref Class B needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
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.
Aligning sales with marketing
– From the outside it seems that NGL Energy Pref Class B 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 NGL Energy Pref Class B can leverage the sales team experience to cultivate customer relationships as NGL Energy Pref Class B is planning to shift buying processes online.
Lack of clear differentiation of NGL Energy Pref Class B products
– To increase the profitability and margins on the products, NGL Energy Pref Class B needs to provide more differentiated products than what it is currently offering in the marketplace.
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 -
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects NGL Energy Pref Class B can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Manufacturing automation
– NGL Energy Pref Class B can use the latest technology developments to improve its manufacturing and designing process in sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. NGL Energy Pref Class B can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for NGL Energy Pref Class B in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
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.
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 NGL Energy Pref Class 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.
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. NGL Energy Pref Class B can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– NGL Energy Pref Class B 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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 NGL Energy Pref Class B.
Technology acceleration in Forth Industrial Revolution
– NGL Energy Pref Class B has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, NGL Energy Pref Class B 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. NGL Energy Pref Class B needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, NGL Energy Pref Class B 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 NGL Energy Pref Class B prominent markets.
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.
Regulatory challenges
– 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.
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 NGL Energy Pref Class B in the sector and impact the bottomline of the organization.
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.
