Based on various researches at Oak Spring University , JSC MMC Norilsk Nickel ADR is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, geopolitical disruptions, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of JSC MMC Norilsk Nickel ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JSC MMC Norilsk Nickel ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JSC MMC Norilsk Nickel ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR can be done for the following purposes –
1. Strategic planning of JSC MMC Norilsk Nickel ADR
2. Improving business portfolio management of JSC MMC Norilsk Nickel ADR
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 JSC MMC Norilsk Nickel ADR
Strengths of JSC MMC Norilsk Nickel ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of JSC MMC Norilsk Nickel ADR are -
Highly skilled collaborators
– JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– JSC MMC Norilsk Nickel ADR has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. JSC MMC Norilsk Nickel ADR 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For JSC MMC Norilsk Nickel ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. JSC MMC Norilsk Nickel ADR 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
– JSC MMC Norilsk Nickel ADR is one of the most innovative firm in sector.
Ability to recruit top talent
– JSC MMC Norilsk Nickel ADR 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
– JSC MMC Norilsk Nickel ADR has clearly differentiated products in the market place. This has enabled JSC MMC Norilsk Nickel ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped JSC MMC Norilsk Nickel ADR to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– JSC MMC Norilsk Nickel ADR has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – JSC MMC Norilsk Nickel ADR staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of JSC MMC Norilsk Nickel ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– JSC MMC Norilsk Nickel ADR 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
– JSC MMC Norilsk Nickel ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled JSC MMC Norilsk Nickel ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at JSC MMC Norilsk Nickel ADR emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the industry
– JSC MMC Norilsk Nickel ADR is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of JSC MMC Norilsk Nickel ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JSC MMC Norilsk Nickel ADR are -
No frontier risks strategy
– From the 10K / annual statement of JSC MMC Norilsk Nickel ADR, it seems that company is thinking out the frontier risks that can impact industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ less understanding of JSC MMC Norilsk Nickel ADR strategy
– From the outside it seems that the employees of JSC MMC Norilsk Nickel ADR 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 dependence on JSC MMC Norilsk Nickel ADR ‘s star products
– The top 2 products and services of JSC MMC Norilsk Nickel ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though JSC MMC Norilsk Nickel ADR has relatively successful track record of launching new products.
High cash cycle compare to competitors
JSC MMC Norilsk Nickel ADR 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.
Capital Spending Reduction
– Even during the low interest decade, JSC MMC Norilsk Nickel ADR 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.
Slow decision making process
– As mentioned earlier in the report, JSC MMC Norilsk Nickel ADR 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. JSC MMC Norilsk Nickel ADR 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 operating costs
– Compare to the competitors, JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at JSC MMC Norilsk Nickel ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. JSC MMC Norilsk Nickel ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– JSC MMC Norilsk Nickel ADR has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As JSC MMC Norilsk Nickel ADR 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.
Increasing silos among functional specialists
– The organizational structure of JSC MMC Norilsk Nickel ADR is dominated by functional specialists. It is not different from other players in the industry, but JSC MMC Norilsk Nickel ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JSC MMC Norilsk Nickel ADR to focus more on services in the industry rather than just following the product oriented approach.
JSC MMC Norilsk Nickel ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of JSC MMC Norilsk Nickel ADR are -
Creating value in data economy
– The success of analytics program of JSC MMC Norilsk Nickel ADR has opened avenues for new revenue streams for the organization in industry. This can help JSC MMC Norilsk Nickel ADR to build a more holistic ecosystem for JSC MMC Norilsk Nickel ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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. JSC MMC Norilsk Nickel ADR can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 JSC MMC Norilsk Nickel ADR in the industry. Now JSC MMC Norilsk Nickel ADR can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, JSC MMC Norilsk Nickel ADR is facing challenges because of the dominance of functional experts in the organization. JSC MMC Norilsk Nickel ADR 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.
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 JSC MMC Norilsk Nickel ADR 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects JSC MMC Norilsk Nickel ADR can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. JSC MMC Norilsk Nickel ADR can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. JSC MMC Norilsk Nickel ADR can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for JSC MMC Norilsk Nickel ADR 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help JSC MMC Norilsk Nickel ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help JSC MMC Norilsk Nickel ADR to increase its market reach. JSC MMC Norilsk Nickel ADR 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.
Building a culture of innovation
– managers at JSC MMC Norilsk Nickel ADR 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.
Threats JSC MMC Norilsk Nickel ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of JSC MMC Norilsk Nickel ADR are -
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. JSC MMC Norilsk Nickel ADR 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, JSC MMC Norilsk Nickel ADR 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.
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.
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 JSC MMC Norilsk Nickel ADR.
Environmental challenges
– JSC MMC Norilsk Nickel ADR 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. JSC MMC Norilsk Nickel ADR can take advantage of this fund but it will also bring new competitors in the industry.
Stagnating economy with rate increase
– JSC MMC Norilsk Nickel ADR 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 industry.
Technology acceleration in Forth Industrial Revolution
– JSC MMC Norilsk Nickel ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, JSC MMC Norilsk Nickel ADR 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.
Increasing wage structure of JSC MMC Norilsk Nickel ADR
– 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 JSC MMC Norilsk Nickel ADR.
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 JSC MMC Norilsk Nickel ADR in the sector and impact the bottomline of the organization.
High dependence on third party suppliers
– JSC MMC Norilsk Nickel ADR 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.
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 JSC MMC Norilsk Nickel ADR business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that JSC MMC Norilsk Nickel ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for JSC MMC Norilsk Nickel ADR 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.
Weighted SWOT Analysis of JSC MMC Norilsk Nickel ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR needs to make to build a sustainable competitive advantage.