Based on various researches at Oak Spring University , JSC MMC Norilsk Nickel ADR is operating in a macro-environment that has been destablized by – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, 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 -
High switching costs
– The high switching costs that JSC MMC Norilsk Nickel ADR 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.
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.
Innovation driven organization
– JSC MMC Norilsk Nickel ADR is one of the most innovative firm in sector.
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.
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.
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.
Training and development
– JSC MMC Norilsk Nickel ADR has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
Ability to lead change in
– JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Operational resilience
– The operational resilience strategy of JSC MMC Norilsk Nickel ADR 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.
Cross disciplinary teams
– Horizontal connected teams at the JSC MMC Norilsk Nickel ADR 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.
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 -
Lack of clear differentiation of JSC MMC Norilsk Nickel ADR products
– To increase the profitability and margins on the products, JSC MMC Norilsk Nickel ADR needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, JSC MMC Norilsk Nickel ADR is slow explore the new channels of communication. These new channels of communication can help JSC MMC Norilsk Nickel ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of JSC MMC Norilsk Nickel ADR 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.
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.
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.
Aligning sales with marketing
– From the outside it seems that JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR can leverage the sales team experience to cultivate customer relationships as JSC MMC Norilsk Nickel ADR is planning to shift buying processes online.
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 JSC MMC Norilsk Nickel ADR supply chain. Even after few cautionary changes, JSC MMC Norilsk Nickel ADR is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left JSC MMC Norilsk Nickel ADR vulnerable to further global disruptions in South East Asia.
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.
Interest costs
– Compare to the competition, JSC MMC Norilsk Nickel ADR 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.
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.
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.
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 -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, JSC MMC Norilsk Nickel ADR can use these opportunities to build new business models that can help the communities that JSC MMC Norilsk Nickel ADR operates in. Secondly it can use opportunities from government spending in sector.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, JSC MMC Norilsk Nickel ADR 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.
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.
Buying journey improvements
– JSC MMC Norilsk Nickel ADR 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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR prominent markets.
Consumer confidence and its impact on JSC MMC Norilsk Nickel ADR 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.
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.
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.
Regulatory challenges
– JSC MMC Norilsk Nickel ADR 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 JSC MMC Norilsk Nickel ADR in the sector and impact the bottomline of the organization.
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 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents JSC MMC Norilsk Nickel ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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.