Based on various researches at Oak Spring University , JSC MMC Norilsk Nickel ADR is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing commodity prices, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
Diverse revenue streams
– JSC MMC Norilsk Nickel ADR is present in almost all the verticals within the industry. This has provided JSC MMC Norilsk Nickel ADR a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
Products dominated business model
– Even though JSC MMC Norilsk Nickel ADR 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. JSC MMC Norilsk Nickel ADR should strive to include more intangible value offerings along with its core products and services.
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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the industry, JSC MMC Norilsk Nickel ADR 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.
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.
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.
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 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.
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 -
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.
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.
Loyalty marketing
– JSC MMC Norilsk Nickel ADR has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
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.
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.
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.
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.
Manufacturing automation
– JSC MMC Norilsk Nickel ADR 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.
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. JSC MMC Norilsk Nickel ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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. JSC MMC Norilsk Nickel ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
