Niagara Mohawk Power Corp Pb Pref (NMK_pb) SWOT Analysis / TOWS Matrix / MBA Resources
Electric Utilities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Niagara Mohawk Power Corp Pb Pref (United States)
Based on various researches at Oak Spring University , Niagara Mohawk Power Corp Pb Pref is operating in a macro-environment that has been destablized by – technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Niagara Mohawk Power Corp Pb Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Niagara Mohawk Power Corp Pb Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Niagara Mohawk Power Corp Pb Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref can be done for the following purposes –
1. Strategic planning of Niagara Mohawk Power Corp Pb Pref
2. Improving business portfolio management of Niagara Mohawk Power Corp Pb Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Electric Utilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Niagara Mohawk Power Corp Pb Pref
Strengths of Niagara Mohawk Power Corp Pb Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Niagara Mohawk Power Corp Pb Pref are -
Sustainable margins compare to other players in Electric Utilities industry
– Niagara Mohawk Power Corp Pb Pref has clearly differentiated products in the market place. This has enabled Niagara Mohawk Power Corp Pb Pref to fetch slight price premium compare to the competitors in the Electric Utilities industry. The sustainable margins have also helped Niagara Mohawk Power Corp Pb Pref to invest into research and development (R&D) and innovation.
Training and development
– Niagara Mohawk Power Corp Pb Pref has one of the best training and development program in Utilities 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.
Low bargaining power of suppliers
– Suppliers of Niagara Mohawk Power Corp Pb Pref in the Utilities sector have low bargaining power. Niagara Mohawk Power Corp Pb Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Niagara Mohawk Power Corp Pb Pref to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Niagara Mohawk Power Corp Pb Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Niagara Mohawk Power Corp Pb Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Niagara Mohawk Power Corp Pb Pref in Electric Utilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Electric Utilities industry
- digital transformation varies from industry to industry. For Niagara Mohawk Power Corp Pb Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Niagara Mohawk Power Corp Pb Pref 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.
Analytics focus
– Niagara Mohawk Power Corp Pb Pref 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 Electric Utilities 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.
Successful track record of launching new products
– Niagara Mohawk Power Corp Pb Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Niagara Mohawk Power Corp Pb Pref 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.
Cross disciplinary teams
– Horizontal connected teams at the Niagara Mohawk Power Corp Pb Pref 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.
Effective Research and Development (R&D)
– Niagara Mohawk Power Corp Pb Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Niagara Mohawk Power Corp Pb Pref staying ahead in the Electric Utilities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Niagara Mohawk Power Corp Pb Pref is one of the most innovative firm in Electric Utilities sector.
Ability to recruit top talent
– Niagara Mohawk Power Corp Pb Pref is one of the leading players in the Electric Utilities 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.
Weaknesses of Niagara Mohawk Power Corp Pb Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Niagara Mohawk Power Corp Pb Pref are -
Aligning sales with marketing
– From the outside it seems that Niagara Mohawk Power Corp Pb Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Electric Utilities industry have deep experience in developing customer relationships. Marketing department at Niagara Mohawk Power Corp Pb Pref can leverage the sales team experience to cultivate customer relationships as Niagara Mohawk Power Corp Pb Pref is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Niagara Mohawk Power Corp Pb Pref is dominated by functional specialists. It is not different from other players in the Electric Utilities industry, but Niagara Mohawk Power Corp Pb Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Niagara Mohawk Power Corp Pb Pref to focus more on services in the Electric Utilities industry rather than just following the product oriented approach.
Need for greater diversity
– Niagara Mohawk Power Corp Pb Pref 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.
High dependence on Niagara Mohawk Power Corp Pb Pref ‘s star products
– The top 2 products and services of Niagara Mohawk Power Corp Pb Pref still accounts for major business revenue. This dependence on star products in Electric Utilities industry has resulted into insufficient focus on developing new products, even though Niagara Mohawk Power Corp Pb Pref has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Niagara Mohawk Power Corp Pb Pref is one of the leading players in the Electric Utilities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Electric Utilities industry in last five years.
High operating costs
– Compare to the competitors, Niagara Mohawk Power Corp Pb Pref has high operating costs in the Electric Utilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Niagara Mohawk Power Corp Pb Pref lucrative customers.
High bargaining power of channel partners in Electric Utilities industry
– because of the regulatory requirements in United States, Niagara Mohawk Power Corp Pb Pref 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 Electric Utilities industry.
Slow decision making process
– As mentioned earlier in the report, Niagara Mohawk Power Corp Pb Pref has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Electric Utilities industry over the last five years. Niagara Mohawk Power Corp Pb Pref 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.
Employees’ less understanding of Niagara Mohawk Power Corp Pb Pref strategy
– From the outside it seems that the employees of Niagara Mohawk Power Corp Pb Pref 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
Niagara Mohawk Power Corp Pb Pref has a high cash cycle compare to other players in the Electric Utilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Niagara Mohawk Power Corp Pb Pref is slow explore the new channels of communication. These new channels of communication can help Niagara Mohawk Power Corp Pb Pref to provide better information regarding Electric Utilities products and services. It can also build an online community to further reach out to potential customers.
Niagara Mohawk Power Corp Pb Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Niagara Mohawk Power Corp Pb Pref 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, Niagara Mohawk Power Corp Pb Pref can use these opportunities to build new business models that can help the communities that Niagara Mohawk Power Corp Pb Pref operates in. Secondly it can use opportunities from government spending in Electric Utilities sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Niagara Mohawk Power Corp Pb Pref 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.
Developing new processes and practices
– Niagara Mohawk Power Corp Pb Pref can develop new processes and procedures in Electric Utilities 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.
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. Niagara Mohawk Power Corp Pb Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Niagara Mohawk Power Corp Pb Pref can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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 Niagara Mohawk Power Corp Pb Pref 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.
Better consumer reach
– The expansion of the 5G network will help Niagara Mohawk Power Corp Pb Pref to increase its market reach. Niagara Mohawk Power Corp Pb Pref 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.
Creating value in data economy
– The success of analytics program of Niagara Mohawk Power Corp Pb Pref has opened avenues for new revenue streams for the organization in Electric Utilities industry. This can help Niagara Mohawk Power Corp Pb Pref to build a more holistic ecosystem for Niagara Mohawk Power Corp Pb Pref products in the Electric Utilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Niagara Mohawk Power Corp Pb Pref 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 Electric Utilities industry.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Electric Utilities industry, but it has also influenced the consumer preferences. Niagara Mohawk Power Corp Pb Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Niagara Mohawk Power Corp Pb Pref can improve the customer journey of consumers in the Electric Utilities 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
– Niagara Mohawk Power Corp Pb Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Electric Utilities sector. This continuous investment in analytics has enabled Niagara Mohawk Power Corp Pb Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Niagara Mohawk Power Corp Pb Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Niagara Mohawk Power Corp Pb Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Niagara Mohawk Power Corp Pb Pref are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Electric Utilities industry are lowering. It can presents Niagara Mohawk Power Corp Pb Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Electric Utilities sector.
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. Niagara Mohawk Power Corp Pb Pref 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Niagara Mohawk Power Corp Pb Pref in Electric Utilities industry. The Electric Utilities 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.
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 Niagara Mohawk Power Corp Pb Pref.
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. Niagara Mohawk Power Corp Pb Pref needs to understand the core reasons impacting the Electric Utilities industry. This will help it in building a better workplace.
Increasing wage structure of Niagara Mohawk Power Corp Pb Pref
– 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 Niagara Mohawk Power Corp Pb Pref.
Technology acceleration in Forth Industrial Revolution
– Niagara Mohawk Power Corp Pb Pref has witnessed rapid integration of technology during Covid-19 in the Electric Utilities industry. As one of the leading players in the industry, Niagara Mohawk Power Corp Pb Pref needs to keep up with the evolution of technology in the Electric Utilities 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.
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.
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 Niagara Mohawk Power Corp Pb Pref business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Niagara Mohawk Power Corp Pb Pref 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 Electric Utilities industry.
Regulatory challenges
– Niagara Mohawk Power Corp Pb Pref 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 Electric Utilities industry regulations.
High dependence on third party suppliers
– Niagara Mohawk Power Corp Pb Pref 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.
Weighted SWOT Analysis of Niagara Mohawk Power Corp Pb Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref 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 Niagara Mohawk Power Corp Pb Pref needs to make to build a sustainable competitive advantage.