Nobility Homes (NOBH) SWOT Analysis / TOWS Matrix / MBA Resources
Mobile Homes & RVs
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Nobility Homes (United States)
Based on various researches at Oak Spring University , Nobility Homes is operating in a macro-environment that has been destablized by – technology disruption, cloud computing is disrupting traditional business models, there is backlash against globalization, geopolitical disruptions, increasing transportation and logistics costs, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Nobility Homes can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nobility Homes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nobility Homes 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 Nobility Homes can be done for the following purposes –
1. Strategic planning of Nobility Homes
2. Improving business portfolio management of Nobility Homes
3. Assessing feasibility of the new initiative in United States
4. Making a Mobile Homes & RVs sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nobility Homes
Strengths of Nobility Homes | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nobility Homes are -
Strong track record of project management in the Mobile Homes & RVs industry
– Nobility Homes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Nobility Homes comprises – understanding the underlying the factors in the Mobile Homes & RVs 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 Nobility Homes 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.
Successful track record of launching new products
– Nobility Homes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nobility Homes 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.
Diverse revenue streams
– Nobility Homes is present in almost all the verticals within the Mobile Homes & RVs industry. This has provided Nobility Homes 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.
Innovation driven organization
– Nobility Homes is one of the most innovative firm in Mobile Homes & RVs sector.
Superior customer experience
– The customer experience strategy of Nobility Homes in Mobile Homes & RVs industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Mobile Homes & RVs industry
- digital transformation varies from industry to industry. For Nobility Homes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nobility Homes 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.
High switching costs
– The high switching costs that Nobility Homes 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.
Organizational Resilience of Nobility Homes
– The covid-19 pandemic has put organizational resilience at the centre of everthing Nobility Homes does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Nobility Homes is one of the leading players in the Mobile Homes & RVs 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.
Low bargaining power of suppliers
– Suppliers of Nobility Homes in the Capital Goods sector have low bargaining power. Nobility Homes has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nobility Homes to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Nobility Homes | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nobility Homes are -
Slow to strategic competitive environment developments
– As Nobility Homes is one of the leading players in the Mobile Homes & RVs industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Mobile Homes & RVs industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative at Nobility Homes, in the dynamic environment of Mobile Homes & RVs industry it has struggled to respond to the nimble upstart competition. Nobility Homes has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners in Mobile Homes & RVs industry
– because of the regulatory requirements in United States, Nobility Homes 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 Mobile Homes & RVs industry.
No frontier risks strategy
– From the 10K / annual statement of Nobility Homes, it seems that company is thinking out the frontier risks that can impact Mobile Homes & RVs 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.
Low market penetration in new markets
– Outside its home market of United States, Nobility Homes needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Nobility Homes 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 Mobile Homes & RVs industry using digital technology.
Aligning sales with marketing
– From the outside it seems that Nobility Homes needs to have more collaboration between its sales team and marketing team. Sales professionals in the Mobile Homes & RVs industry have deep experience in developing customer relationships. Marketing department at Nobility Homes can leverage the sales team experience to cultivate customer relationships as Nobility Homes 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 Nobility Homes supply chain. Even after few cautionary changes, Nobility Homes is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nobility Homes vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, Nobility Homes has high operating costs in the Mobile Homes & RVs industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Nobility Homes lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nobility Homes is slow explore the new channels of communication. These new channels of communication can help Nobility Homes to provide better information regarding Mobile Homes & RVs products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Nobility Homes has a high cash cycle compare to other players in the Mobile Homes & RVs industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Nobility Homes Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Nobility Homes are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nobility Homes is facing challenges because of the dominance of functional experts in the organization. Nobility Homes can utilize new technology in the field of Mobile Homes & RVs industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nobility Homes can use these opportunities to build new business models that can help the communities that Nobility Homes operates in. Secondly it can use opportunities from government spending in Mobile Homes & RVs sector.
Buying journey improvements
– Nobility Homes can improve the customer journey of consumers in the Mobile Homes & RVs 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Mobile Homes & RVs industry, but it has also influenced the consumer preferences. Nobility Homes can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Mobile Homes & RVs industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nobility Homes 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. Nobility Homes 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, Nobility Homes 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 Nobility Homes to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Nobility Homes to increase its market reach. Nobility Homes 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
– Nobility Homes has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Mobile Homes & RVs sector. This continuous investment in analytics has enabled Nobility Homes to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nobility Homes to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Nobility Homes has opened avenues for new revenue streams for the organization in Mobile Homes & RVs industry. This can help Nobility Homes to build a more holistic ecosystem for Nobility Homes products in the Mobile Homes & RVs industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Nobility Homes 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 Mobile Homes & RVs industry.
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. Nobility Homes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nobility Homes 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 Nobility Homes to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Nobility Homes can develop new processes and procedures in Mobile Homes & RVs 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.
Threats Nobility Homes External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Nobility Homes are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nobility Homes 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 Nobility Homes prominent markets.
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. Nobility Homes needs to understand the core reasons impacting the Mobile Homes & RVs industry. This will help it in building a better workplace.
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.
Regulatory challenges
– Nobility Homes 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 Mobile Homes & RVs industry regulations.
Stagnating economy with rate increase
– Nobility Homes 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 Mobile Homes & RVs industry.
Easy access to finance
– Easy access to finance in Mobile Homes & RVs industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nobility Homes can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– Nobility Homes 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. Nobility Homes can take advantage of this fund but it will also bring new competitors in the Mobile Homes & RVs industry.
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 Nobility Homes in the Mobile Homes & RVs sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Nobility Homes has witnessed rapid integration of technology during Covid-19 in the Mobile Homes & RVs industry. As one of the leading players in the industry, Nobility Homes needs to keep up with the evolution of technology in the Mobile Homes & RVs sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Nobility Homes 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.
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. Nobility Homes 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, Nobility Homes may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Mobile Homes & RVs sector.
Weighted SWOT Analysis of Nobility Homes Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Nobility Homes 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 Nobility Homes 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 Nobility Homes 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 Nobility Homes 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 Nobility Homes needs to make to build a sustainable competitive advantage.
