Based on various researches at Oak Spring University , OC Oerlikon Pfaeffikon ADR is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, technology disruption, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing commodity prices, there is increasing trade war between United States & China,
wage bills are increasing, there is backlash against globalization, etc
Introduction to SWOT Analysis of OC Oerlikon Pfaeffikon ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that OC Oerlikon Pfaeffikon ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the OC Oerlikon Pfaeffikon ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR can be done for the following purposes –
1. Strategic planning of OC Oerlikon Pfaeffikon ADR
2. Improving business portfolio management of OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR
Strengths of OC Oerlikon Pfaeffikon ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of OC Oerlikon Pfaeffikon ADR are -
Organizational Resilience of OC Oerlikon Pfaeffikon ADR
– The covid-19 pandemic has put organizational resilience at the centre of everthing OC Oerlikon Pfaeffikon ADR does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– OC Oerlikon Pfaeffikon ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled OC Oerlikon Pfaeffikon ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy of OC Oerlikon Pfaeffikon 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.
Sustainable margins compare to other players in industry
– OC Oerlikon Pfaeffikon ADR has clearly differentiated products in the market place. This has enabled OC Oerlikon Pfaeffikon ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped OC Oerlikon Pfaeffikon ADR to invest into research and development (R&D) and innovation.
Analytics focus
– OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon 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.
Superior customer experience
– The customer experience strategy of OC Oerlikon Pfaeffikon ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– OC Oerlikon Pfaeffikon ADR has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – OC Oerlikon Pfaeffikon ADR staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– OC Oerlikon Pfaeffikon ADR has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. OC Oerlikon Pfaeffikon ADR has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in industry
- digital transformation varies from industry to industry. For OC Oerlikon Pfaeffikon ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. OC Oerlikon Pfaeffikon 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.
Learning organization
- OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at OC Oerlikon Pfaeffikon ADR emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– OC Oerlikon Pfaeffikon ADR is present in almost all the verticals within the industry. This has provided OC Oerlikon Pfaeffikon 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.
Weaknesses of OC Oerlikon Pfaeffikon ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of OC Oerlikon Pfaeffikon ADR are -
Employees’ less understanding of OC Oerlikon Pfaeffikon ADR strategy
– From the outside it seems that the employees of OC Oerlikon Pfaeffikon ADR don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, OC Oerlikon Pfaeffikon ADR has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, OC Oerlikon Pfaeffikon ADR is slow explore the new channels of communication. These new channels of communication can help OC Oerlikon Pfaeffikon ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of United States, OC Oerlikon Pfaeffikon ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR lucrative customers.
Compensation and incentives
– The revenue per employee of OC Oerlikon Pfaeffikon 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.
Slow decision making process
– As mentioned earlier in the report, OC Oerlikon Pfaeffikon 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. OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR is dominated by functional specialists. It is not different from other players in the industry, but OC Oerlikon Pfaeffikon ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help OC Oerlikon Pfaeffikon ADR to focus more on services in the industry rather than just following the product oriented approach.
Products dominated business model
– Even though OC Oerlikon Pfaeffikon 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. OC Oerlikon Pfaeffikon ADR should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– From the 10K / annual statement of OC Oerlikon Pfaeffikon 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.
Slow to strategic competitive environment developments
– As OC Oerlikon Pfaeffikon 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.
OC Oerlikon Pfaeffikon ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of OC Oerlikon Pfaeffikon ADR are -
Better consumer reach
– The expansion of the 5G network will help OC Oerlikon Pfaeffikon ADR to increase its market reach. OC Oerlikon Pfaeffikon 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.
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. OC Oerlikon Pfaeffikon 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. OC Oerlikon Pfaeffikon 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for OC Oerlikon Pfaeffikon ADR in the industry. Now OC Oerlikon Pfaeffikon ADR can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of OC Oerlikon Pfaeffikon ADR has opened avenues for new revenue streams for the organization in industry. This can help OC Oerlikon Pfaeffikon ADR to build a more holistic ecosystem for OC Oerlikon Pfaeffikon ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for OC Oerlikon Pfaeffikon ADR in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, OC Oerlikon Pfaeffikon ADR can use these opportunities to build new business models that can help the communities that OC Oerlikon Pfaeffikon ADR operates in. Secondly it can use opportunities from government spending in sector.
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 OC Oerlikon Pfaeffikon 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.
Manufacturing automation
– OC Oerlikon Pfaeffikon 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.
Building a culture of innovation
– managers at OC Oerlikon Pfaeffikon 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, OC Oerlikon Pfaeffikon ADR is facing challenges because of the dominance of functional experts in the organization. OC Oerlikon Pfaeffikon 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, OC Oerlikon Pfaeffikon 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.
Leveraging digital technologies
– OC Oerlikon Pfaeffikon ADR 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.
Developing new processes and practices
– OC Oerlikon Pfaeffikon ADR can develop new processes and procedures in 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 OC Oerlikon Pfaeffikon ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of OC Oerlikon Pfaeffikon ADR are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for OC Oerlikon Pfaeffikon 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, OC Oerlikon Pfaeffikon 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.
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. OC Oerlikon Pfaeffikon 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.
Stagnating economy with rate increase
– OC Oerlikon Pfaeffikon 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.
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 OC Oerlikon Pfaeffikon ADR.
Consumer confidence and its impact on OC Oerlikon Pfaeffikon 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.
Shortening product life cycle
– it is one of the major threat that OC Oerlikon Pfaeffikon ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR.
Technology acceleration in Forth Industrial Revolution
– OC Oerlikon Pfaeffikon ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, OC Oerlikon Pfaeffikon 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.
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 OC Oerlikon Pfaeffikon ADR in the sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents OC Oerlikon Pfaeffikon ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– OC Oerlikon Pfaeffikon 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.
Weighted SWOT Analysis of OC Oerlikon Pfaeffikon ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon 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 OC Oerlikon Pfaeffikon ADR needs to make to build a sustainable competitive advantage.
