Aeroportuario del Centro Norte (OMAB) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Transportation
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Aeroportuario del Centro Norte (United States)
Based on various researches at Oak Spring University , Aeroportuario del Centro Norte is operating in a macro-environment that has been destablized by – increasing energy prices, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Aeroportuario del Centro Norte
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Aeroportuario del Centro Norte can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aeroportuario del Centro Norte, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte can be done for the following purposes –
1. Strategic planning of Aeroportuario del Centro Norte
2. Improving business portfolio management of Aeroportuario del Centro Norte
3. Assessing feasibility of the new initiative in United States
4. Making a Misc. Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Aeroportuario del Centro Norte
Strengths of Aeroportuario del Centro Norte | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aeroportuario del Centro Norte are -
Highly skilled collaborators
– Aeroportuario del Centro Norte has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Transportation industry. Secondly the value chain collaborators of Aeroportuario del Centro Norte have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Aeroportuario del Centro Norte 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.
Superior customer experience
– The customer experience strategy of Aeroportuario del Centro Norte in Misc. Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Aeroportuario del Centro Norte in the Transportation sector have low bargaining power. Aeroportuario del Centro Norte has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aeroportuario del Centro Norte to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Aeroportuario del Centro Norte is present in almost all the verticals within the Misc. Transportation industry. This has provided Aeroportuario del Centro Norte 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.
Ability to recruit top talent
– Aeroportuario del Centro Norte is one of the leading players in the Misc. Transportation 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.
High brand equity
– Aeroportuario del Centro Norte has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Aeroportuario del Centro Norte to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Aeroportuario del Centro Norte has one of the best training and development program in Transportation 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.
Sustainable margins compare to other players in Misc. Transportation industry
– Aeroportuario del Centro Norte has clearly differentiated products in the market place. This has enabled Aeroportuario del Centro Norte to fetch slight price premium compare to the competitors in the Misc. Transportation industry. The sustainable margins have also helped Aeroportuario del Centro Norte to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Aeroportuario del Centro Norte has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Aeroportuario del Centro Norte staying ahead in the Misc. Transportation industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Misc. Transportation industry
- digital transformation varies from industry to industry. For Aeroportuario del Centro Norte digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Aeroportuario del Centro Norte 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.
Operational resilience
– The operational resilience strategy of Aeroportuario del Centro Norte comprises – understanding the underlying the factors in the Misc. Transportation 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 Aeroportuario del Centro Norte | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aeroportuario del Centro Norte are -
Workers concerns about automation
– As automation is fast increasing in the Misc. Transportation industry, Aeroportuario del Centro Norte 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.
Increasing silos among functional specialists
– The organizational structure of Aeroportuario del Centro Norte is dominated by functional specialists. It is not different from other players in the Misc. Transportation industry, but Aeroportuario del Centro Norte needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aeroportuario del Centro Norte to focus more on services in the Misc. Transportation industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Aeroportuario del Centro Norte, in the dynamic environment of Misc. Transportation industry it has struggled to respond to the nimble upstart competition. Aeroportuario del Centro Norte has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Aeroportuario del Centro Norte has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Transportation industry over the last five years. Aeroportuario del Centro Norte 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.
High bargaining power of channel partners in Misc. Transportation industry
– because of the regulatory requirements in United States, Aeroportuario del Centro Norte 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 Misc. Transportation industry.
High dependence on Aeroportuario del Centro Norte ‘s star products
– The top 2 products and services of Aeroportuario del Centro Norte still accounts for major business revenue. This dependence on star products in Misc. Transportation industry has resulted into insufficient focus on developing new products, even though Aeroportuario del Centro Norte has relatively successful track record of launching new products.
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 Aeroportuario del Centro Norte supply chain. Even after few cautionary changes, Aeroportuario del Centro Norte is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Aeroportuario del Centro Norte vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aeroportuario del Centro Norte is slow explore the new channels of communication. These new channels of communication can help Aeroportuario del Centro Norte to provide better information regarding Misc. Transportation products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of Aeroportuario del Centro Norte is just above the Misc. Transportation 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.
Lack of clear differentiation of Aeroportuario del Centro Norte products
– To increase the profitability and margins on the products, Aeroportuario del Centro Norte needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– From the outside it seems that Aeroportuario del Centro Norte needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Transportation industry have deep experience in developing customer relationships. Marketing department at Aeroportuario del Centro Norte can leverage the sales team experience to cultivate customer relationships as Aeroportuario del Centro Norte is planning to shift buying processes online.
Aeroportuario del Centro Norte Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Aeroportuario del Centro Norte are -
Better consumer reach
– The expansion of the 5G network will help Aeroportuario del Centro Norte to increase its market reach. Aeroportuario del Centro Norte 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.
Developing new processes and practices
– Aeroportuario del Centro Norte can develop new processes and procedures in Misc. Transportation 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aeroportuario del Centro Norte can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Aeroportuario del Centro Norte can improve the customer journey of consumers in the Misc. Transportation 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.
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. Aeroportuario del Centro Norte can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Aeroportuario del Centro Norte can use the latest technology developments to improve its manufacturing and designing process in Misc. Transportation 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.
Leveraging digital technologies
– Aeroportuario del Centro Norte 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.
Creating value in data economy
– The success of analytics program of Aeroportuario del Centro Norte has opened avenues for new revenue streams for the organization in Misc. Transportation industry. This can help Aeroportuario del Centro Norte to build a more holistic ecosystem for Aeroportuario del Centro Norte products in the Misc. Transportation industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions in Misc. Transportation industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Aeroportuario del Centro Norte in the Misc. Transportation industry. Now Aeroportuario del Centro Norte can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Aeroportuario del Centro Norte 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Transportation industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Aeroportuario del Centro Norte 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. Aeroportuario del Centro Norte 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, Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Aeroportuario del Centro Norte External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Aeroportuario del Centro Norte are -
Increasing wage structure of Aeroportuario del Centro Norte
– 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 Aeroportuario del Centro Norte.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Aeroportuario del Centro Norte may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Transportation sector.
Environmental challenges
– Aeroportuario del Centro Norte 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. Aeroportuario del Centro Norte can take advantage of this fund but it will also bring new competitors in the Misc. Transportation industry.
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. Aeroportuario del Centro Norte 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.
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 Aeroportuario del Centro Norte.
High dependence on third party suppliers
– Aeroportuario del Centro Norte 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.
Easy access to finance
– Easy access to finance in Misc. Transportation industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Aeroportuario del Centro Norte can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Aeroportuario del Centro Norte 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 Misc. Transportation industry regulations.
Technology acceleration in Forth Industrial Revolution
– Aeroportuario del Centro Norte has witnessed rapid integration of technology during Covid-19 in the Misc. Transportation industry. As one of the leading players in the industry, Aeroportuario del Centro Norte needs to keep up with the evolution of technology in the Misc. Transportation 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 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. Aeroportuario del Centro Norte needs to understand the core reasons impacting the Misc. Transportation industry. This will help it in building a better workplace.
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 Aeroportuario del Centro Norte in the Misc. Transportation sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Aeroportuario del Centro Norte is facing in Misc. Transportation sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte prominent markets.
Weighted SWOT Analysis of Aeroportuario del Centro Norte Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte 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 Aeroportuario del Centro Norte needs to make to build a sustainable competitive advantage.