Aeroportuario del Centro Norte (OMAB) SWOT Analysis / TOWS Matrix / 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 – wage bills are increasing, there is increasing trade war between United States & China, increasing household debt because of falling income levels, there is backlash against globalization, geopolitical disruptions, central banks are concerned over increasing inflation, technology disruption, increasing energy prices, increasing transportation and logistics costs, etc

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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.

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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

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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 -

Innovation driven organization

– Aeroportuario del Centro Norte is one of the most innovative firm in Misc. Transportation sector.

Ability to lead change in Misc. Transportation

– Aeroportuario del Centro Norte is one of the leading players in the Misc. Transportation industry in United States. Over the years it has not only transformed the business landscape in the Misc. Transportation industry in United States but also across the existing markets. The ability to lead change has enabled Aeroportuario del Centro Norte in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Superior customer experience

– The customer experience strategy of Aeroportuario del Centro Norte in Misc. Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Analytics focus

– Aeroportuario del Centro Norte 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 Misc. Transportation 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.

Organizational Resilience of Aeroportuario del Centro Norte

– The covid-19 pandemic has put organizational resilience at the centre of everthing Aeroportuario del Centro Norte does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

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.

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.

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.

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.

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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 -

High cash cycle compare to competitors

Aeroportuario del Centro Norte has a high cash cycle compare to other players in the Misc. Transportation industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Products dominated business model

– Even though Aeroportuario del Centro Norte has some of the most successful models in the Misc. Transportation industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Aeroportuario del Centro Norte should strive to include more intangible value offerings along with its core products and services.

Slow to strategic competitive environment developments

– As Aeroportuario del Centro Norte is one of the leading players in the Misc. Transportation industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Transportation industry in last five years.

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.

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.

Skills based hiring in Misc. Transportation industry

– The stress on hiring functional specialists at Aeroportuario del Centro Norte has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Need for greater diversity

– Aeroportuario del Centro Norte 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.

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.

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.

High operating costs

– Compare to the competitors, Aeroportuario del Centro Norte has high operating costs in the Misc. Transportation industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Aeroportuario del Centro Norte lucrative customers.

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.

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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 -

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.

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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Misc. Transportation industry, but it has also influenced the consumer preferences. Aeroportuario del Centro Norte can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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.

Building a culture of innovation

– managers at Aeroportuario del Centro Norte 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 Misc. Transportation industry.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Aeroportuario del Centro Norte in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Transportation industry, and it will provide faster access to the consumers.

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Aeroportuario del Centro Norte can use these opportunities to build new business models that can help the communities that Aeroportuario del Centro Norte operates in. Secondly it can use opportunities from government spending in Misc. Transportation sector.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Aeroportuario del Centro Norte is facing challenges because of the dominance of functional experts in the organization. Aeroportuario del Centro Norte can utilize new technology in the field of Misc. Transportation industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Using analytics as competitive advantage

– Aeroportuario del Centro Norte has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Transportation sector. This continuous investment in analytics has enabled Aeroportuario del Centro Norte to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aeroportuario del Centro Norte to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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.

Loyalty marketing

– Aeroportuario del Centro Norte has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

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.

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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 -

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.

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.

Stagnating economy with rate increase

– Aeroportuario del Centro Norte 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 Misc. Transportation industry.

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.

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.

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.

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 Aeroportuario del Centro Norte business can come under increasing regulations regarding data privacy, data security, etc.

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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Misc. Transportation industry are lowering. It can presents Aeroportuario del Centro Norte with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Transportation sector.

Consumer confidence and its impact on Aeroportuario del Centro Norte 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 Misc. Transportation industry and other sectors.

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.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Aeroportuario del Centro Norte in Misc. Transportation industry. The Misc. Transportation 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.

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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.

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