SWOT Analysis / TOWS Matrix for GVIC Communications Corp. (Canada)
Based on various researches at Oak Spring University , GVIC Communications Corp. is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , wage bills are increasing, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of GVIC Communications Corp.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that GVIC Communications Corp. can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the GVIC Communications Corp., and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which GVIC Communications Corp. 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 GVIC Communications Corp. can be done for the following purposes –
1. Strategic planning of GVIC Communications Corp.
2. Improving business portfolio management of GVIC Communications Corp.
3. Assessing feasibility of the new initiative in Canada
4. Making a Printing & Publishing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of GVIC Communications Corp.
Strengths of GVIC Communications Corp. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of GVIC Communications Corp. are -
Training and development
– GVIC Communications Corp. has one of the best training and development program in Services 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.
Ability to recruit top talent
– GVIC Communications Corp. is one of the leading players in the Printing & Publishing industry in Canada. It is in a position to attract the best talent available in Canada. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Printing & Publishing
– GVIC Communications Corp. is one of the leading players in the Printing & Publishing industry in Canada. Over the years it has not only transformed the business landscape in the Printing & Publishing industry in Canada but also across the existing markets. The ability to lead change has enabled GVIC Communications Corp. in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy of GVIC Communications Corp. comprises – understanding the underlying the factors in the Printing & Publishing 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.
Learning organization
- GVIC Communications Corp. 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 GVIC Communications Corp. is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at GVIC Communications Corp. emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that GVIC Communications Corp. 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.
Low bargaining power of suppliers
– Suppliers of GVIC Communications Corp. in the Services sector have low bargaining power. GVIC Communications Corp. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps GVIC Communications Corp. to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Printing & Publishing industry
– GVIC Communications Corp. has clearly differentiated products in the market place. This has enabled GVIC Communications Corp. to fetch slight price premium compare to the competitors in the Printing & Publishing industry. The sustainable margins have also helped GVIC Communications Corp. to invest into research and development (R&D) and innovation.
High brand equity
– GVIC Communications Corp. has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled GVIC Communications Corp. to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the Printing & Publishing industry
– GVIC Communications Corp. is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of GVIC Communications Corp. in Printing & Publishing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– GVIC Communications Corp. has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. GVIC Communications Corp. 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.
Weaknesses of GVIC Communications Corp. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GVIC Communications Corp. are -
Interest costs
– Compare to the competition, GVIC Communications Corp. has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on GVIC Communications Corp. ‘s star products
– The top 2 products and services of GVIC Communications Corp. still accounts for major business revenue. This dependence on star products in Printing & Publishing industry has resulted into insufficient focus on developing new products, even though GVIC Communications Corp. has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, GVIC Communications Corp. is slow explore the new channels of communication. These new channels of communication can help GVIC Communications Corp. to provide better information regarding Printing & Publishing 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 Canada, GVIC Communications Corp. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring in Printing & Publishing industry
– The stress on hiring functional specialists at GVIC Communications Corp. 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
– GVIC Communications Corp. has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
GVIC Communications Corp. has a high cash cycle compare to other players in the Printing & Publishing industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee of GVIC Communications Corp. is just above the Printing & Publishing 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.
Ability to respond to the competition
– As the decision making is very deliberative at GVIC Communications Corp., in the dynamic environment of Printing & Publishing industry it has struggled to respond to the nimble upstart competition. GVIC Communications Corp. has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though GVIC Communications Corp. has some of the most successful models in the Printing & Publishing industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. GVIC Communications Corp. should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners in Printing & Publishing industry
– because of the regulatory requirements in Canada, GVIC Communications Corp. 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 Printing & Publishing industry.
GVIC Communications Corp. Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of GVIC Communications Corp. are -
Using analytics as competitive advantage
– GVIC Communications Corp. has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Printing & Publishing sector. This continuous investment in analytics has enabled GVIC Communications Corp. to build a competitive advantage using analytics. The analytics driven competitive advantage can help GVIC Communications Corp. to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– GVIC Communications Corp. can develop new processes and procedures in Printing & Publishing 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Printing & Publishing industry, but it has also influenced the consumer preferences. GVIC Communications Corp. 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. GVIC Communications Corp. can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– GVIC Communications Corp. can improve the customer journey of consumers in the Printing & Publishing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for GVIC Communications Corp. in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Printing & Publishing industry, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, GVIC Communications Corp. 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.
Manufacturing automation
– GVIC Communications Corp. can use the latest technology developments to improve its manufacturing and designing process in Printing & Publishing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, GVIC Communications Corp. is facing challenges because of the dominance of functional experts in the organization. GVIC Communications Corp. can utilize new technology in the field of Printing & Publishing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of GVIC Communications Corp. has opened avenues for new revenue streams for the organization in Printing & Publishing industry. This can help GVIC Communications Corp. to build a more holistic ecosystem for GVIC Communications Corp. products in the Printing & Publishing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Printing & Publishing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for GVIC Communications Corp. in the Printing & Publishing industry. Now GVIC Communications Corp. can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, GVIC Communications Corp. 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 GVIC Communications Corp. to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for GVIC Communications Corp. 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 GVIC Communications Corp. to hire the very best people irrespective of their geographical location.
Threats GVIC Communications Corp. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of GVIC Communications Corp. are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, GVIC Communications Corp. 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 GVIC Communications Corp. prominent markets.
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 GVIC Communications Corp..
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for GVIC Communications Corp. in Printing & Publishing industry. The Printing & Publishing 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.
Regulatory challenges
– GVIC Communications Corp. 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 Printing & Publishing industry regulations.
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 GVIC Communications Corp. business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, GVIC Communications Corp. may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Printing & Publishing sector.
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.
Easy access to finance
– Easy access to finance in Printing & Publishing industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. GVIC Communications Corp. can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– GVIC Communications Corp. has witnessed rapid integration of technology during Covid-19 in the Printing & Publishing industry. As one of the leading players in the industry, GVIC Communications Corp. needs to keep up with the evolution of technology in the Printing & Publishing 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 GVIC Communications Corp. in the Printing & Publishing sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Printing & Publishing industry are lowering. It can presents GVIC Communications Corp. with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing & Publishing sector.
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. GVIC Communications Corp. needs to understand the core reasons impacting the Printing & Publishing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– GVIC Communications Corp. 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 Printing & Publishing industry.
Weighted SWOT Analysis of GVIC Communications Corp. Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at GVIC Communications Corp. 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 GVIC Communications Corp. 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 GVIC Communications Corp. 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 GVIC Communications Corp. 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 GVIC Communications Corp. needs to make to build a sustainable competitive advantage.
