SWOT Analysis / TOWS Matrix for SOPerior Fertilizer (Canada)
Based on various researches at Oak Spring University , SOPerior Fertilizer is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs,
cloud computing is disrupting traditional business models, geopolitical disruptions, etc
Introduction to SWOT Analysis of SOPerior Fertilizer
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that SOPerior Fertilizer can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the SOPerior Fertilizer, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which SOPerior Fertilizer 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 SOPerior Fertilizer can be done for the following purposes –
1. Strategic planning of SOPerior Fertilizer
2. Improving business portfolio management of SOPerior Fertilizer
3. Assessing feasibility of the new initiative in Canada
4. Making a Non-Metallic Mining sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of SOPerior Fertilizer
Strengths of SOPerior Fertilizer | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of SOPerior Fertilizer are -
Innovation driven organization
– SOPerior Fertilizer is one of the most innovative firm in Non-Metallic Mining sector.
Superior customer experience
– The customer experience strategy of SOPerior Fertilizer in Non-Metallic Mining industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the SOPerior Fertilizer 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.
Strong track record of project management in the Non-Metallic Mining industry
– SOPerior Fertilizer is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that SOPerior Fertilizer 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.
Ability to lead change in Non-Metallic Mining
– SOPerior Fertilizer is one of the leading players in the Non-Metallic Mining industry in Canada. Over the years it has not only transformed the business landscape in the Non-Metallic Mining industry in Canada but also across the existing markets. The ability to lead change has enabled SOPerior Fertilizer in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– SOPerior Fertilizer has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Non-Metallic Mining industry. Secondly the value chain collaborators of SOPerior Fertilizer have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– SOPerior Fertilizer 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 Non-Metallic Mining industry. The technology infrastructure of Canada 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.
Sustainable margins compare to other players in Non-Metallic Mining industry
– SOPerior Fertilizer has clearly differentiated products in the market place. This has enabled SOPerior Fertilizer to fetch slight price premium compare to the competitors in the Non-Metallic Mining industry. The sustainable margins have also helped SOPerior Fertilizer to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– SOPerior Fertilizer has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. SOPerior Fertilizer 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.
Operational resilience
– The operational resilience strategy of SOPerior Fertilizer comprises – understanding the underlying the factors in the Non-Metallic Mining 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.
Low bargaining power of suppliers
– Suppliers of SOPerior Fertilizer in the Basic Materials sector have low bargaining power. SOPerior Fertilizer has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps SOPerior Fertilizer to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of SOPerior Fertilizer | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SOPerior Fertilizer are -
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 SOPerior Fertilizer supply chain. Even after few cautionary changes, SOPerior Fertilizer is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left SOPerior Fertilizer 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, SOPerior Fertilizer is slow explore the new channels of communication. These new channels of communication can help SOPerior Fertilizer to provide better information regarding Non-Metallic Mining products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though SOPerior Fertilizer has some of the most successful models in the Non-Metallic Mining industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. SOPerior Fertilizer should strive to include more intangible value offerings along with its core products and services.
High dependence on SOPerior Fertilizer ‘s star products
– The top 2 products and services of SOPerior Fertilizer still accounts for major business revenue. This dependence on star products in Non-Metallic Mining industry has resulted into insufficient focus on developing new products, even though SOPerior Fertilizer has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of SOPerior Fertilizer is just above the Non-Metallic Mining 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.
Aligning sales with marketing
– From the outside it seems that SOPerior Fertilizer needs to have more collaboration between its sales team and marketing team. Sales professionals in the Non-Metallic Mining industry have deep experience in developing customer relationships. Marketing department at SOPerior Fertilizer can leverage the sales team experience to cultivate customer relationships as SOPerior Fertilizer is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, SOPerior Fertilizer has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Non-Metallic Mining industry over the last five years. SOPerior Fertilizer 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 SOPerior Fertilizer is dominated by functional specialists. It is not different from other players in the Non-Metallic Mining industry, but SOPerior Fertilizer needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help SOPerior Fertilizer to focus more on services in the Non-Metallic Mining industry rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As SOPerior Fertilizer is one of the leading players in the Non-Metallic Mining industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Non-Metallic Mining industry in last five years.
Need for greater diversity
– SOPerior Fertilizer 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.
Interest costs
– Compare to the competition, SOPerior Fertilizer 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.
SOPerior Fertilizer Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of SOPerior Fertilizer are -
Manufacturing automation
– SOPerior Fertilizer can use the latest technology developments to improve its manufacturing and designing process in Non-Metallic Mining 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.
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 SOPerior Fertilizer 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Non-Metallic Mining industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. SOPerior Fertilizer 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. SOPerior Fertilizer 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for SOPerior Fertilizer in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Non-Metallic Mining industry, and it will provide faster access to the consumers.
Developing new processes and practices
– SOPerior Fertilizer can develop new processes and procedures in Non-Metallic Mining 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, SOPerior Fertilizer 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, SOPerior Fertilizer can use these opportunities to build new business models that can help the communities that SOPerior Fertilizer operates in. Secondly it can use opportunities from government spending in Non-Metallic Mining sector.
Building a culture of innovation
– managers at SOPerior Fertilizer 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 Non-Metallic Mining industry.
Buying journey improvements
– SOPerior Fertilizer can improve the customer journey of consumers in the Non-Metallic Mining 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.
Use of Bitcoin and other crypto currencies for transactions in Non-Metallic Mining industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for SOPerior Fertilizer in the Non-Metallic Mining industry. Now SOPerior Fertilizer can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, SOPerior Fertilizer is facing challenges because of the dominance of functional experts in the organization. SOPerior Fertilizer can utilize new technology in the field of Non-Metallic Mining industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help SOPerior Fertilizer to increase its market reach. SOPerior Fertilizer 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Non-Metallic Mining industry, but it has also influenced the consumer preferences. SOPerior Fertilizer can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats SOPerior Fertilizer External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of SOPerior Fertilizer are -
Easy access to finance
– Easy access to finance in Non-Metallic Mining industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. SOPerior Fertilizer can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, SOPerior Fertilizer 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 SOPerior Fertilizer prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Non-Metallic Mining industry are lowering. It can presents SOPerior Fertilizer with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Non-Metallic Mining sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, SOPerior Fertilizer may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Non-Metallic Mining sector.
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 SOPerior Fertilizer business can come under increasing regulations regarding data privacy, data security, etc.
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. SOPerior Fertilizer needs to understand the core reasons impacting the Non-Metallic Mining industry. This will help it in building a better workplace.
Consumer confidence and its impact on SOPerior Fertilizer 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 Non-Metallic Mining industry and other sectors.
Stagnating economy with rate increase
– SOPerior Fertilizer 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 Non-Metallic Mining industry.
Shortening product life cycle
– it is one of the major threat that SOPerior Fertilizer is facing in Non-Metallic Mining sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of SOPerior Fertilizer
– 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 SOPerior Fertilizer.
High dependence on third party suppliers
– SOPerior Fertilizer 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.
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 SOPerior Fertilizer in the Non-Metallic Mining sector and impact the bottomline of the organization.
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.
Weighted SWOT Analysis of SOPerior Fertilizer Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at SOPerior Fertilizer 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 SOPerior Fertilizer 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 SOPerior Fertilizer 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 SOPerior Fertilizer 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 SOPerior Fertilizer needs to make to build a sustainable competitive advantage.