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 transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing energy prices, there is increasing trade war between United States & China,
increasing commodity prices, supply chains are disrupted by pandemic , 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 -
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.
Training and development
– SOPerior Fertilizer has one of the best training and development program in Basic Materials 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.
Diverse revenue streams
– SOPerior Fertilizer is present in almost all the verticals within the Non-Metallic Mining industry. This has provided SOPerior Fertilizer 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.
Effective Research and Development (R&D)
– SOPerior Fertilizer has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – SOPerior Fertilizer staying ahead in the Non-Metallic Mining industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of SOPerior Fertilizer
– The covid-19 pandemic has put organizational resilience at the centre of everthing SOPerior Fertilizer does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Learning organization
- SOPerior Fertilizer 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 SOPerior Fertilizer is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at SOPerior Fertilizer emphasize – knowledge, initiative, and innovation.
High brand equity
– SOPerior Fertilizer has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled SOPerior Fertilizer to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Non-Metallic Mining industry
- digital transformation varies from industry to industry. For SOPerior Fertilizer digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. SOPerior Fertilizer 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.
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.
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 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.
Employees’ less understanding of SOPerior Fertilizer strategy
– From the outside it seems that the employees of SOPerior Fertilizer don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Canada, SOPerior Fertilizer needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 bargaining power of channel partners in Non-Metallic Mining industry
– because of the regulatory requirements in Canada, SOPerior Fertilizer 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 Non-Metallic Mining industry.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, SOPerior Fertilizer has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Non-Metallic Mining industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, 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.
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.
No frontier risks strategy
– From the 10K / annual statement of SOPerior Fertilizer, it seems that company is thinking out the frontier risks that can impact Non-Metallic Mining industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
SOPerior Fertilizer Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of SOPerior Fertilizer are -
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.
Creating value in data economy
– The success of analytics program of SOPerior Fertilizer has opened avenues for new revenue streams for the organization in Non-Metallic Mining industry. This can help SOPerior Fertilizer to build a more holistic ecosystem for SOPerior Fertilizer products in the Non-Metallic Mining industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– SOPerior Fertilizer has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Non-Metallic Mining sector. This continuous investment in analytics has enabled SOPerior Fertilizer to build a competitive advantage using analytics. The analytics driven competitive advantage can help SOPerior Fertilizer 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
– 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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects SOPerior Fertilizer can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, SOPerior Fertilizer 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 SOPerior Fertilizer to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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 -
Environmental challenges
– SOPerior Fertilizer 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. SOPerior Fertilizer can take advantage of this fund but it will also bring new competitors 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.
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 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for SOPerior Fertilizer in Non-Metallic Mining industry. The Non-Metallic Mining 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.
Technology acceleration in Forth Industrial Revolution
– SOPerior Fertilizer has witnessed rapid integration of technology during Covid-19 in the Non-Metallic Mining industry. As one of the leading players in the industry, SOPerior Fertilizer needs to keep up with the evolution of technology in the Non-Metallic Mining 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.
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.
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.
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.
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.
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.
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.
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.