Tav Havalimanlari Holding AS (TAVHY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Tav Havalimanlari Holding AS (United States)
Based on various researches at Oak Spring University , Tav Havalimanlari Holding AS is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, wage bills are increasing, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic ,
cloud computing is disrupting traditional business models, increasing commodity prices, etc
Introduction to SWOT Analysis of Tav Havalimanlari Holding AS
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Tav Havalimanlari Holding AS can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tav Havalimanlari Holding AS, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS can be done for the following purposes –
1. Strategic planning of Tav Havalimanlari Holding AS
2. Improving business portfolio management of Tav Havalimanlari Holding AS
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tav Havalimanlari Holding AS
Strengths of Tav Havalimanlari Holding AS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tav Havalimanlari Holding AS are -
Cross disciplinary teams
– Horizontal connected teams at the Tav Havalimanlari Holding AS 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.
High switching costs
– The high switching costs that Tav Havalimanlari Holding AS 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.
Strong track record of project management in the industry
– Tav Havalimanlari Holding AS is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Tav Havalimanlari Holding AS in the sector have low bargaining power. Tav Havalimanlari Holding AS has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tav Havalimanlari Holding AS to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Tav Havalimanlari Holding AS has one of the best training and development program in 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.
Successful track record of launching new products
– Tav Havalimanlari Holding AS has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tav Havalimanlari Holding AS 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Tav Havalimanlari Holding AS digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tav Havalimanlari Holding AS 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.
Analytics focus
– Tav Havalimanlari Holding AS 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 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.
Innovation driven organization
– Tav Havalimanlari Holding AS is one of the most innovative firm in sector.
Operational resilience
– The operational resilience strategy of Tav Havalimanlari Holding AS comprises – understanding the underlying the factors in the 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.
Sustainable margins compare to other players in industry
– Tav Havalimanlari Holding AS has clearly differentiated products in the market place. This has enabled Tav Havalimanlari Holding AS to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Tav Havalimanlari Holding AS to invest into research and development (R&D) and innovation.
High brand equity
– Tav Havalimanlari Holding AS has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tav Havalimanlari Holding AS to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Tav Havalimanlari Holding AS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tav Havalimanlari Holding AS are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tav Havalimanlari Holding AS is slow explore the new channels of communication. These new channels of communication can help Tav Havalimanlari Holding AS to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on Tav Havalimanlari Holding AS ‘s star products
– The top 2 products and services of Tav Havalimanlari Holding AS still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Tav Havalimanlari Holding AS has relatively successful track record of launching new products.
Need for greater diversity
– Tav Havalimanlari Holding AS 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.
No frontier risks strategy
– From the 10K / annual statement of Tav Havalimanlari Holding AS, it seems that company is thinking out the frontier risks that can impact 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.
High cash cycle compare to competitors
Tav Havalimanlari Holding AS has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Tav Havalimanlari Holding AS products
– To increase the profitability and margins on the products, Tav Havalimanlari Holding AS needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Tav Havalimanlari Holding AS 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 industry.
Workers concerns about automation
– As automation is fast increasing in the industry, Tav Havalimanlari Holding AS 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.
Slow to strategic competitive environment developments
– As Tav Havalimanlari Holding AS is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High operating costs
– Compare to the competitors, Tav Havalimanlari Holding AS has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Tav Havalimanlari Holding AS lucrative customers.
Skills based hiring in industry
– The stress on hiring functional specialists at Tav Havalimanlari Holding AS 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.
Tav Havalimanlari Holding AS Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Tav Havalimanlari Holding AS are -
Loyalty marketing
– Tav Havalimanlari Holding AS 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.
Creating value in data economy
– The success of analytics program of Tav Havalimanlari Holding AS has opened avenues for new revenue streams for the organization in industry. This can help Tav Havalimanlari Holding AS to build a more holistic ecosystem for Tav Havalimanlari Holding AS products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Tav Havalimanlari Holding AS can use the latest technology developments to improve its manufacturing and designing process in 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.
Using analytics as competitive advantage
– Tav Havalimanlari Holding AS has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Tav Havalimanlari Holding AS to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tav Havalimanlari Holding AS to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tav Havalimanlari Holding AS 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tav Havalimanlari Holding AS in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tav Havalimanlari Holding AS can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Tav Havalimanlari Holding AS can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Tav Havalimanlari Holding AS can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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. Tav Havalimanlari Holding AS can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Tav Havalimanlari Holding AS can improve the customer journey of consumers in the 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.
Threats Tav Havalimanlari Holding AS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Tav Havalimanlari Holding AS are -
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. Tav Havalimanlari Holding AS needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS prominent markets.
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 Tav Havalimanlari Holding AS business can come under increasing regulations regarding data privacy, data security, etc.
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 Tav Havalimanlari Holding AS.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Tav Havalimanlari Holding AS with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Tav Havalimanlari Holding AS 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.
Increasing wage structure of Tav Havalimanlari Holding AS
– 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 Tav Havalimanlari Holding AS.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tav Havalimanlari Holding AS in industry. The 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.
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 Tav Havalimanlari Holding AS in the 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Tav Havalimanlari Holding AS may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Regulatory challenges
– Tav Havalimanlari Holding AS 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 industry regulations.
Environmental challenges
– Tav Havalimanlari Holding AS 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. Tav Havalimanlari Holding AS can take advantage of this fund but it will also bring new competitors in the industry.
Weighted SWOT Analysis of Tav Havalimanlari Holding AS Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS 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 Tav Havalimanlari Holding AS needs to make to build a sustainable competitive advantage.