Terna Rete Elettrica Nazionale (TEZNY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Terna Rete Elettrica Nazionale (United States)
Based on various researches at Oak Spring University , Terna Rete Elettrica Nazionale is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs,
competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Terna Rete Elettrica Nazionale
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Terna Rete Elettrica Nazionale can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Terna Rete Elettrica Nazionale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale can be done for the following purposes –
1. Strategic planning of Terna Rete Elettrica Nazionale
2. Improving business portfolio management of Terna Rete Elettrica Nazionale
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 Terna Rete Elettrica Nazionale
Strengths of Terna Rete Elettrica Nazionale | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Terna Rete Elettrica Nazionale are -
Ability to lead change in
– Terna Rete Elettrica Nazionale is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Terna Rete Elettrica Nazionale in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management in the industry
– Terna Rete Elettrica Nazionale is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Terna Rete Elettrica Nazionale 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.
Analytics focus
– Terna Rete Elettrica Nazionale 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.
Sustainable margins compare to other players in industry
– Terna Rete Elettrica Nazionale has clearly differentiated products in the market place. This has enabled Terna Rete Elettrica Nazionale to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Terna Rete Elettrica Nazionale to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Terna Rete Elettrica Nazionale has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Terna Rete Elettrica Nazionale staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Terna Rete Elettrica Nazionale has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Terna Rete Elettrica Nazionale have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Terna Rete Elettrica Nazionale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Terna Rete Elettrica Nazionale 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.
Learning organization
- Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Terna Rete Elettrica Nazionale emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Terna Rete Elettrica Nazionale is present in almost all the verticals within the industry. This has provided Terna Rete Elettrica Nazionale 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.
High brand equity
– Terna Rete Elettrica Nazionale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Terna Rete Elettrica Nazionale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Terna Rete Elettrica Nazionale digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Terna Rete Elettrica Nazionale 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.
Weaknesses of Terna Rete Elettrica Nazionale | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Terna Rete Elettrica Nazionale are -
Aligning sales with marketing
– From the outside it seems that Terna Rete Elettrica Nazionale needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Terna Rete Elettrica Nazionale can leverage the sales team experience to cultivate customer relationships as Terna Rete Elettrica Nazionale is planning to shift buying processes online.
Employees’ less understanding of Terna Rete Elettrica Nazionale strategy
– From the outside it seems that the employees of Terna Rete Elettrica Nazionale 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.
No frontier risks strategy
– From the 10K / annual statement of Terna Rete Elettrica Nazionale, 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
Terna Rete Elettrica Nazionale 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Terna Rete Elettrica Nazionale 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.
Low market penetration in new markets
– Outside its home market of United States, Terna Rete Elettrica Nazionale needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Terna Rete Elettrica Nazionale 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.
Lack of clear differentiation of Terna Rete Elettrica Nazionale products
– To increase the profitability and margins on the products, Terna Rete Elettrica Nazionale needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the industry, Terna Rete Elettrica Nazionale 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.
Ability to respond to the competition
– As the decision making is very deliberative at Terna Rete Elettrica Nazionale, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale supply chain. Even after few cautionary changes, Terna Rete Elettrica Nazionale is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Terna Rete Elettrica Nazionale vulnerable to further global disruptions in South East Asia.
Terna Rete Elettrica Nazionale Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Terna Rete Elettrica Nazionale are -
Leveraging digital technologies
– Terna Rete Elettrica Nazionale 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Terna Rete Elettrica Nazionale in the industry. Now Terna Rete Elettrica Nazionale can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Terna Rete Elettrica Nazionale 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 industry.
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. Terna Rete Elettrica Nazionale can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Terna Rete Elettrica Nazionale to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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. Terna Rete Elettrica Nazionale can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale to build a competitive advantage using analytics. The analytics driven competitive advantage can help Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Terna Rete Elettrica Nazionale can use these opportunities to build new business models that can help the communities that Terna Rete Elettrica Nazionale operates in. Secondly it can use opportunities from government spending in sector.
Loyalty marketing
– Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale has opened avenues for new revenue streams for the organization in industry. This can help Terna Rete Elettrica Nazionale to build a more holistic ecosystem for Terna Rete Elettrica Nazionale products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Terna Rete Elettrica Nazionale are -
Technology acceleration in Forth Industrial Revolution
– Terna Rete Elettrica Nazionale has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Terna Rete Elettrica Nazionale needs to keep up with the evolution of technology in the 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.
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 industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Terna Rete Elettrica Nazionale can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Terna Rete Elettrica Nazionale 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. Terna Rete Elettrica Nazionale can take advantage of this fund but it will also bring new competitors in the industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Terna Rete Elettrica Nazionale with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Terna Rete Elettrica Nazionale 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 industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Terna Rete Elettrica Nazionale 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.
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 Terna Rete Elettrica Nazionale.
Regulatory challenges
– Terna Rete Elettrica Nazionale 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale prominent markets.
Increasing wage structure of Terna Rete Elettrica Nazionale
– 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 Terna Rete Elettrica Nazionale.
Stagnating economy with rate increase
– Terna Rete Elettrica Nazionale 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 industry.
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 Terna Rete Elettrica Nazionale business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Terna Rete Elettrica Nazionale Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale needs to make to build a sustainable competitive advantage.