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 – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, wage bills are increasing, increasing energy prices, technology disruption, geopolitical disruptions,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Training and development
– Terna Rete Elettrica Nazionale 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.
Ability to recruit top talent
– Terna Rete Elettrica Nazionale is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Innovation driven organization
– Terna Rete Elettrica Nazionale is one of the most innovative firm in sector.
Superior customer experience
– The customer experience strategy of Terna Rete Elettrica Nazionale in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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.
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.
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.
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 -
Slow decision making process
– As mentioned earlier in the report, Terna Rete Elettrica Nazionale has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale is dominated by functional specialists. It is not different from other players in the industry, but Terna Rete Elettrica Nazionale needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Terna Rete Elettrica Nazionale to focus more on services in the industry rather than just following the product oriented approach.
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.
High operating costs
– Compare to the competitors, Terna Rete Elettrica Nazionale 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 Terna Rete Elettrica Nazionale lucrative customers.
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.
High dependence on Terna Rete Elettrica Nazionale ‘s star products
– The top 2 products and services of Terna Rete Elettrica Nazionale still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Terna Rete Elettrica Nazionale has relatively successful track record of launching new products.
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.
Interest costs
– Compare to the competition, Terna Rete Elettrica Nazionale 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.
Products dominated business model
– Even though Terna Rete Elettrica Nazionale has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Terna Rete Elettrica Nazionale should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee of Terna Rete Elettrica Nazionale is just above the 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.
Slow to strategic competitive environment developments
– As Terna Rete Elettrica Nazionale 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.
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 -
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 Terna Rete Elettrica Nazionale 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Terna Rete Elettrica Nazionale 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. Terna Rete Elettrica Nazionale 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.
Manufacturing automation
– Terna Rete Elettrica Nazionale 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.
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 -
High dependence on third party suppliers
– Terna Rete Elettrica Nazionale 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 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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Terna Rete Elettrica Nazionale is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Terna Rete Elettrica Nazionale will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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.
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.
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. Terna Rete Elettrica Nazionale needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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.
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.