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 – increasing transportation and logistics costs, geopolitical disruptions, increasing energy prices, wage bills are increasing, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, talent flight as more people leaving formal jobs, 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 -
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.
Organizational Resilience of Terna Rete Elettrica Nazionale
– The covid-19 pandemic has put organizational resilience at the centre of everthing Terna Rete Elettrica Nazionale does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
Low bargaining power of suppliers
– Suppliers of Terna Rete Elettrica Nazionale in the sector have low bargaining power. Terna Rete Elettrica Nazionale has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Terna Rete Elettrica Nazionale to manage not only supply disruptions but also source products at highly competitive prices.
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.
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 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.
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.
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.
Innovation driven organization
– Terna Rete Elettrica Nazionale is one of the most innovative firm in sector.
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.
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 -
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.
Capital Spending Reduction
– Even during the low interest decade, Terna Rete Elettrica Nazionale 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 industry using digital technology.
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.
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.
Need for greater diversity
– Terna Rete Elettrica Nazionale 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.
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.
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.
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.
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 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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Terna Rete Elettrica Nazionale 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Terna Rete Elettrica Nazionale 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Terna Rete Elettrica Nazionale is facing challenges because of the dominance of functional experts in the organization. Terna Rete Elettrica Nazionale can utilize new technology in the field of 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 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.
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.
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.
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.
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.
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.
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 -
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Terna Rete Elettrica Nazionale 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
– 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.
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.
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.
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.
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.
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.
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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of 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.
