SWOT Analysis / TOWS Matrix for Thor Industries (United States)
Based on various researches at Oak Spring University , Thor Industries is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, 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, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Thor Industries can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Thor Industries, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Thor Industries 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 Thor Industries can be done for the following purposes –
1. Strategic planning of Thor Industries
2. Improving business portfolio management of Thor Industries
3. Assessing feasibility of the new initiative in United States
4. Making a Mobile Homes & RVs sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Thor Industries
Strengths of Thor Industries | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Thor Industries are -
Sustainable margins compare to other players in Mobile Homes & RVs industry
– Thor Industries has clearly differentiated products in the market place. This has enabled Thor Industries to fetch slight price premium compare to the competitors in the Mobile Homes & RVs industry. The sustainable margins have also helped Thor Industries to invest into research and development (R&D) and innovation.
Analytics focus
– Thor Industries 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 Mobile Homes & RVs 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
– Thor Industries is one of the most innovative firm in Mobile Homes & RVs sector.
Learning organization
- Thor Industries 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 Thor Industries is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Thor Industries emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Thor Industries has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Thor Industries staying ahead in the Mobile Homes & RVs industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management in the Mobile Homes & RVs industry
– Thor Industries 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 Thor Industries in the Capital Goods sector have low bargaining power. Thor Industries has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Thor Industries to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Thor Industries has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Thor Industries to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Thor Industries
– The covid-19 pandemic has put organizational resilience at the centre of everthing Thor Industries does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of Thor Industries comprises – understanding the underlying the factors in the Mobile Homes & RVs 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.
Diverse revenue streams
– Thor Industries is present in almost all the verticals within the Mobile Homes & RVs industry. This has provided Thor Industries 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.
Training and development
– Thor Industries has one of the best training and development program in Capital Goods 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.
Weaknesses of Thor Industries | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Thor Industries are -
Products dominated business model
– Even though Thor Industries has some of the most successful models in the Mobile Homes & RVs industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Thor Industries should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Thor Industries has a high cash cycle compare to other players in the Mobile Homes & RVs industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Thor Industries is slow explore the new channels of communication. These new channels of communication can help Thor Industries to provide better information regarding Mobile Homes & RVs products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Thor Industries 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 Mobile Homes & RVs industry using digital technology.
Low market penetration in new markets
– Outside its home market of United States, Thor Industries needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Mobile Homes & RVs industry
– because of the regulatory requirements in United States, Thor Industries 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 Mobile Homes & RVs industry.
High operating costs
– Compare to the competitors, Thor Industries has high operating costs in the Mobile Homes & RVs industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Thor Industries lucrative customers.
Employees’ less understanding of Thor Industries strategy
– From the outside it seems that the employees of Thor Industries 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, Thor Industries has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Mobile Homes & RVs industry over the last five years. Thor Industries 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.
High dependence on Thor Industries ‘s star products
– The top 2 products and services of Thor Industries still accounts for major business revenue. This dependence on star products in Mobile Homes & RVs industry has resulted into insufficient focus on developing new products, even though Thor Industries has relatively successful track record of launching new products.
Need for greater diversity
– Thor Industries 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.
Thor Industries Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Thor Industries are -
Better consumer reach
– The expansion of the 5G network will help Thor Industries to increase its market reach. Thor Industries will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Thor Industries can use the latest technology developments to improve its manufacturing and designing process in Mobile Homes & RVs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Thor Industries 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Thor Industries in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Mobile Homes & RVs industry, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Mobile Homes & RVs industry, but it has also influenced the consumer preferences. Thor Industries can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Thor Industries has opened avenues for new revenue streams for the organization in Mobile Homes & RVs industry. This can help Thor Industries to build a more holistic ecosystem for Thor Industries products in the Mobile Homes & RVs industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Thor Industries can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Thor Industries has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Mobile Homes & RVs sector. This continuous investment in analytics has enabled Thor Industries to build a competitive advantage using analytics. The analytics driven competitive advantage can help Thor Industries to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Mobile Homes & RVs industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Thor Industries in the Mobile Homes & RVs industry. Now Thor Industries can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Thor Industries can develop new processes and procedures in Mobile Homes & RVs industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Buying journey improvements
– Thor Industries can improve the customer journey of consumers in the Mobile Homes & RVs industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Thor Industries 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 Thor Industries to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Thor Industries can use these opportunities to build new business models that can help the communities that Thor Industries operates in. Secondly it can use opportunities from government spending in Mobile Homes & RVs sector.
Threats Thor Industries External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Thor Industries are -
Stagnating economy with rate increase
– Thor Industries 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 Mobile Homes & RVs industry.
Environmental challenges
– Thor Industries 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. Thor Industries can take advantage of this fund but it will also bring new competitors in the Mobile Homes & RVs industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Thor Industries 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 Thor Industries prominent markets.
Shortening product life cycle
– it is one of the major threat that Thor Industries is facing in Mobile Homes & RVs sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Thor Industries needs to understand the core reasons impacting the Mobile Homes & RVs industry. This will help it in building a better workplace.
Regulatory challenges
– Thor Industries 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 Mobile Homes & RVs industry regulations.
Consumer confidence and its impact on Thor Industries 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 Mobile Homes & RVs industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Thor Industries may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Mobile Homes & RVs sector.
High dependence on third party suppliers
– Thor Industries 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.
Easy access to finance
– Easy access to finance in Mobile Homes & RVs industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Thor Industries can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Thor Industries has witnessed rapid integration of technology during Covid-19 in the Mobile Homes & RVs industry. As one of the leading players in the industry, Thor Industries needs to keep up with the evolution of technology in the Mobile Homes & RVs 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.
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 Thor Industries in the Mobile Homes & RVs sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Thor Industries in Mobile Homes & RVs industry. The Mobile Homes & RVs 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 Thor Industries Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Thor Industries 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 Thor Industries 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 Thor Industries 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 Thor Industries 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 Thor Industries needs to make to build a sustainable competitive advantage.
