Kangaroo Island Plantation Timbers (KPT) SWOT Analysis / TOWS Matrix / MBA Resources
Forestry & Wood Products
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Kangaroo Island Plantation Timbers (Australia)
Based on various researches at Oak Spring University , Kangaroo Island Plantation Timbers is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, geopolitical disruptions,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Kangaroo Island Plantation Timbers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Kangaroo Island Plantation Timbers can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kangaroo Island Plantation Timbers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers can be done for the following purposes –
1. Strategic planning of Kangaroo Island Plantation Timbers
2. Improving business portfolio management of Kangaroo Island Plantation Timbers
3. Assessing feasibility of the new initiative in Australia
4. Making a Forestry & Wood Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kangaroo Island Plantation Timbers
Strengths of Kangaroo Island Plantation Timbers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kangaroo Island Plantation Timbers are -
Training and development
– Kangaroo Island Plantation Timbers has one of the best training and development program in Basic Materials 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.
Innovation driven organization
– Kangaroo Island Plantation Timbers is one of the most innovative firm in Forestry & Wood Products sector.
Digital Transformation in Forestry & Wood Products industry
- digital transformation varies from industry to industry. For Kangaroo Island Plantation Timbers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kangaroo Island Plantation Timbers 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.
Ability to lead change in Forestry & Wood Products
– Kangaroo Island Plantation Timbers is one of the leading players in the Forestry & Wood Products industry in Australia. Over the years it has not only transformed the business landscape in the Forestry & Wood Products industry in Australia but also across the existing markets. The ability to lead change has enabled Kangaroo Island Plantation Timbers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Kangaroo Island Plantation Timbers in Forestry & Wood Products industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Kangaroo Island Plantation Timbers has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Effective Research and Development (R&D)
– Kangaroo Island Plantation Timbers has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Kangaroo Island Plantation Timbers staying ahead in the Forestry & Wood Products industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of Kangaroo Island Plantation Timbers comprises – understanding the underlying the factors in the Forestry & Wood Products 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.
High brand equity
– Kangaroo Island Plantation Timbers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kangaroo Island Plantation Timbers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Kangaroo Island Plantation Timbers is one of the leading players in the Forestry & Wood Products industry in Australia. It is in a position to attract the best talent available in Australia. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management in the Forestry & Wood Products industry
– Kangaroo Island Plantation Timbers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Kangaroo Island Plantation Timbers has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Forestry & Wood Products industry. Secondly the value chain collaborators of Kangaroo Island Plantation Timbers have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Kangaroo Island Plantation Timbers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kangaroo Island Plantation Timbers are -
No frontier risks strategy
– From the 10K / annual statement of Kangaroo Island Plantation Timbers, it seems that company is thinking out the frontier risks that can impact Forestry & Wood Products 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.
Slow decision making process
– As mentioned earlier in the report, Kangaroo Island Plantation Timbers has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Forestry & Wood Products industry over the last five years. Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers ‘s star products
– The top 2 products and services of Kangaroo Island Plantation Timbers still accounts for major business revenue. This dependence on star products in Forestry & Wood Products industry has resulted into insufficient focus on developing new products, even though Kangaroo Island Plantation Timbers has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of Kangaroo Island Plantation Timbers is just above the Forestry & Wood Products 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.
Aligning sales with marketing
– From the outside it seems that Kangaroo Island Plantation Timbers needs to have more collaboration between its sales team and marketing team. Sales professionals in the Forestry & Wood Products industry have deep experience in developing customer relationships. Marketing department at Kangaroo Island Plantation Timbers can leverage the sales team experience to cultivate customer relationships as Kangaroo Island Plantation Timbers is planning to shift buying processes online.
Need for greater diversity
– Kangaroo Island Plantation Timbers 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.
Increasing silos among functional specialists
– The organizational structure of Kangaroo Island Plantation Timbers is dominated by functional specialists. It is not different from other players in the Forestry & Wood Products industry, but Kangaroo Island Plantation Timbers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kangaroo Island Plantation Timbers to focus more on services in the Forestry & Wood Products industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Kangaroo Island Plantation Timbers has high operating costs in the Forestry & Wood Products industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Kangaroo Island Plantation Timbers lucrative customers.
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 Kangaroo Island Plantation Timbers supply chain. Even after few cautionary changes, Kangaroo Island Plantation Timbers is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kangaroo Island Plantation Timbers vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of Kangaroo Island Plantation Timbers strategy
– From the outside it seems that the employees of Kangaroo Island Plantation Timbers 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.
High bargaining power of channel partners in Forestry & Wood Products industry
– because of the regulatory requirements in Australia, Kangaroo Island Plantation Timbers 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 Forestry & Wood Products industry.
Kangaroo Island Plantation Timbers Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Kangaroo Island Plantation Timbers are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kangaroo Island Plantation Timbers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Forestry & Wood Products industry, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kangaroo Island Plantation Timbers can use these opportunities to build new business models that can help the communities that Kangaroo Island Plantation Timbers operates in. Secondly it can use opportunities from government spending in Forestry & Wood Products sector.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Forestry & Wood Products industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kangaroo Island Plantation Timbers 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. Kangaroo Island Plantation Timbers 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.
Learning at scale
– Online learning technologies has now opened space for Kangaroo Island Plantation Timbers 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.
Developing new processes and practices
– Kangaroo Island Plantation Timbers can develop new processes and procedures in Forestry & Wood Products 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Kangaroo Island Plantation Timbers can use the latest technology developments to improve its manufacturing and designing process in Forestry & Wood Products 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.
Creating value in data economy
– The success of analytics program of Kangaroo Island Plantation Timbers has opened avenues for new revenue streams for the organization in Forestry & Wood Products industry. This can help Kangaroo Island Plantation Timbers to build a more holistic ecosystem for Kangaroo Island Plantation Timbers products in the Forestry & Wood Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Kangaroo Island Plantation Timbers to increase its market reach. Kangaroo Island Plantation Timbers 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kangaroo Island Plantation Timbers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Kangaroo Island Plantation Timbers 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Forestry & Wood Products industry, but it has also influenced the consumer preferences. Kangaroo Island Plantation Timbers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Kangaroo Island Plantation Timbers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Kangaroo Island Plantation Timbers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Kangaroo Island Plantation Timbers are -
Stagnating economy with rate increase
– Kangaroo Island Plantation Timbers 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 Forestry & Wood Products industry.
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 Kangaroo Island Plantation Timbers in the Forestry & Wood Products sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Kangaroo Island Plantation Timbers has witnessed rapid integration of technology during Covid-19 in the Forestry & Wood Products industry. As one of the leading players in the industry, Kangaroo Island Plantation Timbers needs to keep up with the evolution of technology in the Forestry & Wood Products 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.
Environmental challenges
– Kangaroo Island Plantation Timbers 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. Kangaroo Island Plantation Timbers can take advantage of this fund but it will also bring new competitors in the Forestry & Wood Products industry.
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.
High dependence on third party suppliers
– Kangaroo Island Plantation Timbers 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Forestry & Wood Products industry are lowering. It can presents Kangaroo Island Plantation Timbers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Forestry & Wood Products sector.
Consumer confidence and its impact on Kangaroo Island Plantation Timbers 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 Forestry & Wood Products industry and other sectors.
Increasing wage structure of Kangaroo Island Plantation Timbers
– 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 Kangaroo Island Plantation Timbers.
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. Kangaroo Island Plantation Timbers needs to understand the core reasons impacting the Forestry & Wood Products industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Kangaroo Island Plantation Timbers may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Forestry & Wood Products sector.
Regulatory challenges
– Kangaroo Island Plantation Timbers 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 Forestry & Wood Products industry regulations.
Weighted SWOT Analysis of Kangaroo Island Plantation Timbers Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers 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 Kangaroo Island Plantation Timbers needs to make to build a sustainable competitive advantage.