SWOT Analysis / TOWS Matrix for Explosifs Prod Chimiques (France)
Based on various researches at Oak Spring University , Explosifs Prod Chimiques is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, geopolitical disruptions, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
increasing energy prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Explosifs Prod Chimiques
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Explosifs Prod Chimiques can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Explosifs Prod Chimiques, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Explosifs Prod Chimiques 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 Explosifs Prod Chimiques can be done for the following purposes –
1. Strategic planning of Explosifs Prod Chimiques
2. Improving business portfolio management of Explosifs Prod Chimiques
3. Assessing feasibility of the new initiative in France
4. Making a Chemical Manufacturing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Explosifs Prod Chimiques
Strengths of Explosifs Prod Chimiques | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Explosifs Prod Chimiques are -
Cross disciplinary teams
– Horizontal connected teams at the Explosifs Prod Chimiques 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 Chemical Manufacturing industry
– Explosifs Prod Chimiques has clearly differentiated products in the market place. This has enabled Explosifs Prod Chimiques to fetch slight price premium compare to the competitors in the Chemical Manufacturing industry. The sustainable margins have also helped Explosifs Prod Chimiques to invest into research and development (R&D) and innovation.
Ability to lead change in Chemical Manufacturing
– Explosifs Prod Chimiques is one of the leading players in the Chemical Manufacturing industry in France. Over the years it has not only transformed the business landscape in the Chemical Manufacturing industry in France but also across the existing markets. The ability to lead change has enabled Explosifs Prod Chimiques in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Explosifs Prod Chimiques is present in almost all the verticals within the Chemical Manufacturing industry. This has provided Explosifs Prod Chimiques 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.
Highly skilled collaborators
– Explosifs Prod Chimiques has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Chemical Manufacturing industry. Secondly the value chain collaborators of Explosifs Prod Chimiques have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Explosifs Prod Chimiques 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.
Low bargaining power of suppliers
– Suppliers of Explosifs Prod Chimiques in the Basic Materials sector have low bargaining power. Explosifs Prod Chimiques has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Explosifs Prod Chimiques to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Explosifs Prod Chimiques
– The covid-19 pandemic has put organizational resilience at the centre of everthing Explosifs Prod Chimiques does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Explosifs Prod Chimiques has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Explosifs Prod Chimiques 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.
Ability to recruit top talent
– Explosifs Prod Chimiques is one of the leading players in the Chemical Manufacturing industry in France. It is in a position to attract the best talent available in France. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Explosifs Prod Chimiques has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Explosifs Prod Chimiques staying ahead in the Chemical Manufacturing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Explosifs Prod Chimiques 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 Chemical Manufacturing industry. The technology infrastructure of France 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.
Weaknesses of Explosifs Prod Chimiques | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Explosifs Prod Chimiques are -
High bargaining power of channel partners in Chemical Manufacturing industry
– because of the regulatory requirements in France, Explosifs Prod Chimiques 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 Chemical Manufacturing industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Explosifs Prod Chimiques is slow explore the new channels of communication. These new channels of communication can help Explosifs Prod Chimiques to provide better information regarding Chemical Manufacturing products and services. It can also build an online community to further reach out to potential 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 Explosifs Prod Chimiques supply chain. Even after few cautionary changes, Explosifs Prod Chimiques is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Explosifs Prod Chimiques vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Explosifs Prod Chimiques 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.
Slow to strategic competitive environment developments
– As Explosifs Prod Chimiques is one of the leading players in the Chemical Manufacturing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Chemical Manufacturing industry in last five years.
High dependence on Explosifs Prod Chimiques ‘s star products
– The top 2 products and services of Explosifs Prod Chimiques still accounts for major business revenue. This dependence on star products in Chemical Manufacturing industry has resulted into insufficient focus on developing new products, even though Explosifs Prod Chimiques has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of France, Explosifs Prod Chimiques needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, Explosifs Prod Chimiques has high operating costs in the Chemical Manufacturing industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Explosifs Prod Chimiques lucrative customers.
Compensation and incentives
– The revenue per employee of Explosifs Prod Chimiques is just above the Chemical Manufacturing 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.
Skills based hiring in Chemical Manufacturing industry
– The stress on hiring functional specialists at Explosifs Prod Chimiques 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.
Ability to respond to the competition
– As the decision making is very deliberative at Explosifs Prod Chimiques, in the dynamic environment of Chemical Manufacturing industry it has struggled to respond to the nimble upstart competition. Explosifs Prod Chimiques has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Explosifs Prod Chimiques Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Explosifs Prod Chimiques are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Explosifs Prod Chimiques 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 Explosifs Prod Chimiques to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Explosifs Prod Chimiques 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.
Developing new processes and practices
– Explosifs Prod Chimiques can develop new processes and procedures in Chemical Manufacturing 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Explosifs Prod Chimiques can use these opportunities to build new business models that can help the communities that Explosifs Prod Chimiques operates in. Secondly it can use opportunities from government spending in Chemical Manufacturing sector.
Buying journey improvements
– Explosifs Prod Chimiques can improve the customer journey of consumers in the Chemical Manufacturing 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.
Use of Bitcoin and other crypto currencies for transactions in Chemical Manufacturing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Explosifs Prod Chimiques in the Chemical Manufacturing industry. Now Explosifs Prod Chimiques can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Chemical Manufacturing industry, but it has also influenced the consumer preferences. Explosifs Prod Chimiques can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Explosifs Prod Chimiques 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.
Better consumer reach
– The expansion of the 5G network will help Explosifs Prod Chimiques to increase its market reach. Explosifs Prod Chimiques 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.
Learning at scale
– Online learning technologies has now opened space for Explosifs Prod Chimiques 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.
Using analytics as competitive advantage
– Explosifs Prod Chimiques has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Chemical Manufacturing sector. This continuous investment in analytics has enabled Explosifs Prod Chimiques to build a competitive advantage using analytics. The analytics driven competitive advantage can help Explosifs Prod Chimiques to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Explosifs Prod Chimiques can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Explosifs Prod Chimiques can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Explosifs Prod Chimiques External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Explosifs Prod Chimiques are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Explosifs Prod Chimiques 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 Explosifs Prod Chimiques prominent markets.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Explosifs Prod Chimiques may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Chemical Manufacturing sector.
Shortening product life cycle
– it is one of the major threat that Explosifs Prod Chimiques is facing in Chemical Manufacturing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Explosifs Prod Chimiques 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. Explosifs Prod Chimiques can take advantage of this fund but it will also bring new competitors in the Chemical Manufacturing industry.
Consumer confidence and its impact on Explosifs Prod Chimiques 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 Chemical Manufacturing industry and other sectors.
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. Explosifs Prod Chimiques 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.
High dependence on third party suppliers
– Explosifs Prod Chimiques 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Chemical Manufacturing industry are lowering. It can presents Explosifs Prod Chimiques with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Chemical Manufacturing sector.
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 Explosifs Prod Chimiques 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 Explosifs Prod Chimiques.
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 Explosifs Prod Chimiques in the Chemical Manufacturing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Explosifs Prod Chimiques Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Explosifs Prod Chimiques 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 Explosifs Prod Chimiques 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 Explosifs Prod Chimiques 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 Explosifs Prod Chimiques 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 Explosifs Prod Chimiques needs to make to build a sustainable competitive advantage.