WeConnect (ALWEC) SWOT Analysis / TOWS Matrix / MBA Resources
Photography
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for WeConnect (France)
Based on various researches at Oak Spring University , WeConnect is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing commodity prices, there is backlash against globalization, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices,
competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that WeConnect can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the WeConnect, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which WeConnect 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 WeConnect can be done for the following purposes –
1. Strategic planning of WeConnect
2. Improving business portfolio management of WeConnect
3. Assessing feasibility of the new initiative in France
4. Making a Photography sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of WeConnect
Strengths of WeConnect | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of WeConnect are -
Sustainable margins compare to other players in Photography industry
– WeConnect has clearly differentiated products in the market place. This has enabled WeConnect to fetch slight price premium compare to the competitors in the Photography industry. The sustainable margins have also helped WeConnect to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy of WeConnect comprises – understanding the underlying the factors in the Photography 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.
Successful track record of launching new products
– WeConnect has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. WeConnect 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.
Strong track record of project management in the Photography industry
– WeConnect is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- WeConnect 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 WeConnect is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at WeConnect emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of WeConnect in Photography industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– WeConnect is one of the leading players in the Photography 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.
Low bargaining power of suppliers
– Suppliers of WeConnect in the Consumer Cyclical sector have low bargaining power. WeConnect has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps WeConnect to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– WeConnect has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – WeConnect staying ahead in the Photography industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– WeConnect is one of the most innovative firm in Photography sector.
High brand equity
– WeConnect has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled WeConnect to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the WeConnect 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.
Weaknesses of WeConnect | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WeConnect are -
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 WeConnect supply chain. Even after few cautionary changes, WeConnect is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left WeConnect vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners in Photography industry
– because of the regulatory requirements in France, WeConnect 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 Photography industry.
Lack of clear differentiation of WeConnect products
– To increase the profitability and margins on the products, WeConnect needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of WeConnect is dominated by functional specialists. It is not different from other players in the Photography industry, but WeConnect needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help WeConnect to focus more on services in the Photography industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Photography industry, WeConnect needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow to strategic competitive environment developments
– As WeConnect is one of the leading players in the Photography industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Photography industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, WeConnect is slow explore the new channels of communication. These new channels of communication can help WeConnect to provide better information regarding Photography products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– From the outside it seems that WeConnect needs to have more collaboration between its sales team and marketing team. Sales professionals in the Photography industry have deep experience in developing customer relationships. Marketing department at WeConnect can leverage the sales team experience to cultivate customer relationships as WeConnect is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of France, WeConnect needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, WeConnect 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 Photography industry using digital technology.
Need for greater diversity
– WeConnect 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.
WeConnect Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of WeConnect are -
Use of Bitcoin and other crypto currencies for transactions in Photography industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for WeConnect in the Photography industry. Now WeConnect can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, WeConnect 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.
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. WeConnect can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at WeConnect 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 Photography industry.
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 WeConnect 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Photography industry, but it has also influenced the consumer preferences. WeConnect can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for WeConnect in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Photography industry, and it will provide faster access to the consumers.
Leveraging digital technologies
– WeConnect can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, WeConnect is facing challenges because of the dominance of functional experts in the organization. WeConnect can utilize new technology in the field of Photography industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– WeConnect can improve the customer journey of consumers in the Photography 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.
Using analytics as competitive advantage
– WeConnect has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Photography sector. This continuous investment in analytics has enabled WeConnect to build a competitive advantage using analytics. The analytics driven competitive advantage can help WeConnect to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, WeConnect can use these opportunities to build new business models that can help the communities that WeConnect operates in. Secondly it can use opportunities from government spending in Photography sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects WeConnect can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats WeConnect External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of WeConnect are -
Shortening product life cycle
– it is one of the major threat that WeConnect is facing in Photography sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, WeConnect may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Photography sector.
Regulatory challenges
– WeConnect 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 Photography industry regulations.
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. WeConnect needs to understand the core reasons impacting the Photography industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for WeConnect in Photography industry. The Photography 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.
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 WeConnect.
Stagnating economy with rate increase
– WeConnect 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 Photography industry.
Increasing wage structure of WeConnect
– 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 WeConnect.
Environmental challenges
– WeConnect 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. WeConnect can take advantage of this fund but it will also bring new competitors in the Photography industry.
Technology acceleration in Forth Industrial Revolution
– WeConnect has witnessed rapid integration of technology during Covid-19 in the Photography industry. As one of the leading players in the industry, WeConnect needs to keep up with the evolution of technology in the Photography 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 WeConnect in the Photography sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Photography industry are lowering. It can presents WeConnect with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Photography sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, WeConnect 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 WeConnect prominent markets.
Weighted SWOT Analysis of WeConnect Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at WeConnect 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 WeConnect 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 WeConnect 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 WeConnect 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 WeConnect needs to make to build a sustainable competitive advantage.