Guy Degrenne (GUYD) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Guy Degrenne (France)

Based on various researches at Oak Spring University , Guy Degrenne is operating in a macro-environment that has been destablized by – increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, geopolitical disruptions, increasing energy prices, increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of Guy Degrenne

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Guy Degrenne can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guy Degrenne, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guy Degrenne 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Guy Degrenne can be done for the following purposes –
1. Strategic planning of Guy Degrenne
2. Improving business portfolio management of Guy Degrenne
3. Assessing feasibility of the new initiative in France
4. Making a Jewelry & Silverware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Guy Degrenne

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Strengths of Guy Degrenne | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Guy Degrenne are -

Learning organization

- Guy Degrenne 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 Guy Degrenne is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Guy Degrenne emphasize – knowledge, initiative, and innovation.

Ability to recruit top talent

– Guy Degrenne is one of the leading players in the Jewelry & Silverware 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.

Innovation driven organization

– Guy Degrenne is one of the most innovative firm in Jewelry & Silverware sector.

Cross disciplinary teams

– Horizontal connected teams at the Guy Degrenne 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.

High brand equity

– Guy Degrenne has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Guy Degrenne to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Strong track record of project management in the Jewelry & Silverware industry

– Guy Degrenne 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

– Guy Degrenne has one of the best training and development program in Consumer Cyclical 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.

Sustainable margins compare to other players in Jewelry & Silverware industry

– Guy Degrenne has clearly differentiated products in the market place. This has enabled Guy Degrenne to fetch slight price premium compare to the competitors in the Jewelry & Silverware industry. The sustainable margins have also helped Guy Degrenne to invest into research and development (R&D) and innovation.

High switching costs

– The high switching costs that Guy Degrenne 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.

Successful track record of launching new products

– Guy Degrenne has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Guy Degrenne 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.

Digital Transformation in Jewelry & Silverware industry

- digital transformation varies from industry to industry. For Guy Degrenne digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Guy Degrenne 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.

Diverse revenue streams

– Guy Degrenne is present in almost all the verticals within the Jewelry & Silverware industry. This has provided Guy Degrenne 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.

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Weaknesses of Guy Degrenne | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Guy Degrenne are -

High cash cycle compare to competitors

Guy Degrenne has a high cash cycle compare to other players in the Jewelry & Silverware industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Increasing silos among functional specialists

– The organizational structure of Guy Degrenne is dominated by functional specialists. It is not different from other players in the Jewelry & Silverware industry, but Guy Degrenne needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Guy Degrenne to focus more on services in the Jewelry & Silverware industry rather than just following the product oriented approach.

Capital Spending Reduction

– Even during the low interest decade, Guy Degrenne 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 Jewelry & Silverware industry using digital technology.

High operating costs

– Compare to the competitors, Guy Degrenne has high operating costs in the Jewelry & Silverware industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Guy Degrenne 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 Guy Degrenne supply chain. Even after few cautionary changes, Guy Degrenne is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guy Degrenne vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Guy Degrenne is slow explore the new channels of communication. These new channels of communication can help Guy Degrenne to provide better information regarding Jewelry & Silverware 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 Guy Degrenne needs to have more collaboration between its sales team and marketing team. Sales professionals in the Jewelry & Silverware industry have deep experience in developing customer relationships. Marketing department at Guy Degrenne can leverage the sales team experience to cultivate customer relationships as Guy Degrenne is planning to shift buying processes online.

Employees’ less understanding of Guy Degrenne strategy

– From the outside it seems that the employees of Guy Degrenne 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.

Skills based hiring in Jewelry & Silverware industry

– The stress on hiring functional specialists at Guy Degrenne 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.

Slow to strategic competitive environment developments

– As Guy Degrenne is one of the leading players in the Jewelry & Silverware industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Jewelry & Silverware industry in last five years.

High bargaining power of channel partners in Jewelry & Silverware industry

– because of the regulatory requirements in France, Guy Degrenne 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 Jewelry & Silverware industry.

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Guy Degrenne Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Guy Degrenne are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Guy Degrenne 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 Guy Degrenne 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

– Guy Degrenne can use the latest technology developments to improve its manufacturing and designing process in Jewelry & Silverware 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Guy Degrenne can use these opportunities to build new business models that can help the communities that Guy Degrenne operates in. Secondly it can use opportunities from government spending in Jewelry & Silverware sector.

Creating value in data economy

– The success of analytics program of Guy Degrenne has opened avenues for new revenue streams for the organization in Jewelry & Silverware industry. This can help Guy Degrenne to build a more holistic ecosystem for Guy Degrenne products in the Jewelry & Silverware industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 Guy Degrenne 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.

Use of Bitcoin and other crypto currencies for transactions in Jewelry & Silverware industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Guy Degrenne in the Jewelry & Silverware industry. Now Guy Degrenne can target international markets with far fewer capital restrictions requirements than the existing system.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Guy Degrenne in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Jewelry & Silverware industry, and it will provide faster access to the consumers.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Guy Degrenne is facing challenges because of the dominance of functional experts in the organization. Guy Degrenne can utilize new technology in the field of Jewelry & Silverware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Developing new processes and practices

– Guy Degrenne can develop new processes and procedures in Jewelry & Silverware 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Guy Degrenne 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.

Loyalty marketing

– Guy Degrenne 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Guy Degrenne to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Guy Degrenne to hire the very best people irrespective of their geographical location.

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. Guy Degrenne can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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Threats Guy Degrenne External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Guy Degrenne are -

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. Guy Degrenne needs to understand the core reasons impacting the Jewelry & Silverware industry. This will help it in building a better workplace.

Stagnating economy with rate increase

– Guy Degrenne 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 Jewelry & Silverware industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Guy Degrenne may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Jewelry & Silverware sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Guy Degrenne 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 Guy Degrenne prominent markets.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Guy Degrenne in Jewelry & Silverware industry. The Jewelry & Silverware 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.

Technology acceleration in Forth Industrial Revolution

– Guy Degrenne has witnessed rapid integration of technology during Covid-19 in the Jewelry & Silverware industry. As one of the leading players in the industry, Guy Degrenne needs to keep up with the evolution of technology in the Jewelry & Silverware 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.

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. Guy Degrenne 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.

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 Guy Degrenne.

High dependence on third party suppliers

– Guy Degrenne 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 Jewelry & Silverware industry are lowering. It can presents Guy Degrenne with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Jewelry & Silverware sector.

Easy access to finance

– Easy access to finance in Jewelry & Silverware industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Guy Degrenne can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing wage structure of Guy Degrenne

– 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 Guy Degrenne.

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Weighted SWOT Analysis of Guy Degrenne Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Guy Degrenne 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 Guy Degrenne 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 Guy Degrenne 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 Guy Degrenne 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 Guy Degrenne needs to make to build a sustainable competitive advantage.

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