Financiere Hoche Bains les Bains (BLBP) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Financiere Hoche Bains les Bains (France)
Based on various researches at Oak Spring University , Financiere Hoche Bains les Bains is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies,
there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Financiere Hoche Bains les Bains
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Financiere Hoche Bains les Bains can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Financiere Hoche Bains les Bains, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains can be done for the following purposes –
1. Strategic planning of Financiere Hoche Bains les Bains
2. Improving business portfolio management of Financiere Hoche Bains les Bains
3. Assessing feasibility of the new initiative in France
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Financiere Hoche Bains les Bains
Strengths of Financiere Hoche Bains les Bains | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Financiere Hoche Bains les Bains are -
Digital Transformation in industry
- digital transformation varies from industry to industry. For Financiere Hoche Bains les Bains digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Financiere Hoche Bains les Bains 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.
Learning organization
- Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Financiere Hoche Bains les Bains emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Financiere Hoche Bains les Bains
– The covid-19 pandemic has put organizational resilience at the centre of everthing Financiere Hoche Bains les Bains does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Financiere Hoche Bains les Bains is one of the leading players in the 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
– Financiere Hoche Bains les Bains is one of the most innovative firm in sector.
Low bargaining power of suppliers
– Suppliers of Financiere Hoche Bains les Bains in the sector have low bargaining power. Financiere Hoche Bains les Bains has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Financiere Hoche Bains les Bains to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Financiere Hoche Bains les Bains is present in almost all the verticals within the industry. This has provided Financiere Hoche Bains les Bains 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.
High switching costs
– The high switching costs that Financiere Hoche Bains les Bains 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.
Ability to lead change in
– Financiere Hoche Bains les Bains is one of the leading players in the industry in France. Over the years it has not only transformed the business landscape in the industry in France but also across the existing markets. The ability to lead change has enabled Financiere Hoche Bains les Bains in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Financiere Hoche Bains les Bains has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Financiere Hoche Bains les Bains to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the industry
– Financiere Hoche Bains les Bains 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
– Financiere Hoche Bains les Bains has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses of Financiere Hoche Bains les Bains | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Financiere Hoche Bains les Bains are -
Slow to strategic competitive environment developments
– As Financiere Hoche Bains les Bains is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative at Financiere Hoche Bains les Bains, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Financiere Hoche Bains les Bains has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Financiere Hoche Bains les Bains 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.
Increasing silos among functional specialists
– The organizational structure of Financiere Hoche Bains les Bains is dominated by functional specialists. It is not different from other players in the industry, but Financiere Hoche Bains les Bains needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Financiere Hoche Bains les Bains to focus more on services in the industry rather than just following the product oriented approach.
High dependence on Financiere Hoche Bains les Bains ‘s star products
– The top 2 products and services of Financiere Hoche Bains les Bains still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Financiere Hoche Bains les Bains has relatively successful track record of launching new products.
High bargaining power of channel partners in industry
– because of the regulatory requirements in France, Financiere Hoche Bains les Bains 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 industry.
Low market penetration in new markets
– Outside its home market of France, Financiere Hoche Bains les Bains needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ less understanding of Financiere Hoche Bains les Bains strategy
– From the outside it seems that the employees of Financiere Hoche Bains les Bains 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 cash cycle compare to competitors
Financiere Hoche Bains les Bains has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Financiere Hoche Bains les Bains 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 industry using digital technology.
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 Financiere Hoche Bains les Bains supply chain. Even after few cautionary changes, Financiere Hoche Bains les Bains is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Financiere Hoche Bains les Bains vulnerable to further global disruptions in South East Asia.
Financiere Hoche Bains les Bains Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Financiere Hoche Bains les Bains are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Financiere Hoche Bains les Bains 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Financiere Hoche Bains les Bains can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Financiere Hoche Bains les Bains in the industry. Now Financiere Hoche Bains les Bains can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Financiere Hoche Bains les Bains can use these opportunities to build new business models that can help the communities that Financiere Hoche Bains les Bains operates in. Secondly it can use opportunities from government spending in sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Financiere Hoche Bains les Bains to increase its market reach. Financiere Hoche Bains les Bains 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.
Using analytics as competitive advantage
– Financiere Hoche Bains les Bains has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Financiere Hoche Bains les Bains to build a competitive advantage using analytics. The analytics driven competitive advantage can help Financiere Hoche Bains les Bains to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Financiere Hoche Bains les Bains 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. Financiere Hoche Bains les Bains 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.
Leveraging digital technologies
– Financiere Hoche Bains les Bains 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.
Creating value in data economy
– The success of analytics program of Financiere Hoche Bains les Bains has opened avenues for new revenue streams for the organization in industry. This can help Financiere Hoche Bains les Bains to build a more holistic ecosystem for Financiere Hoche Bains les Bains products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Financiere Hoche Bains les Bains can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Financiere Hoche Bains les Bains can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Financiere Hoche Bains les Bains 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 industry.
Threats Financiere Hoche Bains les Bains External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Financiere Hoche Bains les Bains are -
Shortening product life cycle
– it is one of the major threat that Financiere Hoche Bains les Bains is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Financiere Hoche Bains les Bains in industry. The 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 Financiere Hoche Bains les Bains.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Financiere Hoche Bains les Bains may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Consumer confidence and its impact on Financiere Hoche Bains les Bains 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 industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Financiere Hoche Bains les Bains has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Financiere Hoche Bains les Bains needs to keep up with the evolution of technology in the 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.
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 Financiere Hoche Bains les Bains business can come under increasing regulations regarding data privacy, data security, etc.
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 Financiere Hoche Bains les Bains in the sector and impact the bottomline of the organization.
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. Financiere Hoche Bains les Bains 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Financiere Hoche Bains les Bains with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Financiere Hoche Bains les Bains 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 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. Financiere Hoche Bains les Bains needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Financiere Hoche Bains les Bains 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 industry.
Weighted SWOT Analysis of Financiere Hoche Bains les Bains Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains needs to make to build a sustainable competitive advantage.