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 – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, wage bills are increasing, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings,
increasing household debt because of falling income levels, increasing transportation and logistics costs, 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.
Superior customer experience
– The customer experience strategy of Financiere Hoche Bains les Bains in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
Sustainable margins compare to other players in industry
– Financiere Hoche Bains les Bains has clearly differentiated products in the market place. This has enabled Financiere Hoche Bains les Bains to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Financiere Hoche Bains les Bains to invest into research and development (R&D) and innovation.
Innovation driven organization
– Financiere Hoche Bains les Bains is one of the most innovative firm in sector.
Successful track record of launching new products
– Financiere Hoche Bains les Bains has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Financiere Hoche Bains les Bains 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.
Highly skilled collaborators
– Financiere Hoche Bains les Bains has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Financiere Hoche Bains les Bains have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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 -
Aligning sales with marketing
– From the outside it seems that Financiere Hoche Bains les Bains needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Financiere Hoche Bains les Bains can leverage the sales team experience to cultivate customer relationships as Financiere Hoche Bains les Bains is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Financiere Hoche Bains les Bains is slow explore the new channels of communication. These new channels of communication can help Financiere Hoche Bains les Bains to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
Compensation and incentives
– The revenue per employee of Financiere Hoche Bains les Bains is just above the 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.
Need for greater diversity
– Financiere Hoche Bains les Bains 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.
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.
Workers concerns about automation
– As automation is fast increasing in the industry, Financiere Hoche Bains les Bains 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.
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.
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 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.
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 -
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.
Developing new processes and practices
– Financiere Hoche Bains les Bains can develop new processes and procedures in 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.
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 Financiere Hoche Bains les Bains 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.
Buying journey improvements
– Financiere Hoche Bains les Bains can improve the customer journey of consumers in the 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Financiere Hoche Bains les Bains 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 Financiere Hoche Bains les Bains to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Financiere Hoche Bains les Bains 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
– 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.
Loyalty marketing
– Financiere Hoche Bains les Bains 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Financiere Hoche Bains les Bains is facing challenges because of the dominance of functional experts in the organization. Financiere Hoche Bains les Bains can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Financiere Hoche Bains les Bains in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
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.
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 -
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.
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.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Financiere Hoche Bains les Bains can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– Financiere Hoche Bains les Bains 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. Financiere Hoche Bains les Bains can take advantage of this fund but it will also bring new competitors in the industry.
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.
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.
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.
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.
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.
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.
High dependence on third party suppliers
– Financiere Hoche Bains les Bains 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.
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.
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.
