Apiam Animal Health Ltd (AHX) SWOT Analysis / TOWS Matrix / MBA Resources
Fish/Livestock
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Apiam Animal Health Ltd (Australia)
Based on various researches at Oak Spring University , Apiam Animal Health Ltd is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, 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%, geopolitical disruptions, central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Apiam Animal Health Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Apiam Animal Health Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Apiam Animal Health Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Apiam Animal Health Ltd 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 Apiam Animal Health Ltd can be done for the following purposes –
1. Strategic planning of Apiam Animal Health Ltd
2. Improving business portfolio management of Apiam Animal Health Ltd
3. Assessing feasibility of the new initiative in Australia
4. Making a Fish/Livestock sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Apiam Animal Health Ltd
Strengths of Apiam Animal Health Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Apiam Animal Health Ltd are -
Low bargaining power of suppliers
– Suppliers of Apiam Animal Health Ltd in the Consumer/Non-Cyclical sector have low bargaining power. Apiam Animal Health Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Apiam Animal Health Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Apiam Animal Health Ltd is one of the leading players in the Fish/Livestock industry in Australia. It is in a position to attract the best talent available in Australia. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Apiam Animal Health Ltd is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Fish/Livestock industry. The technology infrastructure of Australia is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
High brand equity
– Apiam Animal Health Ltd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Apiam Animal Health Ltd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Apiam Animal Health Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Apiam Animal Health Ltd 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.
Innovation driven organization
– Apiam Animal Health Ltd is one of the most innovative firm in Fish/Livestock sector.
High switching costs
– The high switching costs that Apiam Animal Health Ltd 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.
Highly skilled collaborators
– Apiam Animal Health Ltd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Fish/Livestock industry. Secondly the value chain collaborators of Apiam Animal Health Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Fish/Livestock industry
- digital transformation varies from industry to industry. For Apiam Animal Health Ltd digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Apiam Animal Health Ltd 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.
Operational resilience
– The operational resilience strategy of Apiam Animal Health Ltd comprises – understanding the underlying the factors in the Fish/Livestock 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.
Sustainable margins compare to other players in Fish/Livestock industry
– Apiam Animal Health Ltd has clearly differentiated products in the market place. This has enabled Apiam Animal Health Ltd to fetch slight price premium compare to the competitors in the Fish/Livestock industry. The sustainable margins have also helped Apiam Animal Health Ltd to invest into research and development (R&D) and innovation.
Strong track record of project management in the Fish/Livestock industry
– Apiam Animal Health Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of Apiam Animal Health Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Apiam Animal Health Ltd are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Apiam Animal Health Ltd is slow explore the new channels of communication. These new channels of communication can help Apiam Animal Health Ltd to provide better information regarding Fish/Livestock products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Apiam Animal Health Ltd products
– To increase the profitability and margins on the products, Apiam Animal Health Ltd needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– From the 10K / annual statement of Apiam Animal Health Ltd, it seems that company is thinking out the frontier risks that can impact Fish/Livestock industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Compensation and incentives
– The revenue per employee of Apiam Animal Health Ltd is just above the Fish/Livestock 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.
Workers concerns about automation
– As automation is fast increasing in the Fish/Livestock industry, Apiam Animal Health Ltd 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.
Aligning sales with marketing
– From the outside it seems that Apiam Animal Health Ltd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Fish/Livestock industry have deep experience in developing customer relationships. Marketing department at Apiam Animal Health Ltd can leverage the sales team experience to cultivate customer relationships as Apiam Animal Health Ltd is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Apiam Animal Health Ltd is dominated by functional specialists. It is not different from other players in the Fish/Livestock industry, but Apiam Animal Health Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Apiam Animal Health Ltd to focus more on services in the Fish/Livestock industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Apiam Animal Health Ltd, in the dynamic environment of Fish/Livestock industry it has struggled to respond to the nimble upstart competition. Apiam Animal Health Ltd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on Apiam Animal Health Ltd ‘s star products
– The top 2 products and services of Apiam Animal Health Ltd still accounts for major business revenue. This dependence on star products in Fish/Livestock industry has resulted into insufficient focus on developing new products, even though Apiam Animal Health Ltd has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Apiam Animal Health Ltd 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 Fish/Livestock industry using digital technology.
High operating costs
– Compare to the competitors, Apiam Animal Health Ltd has high operating costs in the Fish/Livestock industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Apiam Animal Health Ltd lucrative customers.
Apiam Animal Health Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Apiam Animal Health Ltd are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Apiam Animal Health Ltd 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 Apiam Animal Health Ltd to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions in Fish/Livestock industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Apiam Animal Health Ltd in the Fish/Livestock industry. Now Apiam Animal Health Ltd can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Apiam Animal Health Ltd can develop new processes and procedures in Fish/Livestock 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.
Creating value in data economy
– The success of analytics program of Apiam Animal Health Ltd has opened avenues for new revenue streams for the organization in Fish/Livestock industry. This can help Apiam Animal Health Ltd to build a more holistic ecosystem for Apiam Animal Health Ltd products in the Fish/Livestock industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Apiam Animal Health Ltd 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Apiam Animal Health Ltd can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Apiam Animal Health Ltd 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.
Buying journey improvements
– Apiam Animal Health Ltd can improve the customer journey of consumers in the Fish/Livestock 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Apiam Animal Health Ltd can use these opportunities to build new business models that can help the communities that Apiam Animal Health Ltd operates in. Secondly it can use opportunities from government spending in Fish/Livestock sector.
Better consumer reach
– The expansion of the 5G network will help Apiam Animal Health Ltd to increase its market reach. Apiam Animal Health Ltd 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.
Manufacturing automation
– Apiam Animal Health Ltd can use the latest technology developments to improve its manufacturing and designing process in Fish/Livestock 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.
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. Apiam Animal Health Ltd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Apiam Animal Health Ltd 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.
Threats Apiam Animal Health Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Apiam Animal Health Ltd are -
High dependence on third party suppliers
– Apiam Animal Health Ltd 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.
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 Apiam Animal Health Ltd in the Fish/Livestock sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Fish/Livestock industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Apiam Animal Health Ltd 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 Apiam Animal Health Ltd
– 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 Apiam Animal Health Ltd.
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.
Environmental challenges
– Apiam Animal Health Ltd 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. Apiam Animal Health Ltd can take advantage of this fund but it will also bring new competitors in the Fish/Livestock industry.
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. Apiam Animal Health Ltd needs to understand the core reasons impacting the Fish/Livestock industry. This will help it in building a better workplace.
Consumer confidence and its impact on Apiam Animal Health Ltd 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 Fish/Livestock industry and other sectors.
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 Apiam Animal Health Ltd business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Apiam Animal Health Ltd 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 Fish/Livestock industry.
Technology acceleration in Forth Industrial Revolution
– Apiam Animal Health Ltd has witnessed rapid integration of technology during Covid-19 in the Fish/Livestock industry. As one of the leading players in the industry, Apiam Animal Health Ltd needs to keep up with the evolution of technology in the Fish/Livestock 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Fish/Livestock industry are lowering. It can presents Apiam Animal Health Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Fish/Livestock sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Apiam Animal Health Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Apiam Animal Health Ltd 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 Apiam Animal Health Ltd 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 Apiam Animal Health Ltd 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 Apiam Animal Health Ltd 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 Apiam Animal Health Ltd needs to make to build a sustainable competitive advantage.