Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Everi Holdings Inc. SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a vital strategic planning tool that can be used by Everi Holdings Inc. managers to do a situational analysis of the company . It is an important technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Everi Holdings Inc. is facing in its current business environment.
The Everi Holdings Inc. is one of the leading firms in its industry. Everi Holdings Inc. maintains its prominent position in market by carefully analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires effective coordination among various departments within the company such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - Everi Holdings Inc. SWOT Analysis
Check out- Everi Holdings Inc. PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Everi Holdings Inc. to develop four types of strategies:
- SO (strengths-opportunities) Strategies
- WO (weaknesses-opportunities) Strategies
- ST (strengths-threats) Strategies
- WT (weaknesses-threats) Strategies
SWOT Matrix Strategies Objective
The primary purpose of SWOT matrix is to identify the strategies that a firm can use to exploit external opportunities, counter threats, and build on & protect Everi Holdings Inc. strengths, and eradicate its weaknesses.
Step by Step Guide to Everi Holdings Inc. SWOT Analysis
Strengths of Everi Holdings Inc. – Internal Strategic Factors
As one of the leading organizations in its industry, Everi Holdings Inc. has numerous strengths that help it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Everi Holdings Inc. are –
Read - Everi Holdings Inc. Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- Highly skilled workforce through successful training and learning programs. Everi Holdings Inc. is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
- High level of customer satisfaction – the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
- Strong Free Cash Flow – Everi Holdings Inc. has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benefits out of the products.
- Highly successful at Go To Market strategies for its products.
- Successful track record of developing new products – product innovation.
- Superb Performance in New Markets – Everi Holdings Inc. has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
- Strong distribution network – Over the years Everi Holdings Inc. has built a reliable distribution network that can reach majority of its potential market.
Weakness of Everi Holdings Inc. – Internal Strategic Factors
Weakness are the areas where Everi Holdings Inc. can improve upon. Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- High attrition rate in work force – compare to other organizations in the industry Everi Holdings Inc. has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
- Investment in Research and Development is below the fastest growing players in the industry. Even though Everi Holdings Inc. is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
- Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of Everi Holdings Inc.
- The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. Everi Holdings Inc. has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
- There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
- Limited success outside core business – Even though Everi Holdings Inc. is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
- Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the days inventory is high compare to its competitors is that Everi Holdings Inc. is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.
Opportunities for Everi Holdings Inc. – External Strategic Factors
Article continues after advertisement
- Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
- Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Everi Holdings Inc. an opportunity to enter a new emerging market.
- New trends in the consumer behavior can open up new market for the Everi Holdings Inc. . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
- The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Everi Holdings Inc. to increase its profitability.
- Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Everi Holdings Inc..
- New environmental policies – The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Everi Holdings Inc. to drive home its advantage in new technology and gain market share in the new product category.
- Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Everi Holdings Inc. to capture new customers and increase its market share.
- New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for Everi Holdings Inc.. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.
Threats Everi Holdings Inc. Facing - External Strategic Factors
- Rising raw material can pose a threat to the Everi Holdings Inc. profitability.
- As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.
- New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
- Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Everi Holdings Inc. in those markets.
- Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
- New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
- Imitation of the counterfeit and low quality product is also a threat to Everi Holdings Inc.’s product especially in the emerging markets and low income markets.
- The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.
Limitations of SWOT Analysis for Everi Holdings Inc.
Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.
- Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
- SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
- The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Everi Holdings Inc.
- SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
- SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.
Article continues after advertisement
Weighted SWOT Analysis of Everi Holdings Inc.
In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Everi Holdings Inc. managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.
Limitation of Weighted SWOT analysis of Everi Holdings Inc.
This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Everi Holdings Inc.
Example of Weighted SWOT Analysis
You can email us to get an example document of Weighted SWOT analysis.
SWOT Worksheet & Template
If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template.
References / Citations & Bibliography
- M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
- A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
- O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
- L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)
- R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
Order Now
Previous 5 SWOT Analysis
- EVINE Live Inc. SWOT Analysis
- EnviroStar, Inc. SWOT Analysis
- Entravision Communications Corporation SWOT Analysis
- Euronav NV SWOT Analysis
- Etsy, Inc. SWOT Analysis
Next 5 SWOT Analysis
- ExlService Holdings, Inc. SWOT Analysis
- Expeditors International of Washington, Inc. SWOT Analysis
- Expedia, Inc. SWOT Analysis
- Exponent, Inc. SWOT Analysis
- Express, Inc. SWOT Analysis
HBR Case Studies Solutions
- ING Bank of Canada (B): The First Two Years case study solution
- Growing tentree: Social Enterprise, Social Media and Environmental Sustainability case study solution
- One Firm One Future at Davis Langdon (B) case study solution
- LongXi Machinery Works: Quality Improvement (B) case study solution
- GMR Group: Leadership Challenges in Building a World-class Airport case study solution