Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
America Movil, S.A.B. de C.V. SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a vital strategic planning tool that can be used by America Movil, S.A.B. de C.V. managers to do a situational analysis of the firm . It is a handy technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) America Movil, S.A.B. de C.V. is facing in its current business environment.
The America Movil, S.A.B. de C.V. is one of the leading organizatations in its industry. America Movil, S.A.B. de C.V. maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires effective coordination among various departments within the firm such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - America Movil, S.A.B. de C.V. SWOT Analysis
Check out- America Movil, S.A.B. de C.V. PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework enables 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 called SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the America Movil, S.A.B. de C.V. 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 company can use to exploit external opportunities, counter threats, and build on & protect America Movil, S.A.B. de C.V. strengths, and eradicate its weaknesses.
Step by Step Guide to America Movil, S.A.B. de C.V. SWOT Analysis
Strengths of America Movil, S.A.B. de C.V. – Internal Strategic Factors
As one of the leading companies in its industry, America Movil, S.A.B. de C.V. has numerous strengths that enable 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 America Movil, S.A.B. de C.V. are –
Read - America Movil, S.A.B. de C.V. Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.
- Strong Free Cash Flow – America Movil, S.A.B. de C.V. has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
- Strong distribution network – Over the years America Movil, S.A.B. de C.V. has built a reliable distribution network that can reach majority of its potential market.
- Automation of activities brought consistency of quality to America Movil, S.A.B. de C.V. products and has enabled the company to scale up and scale down based on the demand conditions in the market.
- Highly successful at Go To Market strategies for its products.
- Highly skilled workforce through successful training and learning programs. America Movil, S.A.B. de C.V. 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.
- Strong Brand Portfolio – Over the years America Movil, S.A.B. de C.V. has invested in building a strong brand portfolio. The SWOT analysis of America Movil, S.A.B. de C.V. just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
Weakness of America Movil, S.A.B. de C.V. – Internal Strategic Factors
Weakness are the areas where America Movil, S.A.B. de C.V. can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- Investment in Research and Development is below the fastest growing players in the industry. Even though America Movil, S.A.B. de C.V. 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.
- Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, America Movil, S.A.B. de C.V. needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
- Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.
- Not highly successful at integrating firms with different work culture. As mentioned earlier even though America Movil, S.A.B. de C.V. is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
- 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. America Movil, S.A.B. de C.V. has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
- High attrition rate in work force – compare to other organizations in the industry America Movil, S.A.B. de C.V. has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
- The profitability ratio and Net Contribution % of America Movil, S.A.B. de C.V. are below the industry average.
Opportunities for America Movil, S.A.B. de C.V. – External Strategic Factors
Article continues after advertisement
- Government green drive also opens an opportunity for procurement of America Movil, S.A.B. de C.V. products by the state as well as federal government contractors.
- Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for America Movil, S.A.B. de C.V. in other product categories.
- Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided America Movil, S.A.B. de C.V. an opportunity to enter a new emerging market.
- Decreasing cost of transportation because of lower shipping prices can also bring down the cost of America Movil, S.A.B. de C.V.’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.
- 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.
- 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 America Movil, S.A.B. de C.V. 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 America Movil, S.A.B. de C.V. 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 America Movil, S.A.B. de C.V.. 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 America Movil, S.A.B. de C.V. Facing - External Strategic Factors
- Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of America Movil, S.A.B. de C.V.
- No regular supply of innovative products – Over the years the company has developed numerous products but those are often response to the development by other players. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time.
- Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
- Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
- The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.
- 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.
- Rising raw material can pose a threat to the America Movil, S.A.B. de C.V. profitability.
Limitations of SWOT Analysis for America Movil, S.A.B. de C.V.
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 America Movil, S.A.B. de C.V.
- 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 America Movil, S.A.B. de C.V.
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 America Movil, S.A.B. de C.V. 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 America Movil, S.A.B. de C.V.
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 America Movil, S.A.B. de C.V.
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
- American Software, Inc. SWOT Analysis
- Amkor Technology, Inc. SWOT Analysis
- Advanced Micro Devices, Inc. SWOT Analysis
- Amber Road, Inc. SWOT Analysis
- Ambarella, Inc. SWOT Analysis
Next 5 SWOT Analysis
- Arista Networks, Inc. SWOT Analysis
- Angie's List, Inc. SWOT Analysis
- Ansys, Inc. SWOT Analysis
- Sphere 3D Corp. SWOT Analysis
- Alpha and Omega Semiconductor Limited SWOT Analysis
HBR Case Studies Solutions
- Cancer Treatment Centers of America® (A) case study solution
- Evan Williams: From Blogger to Odeo (A) case study solution
- Lawnsite.com vs. DuPont (B): The Crisis Widens case study solution
- Global Fun: The Internationalization of Theme Parks case study solution
- BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution