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Swot Analysis 1

Robinson Plc has numerous internal strengths that help it thrive in the marketplace, including high customer satisfaction, strong cash flow, reliable suppliers, and successful innovation programs. However, it also has weaknesses such as limited diversification, poor demand forecasting, and below-industry investment in R&D. Externally, opportunities include new government contracts and opening of new markets, while threats include increased competition and regulation changes. A weighted SWOT analysis identified the most critical strengths, weaknesses, opportunities, and threats, but does not capture their interactive effects.

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Rebecca Beron Resadas
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388 views

Swot Analysis 1

Robinson Plc has numerous internal strengths that help it thrive in the marketplace, including high customer satisfaction, strong cash flow, reliable suppliers, and successful innovation programs. However, it also has weaknesses such as limited diversification, poor demand forecasting, and below-industry investment in R&D. Externally, opportunities include new government contracts and opening of new markets, while threats include increased competition and regulation changes. A weighted SWOT analysis identified the most critical strengths, weaknesses, opportunities, and threats, but does not capture their interactive effects.

Uploaded by

Rebecca Beron Resadas
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Robinson Plc SWOT Analysis

Strengths of Robinson Plc– Internal Strategic Factors


As one of the leading organizations in its industry, Robinson Plc 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.

 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 – Robinson Plc has strong free cash flows that provide resources
in the hand of the company to expand into new projects.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling
the company to overcome any supply chain bottlenecks.
 Automation of activities brought consistency of quality to Robinson Plc 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.
 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. Successful track record of
developing new products – product innovation.
 Highly skilled workforce through successful training and learning programs. Robinson Plc
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.

Weakness of Robinson Plc– Internal Strategic Factors


Weakness are the areas where Robinson Plc 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.

 Limited success outside core business – Even though Robinson Plc is one of the leading
organizations in its industry it has faced challenges in moving to other product segments with
its present 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. Robinson Plc has to build
internal feedback mechanism directly from sales team on ground to counter these challenges.
 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 Robinson Plc is not very good at demand forecasting thus
end up keeping higher inventory both in-house and in channel.
 Investment in Research and Development is below the fastest growing players in the
industry. Even though Robinson Plc 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..
 Not highly successful at integrating firms with different work culture. As mentioned
earlier even though Robinson Plc is successful at integrating small companies it has its share of
failure to merge firms that have different work culture.
 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.
 The profitability ratio and Net Contribution % of Robinson Plc are below the industry
average.

Opportunities for Robinson Plc – External Strategic Factors


 Government green drive also opens an opportunity for procurement of Robinson Plc
products by the state as well as federal government contractors.
 Decreasing cost of transportation because of lower shipping prices can also bring down
the cost of Robinson Plc’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.
 Opening up of new markets because of government agreement – the adoption of new
technology standard and government free trade agreement has provided Robinson Plc an
opportunity to enter a new emerging market.
 Lower inflation rate – The low inflation rate bring more stability in the market, enable
credit at lower interest rate to the customers of Robinson Plc.
 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 Robinson Plc to drive home
its advantage in new technology and gain market share in the new product category.
 The market development will lead to dilution of competitor’s advantage and enable
Robinson Plc to increase its competitiveness compare to the other competitors.
 The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players such as Robinson Plc to increase its profitability.
 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 Robinson Plc. 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 Robinson Plc Facing - External Strategic Factors
 Imitation of the counterfeit and low quality product is also a threat to Robinson Plc’s
product especially in the emerging markets and low income markets.
 New technologies developed by the competitor or market disruptor could be a serious
threat to the industry in medium to long term future.
 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.
 Rising raw material can pose a threat to the Robinson Plc profitability.
 The company can face lawsuits in various markets given - different laws and continuous
fluctuations regarding product standards 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.
 Shortage of skilled workforce in certain global market represents a threat to steady
growth of profits for Robinson Plc   in those markets.
 New environment regulations under Paris agreement (2016) could be a threat to certain
existing product categories.

Limitations of SWOT Analysis for Robinson Plc


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 Robinson Plc
 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.
Weighted SWOT Analysis of Robinson Plc
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 Robinson Plc 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 Robinson Plc


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.
Robinsons plc. Swot
analysis
BSBA – III

SUBMITTED BY:
REBECCA B. RESADAS

SUBMITTED TO:
MR. REDENTOR M. BRIONES

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