Growth Strategies at SVC Bank SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Growth Strategies at SVC Bank
Primary co-operative banks in India located in semi-urban and urban areas, known as Urban Co-operative Banks (UCBs), were traditionally centered around communities and work place groups. The main business of these banks was lending to small borrowers and business houses but the scope of their operations had increased greatly. The case describes Shamrao Vithal Co-operative (SVC) Bank's inorganic growth strategy through acquisition of weaker/loss-making UCBS, and the problems and challenges faced by the bank. It also examines the alternative of organic growth towards its objective of achieving a pan-India presence. One of the fastest growing Urban Co-operative Banks (UCBs) in India, SVC Bank was moving towards this objective. From a total of 38 branches in 2005, with a deposit base of a??24 billion, the bank had grown to more than 100 branches with a total business of a??100 billion by 2011. This growth had come in three phases. During 2005-2008, when government policy did not permit opening of new branches, SVC Bank had grown by acquiring three weak UCBs with 24 branches. When the curbs on organic growth were lifted in 2009, the bank aggressively added 26 new branches in two years. During 2010-11, it added 16 new branches and also acquired one UCB with one branch. Since the vice-chairman of the bank had experienced the advantages and disadvantages of both organic and inorganic growth, he wondered which route made better sense and whether the bank should continue with the kind of aggressive expansion of the past six years.
Swot Analysis of "Growth Strategies at SVC Bank" written by Gita A Kumta, Vrinda Kamat includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Svc Ucbs facing as an external strategic factors. Some of the topics covered in Growth Strategies at SVC Bank case study are - Strategic Management Strategies, Financial management, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Growth Strategies at SVC Bank casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, technology disruption, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, etc
Introduction to SWOT Analysis of Growth Strategies at SVC Bank
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Growth Strategies at SVC Bank case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Svc Ucbs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Svc Ucbs 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 Growth Strategies at SVC Bank can be done for the following purposes –
1. Strategic planning using facts provided in Growth Strategies at SVC Bank case study
2. Improving business portfolio management of Svc Ucbs
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Svc Ucbs
Strengths Growth Strategies at SVC Bank | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Svc Ucbs in Growth Strategies at SVC Bank Harvard Business Review case study are -
Strong track record of project management
– Svc Ucbs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Svc Ucbs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Svc Ucbs does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Svc Ucbs 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 Svc Ucbs is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Growth Strategies at SVC Bank Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Svc Ucbs has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Growth Strategies at SVC Bank - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Svc Ucbs in the sector have low bargaining power. Growth Strategies at SVC Bank has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Svc Ucbs to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Svc Ucbs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Svc Ucbs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Svc Ucbs is one of the most innovative firm in sector. Manager in Growth Strategies at SVC Bank Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Svc Ucbs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Svc Ucbs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Svc Ucbs 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.
Cross disciplinary teams
– Horizontal connected teams at the Svc Ucbs are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Svc Ucbs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Growth Strategies at SVC Bank Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Svc Ucbs is present in almost all the verticals within the industry. This has provided firm in Growth Strategies at SVC Bank case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Growth Strategies at SVC Bank | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Growth Strategies at SVC Bank are -
High operating costs
– Compare to the competitors, firm in the HBR case study Growth Strategies at SVC Bank has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Svc Ucbs 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Growth Strategies at SVC Bank, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. 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.
Low market penetration in new markets
– Outside its home market of Svc Ucbs, firm in the HBR case study Growth Strategies at SVC Bank needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Svc Ucbs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Growth Strategies at SVC Bank can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Svc Ucbs has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Growth Strategies at SVC Bank should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Svc Ucbs has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Svc Ucbs supply chain. Even after few cautionary changes mentioned in the HBR case study - Growth Strategies at SVC Bank, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Svc Ucbs vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Growth Strategies at SVC Bank HBR case study mentions - Svc Ucbs 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Growth Strategies at SVC Bank, it seems that the employees of Svc Ucbs don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Growth Strategies at SVC Bank that the firm 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 in the case Growth Strategies at SVC Bank can leverage the sales team experience to cultivate customer relationships as Svc Ucbs is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Svc Ucbs has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Svc Ucbs even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Growth Strategies at SVC Bank | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Growth Strategies at SVC Bank are -
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 Svc Ucbs 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.
Learning at scale
– Online learning technologies has now opened space for Svc Ucbs 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.
Loyalty marketing
– Svc Ucbs 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, Svc Ucbs is facing challenges because of the dominance of functional experts in the organization. Growth Strategies at SVC Bank case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Svc Ucbs can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Svc Ucbs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Svc Ucbs has opened avenues for new revenue streams for the organization in the industry. This can help Svc Ucbs to build a more holistic ecosystem as suggested in the Growth Strategies at SVC Bank case study. Svc Ucbs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Svc Ucbs to increase its market reach. Svc Ucbs 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.
Developing new processes and practices
– Svc Ucbs can develop new processes and procedures in Strategy & Execution 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Svc Ucbs can use these opportunities to build new business models that can help the communities that Svc Ucbs operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Svc Ucbs can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Svc Ucbs 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. Svc Ucbs 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Svc Ucbs in the consumer business. Now Svc Ucbs can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Growth Strategies at SVC Bank External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Growth Strategies at SVC Bank are -
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.
Increasing wage structure of Svc Ucbs
– 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 Svc Ucbs.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Svc Ucbs.
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 Svc Ucbs in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Svc Ucbs 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 Strategy & Execution industry regulations.
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. Svc Ucbs needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Svc Ucbs is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Svc Ucbs 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 field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Growth Strategies at SVC Bank, Svc Ucbs may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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 Svc Ucbs business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Svc Ucbs can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Growth Strategies at SVC Bank .
Environmental challenges
– Svc Ucbs 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. Svc Ucbs can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Svc Ucbs has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Svc Ucbs needs to keep up with the evolution of technology in the Strategy & Execution 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.
Weighted SWOT Analysis of Growth Strategies at SVC Bank Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Growth Strategies at SVC Bank 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 the case study Growth Strategies at SVC Bank 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 the Harvard case study Growth Strategies at SVC Bank 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 Growth Strategies at SVC Bank is 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 Svc Ucbs needs to make to build a sustainable competitive advantage.