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 - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
increasing energy prices, supply chains are disrupted by pandemic , 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 -
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Growth Strategies at SVC Bank Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
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.
Successful track record of launching new products
– Svc Ucbs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Svc Ucbs 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
– 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.
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.
Ability to lead change in Strategy & Execution field
– Svc Ucbs is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Svc Ucbs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Ability to recruit top talent
– Svc Ucbs is one of the leading recruiters in the industry. Managers in the Growth Strategies at SVC Bank are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Growth Strategies at SVC Bank firm has clearly differentiated products in the market place. This has enabled Svc Ucbs to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Svc Ucbs to invest into research and development (R&D) and innovation.
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 -
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Growth Strategies at SVC Bank, in the dynamic environment Svc Ucbs has struggled to respond to the nimble upstart competition. Svc Ucbs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Growth Strategies at SVC Bank, is just above the industry average. Svc Ucbs 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Svc Ucbs 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 industry using digital technology.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Growth Strategies at SVC Bank HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Svc Ucbs has relatively successful track record of launching new products.
Lack of clear differentiation of Svc Ucbs products
– To increase the profitability and margins on the products, Svc Ucbs needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
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 -
Buying journey improvements
– Svc Ucbs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Growth Strategies at SVC Bank suggest that firm 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.
Leveraging digital technologies
– Svc Ucbs 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Svc Ucbs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Manufacturing automation
– Svc Ucbs can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. 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.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Svc Ucbs 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 Svc Ucbs to hire the very best people irrespective of their geographical location.
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.
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.
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.
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 -
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.
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.
High dependence on third party suppliers
– Svc Ucbs 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.
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.
Consumer confidence and its impact on Svc Ucbs 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 the industry and other sectors.
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.
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.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Svc Ucbs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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 .
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.
