Swot Analysis of "Yodlee Inc.--The VerticalOne Integration (B)" written by John Melnyk, Darren Meister includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Verticalone Yodlee facing as an external strategic factors. Some of the topics covered in Yodlee Inc.--The VerticalOne Integration (B) case study are - Strategic Management Strategies, Mergers & acquisitions, Strategic planning, Strategy execution and Technology & Operations.
Some of the macro environment factors that can be used to understand the Yodlee Inc.--The VerticalOne Integration (B) casestudy better are - – increasing transportation and logistics costs, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, wage bills are increasing, there is increasing trade war between United States & China,
there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Yodlee Inc.--The VerticalOne Integration (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yodlee Inc.--The VerticalOne Integration (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Verticalone Yodlee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Verticalone Yodlee 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 Yodlee Inc.--The VerticalOne Integration (B) can be done for the following purposes –
1. Strategic planning using facts provided in Yodlee Inc.--The VerticalOne Integration (B) case study
2. Improving business portfolio management of Verticalone Yodlee
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Verticalone Yodlee
Strengths Yodlee Inc.--The VerticalOne Integration (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Verticalone Yodlee in Yodlee Inc.--The VerticalOne Integration (B) Harvard Business Review case study are -
High brand equity
– Verticalone Yodlee has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Verticalone Yodlee to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Verticalone Yodlee in the sector have low bargaining power. Yodlee Inc.--The VerticalOne Integration (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Verticalone Yodlee to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Verticalone Yodlee 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 Verticalone Yodlee in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Verticalone Yodlee
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Verticalone Yodlee does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Verticalone Yodlee has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Innovation driven organization
– Verticalone Yodlee is one of the most innovative firm in sector. Manager in Yodlee Inc.--The VerticalOne Integration (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Verticalone Yodlee is present in almost all the verticals within the industry. This has provided firm in Yodlee Inc.--The VerticalOne Integration (B) 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Verticalone Yodlee digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Verticalone Yodlee 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.
Successful track record of launching new products
– Verticalone Yodlee has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Verticalone Yodlee 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.
Effective Research and Development (R&D)
– Verticalone Yodlee 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 Yodlee Inc.--The VerticalOne Integration (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Verticalone Yodlee has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yodlee Inc.--The VerticalOne Integration (B) 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.
Ability to recruit top talent
– Verticalone Yodlee is one of the leading recruiters in the industry. Managers in the Yodlee Inc.--The VerticalOne Integration (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Yodlee Inc.--The VerticalOne Integration (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yodlee Inc.--The VerticalOne Integration (B) are -
Products dominated business model
– Even though Verticalone Yodlee 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 - Yodlee Inc.--The VerticalOne Integration (B) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Yodlee Inc.--The VerticalOne Integration (B), in the dynamic environment Verticalone Yodlee has struggled to respond to the nimble upstart competition. Verticalone Yodlee has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Verticalone Yodlee has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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 Verticalone Yodlee supply chain. Even after few cautionary changes mentioned in the HBR case study - Yodlee Inc.--The VerticalOne Integration (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Verticalone Yodlee vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Verticalone Yodlee 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Verticalone Yodlee needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Low market penetration in new markets
– Outside its home market of Verticalone Yodlee, firm in the HBR case study Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) 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 Verticalone Yodlee has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) can leverage the sales team experience to cultivate customer relationships as Verticalone Yodlee is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Yodlee Inc.--The VerticalOne Integration (B), it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Verticalone Yodlee is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Yodlee Inc.--The VerticalOne Integration (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Yodlee Inc.--The VerticalOne Integration (B) | 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 Yodlee Inc.--The VerticalOne Integration (B) are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Verticalone Yodlee 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. Verticalone Yodlee 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Verticalone Yodlee can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Verticalone Yodlee 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.
Learning at scale
– Online learning technologies has now opened space for Verticalone Yodlee 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.
Using analytics as competitive advantage
– Verticalone Yodlee has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Yodlee Inc.--The VerticalOne Integration (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Verticalone Yodlee to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Verticalone Yodlee can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Yodlee Inc.--The VerticalOne Integration (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Verticalone Yodlee can use these opportunities to build new business models that can help the communities that Verticalone Yodlee operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
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 Verticalone Yodlee in the consumer business. Now Verticalone Yodlee can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Verticalone Yodlee has opened avenues for new revenue streams for the organization in the industry. This can help Verticalone Yodlee to build a more holistic ecosystem as suggested in the Yodlee Inc.--The VerticalOne Integration (B) case study. Verticalone Yodlee can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Verticalone Yodlee in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Verticalone Yodlee 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 Verticalone Yodlee 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 Technology & Operations segment.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Verticalone Yodlee can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Yodlee Inc.--The VerticalOne Integration (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yodlee Inc.--The VerticalOne Integration (B) are -
Increasing wage structure of Verticalone Yodlee
– 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 Verticalone Yodlee.
Shortening product life cycle
– it is one of the major threat that Verticalone Yodlee is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Verticalone Yodlee needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Verticalone Yodlee 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. Verticalone Yodlee can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Verticalone Yodlee 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Verticalone Yodlee with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Verticalone Yodlee has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Verticalone Yodlee needs to keep up with the evolution of technology in the Technology & Operations 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Verticalone Yodlee in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Yodlee Inc.--The VerticalOne Integration (B), Verticalone Yodlee may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Regulatory challenges
– Verticalone Yodlee 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 Technology & Operations 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 Verticalone Yodlee.
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 Verticalone Yodlee 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, Verticalone Yodlee 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 Yodlee Inc.--The VerticalOne Integration (B) .
Weighted SWOT Analysis of Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) 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 Yodlee Inc.--The VerticalOne Integration (B) 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 Verticalone Yodlee needs to make to build a sustainable competitive advantage.