How to Disrupt Financial Services: An Interview with Peter Aceto SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of How to Disrupt Financial Services: An Interview with Peter Aceto
The CEO of Tangerine-formerly ING Direct Canada-describes his approach to leading and creating a disruptive business model in one of the most traditional industries: banking. In this wide-ranging interview, he explains how the culture he created embraces divergent views and encourages novel thinking. He also describes what happened when his firm was acquired by one of Canada's big banks (Scotiabank), and how the culture of disruptive innovation lives on at Tangerine.
Swot Analysis of "How to Disrupt Financial Services: An Interview with Peter Aceto" written by Francesco Bova, Peter Aceto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tangerine Disruptive facing as an external strategic factors. Some of the topics covered in How to Disrupt Financial Services: An Interview with Peter Aceto case study are - Strategic Management Strategies, Leadership and Finance & Accounting.
Some of the macro environment factors that can be used to understand the How to Disrupt Financial Services: An Interview with Peter Aceto casestudy better are - – talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing energy prices, wage bills are increasing, technology disruption, increasing household debt because of falling income levels,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of How to Disrupt Financial Services: An Interview with Peter Aceto
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in How to Disrupt Financial Services: An Interview with Peter Aceto case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tangerine Disruptive, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tangerine Disruptive 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 How to Disrupt Financial Services: An Interview with Peter Aceto can be done for the following purposes –
1. Strategic planning using facts provided in How to Disrupt Financial Services: An Interview with Peter Aceto case study
2. Improving business portfolio management of Tangerine Disruptive
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tangerine Disruptive
Strengths How to Disrupt Financial Services: An Interview with Peter Aceto | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tangerine Disruptive in How to Disrupt Financial Services: An Interview with Peter Aceto Harvard Business Review case study are -
Innovation driven organization
– Tangerine Disruptive is one of the most innovative firm in sector. Manager in How to Disrupt Financial Services: An Interview with Peter Aceto Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Tangerine Disruptive 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 How to Disrupt Financial Services: An Interview with Peter Aceto - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Tangerine Disruptive is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Francesco Bova, Peter Aceto can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Tangerine Disruptive is one of the leading recruiters in the industry. Managers in the How to Disrupt Financial Services: An Interview with Peter Aceto are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Tangerine Disruptive in the sector have low bargaining power. How to Disrupt Financial Services: An Interview with Peter Aceto has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tangerine Disruptive to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Tangerine Disruptive has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tangerine Disruptive to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Tangerine Disruptive 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 Tangerine Disruptive is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in How to Disrupt Financial Services: An Interview with Peter Aceto Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Tangerine Disruptive has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tangerine Disruptive 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.
Organizational Resilience of Tangerine Disruptive
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tangerine Disruptive does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Tangerine Disruptive 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.
Ability to lead change in Finance & Accounting field
– Tangerine Disruptive 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 Tangerine Disruptive in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Tangerine Disruptive is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses How to Disrupt Financial Services: An Interview with Peter Aceto | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of How to Disrupt Financial Services: An Interview with Peter Aceto are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tangerine Disruptive is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study How to Disrupt Financial Services: An Interview with Peter Aceto can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study How to Disrupt Financial Services: An Interview with Peter Aceto 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 Tangerine Disruptive 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Tangerine Disruptive 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. Tangerine Disruptive 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.
Skills based hiring
– The stress on hiring functional specialists at Tangerine Disruptive 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.
Low market penetration in new markets
– Outside its home market of Tangerine Disruptive, firm in the HBR case study How to Disrupt Financial Services: An Interview with Peter Aceto needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Tangerine Disruptive 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study How to Disrupt Financial Services: An Interview with Peter Aceto, in the dynamic environment Tangerine Disruptive has struggled to respond to the nimble upstart competition. Tangerine Disruptive has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Tangerine Disruptive products
– To increase the profitability and margins on the products, Tangerine Disruptive needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Tangerine Disruptive 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.
Capital Spending Reduction
– Even during the low interest decade, Tangerine Disruptive 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.
Slow to strategic competitive environment developments
– As How to Disrupt Financial Services: An Interview with Peter Aceto HBR case study mentions - Tangerine Disruptive 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.
Opportunities How to Disrupt Financial Services: An Interview with Peter Aceto | 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 How to Disrupt Financial Services: An Interview with Peter Aceto are -
Using analytics as competitive advantage
– Tangerine Disruptive 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 How to Disrupt Financial Services: An Interview with Peter Aceto - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tangerine Disruptive to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tangerine Disruptive 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 Tangerine Disruptive to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Tangerine Disruptive 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tangerine Disruptive 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. Tangerine Disruptive 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.
Buying journey improvements
– Tangerine Disruptive can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. How to Disrupt Financial Services: An Interview with Peter Aceto 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.
Better consumer reach
– The expansion of the 5G network will help Tangerine Disruptive to increase its market reach. Tangerine Disruptive 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
– Tangerine Disruptive can develop new processes and procedures in Finance & Accounting 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tangerine Disruptive can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Tangerine Disruptive can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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 Tangerine Disruptive in the consumer business. Now Tangerine Disruptive can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tangerine Disruptive 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tangerine Disruptive in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Tangerine Disruptive 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 Finance & Accounting segment.
Threats How to Disrupt Financial Services: An Interview with Peter Aceto External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study How to Disrupt Financial Services: An Interview with Peter Aceto are -
Regulatory challenges
– Tangerine Disruptive 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 Finance & Accounting industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tangerine Disruptive 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 How to Disrupt Financial Services: An Interview with Peter Aceto .
High dependence on third party suppliers
– Tangerine Disruptive 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.
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.
Stagnating economy with rate increase
– Tangerine Disruptive 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 How to Disrupt Financial Services: An Interview with Peter Aceto, Tangerine Disruptive may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Tangerine Disruptive
– 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 Tangerine Disruptive.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tangerine Disruptive in the Finance & Accounting industry. The Finance & Accounting 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.
Environmental challenges
– Tangerine Disruptive 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. Tangerine Disruptive can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Tangerine Disruptive.
Consumer confidence and its impact on Tangerine Disruptive 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.
Shortening product life cycle
– it is one of the major threat that Tangerine Disruptive is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of How to Disrupt Financial Services: An Interview with Peter Aceto 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 How to Disrupt Financial Services: An Interview with Peter Aceto 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 How to Disrupt Financial Services: An Interview with Peter Aceto 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 How to Disrupt Financial Services: An Interview with Peter Aceto 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 How to Disrupt Financial Services: An Interview with Peter Aceto 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 Tangerine Disruptive needs to make to build a sustainable competitive advantage.
