Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy
Does too much competition in banking hurt society? What policies can best protect and stabilize banking without stifling it? This article addresses the critical relationships between competition, regulation and stability, and the implications of coordinating banking regulations with competition policies. The author presents some key challenges that bankers and regulators face in trying to manage the trade-offs between competition and stability. He also derives some important policy implications for both public- and private-sector actors, so that society can reap the genuine benefits of competition: efficiency, innovation, growth and consumer welfare, in order to build trust in the banking sector again.
Swot Analysis of "Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy" written by Xavier Vives includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Competition Stability facing as an external strategic factors. Some of the topics covered in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy case study are - Strategic Management Strategies, Financial management and Global Business.
Some of the macro environment factors that can be used to understand the Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, wage bills are increasing, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
increasing commodity prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Competition Stability, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Competition Stability 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy can be done for the following purposes –
1. Strategic planning using facts provided in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy case study
2. Improving business portfolio management of Competition Stability
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Competition Stability
Strengths Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Competition Stability in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy Harvard Business Review case study are -
Strong track record of project management
– Competition Stability is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy firm has clearly differentiated products in the market place. This has enabled Competition Stability to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Competition Stability to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Competition Stability in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Competition Stability is one of the most innovative firm in sector. Manager in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Competition Stability 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 Competition Stability is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Competition Stability 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.
Ability to recruit top talent
– Competition Stability is one of the leading recruiters in the industry. Managers in the Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Competition Stability has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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.
Low bargaining power of suppliers
– Suppliers of Competition Stability in the sector have low bargaining power. Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Competition Stability to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Global Business field
– Competition Stability 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 Competition Stability in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Competition Stability
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Competition Stability does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy are -
Products dominated business model
– Even though Competition Stability 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 - Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Competition Stability 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Competition Stability, firm in the HBR case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Competition Stability has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring
– The stress on hiring functional specialists at Competition Stability 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, is just above the industry average. Competition Stability 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.
Aligning sales with marketing
– It come across in the case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy can leverage the sales team experience to cultivate customer relationships as Competition Stability 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 Competition Stability supply chain. Even after few cautionary changes mentioned in the HBR case study - Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Competition Stability vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Competition Stability 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.
Increasing silos among functional specialists
– The organizational structure of Competition Stability is dominated by functional specialists. It is not different from other players in the Global Business segment. Competition Stability needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Competition Stability to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, in the dynamic environment Competition Stability has struggled to respond to the nimble upstart competition. Competition Stability has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy | 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Competition Stability 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Competition Stability 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 Competition Stability to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Competition Stability is facing challenges because of the dominance of functional experts in the organization. Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Competition Stability 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. Competition Stability 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Competition Stability in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Competition Stability can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Competition Stability 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.
Manufacturing automation
– Competition Stability can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Buying journey improvements
– Competition Stability can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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.
Building a culture of innovation
– managers at Competition Stability 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 Global Business segment.
Learning at scale
– Online learning technologies has now opened space for Competition Stability 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.
Leveraging digital technologies
– Competition Stability 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.
Developing new processes and practices
– Competition Stability can develop new processes and procedures in Global Business 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.
Threats Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Competition Stability will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Competition Stability has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Competition Stability needs to keep up with the evolution of technology in the Global Business 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 Competition Stability in the Global Business industry. The Global Business 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.
Stagnating economy with rate increase
– Competition Stability 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.
Increasing wage structure of Competition Stability
– 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 Competition Stability.
Regulatory challenges
– Competition Stability 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 Global Business industry regulations.
High dependence on third party suppliers
– Competition Stability 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.
Shortening product life cycle
– it is one of the major threat that Competition Stability is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Competition Stability.
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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Competition Stability can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Competition Stability in the Global Business 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. Competition Stability needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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 Competition Stability needs to make to build a sustainable competitive advantage.
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