Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
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 - – talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, technology disruption, competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, increasing energy prices, 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 -
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.
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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Competition Stability digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Competition Stability 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.
Diverse revenue streams
– Competition Stability is present in almost all the verticals within the industry. This has provided firm in Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy 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.
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.
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.
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.
Analytics focus
– Competition Stability 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 Xavier Vives 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 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.
Cross disciplinary teams
– Horizontal connected teams at the Competition Stability 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.
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.
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 -
High bargaining power of channel partners
– Because of the regulatory requirements, Xavier Vives suggests that, Competition Stability is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
Capital Spending Reduction
– Even during the low interest decade, Competition Stability 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.
Need for greater diversity
– Competition Stability has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Competition Stability is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Competition Stability products
– To increase the profitability and margins on the products, Competition Stability needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy HBR case study mentions - Competition Stability 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.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, it seems that the employees of Competition Stability don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Competition Stability can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Competition Stability to increase its market reach. Competition Stability 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Competition Stability 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, Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Competition Stability has opened avenues for new revenue streams for the organization in the industry. This can help Competition Stability to build a more holistic ecosystem as suggested in the Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy case study. Competition Stability can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Competition Stability can use these opportunities to build new business models that can help the communities that Competition Stability operates in. Secondly it can use opportunities from government spending in Global Business sector.
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.
Loyalty marketing
– Competition Stability has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 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.
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 -
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 Competition Stability business can come under increasing regulations regarding data privacy, data security, 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. Competition Stability needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy, Competition Stability may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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.
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.
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.
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.
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.
Environmental challenges
– Competition Stability 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. Competition Stability can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Balancing the Trade-Offs Between Competition and Stability: Private Banks & Public Policy