Swot Analysis of "TD Canada Trust (B): Linking the Service Model to the P&L" written by Dennis Campbell, Brent Kazan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Td Linking facing as an external strategic factors. Some of the topics covered in TD Canada Trust (B): Linking the Service Model to the P&L case study are - Strategic Management Strategies, Customers, International business, Mergers & acquisitions and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TD Canada Trust (B): Linking the Service Model to the P&L casestudy better are - – there is increasing trade war between United States & China, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings,
increasing commodity prices, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of TD Canada Trust (B): Linking the Service Model to the P&L
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TD Canada Trust (B): Linking the Service Model to the P&L case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Td Linking, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Td Linking 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 TD Canada Trust (B): Linking the Service Model to the P&L can be done for the following purposes –
1. Strategic planning using facts provided in TD Canada Trust (B): Linking the Service Model to the P&L case study
2. Improving business portfolio management of Td Linking
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Td Linking
Strengths TD Canada Trust (B): Linking the Service Model to the P&L | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Td Linking in TD Canada Trust (B): Linking the Service Model to the P&L Harvard Business Review case study are -
High brand equity
– Td Linking has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Td Linking to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Td Linking 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 TD Canada Trust (B): Linking the Service Model to the P&L - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Td Linking in the sector have low bargaining power. TD Canada Trust (B): Linking the Service Model to the P&L has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Td Linking to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Td Linking is present in almost all the verticals within the industry. This has provided firm in TD Canada Trust (B): Linking the Service Model to the P&L 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.
Organizational Resilience of Td Linking
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Td Linking does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Td Linking 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 Dennis Campbell, Brent Kazan 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.
High switching costs
– The high switching costs that Td Linking 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.
Learning organization
- Td Linking 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 Td Linking is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TD Canada Trust (B): Linking the Service Model to the P&L Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Td Linking in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the TD Canada Trust (B): Linking the Service Model to the P&L 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.
Ability to recruit top talent
– Td Linking is one of the leading recruiters in the industry. Managers in the TD Canada Trust (B): Linking the Service Model to the P&L are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Td Linking is one of the most innovative firm in sector. Manager in TD Canada Trust (B): Linking the Service Model to the P&L Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses TD Canada Trust (B): Linking the Service Model to the P&L | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TD Canada Trust (B): Linking the Service Model to the P&L are -
Low market penetration in new markets
– Outside its home market of Td Linking, firm in the HBR case study TD Canada Trust (B): Linking the Service Model to the P&L needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Td Linking is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Td Linking needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Td Linking to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study TD Canada Trust (B): Linking the Service Model to the P&L 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 Td Linking 's lucrative customers.
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 Td Linking supply chain. Even after few cautionary changes mentioned in the HBR case study - TD Canada Trust (B): Linking the Service Model to the P&L, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Td Linking vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Dennis Campbell, Brent Kazan suggests that, Td Linking 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 star products
– The top 2 products and services of the firm as mentioned in the TD Canada Trust (B): Linking the Service Model to the P&L 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 Td Linking has relatively successful track record of launching new products.
Products dominated business model
– Even though Td Linking 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 - TD Canada Trust (B): Linking the Service Model to the P&L should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Td Linking 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Td Linking is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TD Canada Trust (B): Linking the Service Model to the P&L can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Td Linking 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TD Canada Trust (B): Linking the Service Model to the P&L, is just above the industry average. Td Linking 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.
Opportunities TD Canada Trust (B): Linking the Service Model to the P&L | 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 TD Canada Trust (B): Linking the Service Model to the P&L are -
Buying journey improvements
– Td Linking can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TD Canada Trust (B): Linking the Service Model to the P&L 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.
Loyalty marketing
– Td Linking 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.
Developing new processes and practices
– Td Linking can develop new processes and procedures in Leadership & Managing People 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.
Leveraging digital technologies
– Td Linking 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.
Better consumer reach
– The expansion of the 5G network will help Td Linking to increase its market reach. Td Linking 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Td Linking in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Td Linking has opened avenues for new revenue streams for the organization in the industry. This can help Td Linking to build a more holistic ecosystem as suggested in the TD Canada Trust (B): Linking the Service Model to the P&L case study. Td Linking can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Td Linking 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Td Linking can use these opportunities to build new business models that can help the communities that Td Linking operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Td Linking 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, Td Linking 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.
Manufacturing automation
– Td Linking can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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 Td Linking 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 Leadership & Managing People segment.
Threats TD Canada Trust (B): Linking the Service Model to the P&L External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TD Canada Trust (B): Linking the Service Model to the P&L 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 Td Linking business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Td Linking can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Td Linking
– 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 Td Linking.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Td Linking 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 TD Canada Trust (B): Linking the Service Model to the P&L .
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 Td Linking.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TD Canada Trust (B): Linking the Service Model to the P&L, Td Linking may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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. Td Linking needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Technology acceleration in Forth Industrial Revolution
– Td Linking has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Td Linking needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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.
Consumer confidence and its impact on Td Linking 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.
Environmental challenges
– Td Linking 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. Td Linking can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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 Td Linking in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of TD Canada Trust (B): Linking the Service Model to the P&L 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 TD Canada Trust (B): Linking the Service Model to the P&L 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 TD Canada Trust (B): Linking the Service Model to the P&L 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 TD Canada Trust (B): Linking the Service Model to the P&L 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 TD Canada Trust (B): Linking the Service Model to the P&L 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 Td Linking needs to make to build a sustainable competitive advantage.