State Bank of Bikaner and Jaipur (SBKB) SWOT Analysis / TOWS Matrix / MBA Resources
Regional Banks
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for State Bank of Bikaner and Jaipur (India)
Based on various researches at Oak Spring University , State Bank of Bikaner and Jaipur is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing commodity prices, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
increasing household debt because of falling income levels, wage bills are increasing, etc
Introduction to SWOT Analysis of State Bank of Bikaner and Jaipur
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that State Bank of Bikaner and Jaipur can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the State Bank of Bikaner and Jaipur, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur can be done for the following purposes –
1. Strategic planning of State Bank of Bikaner and Jaipur
2. Improving business portfolio management of State Bank of Bikaner and Jaipur
3. Assessing feasibility of the new initiative in India
4. Making a Regional Banks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of State Bank of Bikaner and Jaipur
Strengths of State Bank of Bikaner and Jaipur | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of State Bank of Bikaner and Jaipur are -
Operational resilience
– The operational resilience strategy of State Bank of Bikaner and Jaipur comprises – understanding the underlying the factors in the Regional Banks 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.
Effective Research and Development (R&D)
– State Bank of Bikaner and Jaipur has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – State Bank of Bikaner and Jaipur staying ahead in the Regional Banks industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– State Bank of Bikaner and Jaipur has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled State Bank of Bikaner and Jaipur to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– State Bank of Bikaner and Jaipur is one of the most innovative firm in Regional Banks sector.
Successful track record of launching new products
– State Bank of Bikaner and Jaipur has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. State Bank of Bikaner and Jaipur 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.
Strong track record of project management in the Regional Banks industry
– State Bank of Bikaner and Jaipur is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– State Bank of Bikaner and Jaipur has one of the best training and development program in Financial industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at State Bank of Bikaner and Jaipur emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– State Bank of Bikaner and Jaipur is present in almost all the verticals within the Regional Banks industry. This has provided State Bank of Bikaner and Jaipur 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.
High switching costs
– The high switching costs that State Bank of Bikaner and Jaipur 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.
Digital Transformation in Regional Banks industry
- digital transformation varies from industry to industry. For State Bank of Bikaner and Jaipur digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. State Bank of Bikaner and Jaipur 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.
Ability to lead change in Regional Banks
– State Bank of Bikaner and Jaipur is one of the leading players in the Regional Banks industry in India. Over the years it has not only transformed the business landscape in the Regional Banks industry in India but also across the existing markets. The ability to lead change has enabled State Bank of Bikaner and Jaipur in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of State Bank of Bikaner and Jaipur | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of State Bank of Bikaner and Jaipur are -
High bargaining power of channel partners in Regional Banks industry
– because of the regulatory requirements in India, State Bank of Bikaner and Jaipur 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 Regional Banks industry.
Slow to strategic competitive environment developments
– As State Bank of Bikaner and Jaipur is one of the leading players in the Regional Banks industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Regional Banks industry in last five years.
Low market penetration in new markets
– Outside its home market of India, State Bank of Bikaner and Jaipur needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, State Bank of Bikaner and Jaipur has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Regional Banks industry over the last five years. State Bank of Bikaner and Jaipur 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.
No frontier risks strategy
– From the 10K / annual statement of State Bank of Bikaner and Jaipur, it seems that company is thinking out the frontier risks that can impact Regional Banks industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, State Bank of Bikaner and Jaipur is slow explore the new channels of communication. These new channels of communication can help State Bank of Bikaner and Jaipur to provide better information regarding Regional Banks products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of State Bank of Bikaner and Jaipur products
– To increase the profitability and margins on the products, State Bank of Bikaner and Jaipur needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
State Bank of Bikaner and Jaipur has a high cash cycle compare to other players in the Regional Banks industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee of State Bank of Bikaner and Jaipur is just above the Regional Banks industry average. It 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.
Skills based hiring in Regional Banks industry
– The stress on hiring functional specialists at State Bank of Bikaner and Jaipur 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.
Increasing silos among functional specialists
– The organizational structure of State Bank of Bikaner and Jaipur is dominated by functional specialists. It is not different from other players in the Regional Banks industry, but State Bank of Bikaner and Jaipur needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help State Bank of Bikaner and Jaipur to focus more on services in the Regional Banks industry rather than just following the product oriented approach.
State Bank of Bikaner and Jaipur Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of State Bank of Bikaner and Jaipur are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, State Bank of Bikaner and Jaipur is facing challenges because of the dominance of functional experts in the organization. State Bank of Bikaner and Jaipur can utilize new technology in the field of Regional Banks industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– State Bank of Bikaner and Jaipur has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Regional Banks sector. This continuous investment in analytics has enabled State Bank of Bikaner and Jaipur to build a competitive advantage using analytics. The analytics driven competitive advantage can help State Bank of Bikaner and Jaipur to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for State Bank of Bikaner and Jaipur 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.
Better consumer reach
– The expansion of the 5G network will help State Bank of Bikaner and Jaipur to increase its market reach. State Bank of Bikaner and Jaipur 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Regional Banks industry, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Regional Banks industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. State Bank of Bikaner and Jaipur 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. State Bank of Bikaner and Jaipur 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.
Creating value in data economy
– The success of analytics program of State Bank of Bikaner and Jaipur has opened avenues for new revenue streams for the organization in Regional Banks industry. This can help State Bank of Bikaner and Jaipur to build a more holistic ecosystem for State Bank of Bikaner and Jaipur products in the Regional Banks industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur to hire the very best people irrespective of their geographical location.
Manufacturing automation
– State Bank of Bikaner and Jaipur can use the latest technology developments to improve its manufacturing and designing process in Regional Banks sector. 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.
Developing new processes and practices
– State Bank of Bikaner and Jaipur can develop new processes and procedures in Regional Banks 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.
Use of Bitcoin and other crypto currencies for transactions in Regional Banks industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for State Bank of Bikaner and Jaipur in the Regional Banks industry. Now State Bank of Bikaner and Jaipur can target international markets with far fewer capital restrictions requirements than the existing system.
Threats State Bank of Bikaner and Jaipur External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of State Bank of Bikaner and Jaipur are -
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.
Shortening product life cycle
– it is one of the major threat that State Bank of Bikaner and Jaipur is facing in Regional Banks 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 State Bank of Bikaner and Jaipur.
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. State Bank of Bikaner and Jaipur needs to understand the core reasons impacting the Regional Banks industry. This will help it in building a better workplace.
Regulatory challenges
– State Bank of Bikaner and Jaipur 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 Regional Banks 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Regional Banks industry are lowering. It can presents State Bank of Bikaner and Jaipur with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Regional Banks sector.
High dependence on third party suppliers
– State Bank of Bikaner and Jaipur 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.
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 State Bank of Bikaner and Jaipur business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Regional Banks industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. State Bank of Bikaner and Jaipur can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– State Bank of Bikaner and Jaipur 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 Regional Banks industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for State Bank of Bikaner and Jaipur in Regional Banks industry. The Regional Banks 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur prominent markets.
Weighted SWOT Analysis of State Bank of Bikaner and Jaipur Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur 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 State Bank of Bikaner and Jaipur needs to make to build a sustainable competitive advantage.