SPDR S&P/ASX 200 Fund (STW) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for SPDR S&P/ASX 200 Fund (Australia)
Based on various researches at Oak Spring University , SPDR S&P/ASX 200 Fund is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, 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%, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of SPDR S&P/ASX 200 Fund
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that SPDR S&P/ASX 200 Fund can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the SPDR S&P/ASX 200 Fund, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund can be done for the following purposes –
1. Strategic planning of SPDR S&P/ASX 200 Fund
2. Improving business portfolio management of SPDR S&P/ASX 200 Fund
3. Assessing feasibility of the new initiative in Australia
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of SPDR S&P/ASX 200 Fund
Strengths of SPDR S&P/ASX 200 Fund | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of SPDR S&P/ASX 200 Fund are -
Superior customer experience
– The customer experience strategy of SPDR S&P/ASX 200 Fund in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– SPDR S&P/ASX 200 Fund has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled SPDR S&P/ASX 200 Fund to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– SPDR S&P/ASX 200 Fund is one of the leading players in the Misc. Financial Services industry in Australia. It is in a position to attract the best talent available in Australia. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at SPDR S&P/ASX 200 Fund emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Misc. Financial Services industry
– SPDR S&P/ASX 200 Fund has clearly differentiated products in the market place. This has enabled SPDR S&P/ASX 200 Fund to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped SPDR S&P/ASX 200 Fund to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– SPDR S&P/ASX 200 Fund has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – SPDR S&P/ASX 200 Fund staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– SPDR S&P/ASX 200 Fund has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of SPDR S&P/ASX 200 Fund have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– SPDR S&P/ASX 200 Fund 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 Misc. Financial Services industry. The technology infrastructure of Australia is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– SPDR S&P/ASX 200 Fund has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. SPDR S&P/ASX 200 Fund 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.
Innovation driven organization
– SPDR S&P/ASX 200 Fund is one of the most innovative firm in Misc. Financial Services sector.
Diverse revenue streams
– SPDR S&P/ASX 200 Fund is present in almost all the verticals within the Misc. Financial Services industry. This has provided SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund 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.
Weaknesses of SPDR S&P/ASX 200 Fund | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SPDR S&P/ASX 200 Fund are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, SPDR S&P/ASX 200 Fund is slow explore the new channels of communication. These new channels of communication can help SPDR S&P/ASX 200 Fund to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in Australia, SPDR S&P/ASX 200 Fund 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 Misc. Financial Services industry.
High operating costs
– Compare to the competitors, SPDR S&P/ASX 200 Fund has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract SPDR S&P/ASX 200 Fund lucrative customers.
Slow decision making process
– As mentioned earlier in the report, SPDR S&P/ASX 200 Fund has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Financial Services industry over the last five years. SPDR S&P/ASX 200 Fund 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.
Lack of clear differentiation of SPDR S&P/ASX 200 Fund products
– To increase the profitability and margins on the products, SPDR S&P/ASX 200 Fund needs to provide more differentiated products than what it is currently offering in the marketplace.
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 SPDR S&P/ASX 200 Fund supply chain. Even after few cautionary changes, SPDR S&P/ASX 200 Fund is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left SPDR S&P/ASX 200 Fund vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
SPDR S&P/ASX 200 Fund has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Interest costs
– Compare to the competition, SPDR S&P/ASX 200 Fund has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– SPDR S&P/ASX 200 Fund 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.
Increasing silos among functional specialists
– The organizational structure of SPDR S&P/ASX 200 Fund is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but SPDR S&P/ASX 200 Fund needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help SPDR S&P/ASX 200 Fund to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
High dependence on SPDR S&P/ASX 200 Fund ‘s star products
– The top 2 products and services of SPDR S&P/ASX 200 Fund still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though SPDR S&P/ASX 200 Fund has relatively successful track record of launching new products.
SPDR S&P/ASX 200 Fund Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of SPDR S&P/ASX 200 Fund are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects SPDR S&P/ASX 200 Fund can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– SPDR S&P/ASX 200 Fund can develop new processes and procedures in Misc. Financial Services 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.
Building a culture of innovation
– managers at SPDR S&P/ASX 200 Fund 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 Misc. Financial Services industry.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, SPDR S&P/ASX 200 Fund can use these opportunities to build new business models that can help the communities that SPDR S&P/ASX 200 Fund operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Learning at scale
– Online learning technologies has now opened space for SPDR S&P/ASX 200 Fund 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.
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 SPDR S&P/ASX 200 Fund 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.
Creating value in data economy
– The success of analytics program of SPDR S&P/ASX 200 Fund has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help SPDR S&P/ASX 200 Fund to build a more holistic ecosystem for SPDR S&P/ASX 200 Fund products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help SPDR S&P/ASX 200 Fund to increase its market reach. SPDR S&P/ASX 200 Fund 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.
Leveraging digital technologies
– SPDR S&P/ASX 200 Fund 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.
Manufacturing automation
– SPDR S&P/ASX 200 Fund can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
Buying journey improvements
– SPDR S&P/ASX 200 Fund can improve the customer journey of consumers in the Misc. Financial Services industry by using analytics and artificial intelligence. It 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund to hire the very best people irrespective of their geographical location.
Threats SPDR S&P/ASX 200 Fund External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of SPDR S&P/ASX 200 Fund are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, SPDR S&P/ASX 200 Fund may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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. SPDR S&P/ASX 200 Fund 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for SPDR S&P/ASX 200 Fund in Misc. Financial Services industry. The Misc. Financial Services 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.
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 SPDR S&P/ASX 200 Fund in the Misc. Financial Services sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents SPDR S&P/ASX 200 Fund with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Regulatory challenges
– SPDR S&P/ASX 200 Fund 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 Misc. Financial Services industry regulations.
Technology acceleration in Forth Industrial Revolution
– SPDR S&P/ASX 200 Fund has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, SPDR S&P/ASX 200 Fund needs to keep up with the evolution of technology in the Misc. Financial Services 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.
Stagnating economy with rate increase
– SPDR S&P/ASX 200 Fund 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 Misc. Financial Services industry.
Environmental challenges
– SPDR S&P/ASX 200 Fund 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. SPDR S&P/ASX 200 Fund can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of SPDR S&P/ASX 200 Fund.
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 SPDR S&P/ASX 200 Fund business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund prominent markets.
Weighted SWOT Analysis of SPDR S&P/ASX 200 Fund Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund 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 SPDR S&P/ASX 200 Fund needs to make to build a sustainable competitive advantage.
