Based on various researches at Oak Spring University , Jpmorgan Elect PLC 0.003p is operating in a macro-environment that has been destablized by – there is backlash against globalization, increasing transportation and logistics costs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, cloud computing is disrupting traditional business models, technology disruption,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Jpmorgan Elect PLC 0.003p
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jpmorgan Elect PLC 0.003p can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jpmorgan Elect PLC 0.003p, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p can be done for the following purposes –
1. Strategic planning of Jpmorgan Elect PLC 0.003p
2. Improving business portfolio management of Jpmorgan Elect PLC 0.003p
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jpmorgan Elect PLC 0.003p
Strengths of Jpmorgan Elect PLC 0.003p | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jpmorgan Elect PLC 0.003p are -
Sustainable margins compare to other players in Misc. Financial Services industry
– Jpmorgan Elect PLC 0.003p has clearly differentiated products in the market place. This has enabled Jpmorgan Elect PLC 0.003p to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Jpmorgan Elect PLC 0.003p to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Jpmorgan Elect PLC 0.003p has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jpmorgan Elect PLC 0.003p 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.
Organizational Resilience of Jpmorgan Elect PLC 0.003p
– The covid-19 pandemic has put organizational resilience at the centre of everthing Jpmorgan Elect PLC 0.003p does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Jpmorgan Elect PLC 0.003p is one of the leading players in the Misc. Financial Services industry in United Kingdom. It is in a position to attract the best talent available in United Kingdom. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jpmorgan Elect PLC 0.003p emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Jpmorgan Elect PLC 0.003p 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.
Strong track record of project management in the Misc. Financial Services industry
– Jpmorgan Elect PLC 0.003p is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Jpmorgan Elect PLC 0.003p in the Financial sector have low bargaining power. Jpmorgan Elect PLC 0.003p has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jpmorgan Elect PLC 0.003p to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of Jpmorgan Elect PLC 0.003p comprises – understanding the underlying the factors in the Misc. Financial Services 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 lead change in Misc. Financial Services
– Jpmorgan Elect PLC 0.003p is one of the leading players in the Misc. Financial Services industry in United Kingdom. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Jpmorgan Elect PLC 0.003p in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Jpmorgan Elect PLC 0.003p digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jpmorgan Elect PLC 0.003p 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.
Innovation driven organization
– Jpmorgan Elect PLC 0.003p is one of the most innovative firm in Misc. Financial Services sector.
Weaknesses of Jpmorgan Elect PLC 0.003p | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jpmorgan Elect PLC 0.003p are -
Ability to respond to the competition
– As the decision making is very deliberative at Jpmorgan Elect PLC 0.003p, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Jpmorgan Elect PLC 0.003p has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United Kingdom, Jpmorgan Elect PLC 0.003p 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.
Capital Spending Reduction
– Even during the low interest decade, Jpmorgan Elect PLC 0.003p 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 Misc. Financial Services industry using digital technology.
Compensation and incentives
– The revenue per employee of Jpmorgan Elect PLC 0.003p is just above the Misc. Financial Services 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.
High dependence on Jpmorgan Elect PLC 0.003p ‘s star products
– The top 2 products and services of Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p has relatively successful track record of launching new products.
High cash cycle compare to competitors
Jpmorgan Elect PLC 0.003p 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.
Employees’ less understanding of Jpmorgan Elect PLC 0.003p strategy
– From the outside it seems that the employees of Jpmorgan Elect PLC 0.003p 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.
Slow to strategic competitive environment developments
– As Jpmorgan Elect PLC 0.003p is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Jpmorgan Elect PLC 0.003p is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but Jpmorgan Elect PLC 0.003p needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jpmorgan Elect PLC 0.003p to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
Lack of clear differentiation of Jpmorgan Elect PLC 0.003p products
– To increase the profitability and margins on the products, Jpmorgan Elect PLC 0.003p needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at Jpmorgan Elect PLC 0.003p 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.
Jpmorgan Elect PLC 0.003p Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jpmorgan Elect PLC 0.003p are -
Developing new processes and practices
– Jpmorgan Elect PLC 0.003p 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Jpmorgan Elect PLC 0.003p can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Jpmorgan Elect PLC 0.003p has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Jpmorgan Elect PLC 0.003p to build a more holistic ecosystem for Jpmorgan Elect PLC 0.003p products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jpmorgan Elect PLC 0.003p in the Misc. Financial Services industry. Now Jpmorgan Elect PLC 0.003p can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jpmorgan Elect PLC 0.003p is facing challenges because of the dominance of functional experts in the organization. Jpmorgan Elect PLC 0.003p can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jpmorgan Elect PLC 0.003p 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.
Using analytics as competitive advantage
– Jpmorgan Elect PLC 0.003p has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled Jpmorgan Elect PLC 0.003p to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jpmorgan Elect PLC 0.003p to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Jpmorgan Elect PLC 0.003p 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jpmorgan Elect PLC 0.003p can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Jpmorgan Elect PLC 0.003p to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Leveraging digital technologies
– Jpmorgan Elect PLC 0.003p 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Jpmorgan Elect PLC 0.003p can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Jpmorgan Elect PLC 0.003p External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jpmorgan Elect PLC 0.003p are -
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, Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jpmorgan Elect PLC 0.003p 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.
Environmental challenges
– Jpmorgan Elect PLC 0.003p 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. Jpmorgan Elect PLC 0.003p can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Jpmorgan Elect PLC 0.003p 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.
Technology acceleration in Forth Industrial Revolution
– Jpmorgan Elect PLC 0.003p has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Jpmorgan Elect PLC 0.003p 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.
Consumer confidence and its impact on Jpmorgan Elect PLC 0.003p 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 Misc. Financial Services industry and other sectors.
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 Jpmorgan Elect PLC 0.003p.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jpmorgan Elect PLC 0.003p 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.
Stagnating economy with rate increase
– Jpmorgan Elect PLC 0.003p 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.
Increasing wage structure of Jpmorgan Elect PLC 0.003p
– 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 Jpmorgan Elect PLC 0.003p.
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. Jpmorgan Elect PLC 0.003p 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.
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.
Weighted SWOT Analysis of Jpmorgan Elect PLC 0.003p Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p 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 Jpmorgan Elect PLC 0.003p needs to make to build a sustainable competitive advantage.
