JPmorgan US Smaller Companies Inves (JUSC) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for JPmorgan US Smaller Companies Inves (United Kingdom)
Based on various researches at Oak Spring University , JPmorgan US Smaller Companies Inves is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, geopolitical disruptions,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of JPmorgan US Smaller Companies Inves
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JPmorgan US Smaller Companies Inves can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JPmorgan US Smaller Companies Inves, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves can be done for the following purposes –
1. Strategic planning of JPmorgan US Smaller Companies Inves
2. Improving business portfolio management of JPmorgan US Smaller Companies Inves
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 US Smaller Companies Inves
Strengths of JPmorgan US Smaller Companies Inves | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of JPmorgan US Smaller Companies Inves are -
Effective Research and Development (R&D)
– JPmorgan US Smaller Companies Inves has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves
– The covid-19 pandemic has put organizational resilience at the centre of everthing JPmorgan US Smaller Companies Inves does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– JPmorgan US Smaller Companies Inves has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled JPmorgan US Smaller Companies Inves to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Misc. Financial Services industry
– JPmorgan US Smaller Companies Inves has clearly differentiated products in the market place. This has enabled JPmorgan US Smaller Companies Inves to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped JPmorgan US Smaller Companies Inves to invest into research and development (R&D) and innovation.
Innovation driven organization
– JPmorgan US Smaller Companies Inves is one of the most innovative firm in Misc. Financial Services sector.
Superior customer experience
– The customer experience strategy of JPmorgan US Smaller Companies Inves in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at JPmorgan US Smaller Companies Inves emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Misc. Financial Services industry
– JPmorgan US Smaller Companies Inves is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For JPmorgan US Smaller Companies Inves digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. JPmorgan US Smaller Companies Inves 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.
Successful track record of launching new products
– JPmorgan US Smaller Companies Inves has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. JPmorgan US Smaller Companies Inves 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.
Training and development
– JPmorgan US Smaller Companies Inves 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.
High switching costs
– The high switching costs that JPmorgan US Smaller Companies Inves 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 JPmorgan US Smaller Companies Inves | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JPmorgan US Smaller Companies Inves are -
Increasing silos among functional specialists
– The organizational structure of JPmorgan US Smaller Companies Inves is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but JPmorgan US Smaller Companies Inves needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JPmorgan US Smaller Companies Inves to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As JPmorgan US Smaller Companies Inves 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.
Low market penetration in new markets
– Outside its home market of United Kingdom, JPmorgan US Smaller Companies Inves needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
JPmorgan US Smaller Companies Inves 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.
Capital Spending Reduction
– Even during the low interest decade, JPmorgan US Smaller Companies Inves 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.
Lack of clear differentiation of JPmorgan US Smaller Companies Inves products
– To increase the profitability and margins on the products, JPmorgan US Smaller Companies Inves needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative at JPmorgan US Smaller Companies Inves, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. JPmorgan US Smaller Companies Inves has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee of JPmorgan US Smaller Companies Inves 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.
No frontier risks strategy
– From the 10K / annual statement of JPmorgan US Smaller Companies Inves, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services 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.
High dependence on JPmorgan US Smaller Companies Inves ‘s star products
– The top 2 products and services of JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves has relatively successful track record of launching new products.
Products dominated business model
– Even though JPmorgan US Smaller Companies Inves has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. JPmorgan US Smaller Companies Inves should strive to include more intangible value offerings along with its core products and services.
JPmorgan US Smaller Companies Inves Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of JPmorgan US Smaller Companies Inves are -
Leveraging digital technologies
– JPmorgan US Smaller Companies Inves 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.
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 US Smaller Companies Inves can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for JPmorgan US Smaller Companies Inves 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.
Buying journey improvements
– JPmorgan US Smaller Companies Inves 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.
Developing new processes and practices
– JPmorgan US Smaller Companies Inves 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.
Loyalty marketing
– JPmorgan US Smaller Companies Inves 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for JPmorgan US Smaller Companies Inves in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
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 JPmorgan US Smaller Companies Inves 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.
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 US Smaller Companies Inves in the Misc. Financial Services industry. Now JPmorgan US Smaller Companies Inves can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. JPmorgan US Smaller Companies Inves 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. JPmorgan US Smaller Companies Inves 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects JPmorgan US Smaller Companies Inves can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, JPmorgan US Smaller Companies Inves can use these opportunities to build new business models that can help the communities that JPmorgan US Smaller Companies Inves operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Threats JPmorgan US Smaller Companies Inves External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of JPmorgan US Smaller Companies Inves are -
Environmental challenges
– JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
High dependence on third party suppliers
– JPmorgan US Smaller Companies Inves 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, JPmorgan US Smaller Companies Inves 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.
Regulatory challenges
– JPmorgan US Smaller Companies Inves 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
– JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves 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.
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.
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 JPmorgan US Smaller Companies Inves business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. JPmorgan US Smaller Companies Inves can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 JPmorgan US Smaller Companies Inves in the Misc. Financial Services sector and impact the bottomline of the organization.
Increasing wage structure of JPmorgan US Smaller Companies Inves
– 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 US Smaller Companies Inves.
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 US Smaller Companies Inves 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.
Shortening product life cycle
– it is one of the major threat that JPmorgan US Smaller Companies Inves is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– JPmorgan US Smaller Companies Inves 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.
Weighted SWOT Analysis of JPmorgan US Smaller Companies Inves Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JPmorgan US Smaller Companies Inves 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 US Smaller Companies Inves 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 US Smaller Companies Inves 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 US Smaller Companies Inves 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 US Smaller Companies Inves needs to make to build a sustainable competitive advantage.