SWOT Analysis / TOWS Matrix for Singapore Reinsurance Corporation (Singapore)
Based on various researches at Oak Spring University , Singapore Reinsurance Corporation is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, technology disruption, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, wage bills are increasing, supply chains are disrupted by pandemic , increasing energy prices,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of Singapore Reinsurance Corporation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Singapore Reinsurance Corporation can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Singapore Reinsurance Corporation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation can be done for the following purposes –
1. Strategic planning of Singapore Reinsurance Corporation
2. Improving business portfolio management of Singapore Reinsurance Corporation
3. Assessing feasibility of the new initiative in Singapore
4. Making a Insurance (Prop. & Casualty) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Singapore Reinsurance Corporation
Strengths of Singapore Reinsurance Corporation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Singapore Reinsurance Corporation are -
Sustainable margins compare to other players in Insurance (Prop. & Casualty) industry
– Singapore Reinsurance Corporation has clearly differentiated products in the market place. This has enabled Singapore Reinsurance Corporation to fetch slight price premium compare to the competitors in the Insurance (Prop. & Casualty) industry. The sustainable margins have also helped Singapore Reinsurance Corporation to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Singapore Reinsurance Corporation has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Prop. & Casualty) industry. Secondly the value chain collaborators of Singapore Reinsurance Corporation have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Singapore Reinsurance Corporation 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 Insurance (Prop. & Casualty) industry. The technology infrastructure of Singapore 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.
Strong track record of project management in the Insurance (Prop. & Casualty) industry
– Singapore Reinsurance Corporation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Singapore Reinsurance Corporation has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Singapore Reinsurance Corporation staying ahead in the Insurance (Prop. & Casualty) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Singapore Reinsurance Corporation in the Financial sector have low bargaining power. Singapore Reinsurance Corporation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Singapore Reinsurance Corporation to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Insurance (Prop. & Casualty) industry
- digital transformation varies from industry to industry. For Singapore Reinsurance Corporation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Singapore Reinsurance Corporation 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
– Singapore Reinsurance Corporation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Singapore Reinsurance Corporation 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.
Ability to recruit top talent
– Singapore Reinsurance Corporation is one of the leading players in the Insurance (Prop. & Casualty) industry in Singapore. It is in a position to attract the best talent available in Singapore. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy of Singapore Reinsurance Corporation comprises – understanding the underlying the factors in the Insurance (Prop. & Casualty) 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 Insurance (Prop. & Casualty)
– Singapore Reinsurance Corporation is one of the leading players in the Insurance (Prop. & Casualty) industry in Singapore. Over the years it has not only transformed the business landscape in the Insurance (Prop. & Casualty) industry in Singapore but also across the existing markets. The ability to lead change has enabled Singapore Reinsurance Corporation in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Singapore Reinsurance Corporation is present in almost all the verticals within the Insurance (Prop. & Casualty) industry. This has provided Singapore Reinsurance Corporation 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.
Weaknesses of Singapore Reinsurance Corporation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Singapore Reinsurance Corporation are -
Ability to respond to the competition
– As the decision making is very deliberative at Singapore Reinsurance Corporation, in the dynamic environment of Insurance (Prop. & Casualty) industry it has struggled to respond to the nimble upstart competition. Singapore Reinsurance Corporation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Singapore Reinsurance Corporation has some of the most successful models in the Insurance (Prop. & Casualty) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Singapore Reinsurance Corporation should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Singapore Reinsurance Corporation 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 Insurance (Prop. & Casualty) industry using digital technology.
High bargaining power of channel partners in Insurance (Prop. & Casualty) industry
– because of the regulatory requirements in Singapore, Singapore Reinsurance Corporation 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 Insurance (Prop. & Casualty) industry.
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 Singapore Reinsurance Corporation supply chain. Even after few cautionary changes, Singapore Reinsurance Corporation is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Singapore Reinsurance Corporation vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Singapore Reinsurance Corporation 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.
Increasing silos among functional specialists
– The organizational structure of Singapore Reinsurance Corporation is dominated by functional specialists. It is not different from other players in the Insurance (Prop. & Casualty) industry, but Singapore Reinsurance Corporation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Singapore Reinsurance Corporation to focus more on services in the Insurance (Prop. & Casualty) industry rather than just following the product oriented approach.
High dependence on Singapore Reinsurance Corporation ‘s star products
– The top 2 products and services of Singapore Reinsurance Corporation still accounts for major business revenue. This dependence on star products in Insurance (Prop. & Casualty) industry has resulted into insufficient focus on developing new products, even though Singapore Reinsurance Corporation has relatively successful track record of launching new products.
Employees’ less understanding of Singapore Reinsurance Corporation strategy
– From the outside it seems that the employees of Singapore Reinsurance Corporation 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.
Workers concerns about automation
– As automation is fast increasing in the Insurance (Prop. & Casualty) industry, Singapore Reinsurance Corporation needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Lack of clear differentiation of Singapore Reinsurance Corporation products
– To increase the profitability and margins on the products, Singapore Reinsurance Corporation needs to provide more differentiated products than what it is currently offering in the marketplace.
Singapore Reinsurance Corporation Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Singapore Reinsurance Corporation are -
Developing new processes and practices
– Singapore Reinsurance Corporation can develop new processes and procedures in Insurance (Prop. & Casualty) 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 Insurance (Prop. & Casualty) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Singapore Reinsurance Corporation in the Insurance (Prop. & Casualty) industry. Now Singapore Reinsurance Corporation can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Singapore Reinsurance Corporation 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.
Creating value in data economy
– The success of analytics program of Singapore Reinsurance Corporation has opened avenues for new revenue streams for the organization in Insurance (Prop. & Casualty) industry. This can help Singapore Reinsurance Corporation to build a more holistic ecosystem for Singapore Reinsurance Corporation products in the Insurance (Prop. & Casualty) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Prop. & Casualty) industry, but it has also influenced the consumer preferences. Singapore Reinsurance Corporation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Singapore Reinsurance Corporation is facing challenges because of the dominance of functional experts in the organization. Singapore Reinsurance Corporation can utilize new technology in the field of Insurance (Prop. & Casualty) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Singapore Reinsurance Corporation has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Prop. & Casualty) sector. This continuous investment in analytics has enabled Singapore Reinsurance Corporation to build a competitive advantage using analytics. The analytics driven competitive advantage can help Singapore Reinsurance Corporation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Singapore Reinsurance Corporation can use the latest technology developments to improve its manufacturing and designing process in Insurance (Prop. & Casualty) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Singapore Reinsurance Corporation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Singapore Reinsurance Corporation 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.
Buying journey improvements
– Singapore Reinsurance Corporation can improve the customer journey of consumers in the Insurance (Prop. & Casualty) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Singapore Reinsurance Corporation can use these opportunities to build new business models that can help the communities that Singapore Reinsurance Corporation operates in. Secondly it can use opportunities from government spending in Insurance (Prop. & Casualty) sector.
Threats Singapore Reinsurance Corporation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Singapore Reinsurance Corporation are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Singapore Reinsurance Corporation in Insurance (Prop. & Casualty) industry. The Insurance (Prop. & Casualty) 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.
Easy access to finance
– Easy access to finance in Insurance (Prop. & Casualty) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Singapore Reinsurance Corporation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Singapore Reinsurance Corporation in the Insurance (Prop. & Casualty) sector and impact the bottomline of the organization.
Consumer confidence and its impact on Singapore Reinsurance Corporation 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 Insurance (Prop. & Casualty) industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation prominent markets.
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.
Technology acceleration in Forth Industrial Revolution
– Singapore Reinsurance Corporation has witnessed rapid integration of technology during Covid-19 in the Insurance (Prop. & Casualty) industry. As one of the leading players in the industry, Singapore Reinsurance Corporation needs to keep up with the evolution of technology in the Insurance (Prop. & Casualty) 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.
Increasing wage structure of Singapore Reinsurance Corporation
– 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 Singapore Reinsurance Corporation.
Shortening product life cycle
– it is one of the major threat that Singapore Reinsurance Corporation is facing in Insurance (Prop. & Casualty) 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 Singapore Reinsurance Corporation.
Environmental challenges
– Singapore Reinsurance Corporation 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. Singapore Reinsurance Corporation can take advantage of this fund but it will also bring new competitors in the Insurance (Prop. & Casualty) industry.
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. Singapore Reinsurance Corporation needs to understand the core reasons impacting the Insurance (Prop. & Casualty) industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Singapore Reinsurance Corporation Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation 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 Singapore Reinsurance Corporation needs to make to build a sustainable competitive advantage.