Mirae Asset Life Insurance Co Ltd (85620) SWOT Analysis / TOWS Matrix / MBA Resources
Insurance (Life)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Mirae Asset Life Insurance Co Ltd (South Korea)
Based on various researches at Oak Spring University , Mirae Asset Life Insurance Co Ltd is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Mirae Asset Life Insurance Co Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mirae Asset Life Insurance Co Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mirae Asset Life Insurance Co Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd can be done for the following purposes –
1. Strategic planning of Mirae Asset Life Insurance Co Ltd
2. Improving business portfolio management of Mirae Asset Life Insurance Co Ltd
3. Assessing feasibility of the new initiative in South Korea
4. Making a Insurance (Life) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mirae Asset Life Insurance Co Ltd
Strengths of Mirae Asset Life Insurance Co Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mirae Asset Life Insurance Co Ltd are -
Diverse revenue streams
– Mirae Asset Life Insurance Co Ltd is present in almost all the verticals within the Insurance (Life) industry. This has provided Mirae Asset Life Insurance Co Ltd 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.
Ability to recruit top talent
– Mirae Asset Life Insurance Co Ltd is one of the leading players in the Insurance (Life) industry in South Korea. It is in a position to attract the best talent available in South Korea. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Insurance (Life) industry
- digital transformation varies from industry to industry. For Mirae Asset Life Insurance Co Ltd digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mirae Asset Life Insurance Co Ltd 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
– Mirae Asset Life Insurance Co Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mirae Asset Life Insurance Co Ltd 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.
Cross disciplinary teams
– Horizontal connected teams at the Mirae Asset Life Insurance Co Ltd 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.
Organizational Resilience of Mirae Asset Life Insurance Co Ltd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Mirae Asset Life Insurance Co Ltd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Mirae Asset Life Insurance Co Ltd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Life) industry. Secondly the value chain collaborators of Mirae Asset Life Insurance Co Ltd have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Mirae Asset Life Insurance Co Ltd is one of the most innovative firm in Insurance (Life) sector.
Sustainable margins compare to other players in Insurance (Life) industry
– Mirae Asset Life Insurance Co Ltd has clearly differentiated products in the market place. This has enabled Mirae Asset Life Insurance Co Ltd to fetch slight price premium compare to the competitors in the Insurance (Life) industry. The sustainable margins have also helped Mirae Asset Life Insurance Co Ltd to invest into research and development (R&D) and innovation.
Strong track record of project management in the Insurance (Life) industry
– Mirae Asset Life Insurance Co Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Mirae Asset Life Insurance Co Ltd emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Mirae Asset Life Insurance Co Ltd in the Financial sector have low bargaining power. Mirae Asset Life Insurance Co Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mirae Asset Life Insurance Co Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Mirae Asset Life Insurance Co Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mirae Asset Life Insurance Co Ltd are -
Aligning sales with marketing
– From the outside it seems that Mirae Asset Life Insurance Co Ltd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Insurance (Life) industry have deep experience in developing customer relationships. Marketing department at Mirae Asset Life Insurance Co Ltd can leverage the sales team experience to cultivate customer relationships as Mirae Asset Life Insurance Co Ltd is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of South Korea, Mirae Asset Life Insurance Co Ltd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Mirae Asset Life Insurance Co Ltd has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Insurance (Life) industry over the last five years. Mirae Asset Life Insurance Co Ltd 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.
Capital Spending Reduction
– Even during the low interest decade, Mirae Asset Life Insurance Co Ltd 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 (Life) industry using digital technology.
Slow to strategic competitive environment developments
– As Mirae Asset Life Insurance Co Ltd is one of the leading players in the Insurance (Life) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Insurance (Life) industry in last five years.
Products dominated business model
– Even though Mirae Asset Life Insurance Co Ltd has some of the most successful models in the Insurance (Life) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Mirae Asset Life Insurance Co Ltd should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Mirae Asset Life Insurance Co Ltd is dominated by functional specialists. It is not different from other players in the Insurance (Life) industry, but Mirae Asset Life Insurance Co Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mirae Asset Life Insurance Co Ltd to focus more on services in the Insurance (Life) industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mirae Asset Life Insurance Co Ltd is slow explore the new channels of communication. These new channels of communication can help Mirae Asset Life Insurance Co Ltd to provide better information regarding Insurance (Life) products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Mirae Asset Life Insurance Co Ltd products
– To increase the profitability and margins on the products, Mirae Asset Life Insurance Co Ltd needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Mirae Asset Life Insurance Co Ltd 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.
Employees’ less understanding of Mirae Asset Life Insurance Co Ltd strategy
– From the outside it seems that the employees of Mirae Asset Life Insurance Co Ltd 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.
Mirae Asset Life Insurance Co Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Mirae Asset Life Insurance Co Ltd are -
Loyalty marketing
– Mirae Asset Life Insurance Co Ltd 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mirae Asset Life Insurance Co Ltd 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, Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Mirae Asset Life Insurance Co Ltd has opened avenues for new revenue streams for the organization in Insurance (Life) industry. This can help Mirae Asset Life Insurance Co Ltd to build a more holistic ecosystem for Mirae Asset Life Insurance Co Ltd products in the Insurance (Life) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Mirae Asset Life Insurance Co Ltd has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Life) sector. This continuous investment in analytics has enabled Mirae Asset Life Insurance Co Ltd to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mirae Asset Life Insurance Co Ltd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Life) industry, but it has also influenced the consumer preferences. Mirae Asset Life Insurance Co Ltd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Insurance (Life) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mirae Asset Life Insurance Co Ltd in the Insurance (Life) industry. Now Mirae Asset Life Insurance Co Ltd can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Mirae Asset Life Insurance Co Ltd can improve the customer journey of consumers in the Insurance (Life) 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mirae Asset Life Insurance Co Ltd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mirae Asset Life Insurance Co Ltd is facing challenges because of the dominance of functional experts in the organization. Mirae Asset Life Insurance Co Ltd can utilize new technology in the field of Insurance (Life) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Mirae Asset Life Insurance Co Ltd 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 Insurance (Life) industry.
Leveraging digital technologies
– Mirae Asset Life Insurance Co Ltd 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mirae Asset Life Insurance Co Ltd in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Insurance (Life) industry, and it will provide faster access to the consumers.
Threats Mirae Asset Life Insurance Co Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Mirae Asset Life Insurance Co Ltd are -
Easy access to finance
– Easy access to finance in Insurance (Life) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mirae Asset Life Insurance Co Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mirae Asset Life Insurance Co Ltd in Insurance (Life) industry. The Insurance (Life) 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Insurance (Life) industry are lowering. It can presents Mirae Asset Life Insurance Co Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Insurance (Life) sector.
Stagnating economy with rate increase
– Mirae Asset Life Insurance Co Ltd 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 Insurance (Life) industry.
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.
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. Mirae Asset Life Insurance Co Ltd needs to understand the core reasons impacting the Insurance (Life) industry. This will help it in building a better workplace.
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 Mirae Asset Life Insurance Co Ltd.
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 Mirae Asset Life Insurance Co Ltd business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Mirae Asset Life Insurance Co Ltd is facing in Insurance (Life) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Mirae Asset Life Insurance Co Ltd
– 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 Mirae Asset Life Insurance Co Ltd.
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 Mirae Asset Life Insurance Co Ltd in the Insurance (Life) sector and impact the bottomline of the organization.
Consumer confidence and its impact on Mirae Asset Life Insurance Co Ltd 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 (Life) industry and other sectors.
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 Mirae Asset Life Insurance Co Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd 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 Mirae Asset Life Insurance Co Ltd needs to make to build a sustainable competitive advantage.