Pureun Mutual Savings Bank (7330) SWOT Analysis / TOWS Matrix / MBA Resources
S&Ls/Savings Banks
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Pureun Mutual Savings Bank (South Korea)
Based on various researches at Oak Spring University , Pureun Mutual Savings Bank is operating in a macro-environment that has been destablized by – there is backlash against globalization, challanges to central banks by blockchain based private currencies, wage bills are increasing, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing household debt because of falling income levels,
cloud computing is disrupting traditional business models, increasing energy prices, etc
Introduction to SWOT Analysis of Pureun Mutual Savings Bank
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Pureun Mutual Savings Bank can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pureun Mutual Savings Bank, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank can be done for the following purposes –
1. Strategic planning of Pureun Mutual Savings Bank
2. Improving business portfolio management of Pureun Mutual Savings Bank
3. Assessing feasibility of the new initiative in South Korea
4. Making a S&Ls/Savings Banks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pureun Mutual Savings Bank
Strengths of Pureun Mutual Savings Bank | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pureun Mutual Savings Bank are -
Diverse revenue streams
– Pureun Mutual Savings Bank is present in almost all the verticals within the S&Ls/Savings Banks industry. This has provided Pureun Mutual Savings Bank 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.
Cross disciplinary teams
– Horizontal connected teams at the Pureun Mutual Savings Bank 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.
Innovation driven organization
– Pureun Mutual Savings Bank is one of the most innovative firm in S&Ls/Savings Banks sector.
Digital Transformation in S&Ls/Savings Banks industry
- digital transformation varies from industry to industry. For Pureun Mutual Savings Bank digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pureun Mutual Savings Bank 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.
Low bargaining power of suppliers
– Suppliers of Pureun Mutual Savings Bank in the Financial sector have low bargaining power. Pureun Mutual Savings Bank has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pureun Mutual Savings Bank to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Pureun Mutual Savings Bank has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Pureun Mutual Savings Bank staying ahead in the S&Ls/Savings Banks industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of Pureun Mutual Savings Bank comprises – understanding the underlying the factors in the S&Ls/Savings Banks 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.
Strong track record of project management in the S&Ls/Savings Banks industry
– Pureun Mutual Savings Bank 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
- Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Pureun Mutual Savings Bank emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Pureun Mutual Savings Bank has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pureun Mutual Savings Bank 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 lead change in S&Ls/Savings Banks
– Pureun Mutual Savings Bank is one of the leading players in the S&Ls/Savings Banks industry in South Korea. Over the years it has not only transformed the business landscape in the S&Ls/Savings Banks industry in South Korea but also across the existing markets. The ability to lead change has enabled Pureun Mutual Savings Bank in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Pureun Mutual Savings Bank
– The covid-19 pandemic has put organizational resilience at the centre of everthing Pureun Mutual Savings Bank does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Pureun Mutual Savings Bank | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pureun Mutual Savings Bank are -
High dependence on Pureun Mutual Savings Bank ‘s star products
– The top 2 products and services of Pureun Mutual Savings Bank still accounts for major business revenue. This dependence on star products in S&Ls/Savings Banks industry has resulted into insufficient focus on developing new products, even though Pureun Mutual Savings Bank has relatively successful track record of launching new products.
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 Pureun Mutual Savings Bank supply chain. Even after few cautionary changes, Pureun Mutual Savings Bank is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pureun Mutual Savings Bank vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, Pureun Mutual Savings Bank has high operating costs in the S&Ls/Savings Banks industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Pureun Mutual Savings Bank lucrative customers.
Compensation and incentives
– The revenue per employee of Pureun Mutual Savings Bank is just above the S&Ls/Savings Banks 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.
Aligning sales with marketing
– From the outside it seems that Pureun Mutual Savings Bank needs to have more collaboration between its sales team and marketing team. Sales professionals in the S&Ls/Savings Banks industry have deep experience in developing customer relationships. Marketing department at Pureun Mutual Savings Bank can leverage the sales team experience to cultivate customer relationships as Pureun Mutual Savings Bank is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Pureun Mutual Savings Bank 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 S&Ls/Savings Banks industry using digital technology.
Lack of clear differentiation of Pureun Mutual Savings Bank products
– To increase the profitability and margins on the products, Pureun Mutual Savings Bank needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– From the 10K / annual statement of Pureun Mutual Savings Bank, it seems that company is thinking out the frontier risks that can impact S&Ls/Savings Banks 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.
Interest costs
– Compare to the competition, Pureun Mutual Savings Bank has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Pureun Mutual Savings Bank has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Increasing silos among functional specialists
– The organizational structure of Pureun Mutual Savings Bank is dominated by functional specialists. It is not different from other players in the S&Ls/Savings Banks industry, but Pureun Mutual Savings Bank needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pureun Mutual Savings Bank to focus more on services in the S&Ls/Savings Banks industry rather than just following the product oriented approach.
Pureun Mutual Savings Bank Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Pureun Mutual Savings Bank are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pureun Mutual Savings Bank can use these opportunities to build new business models that can help the communities that Pureun Mutual Savings Bank operates in. Secondly it can use opportunities from government spending in S&Ls/Savings Banks sector.
Buying journey improvements
– Pureun Mutual Savings Bank can improve the customer journey of consumers in the S&Ls/Savings Banks 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
– Pureun Mutual Savings Bank can develop new processes and procedures in S&Ls/Savings Banks 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pureun Mutual Savings Bank is facing challenges because of the dominance of functional experts in the organization. Pureun Mutual Savings Bank can utilize new technology in the field of S&Ls/Savings Banks industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pureun Mutual Savings Bank can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Pureun Mutual Savings Bank to increase its market reach. Pureun Mutual Savings Bank will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pureun Mutual Savings Bank 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.
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. Pureun Mutual Savings Bank can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Pureun Mutual Savings Bank 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 S&Ls/Savings Banks industry.
Creating value in data economy
– The success of analytics program of Pureun Mutual Savings Bank has opened avenues for new revenue streams for the organization in S&Ls/Savings Banks industry. This can help Pureun Mutual Savings Bank to build a more holistic ecosystem for Pureun Mutual Savings Bank products in the S&Ls/Savings Banks industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Pureun Mutual Savings Bank can use the latest technology developments to improve its manufacturing and designing process in S&Ls/Savings Banks 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.
Use of Bitcoin and other crypto currencies for transactions in S&Ls/Savings Banks industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pureun Mutual Savings Bank in the S&Ls/Savings Banks industry. Now Pureun Mutual Savings Bank can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pureun Mutual Savings Bank in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the S&Ls/Savings Banks industry, and it will provide faster access to the consumers.
Threats Pureun Mutual Savings Bank External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Pureun Mutual Savings Bank are -
Consumer confidence and its impact on Pureun Mutual Savings Bank 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 S&Ls/Savings Banks industry and other sectors.
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 Pureun Mutual Savings Bank business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Pureun Mutual Savings Bank 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 S&Ls/Savings Banks industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pureun Mutual Savings Bank.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Pureun Mutual Savings Bank may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of S&Ls/Savings Banks sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to S&Ls/Savings Banks industry are lowering. It can presents Pureun Mutual Savings Bank with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the S&Ls/Savings Banks sector.
High dependence on third party suppliers
– Pureun Mutual Savings Bank 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.
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. Pureun Mutual Savings Bank needs to understand the core reasons impacting the S&Ls/Savings Banks industry. This will help it in building a better workplace.
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. Pureun Mutual Savings Bank 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.
Environmental challenges
– Pureun Mutual Savings Bank 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. Pureun Mutual Savings Bank can take advantage of this fund but it will also bring new competitors in the S&Ls/Savings Banks 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pureun Mutual Savings Bank in S&Ls/Savings Banks industry. The S&Ls/Savings Banks 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.
Shortening product life cycle
– it is one of the major threat that Pureun Mutual Savings Bank is facing in S&Ls/Savings Banks sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Pureun Mutual Savings Bank Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank needs to make to build a sustainable competitive advantage.