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 – technology disruption, cloud computing is disrupting traditional business models, increasing commodity prices, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, 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 -
Innovation driven organization
– Pureun Mutual Savings Bank is one of the most innovative firm in S&Ls/Savings Banks sector.
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.
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.
Sustainable margins compare to other players in S&Ls/Savings Banks industry
– Pureun Mutual Savings Bank has clearly differentiated products in the market place. This has enabled Pureun Mutual Savings Bank to fetch slight price premium compare to the competitors in the S&Ls/Savings Banks industry. The sustainable margins have also helped Pureun Mutual Savings Bank to invest into research and development (R&D) and innovation.
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.
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.
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.
High switching costs
– The high switching costs that Pureun Mutual Savings Bank 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.
Highly skilled collaborators
– Pureun Mutual Savings Bank has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive S&Ls/Savings Banks industry. Secondly the value chain collaborators of Pureun Mutual Savings Bank have helped the firm to develop new products and bring them quickly to the marketplace.
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.
High brand equity
– Pureun Mutual Savings Bank has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pureun Mutual Savings Bank to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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 -
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.
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.
Employees’ less understanding of Pureun Mutual Savings Bank strategy
– From the outside it seems that the employees of Pureun Mutual Savings Bank 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.
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.
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.
Low market penetration in new markets
– Outside its home market of South Korea, Pureun Mutual Savings Bank needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
Ability to respond to the competition
– As the decision making is very deliberative at Pureun Mutual Savings Bank, in the dynamic environment of S&Ls/Savings Banks industry it has struggled to respond to the nimble upstart competition. Pureun Mutual Savings Bank has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
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 -
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.
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.
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.
Leveraging digital technologies
– Pureun Mutual Savings Bank 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.
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.
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.
Using analytics as competitive advantage
– Pureun Mutual Savings Bank has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in S&Ls/Savings Banks sector. This continuous investment in analytics has enabled Pureun Mutual Savings Bank to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pureun Mutual Savings Bank to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Pureun Mutual Savings Bank 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.
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the S&Ls/Savings Banks industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pureun Mutual Savings Bank 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. Pureun Mutual Savings Bank 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pureun Mutual Savings Bank to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Pureun Mutual Savings Bank to hire the very best people irrespective of their geographical location.
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 Pureun Mutual Savings Bank 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.
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 -
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.
Regulatory challenges
– Pureun Mutual Savings Bank 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 S&Ls/Savings Banks industry regulations.
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 Pureun Mutual Savings Bank in the S&Ls/Savings Banks sector and impact the bottomline of the organization.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pureun Mutual Savings Bank 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 Pureun Mutual Savings Bank 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.
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.
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.
Increasing wage structure of Pureun Mutual Savings Bank
– 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 Pureun Mutual Savings Bank.
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.
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.