Arbor Realty Trust Inc Pa Pref (ABR_pa) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Arbor Realty Trust Inc Pa Pref (United States)
Based on various researches at Oak Spring University , Arbor Realty Trust Inc Pa Pref is operating in a macro-environment that has been destablized by – technology disruption, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Arbor Realty Trust Inc Pa Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Arbor Realty Trust Inc Pa Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arbor Realty Trust Inc Pa Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref can be done for the following purposes –
1. Strategic planning of Arbor Realty Trust Inc Pa Pref
2. Improving business portfolio management of Arbor Realty Trust Inc Pa Pref
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Arbor Realty Trust Inc Pa Pref
Strengths of Arbor Realty Trust Inc Pa Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Arbor Realty Trust Inc Pa Pref are -
Learning organization
- Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Arbor Realty Trust Inc Pa Pref emphasize – knowledge, initiative, and innovation.
Training and development
– Arbor Realty Trust Inc Pa Pref has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Arbor Realty Trust Inc Pa Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Arbor Realty Trust Inc Pa Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in industry
– Arbor Realty Trust Inc Pa Pref has clearly differentiated products in the market place. This has enabled Arbor Realty Trust Inc Pa Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Arbor Realty Trust Inc Pa Pref to invest into research and development (R&D) and innovation.
Ability to lead change in
– Arbor Realty Trust Inc Pa Pref is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Arbor Realty Trust Inc Pa Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Arbor Realty Trust Inc Pa Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Arbor Realty Trust Inc Pa Pref 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.
Diverse revenue streams
– Arbor Realty Trust Inc Pa Pref is present in almost all the verticals within the industry. This has provided Arbor Realty Trust Inc Pa Pref 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.
Analytics focus
– Arbor Realty Trust Inc Pa Pref 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 industry. The technology infrastructure of United States 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.
Low bargaining power of suppliers
– Suppliers of Arbor Realty Trust Inc Pa Pref in the sector have low bargaining power. Arbor Realty Trust Inc Pa Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Arbor Realty Trust Inc Pa Pref to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Arbor Realty Trust Inc Pa Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Arbor Realty Trust Inc Pa Pref staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Arbor Realty Trust Inc Pa Pref 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.
Superior customer experience
– The customer experience strategy of Arbor Realty Trust Inc Pa Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Arbor Realty Trust Inc Pa Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Arbor Realty Trust Inc Pa Pref are -
Need for greater diversity
– Arbor Realty Trust Inc Pa Pref 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Arbor Realty Trust Inc Pa Pref is slow explore the new channels of communication. These new channels of communication can help Arbor Realty Trust Inc Pa Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on Arbor Realty Trust Inc Pa Pref ‘s star products
– The top 2 products and services of Arbor Realty Trust Inc Pa Pref still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Arbor Realty Trust Inc Pa Pref has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of United States, Arbor Realty Trust Inc Pa Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Arbor Realty Trust Inc Pa Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Arbor Realty Trust Inc Pa Pref can leverage the sales team experience to cultivate customer relationships as Arbor Realty Trust Inc Pa Pref is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Arbor Realty Trust Inc Pa Pref 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 industry using digital technology.
Skills based hiring in industry
– The stress on hiring functional specialists at Arbor Realty Trust Inc Pa Pref has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Arbor Realty Trust Inc Pa Pref products
– To increase the profitability and margins on the products, Arbor Realty Trust Inc Pa Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Arbor Realty Trust Inc Pa Pref 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.
High cash cycle compare to competitors
Arbor Realty Trust Inc Pa Pref has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the industry, Arbor Realty Trust Inc Pa Pref 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.
Arbor Realty Trust Inc Pa Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Arbor Realty Trust Inc Pa Pref are -
Leveraging digital technologies
– Arbor Realty Trust Inc Pa Pref 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.
Building a culture of innovation
– managers at Arbor Realty Trust Inc Pa Pref 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 industry.
Learning at scale
– Online learning technologies has now opened space for Arbor Realty Trust Inc Pa Pref 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.
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 Arbor Realty Trust Inc Pa Pref 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.
Using analytics as competitive advantage
– Arbor Realty Trust Inc Pa Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Arbor Realty Trust Inc Pa Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Arbor Realty Trust Inc Pa Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Arbor Realty Trust Inc Pa Pref 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Arbor Realty Trust Inc Pa Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Arbor Realty Trust Inc Pa Pref in the industry. Now Arbor Realty Trust Inc Pa Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Arbor Realty Trust Inc Pa Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Arbor Realty Trust Inc Pa Pref has opened avenues for new revenue streams for the organization in industry. This can help Arbor Realty Trust Inc Pa Pref to build a more holistic ecosystem for Arbor Realty Trust Inc Pa Pref products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Arbor Realty Trust Inc Pa Pref can develop new processes and procedures in 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Arbor Realty Trust Inc Pa Pref 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. Arbor Realty Trust Inc Pa Pref 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.
Threats Arbor Realty Trust Inc Pa Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Arbor Realty Trust Inc Pa Pref are -
High dependence on third party suppliers
– Arbor Realty Trust Inc Pa Pref 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.
Regulatory challenges
– Arbor Realty Trust Inc Pa Pref 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 industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Arbor Realty Trust Inc Pa Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Arbor Realty Trust Inc Pa Pref 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 industry and other sectors.
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 Arbor Realty Trust Inc Pa Pref.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Arbor Realty Trust Inc Pa Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Arbor Realty Trust Inc Pa Pref 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. Arbor Realty Trust Inc Pa Pref can take advantage of this fund but it will also bring new competitors in the 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref prominent markets.
Stagnating economy with rate increase
– Arbor Realty Trust Inc Pa Pref 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 industry.
Increasing wage structure of Arbor Realty Trust Inc Pa Pref
– 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 Arbor Realty Trust Inc Pa Pref.
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. Arbor Realty Trust Inc Pa Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Arbor Realty Trust Inc Pa Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref needs to make to build a sustainable competitive advantage.
