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 – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing household debt because of falling income levels,
there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Highly skilled collaborators
– Arbor Realty Trust Inc Pa Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Arbor Realty Trust Inc Pa Pref have helped the firm to develop new products and bring them quickly to the marketplace.
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.
High brand equity
– Arbor Realty Trust Inc Pa Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Arbor Realty Trust Inc Pa Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Strong track record of project management in the industry
– Arbor Realty Trust Inc Pa Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Arbor Realty Trust Inc Pa Pref comprises – understanding the underlying the factors in the 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.
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.
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.
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.
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.
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 -
Compensation and incentives
– The revenue per employee of Arbor Realty Trust Inc Pa Pref is just above the 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.
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.
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.
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 Arbor Realty Trust Inc Pa Pref supply chain. Even after few cautionary changes, Arbor Realty Trust Inc Pa Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Arbor Realty Trust Inc Pa Pref vulnerable to further global disruptions in South East Asia.
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.
High operating costs
– Compare to the competitors, Arbor Realty Trust Inc Pa Pref has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Arbor Realty Trust Inc Pa Pref lucrative customers.
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.
Employees’ less understanding of Arbor Realty Trust Inc Pa Pref strategy
– From the outside it seems that the employees of Arbor Realty Trust Inc Pa Pref 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.
Increasing silos among functional specialists
– The organizational structure of Arbor Realty Trust Inc Pa Pref is dominated by functional specialists. It is not different from other players in the industry, but Arbor Realty Trust Inc Pa Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Arbor Realty Trust Inc Pa Pref to focus more on services in the industry rather than just following the product oriented approach.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Arbor Realty Trust Inc Pa Pref is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Arbor Realty Trust Inc Pa Pref 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 Arbor Realty Trust Inc Pa Pref to hire the very best people irrespective of their geographical location.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Arbor Realty Trust Inc Pa Pref to increase its market reach. Arbor Realty Trust Inc Pa Pref 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Arbor Realty Trust Inc Pa Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Arbor Realty Trust Inc Pa Pref 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.
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.
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.
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.
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.
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 -
Technology acceleration in Forth Industrial Revolution
– Arbor Realty Trust Inc Pa Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Arbor Realty Trust Inc Pa Pref needs to keep up with the evolution of technology in the sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing 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.
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 Arbor Realty Trust Inc Pa Pref in the sector and impact the bottomline 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. Arbor Realty Trust Inc Pa Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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.
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.
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Arbor Realty Trust Inc Pa Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Arbor Realty Trust Inc Pa Pref business can come under increasing regulations regarding data privacy, data security, etc.
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.