Arbor Realty Trust Inc Pc Pref (ABR_pc) SWOT Analysis / TOWS Matrix / MBA Resources
Construction Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Arbor Realty Trust Inc Pc Pref (United States)
Based on various researches at Oak Spring University , Arbor Realty Trust Inc Pc Pref is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , geopolitical disruptions,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Arbor Realty Trust Inc Pc Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Arbor Realty Trust Inc Pc Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Arbor Realty Trust Inc Pc 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 Pc 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 Pc Pref can be done for the following purposes –
1. Strategic planning of Arbor Realty Trust Inc Pc Pref
2. Improving business portfolio management of Arbor Realty Trust Inc Pc Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Arbor Realty Trust Inc Pc Pref
Strengths of Arbor Realty Trust Inc Pc Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Arbor Realty Trust Inc Pc Pref are -
Organizational Resilience of Arbor Realty Trust Inc Pc Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Arbor Realty Trust Inc Pc Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Construction Services
– Arbor Realty Trust Inc Pc Pref is one of the leading players in the Construction Services industry in United States. Over the years it has not only transformed the business landscape in the Construction Services industry in United States but also across the existing markets. The ability to lead change has enabled Arbor Realty Trust Inc Pc Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Arbor Realty Trust Inc Pc Pref is one of the leading players in the Construction Services industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy of Arbor Realty Trust Inc Pc Pref comprises – understanding the underlying the factors in the Construction Services 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.
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Arbor Realty Trust Inc Pc Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Arbor Realty Trust Inc Pc 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.
Low bargaining power of suppliers
– Suppliers of Arbor Realty Trust Inc Pc Pref in the Capital Goods sector have low bargaining power. Arbor Realty Trust Inc Pc Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Arbor Realty Trust Inc Pc Pref to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Arbor Realty Trust Inc Pc Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Construction Services industry. Secondly the value chain collaborators of Arbor Realty Trust Inc Pc Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Arbor Realty Trust Inc Pc 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 Pc Pref staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Construction Services industry
– Arbor Realty Trust Inc Pc Pref has clearly differentiated products in the market place. This has enabled Arbor Realty Trust Inc Pc Pref to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Arbor Realty Trust Inc Pc Pref to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Arbor Realty Trust Inc Pc Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Arbor Realty Trust Inc Pc Pref 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.
Learning organization
- Arbor Realty Trust Inc Pc 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 Pc Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Arbor Realty Trust Inc Pc Pref emphasize – knowledge, initiative, and innovation.
Training and development
– Arbor Realty Trust Inc Pc Pref has one of the best training and development program in Capital Goods 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.
Weaknesses of Arbor Realty Trust Inc Pc Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Arbor Realty Trust Inc Pc Pref are -
Slow to strategic competitive environment developments
– As Arbor Realty Trust Inc Pc Pref is one of the leading players in the Construction Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Construction Services industry in last five years.
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 Pc Pref is slow explore the new channels of communication. These new channels of communication can help Arbor Realty Trust Inc Pc Pref to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring in Construction Services industry
– The stress on hiring functional specialists at Arbor Realty Trust Inc Pc 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.
High cash cycle compare to competitors
Arbor Realty Trust Inc Pc Pref has a high cash cycle compare to other players in the Construction Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Arbor Realty Trust Inc Pc Pref has some of the most successful models in the Construction Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Arbor Realty Trust Inc Pc Pref should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative at Arbor Realty Trust Inc Pc Pref, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Arbor Realty Trust Inc Pc Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Arbor Realty Trust Inc Pc 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 Construction Services industry using digital technology.
Interest costs
– Compare to the competition, Arbor Realty Trust Inc Pc 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.
Slow decision making process
– As mentioned earlier in the report, Arbor Realty Trust Inc Pc Pref has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Arbor Realty Trust Inc Pc Pref even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Arbor Realty Trust Inc Pc Pref is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Arbor Realty Trust Inc Pc 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 Pc Pref to focus more on services in the Construction Services industry rather than just following the product oriented approach.
Aligning sales with marketing
– From the outside it seems that Arbor Realty Trust Inc Pc Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Arbor Realty Trust Inc Pc Pref can leverage the sales team experience to cultivate customer relationships as Arbor Realty Trust Inc Pc Pref is planning to shift buying processes online.
Arbor Realty Trust Inc Pc Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Arbor Realty Trust Inc Pc Pref 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, Arbor Realty Trust Inc Pc Pref can use these opportunities to build new business models that can help the communities that Arbor Realty Trust Inc Pc Pref operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Building a culture of innovation
– managers at Arbor Realty Trust Inc Pc 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 Construction Services industry.
Loyalty marketing
– Arbor Realty Trust Inc Pc 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.
Leveraging digital technologies
– Arbor Realty Trust Inc Pc 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.
Buying journey improvements
– Arbor Realty Trust Inc Pc Pref can improve the customer journey of consumers in the Construction Services 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.
Creating value in data economy
– The success of analytics program of Arbor Realty Trust Inc Pc Pref has opened avenues for new revenue streams for the organization in Construction Services industry. This can help Arbor Realty Trust Inc Pc Pref to build a more holistic ecosystem for Arbor Realty Trust Inc Pc Pref products in the Construction Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Arbor Realty Trust Inc Pc 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 Pc 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.
Learning at scale
– Online learning technologies has now opened space for Arbor Realty Trust Inc Pc 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Construction Services industry, but it has also influenced the consumer preferences. Arbor Realty Trust Inc Pc Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Pc Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Pc 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 Pc Pref to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Arbor Realty Trust Inc Pc Pref to increase its market reach. Arbor Realty Trust Inc Pc 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.
Developing new processes and practices
– Arbor Realty Trust Inc Pc Pref can develop new processes and procedures in Construction Services 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.
Threats Arbor Realty Trust Inc Pc Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Arbor Realty Trust Inc Pc Pref are -
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.
Regulatory challenges
– Arbor Realty Trust Inc Pc 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 Construction Services industry regulations.
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 Pc Pref business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Arbor Realty Trust Inc Pc Pref is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Arbor Realty Trust Inc Pc Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Stagnating economy with rate increase
– Arbor Realty Trust Inc Pc 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 Construction Services industry.
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 Pc Pref needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
Environmental challenges
– Arbor Realty Trust Inc Pc 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 Pc Pref can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Arbor Realty Trust Inc Pc Pref in Construction Services industry. The Construction Services 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.
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 Pc Pref in the Construction Services sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Arbor Realty Trust Inc Pc 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.
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.
Consumer confidence and its impact on Arbor Realty Trust Inc Pc 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 Construction Services industry and other sectors.
Weighted SWOT Analysis of Arbor Realty Trust Inc Pc 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 Pc 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 Pc 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 Pc 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 Pc 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 Pc Pref needs to make to build a sustainable competitive advantage.
