Based on various researches at Oak Spring University , AmTrust Financial Services Pb ADR is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of AmTrust Financial Services Pb ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AmTrust Financial Services Pb ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AmTrust Financial Services Pb ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR can be done for the following purposes –
1. Strategic planning of AmTrust Financial Services Pb ADR
2. Improving business portfolio management of AmTrust Financial Services Pb ADR
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 AmTrust Financial Services Pb ADR
Strengths of AmTrust Financial Services Pb ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AmTrust Financial Services Pb ADR are -
High switching costs
– The high switching costs that AmTrust Financial Services Pb ADR 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.
Effective Research and Development (R&D)
– AmTrust Financial Services Pb ADR has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – AmTrust Financial Services Pb ADR staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– AmTrust Financial Services Pb ADR is one of the most innovative firm in sector.
Ability to lead change in
– AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– AmTrust Financial Services Pb ADR is present in almost all the verticals within the industry. This has provided AmTrust Financial Services Pb ADR 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For AmTrust Financial Services Pb ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. AmTrust Financial Services Pb ADR 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.
Highly skilled collaborators
– AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AmTrust Financial Services Pb ADR emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of AmTrust Financial Services Pb ADR in the sector have low bargaining power. AmTrust Financial Services Pb ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AmTrust Financial Services Pb ADR to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– AmTrust Financial Services Pb ADR has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. AmTrust Financial Services Pb ADR 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.
Weaknesses of AmTrust Financial Services Pb ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AmTrust Financial Services Pb ADR are -
High operating costs
– Compare to the competitors, AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, AmTrust Financial Services Pb ADR is slow explore the new channels of communication. These new channels of communication can help AmTrust Financial Services Pb ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of AmTrust Financial Services Pb ADR is dominated by functional specialists. It is not different from other players in the industry, but AmTrust Financial Services Pb ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help AmTrust Financial Services Pb ADR to focus more on services in the industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the industry, AmTrust Financial Services Pb ADR 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.
Products dominated business model
– Even though AmTrust Financial Services Pb ADR has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. AmTrust Financial Services Pb ADR should strive to include more intangible value offerings along with its core products and services.
Employees’ less understanding of AmTrust Financial Services Pb ADR strategy
– From the outside it seems that the employees of AmTrust Financial Services Pb ADR 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.
High cash cycle compare to competitors
AmTrust Financial Services Pb ADR 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.
Slow to strategic competitive environment developments
– As AmTrust Financial Services Pb ADR is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee of AmTrust Financial Services Pb ADR 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.
Interest costs
– Compare to the competition, AmTrust Financial Services Pb ADR 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.
Ability to respond to the competition
– As the decision making is very deliberative at AmTrust Financial Services Pb ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. AmTrust Financial Services Pb ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
AmTrust Financial Services Pb ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AmTrust Financial Services Pb ADR are -
Developing new processes and practices
– AmTrust Financial Services Pb ADR 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, AmTrust Financial Services Pb ADR 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.
Better consumer reach
– The expansion of the 5G network will help AmTrust Financial Services Pb ADR to increase its market reach. AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR 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.
Using analytics as competitive advantage
– AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help AmTrust Financial Services Pb ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of AmTrust Financial Services Pb ADR has opened avenues for new revenue streams for the organization in industry. This can help AmTrust Financial Services Pb ADR to build a more holistic ecosystem for AmTrust Financial Services Pb ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for AmTrust Financial Services Pb ADR 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.
Buying journey improvements
– AmTrust Financial Services Pb ADR can improve the customer journey of consumers in the 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR to hire the very best people irrespective of their geographical location.
Manufacturing automation
– AmTrust Financial Services Pb ADR can use the latest technology developments to improve its manufacturing and designing process in sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects AmTrust Financial Services Pb ADR can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. AmTrust Financial Services Pb ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, AmTrust Financial Services Pb ADR is facing challenges because of the dominance of functional experts in the organization. AmTrust Financial Services Pb ADR can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats AmTrust Financial Services Pb ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AmTrust Financial Services Pb ADR 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. AmTrust Financial Services Pb ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that AmTrust Financial Services Pb ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 AmTrust Financial Services Pb ADR business can come under increasing regulations regarding data privacy, data security, etc.
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. AmTrust Financial Services Pb ADR 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.
Regulatory challenges
– AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 AmTrust Financial Services Pb ADR.
Increasing wage structure of AmTrust Financial Services Pb ADR
– 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 AmTrust Financial Services Pb ADR.
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.
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. AmTrust Financial Services Pb ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– AmTrust Financial Services Pb ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, AmTrust Financial Services Pb ADR 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.
High dependence on third party suppliers
– AmTrust Financial Services Pb ADR 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AmTrust Financial Services Pb ADR may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Weighted SWOT Analysis of AmTrust Financial Services Pb ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR 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 AmTrust Financial Services Pb ADR needs to make to build a sustainable competitive advantage.