AmTrust Financial Services Pc ADR (AFSI_pc) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for AmTrust Financial Services Pc ADR (United States)
Based on various researches at Oak Spring University , AmTrust Financial Services Pc ADR is operating in a macro-environment that has been destablized by – there is backlash against globalization, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
increasing government debt because of Covid-19 spendings, technology disruption, etc
Introduction to SWOT Analysis of AmTrust Financial Services Pc ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AmTrust Financial Services Pc ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AmTrust Financial Services Pc 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 Pc 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 Pc ADR can be done for the following purposes –
1. Strategic planning of AmTrust Financial Services Pc ADR
2. Improving business portfolio management of AmTrust Financial Services Pc 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 Pc ADR
Strengths of AmTrust Financial Services Pc ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AmTrust Financial Services Pc ADR are -
Sustainable margins compare to other players in industry
– AmTrust Financial Services Pc ADR has clearly differentiated products in the market place. This has enabled AmTrust Financial Services Pc ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped AmTrust Financial Services Pc ADR to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of AmTrust Financial Services Pc ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– AmTrust Financial Services Pc ADR is one of the leading players in the 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.
Organizational Resilience of AmTrust Financial Services Pc ADR
– The covid-19 pandemic has put organizational resilience at the centre of everthing AmTrust Financial Services Pc ADR does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– AmTrust Financial Services Pc 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 Pc 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.
Low bargaining power of suppliers
– Suppliers of AmTrust Financial Services Pc ADR in the sector have low bargaining power. AmTrust Financial Services Pc ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AmTrust Financial Services Pc ADR to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– AmTrust Financial Services Pc ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled AmTrust Financial Services Pc ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the industry
– AmTrust Financial Services Pc ADR 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 AmTrust Financial Services Pc ADR 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.
Learning organization
- AmTrust Financial Services Pc 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 Pc ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AmTrust Financial Services Pc ADR emphasize – knowledge, initiative, and innovation.
Digital Transformation in industry
- digital transformation varies from industry to industry. For AmTrust Financial Services Pc ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. AmTrust Financial Services Pc 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.
Cross disciplinary teams
– Horizontal connected teams at the AmTrust Financial Services Pc 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.
Weaknesses of AmTrust Financial Services Pc ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AmTrust Financial Services Pc ADR are -
Slow to strategic competitive environment developments
– As AmTrust Financial Services Pc 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.
Employees’ less understanding of AmTrust Financial Services Pc ADR strategy
– From the outside it seems that the employees of AmTrust Financial Services Pc 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.
Products dominated business model
– Even though AmTrust Financial Services Pc 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 Pc ADR should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
AmTrust Financial Services Pc 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.
High dependence on AmTrust Financial Services Pc ADR ‘s star products
– The top 2 products and services of AmTrust Financial Services Pc ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though AmTrust Financial Services Pc ADR has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at AmTrust Financial Services Pc ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. AmTrust Financial Services Pc ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of AmTrust Financial Services Pc ADR products
– To increase the profitability and margins on the products, AmTrust Financial Services Pc ADR needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, AmTrust Financial Services Pc 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.
Low market penetration in new markets
– Outside its home market of United States, AmTrust Financial Services Pc ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, AmTrust Financial Services Pc ADR has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. AmTrust Financial Services Pc ADR 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.
Skills based hiring in industry
– The stress on hiring functional specialists at AmTrust Financial Services Pc ADR 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.
AmTrust Financial Services Pc ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AmTrust Financial Services Pc ADR are -
Loyalty marketing
– AmTrust Financial Services Pc ADR 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.
Better consumer reach
– The expansion of the 5G network will help AmTrust Financial Services Pc ADR to increase its market reach. AmTrust Financial Services Pc 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.
Using analytics as competitive advantage
– AmTrust Financial Services Pc 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 Pc ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help AmTrust Financial Services Pc ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for AmTrust Financial Services Pc ADR in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for AmTrust Financial Services Pc 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 Pc ADR to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of AmTrust Financial Services Pc ADR has opened avenues for new revenue streams for the organization in industry. This can help AmTrust Financial Services Pc ADR to build a more holistic ecosystem for AmTrust Financial Services Pc 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 Pc 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.
Building a culture of innovation
– managers at AmTrust Financial Services Pc 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.
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. AmTrust Financial Services Pc ADR 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. AmTrust Financial Services Pc ADR 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.
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 AmTrust Financial Services Pc ADR in the industry. Now AmTrust Financial Services Pc ADR can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– AmTrust Financial Services Pc 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, AmTrust Financial Services Pc 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, AmTrust Financial Services Pc ADR can use these opportunities to build new business models that can help the communities that AmTrust Financial Services Pc ADR operates in. Secondly it can use opportunities from government spending in sector.
Threats AmTrust Financial Services Pc ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AmTrust Financial Services Pc ADR are -
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.
Regulatory challenges
– AmTrust Financial Services Pc 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.
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 Pc ADR business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents AmTrust Financial Services Pc ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of AmTrust Financial Services Pc 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 Pc ADR.
Environmental challenges
– AmTrust Financial Services Pc ADR 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. AmTrust Financial Services Pc ADR can take advantage of this fund but it will also bring new competitors in the industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for AmTrust Financial Services Pc ADR in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, AmTrust Financial Services Pc ADR 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 AmTrust Financial Services Pc ADR prominent markets.
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 Pc ADR.
High dependence on third party suppliers
– AmTrust Financial Services Pc 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.
Shortening product life cycle
– it is one of the major threat that AmTrust Financial Services Pc ADR 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
– AmTrust Financial Services Pc ADR 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AmTrust Financial Services Pc 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 Pc 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 Pc 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 Pc 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 Pc 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 Pc 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 Pc ADR needs to make to build a sustainable competitive advantage.