American Capital Agency Co ADR ADR (AGNCB) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for American Capital Agency Co ADR ADR (United States)
Based on various researches at Oak Spring University , American Capital Agency Co ADR ADR is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of American Capital Agency Co ADR ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that American Capital Agency Co ADR ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the American Capital Agency Co ADR ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR can be done for the following purposes –
1. Strategic planning of American Capital Agency Co ADR ADR
2. Improving business portfolio management of American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR
Strengths of American Capital Agency Co ADR ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of American Capital Agency Co ADR ADR are -
Innovation driven organization
– American Capital Agency Co ADR ADR is one of the most innovative firm in sector.
Sustainable margins compare to other players in industry
– American Capital Agency Co ADR ADR has clearly differentiated products in the market place. This has enabled American Capital Agency Co ADR ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped American Capital Agency Co ADR ADR to invest into research and development (R&D) and innovation.
Learning organization
- American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at American Capital Agency Co ADR ADR emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– American Capital Agency Co ADR ADR has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. American Capital Agency Co ADR 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.
Ability to lead change in
– American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– American Capital Agency Co ADR ADR is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of American Capital Agency Co ADR ADR in the sector have low bargaining power. American Capital Agency Co ADR ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps American Capital Agency Co ADR ADR to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– American Capital Agency Co ADR ADR has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – American Capital Agency Co ADR 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For American Capital Agency Co ADR ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. American Capital Agency Co ADR 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.
Training and development
– American Capital Agency Co ADR ADR 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.
Cross disciplinary teams
– Horizontal connected teams at the American Capital Agency Co ADR 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.
Operational resilience
– The operational resilience strategy of American Capital Agency Co ADR 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.
Weaknesses of American Capital Agency Co ADR ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of American Capital Agency Co ADR ADR are -
No frontier risks strategy
– From the 10K / annual statement of American Capital Agency Co ADR ADR, it seems that company is thinking out the frontier risks that can impact industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
American Capital Agency Co ADR 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.
Products dominated business model
– Even though American Capital Agency Co ADR 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. American Capital Agency Co ADR ADR should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR lucrative customers.
Slow decision making process
– As mentioned earlier in the report, American Capital Agency Co ADR 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. American Capital Agency Co ADR 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.
Compensation and incentives
– The revenue per employee of American Capital Agency Co ADR 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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, American Capital Agency Co ADR ADR 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.
Slow to strategic competitive environment developments
– As American Capital Agency Co ADR 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.
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 American Capital Agency Co ADR ADR supply chain. Even after few cautionary changes, American Capital Agency Co ADR ADR is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left American Capital Agency Co ADR ADR vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– American Capital Agency Co ADR ADR 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.
Low market penetration in new markets
– Outside its home market of United States, American Capital Agency Co ADR ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
American Capital Agency Co ADR ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of American Capital Agency Co ADR ADR are -
Buying journey improvements
– American Capital Agency Co ADR 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.
Loyalty marketing
– American Capital Agency Co ADR 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.
Manufacturing automation
– American Capital Agency Co ADR 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.
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. American Capital Agency Co ADR ADR can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of American Capital Agency Co ADR ADR has opened avenues for new revenue streams for the organization in industry. This can help American Capital Agency Co ADR ADR to build a more holistic ecosystem for American Capital Agency Co ADR ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– American Capital Agency Co ADR 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.
Better consumer reach
– The expansion of the 5G network will help American Capital Agency Co ADR ADR to increase its market reach. American Capital Agency Co ADR 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.
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. American Capital Agency Co ADR ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– American Capital Agency Co ADR ADR 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.
Learning at scale
– Online learning technologies has now opened space for American Capital Agency Co ADR 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects American Capital Agency Co ADR ADR can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help American Capital Agency Co ADR ADR to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, American Capital Agency Co ADR ADR is facing challenges because of the dominance of functional experts in the organization. American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of American Capital Agency Co ADR ADR are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR prominent markets.
Shortening product life cycle
– it is one of the major threat that American Capital Agency Co ADR ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 American Capital Agency Co ADR ADR in the sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for American Capital Agency Co ADR 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.
Stagnating economy with rate increase
– American Capital Agency Co ADR 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.
Environmental challenges
– American Capital Agency Co ADR 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. American Capital Agency Co ADR ADR can take advantage of this fund but it will also bring new competitors in the industry.
High dependence on third party suppliers
– American Capital Agency Co ADR 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.
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.
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. American Capital Agency Co ADR ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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. American Capital Agency Co ADR 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
– American Capital Agency Co ADR 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.
Technology acceleration in Forth Industrial Revolution
– American Capital Agency Co ADR ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, American Capital Agency Co ADR 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.
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 American Capital Agency Co ADR ADR business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of American Capital Agency Co ADR ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at American Capital Agency Co ADR 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 American Capital Agency Co ADR 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 American Capital Agency Co ADR 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 American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR needs to make to build a sustainable competitive advantage.