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 – increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, wage bills are increasing, increasing household debt because of falling income levels,
increasing energy prices, cloud computing is disrupting traditional business models, 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.
Superior customer experience
– The customer experience strategy of American Capital Agency Co ADR ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of American Capital Agency Co ADR ADR
– The covid-19 pandemic has put organizational resilience at the centre of everthing American Capital Agency Co ADR ADR does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR have helped the firm to develop new products and bring them quickly to 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.
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.
Strong track record of project management in the industry
– American Capital Agency Co ADR 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.
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.
Ability to recruit top talent
– American Capital Agency Co ADR 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.
High brand equity
– American Capital Agency Co ADR ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled American Capital Agency Co ADR ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that American Capital Agency Co ADR 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.
Diverse revenue streams
– American Capital Agency Co ADR ADR is present in almost all the verticals within the industry. This has provided American Capital Agency Co ADR 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.
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 -
Workers concerns about automation
– As automation is fast increasing in the industry, American Capital Agency Co ADR 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative at American Capital Agency Co ADR ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. American Capital Agency Co ADR ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Lack of clear differentiation of American Capital Agency Co ADR ADR products
– To increase the profitability and margins on the products, American Capital Agency Co ADR ADR needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, American Capital Agency Co ADR 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.
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.
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.
Aligning sales with marketing
– From the outside it seems that American Capital Agency Co ADR ADR needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at American Capital Agency Co ADR ADR can leverage the sales team experience to cultivate customer relationships as American Capital Agency Co ADR ADR is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of American Capital Agency Co ADR ADR is dominated by functional specialists. It is not different from other players in the industry, but American Capital Agency Co ADR ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help American Capital Agency Co ADR ADR to focus more on services in the industry rather than just following the product oriented approach.
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.
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 -
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, American Capital Agency Co ADR ADR can use these opportunities to build new business models that can help the communities that American Capital Agency Co ADR ADR operates in. Secondly it can use opportunities from government spending in sector.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for American Capital Agency Co ADR 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, American Capital Agency Co ADR 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.
Using analytics as competitive advantage
– American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help American Capital Agency Co ADR ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR to hire the very best people irrespective of their geographical location.
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 American Capital Agency Co ADR ADR in the industry. Now American Capital Agency Co ADR ADR can target international markets with far fewer capital restrictions requirements than the existing system.
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 -
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.
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.
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.
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.
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.
Increasing wage structure of American Capital Agency Co ADR 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 American Capital Agency Co ADR ADR.
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 American Capital Agency Co ADR ADR demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
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.
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.
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.
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. American Capital Agency Co ADR ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 American Capital Agency Co ADR ADR.
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.