Aspen Insurance Holdings Pc Pref (AHL_pc) SWOT Analysis / TOWS Matrix / MBA Resources
Insurance (Life)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Aspen Insurance Holdings Pc Pref (United States)
Based on various researches at Oak Spring University , Aspen Insurance Holdings Pc Pref is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation,
cloud computing is disrupting traditional business models, geopolitical disruptions, etc
Introduction to SWOT Analysis of Aspen Insurance Holdings Pc Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Aspen Insurance Holdings Pc Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aspen Insurance Holdings Pc Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aspen Insurance Holdings Pc Pref operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Aspen Insurance Holdings Pc Pref can be done for the following purposes –
1. Strategic planning of Aspen Insurance Holdings Pc Pref
2. Improving business portfolio management of Aspen Insurance Holdings Pc Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Insurance (Life) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Aspen Insurance Holdings Pc Pref
Strengths of Aspen Insurance Holdings Pc Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aspen Insurance Holdings Pc Pref are -
Operational resilience
– The operational resilience strategy of Aspen Insurance Holdings Pc Pref comprises – understanding the underlying the factors in the Insurance (Life) 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.
Highly skilled collaborators
– Aspen Insurance Holdings Pc Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Life) industry. Secondly the value chain collaborators of Aspen Insurance Holdings Pc Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Aspen Insurance Holdings Pc Pref in the Financial sector have low bargaining power. Aspen Insurance Holdings Pc Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aspen Insurance Holdings Pc Pref to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Aspen Insurance Holdings Pc Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Aspen Insurance Holdings Pc Pref staying ahead in the Insurance (Life) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Insurance (Life) industry
– Aspen Insurance Holdings Pc Pref has clearly differentiated products in the market place. This has enabled Aspen Insurance Holdings Pc Pref to fetch slight price premium compare to the competitors in the Insurance (Life) industry. The sustainable margins have also helped Aspen Insurance Holdings Pc Pref to invest into research and development (R&D) and innovation.
Learning organization
- Aspen Insurance Holdings Pc Pref is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Aspen Insurance Holdings Pc Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Aspen Insurance Holdings Pc Pref emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Insurance (Life) industry
– Aspen Insurance Holdings Pc Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Aspen Insurance Holdings Pc Pref 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.
Organizational Resilience of Aspen Insurance Holdings Pc Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Aspen Insurance Holdings Pc Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Aspen Insurance Holdings Pc Pref in Insurance (Life) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Aspen Insurance Holdings Pc Pref 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 Insurance (Life) 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.
High switching costs
– The high switching costs that Aspen Insurance Holdings Pc Pref 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.
Weaknesses of Aspen Insurance Holdings Pc Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Aspen Insurance Holdings Pc Pref are -
Skills based hiring in Insurance (Life) industry
– The stress on hiring functional specialists at Aspen Insurance Holdings Pc Pref has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High 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 Aspen Insurance Holdings Pc Pref supply chain. Even after few cautionary changes, Aspen Insurance Holdings Pc Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Aspen Insurance Holdings Pc Pref vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners in Insurance (Life) industry
– because of the regulatory requirements in United States, Aspen Insurance Holdings Pc Pref 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 Insurance (Life) industry.
Employees’ less understanding of Aspen Insurance Holdings Pc Pref strategy
– From the outside it seems that the employees of Aspen Insurance Holdings Pc Pref 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 dependence on Aspen Insurance Holdings Pc Pref ‘s star products
– The top 2 products and services of Aspen Insurance Holdings Pc Pref still accounts for major business revenue. This dependence on star products in Insurance (Life) industry has resulted into insufficient focus on developing new products, even though Aspen Insurance Holdings Pc Pref has relatively successful track record of launching new products.
Lack of clear differentiation of Aspen Insurance Holdings Pc Pref products
– To increase the profitability and margins on the products, Aspen Insurance Holdings Pc Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Aspen Insurance Holdings Pc Pref has high operating costs in the Insurance (Life) industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Aspen Insurance Holdings Pc Pref lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aspen Insurance Holdings Pc Pref is slow explore the new channels of communication. These new channels of communication can help Aspen Insurance Holdings Pc Pref to provide better information regarding Insurance (Life) products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Aspen Insurance Holdings Pc Pref has a high cash cycle compare to other players in the Insurance (Life) 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 Aspen Insurance Holdings Pc Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Insurance (Life) industry have deep experience in developing customer relationships. Marketing department at Aspen Insurance Holdings Pc Pref can leverage the sales team experience to cultivate customer relationships as Aspen Insurance Holdings Pc Pref is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Aspen Insurance Holdings Pc Pref is dominated by functional specialists. It is not different from other players in the Insurance (Life) industry, but Aspen Insurance Holdings Pc Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aspen Insurance Holdings Pc Pref to focus more on services in the Insurance (Life) industry rather than just following the product oriented approach.
Aspen Insurance Holdings Pc Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Aspen Insurance Holdings Pc Pref are -
Use of Bitcoin and other crypto currencies for transactions in Insurance (Life) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Aspen Insurance Holdings Pc Pref in the Insurance (Life) industry. Now Aspen Insurance Holdings Pc Pref can target international markets with far fewer capital restrictions requirements than the existing system.
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. Aspen Insurance Holdings Pc Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Aspen Insurance Holdings Pc Pref can use the latest technology developments to improve its manufacturing and designing process in Insurance (Life) 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.
Better consumer reach
– The expansion of the 5G network will help Aspen Insurance Holdings Pc Pref to increase its market reach. Aspen Insurance Holdings Pc Pref will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Life) industry, but it has also influenced the consumer preferences. Aspen Insurance Holdings Pc Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Aspen Insurance Holdings Pc Pref can use these opportunities to build new business models that can help the communities that Aspen Insurance Holdings Pc Pref operates in. Secondly it can use opportunities from government spending in Insurance (Life) sector.
Developing new processes and practices
– Aspen Insurance Holdings Pc Pref can develop new processes and procedures in Insurance (Life) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aspen Insurance Holdings Pc Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Aspen Insurance Holdings Pc Pref 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aspen Insurance Holdings Pc Pref in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Insurance (Life) industry, and it will provide faster access to the consumers.
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 Aspen Insurance Holdings Pc Pref 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.
Using analytics as competitive advantage
– Aspen Insurance Holdings Pc Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Life) sector. This continuous investment in analytics has enabled Aspen Insurance Holdings Pc Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aspen Insurance Holdings Pc Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Aspen Insurance Holdings Pc Pref has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Aspen Insurance Holdings Pc Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Aspen Insurance Holdings Pc Pref are -
Increasing wage structure of Aspen Insurance Holdings Pc Pref
– 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 Aspen Insurance Holdings Pc Pref.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aspen Insurance Holdings Pc Pref 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 Aspen Insurance Holdings Pc Pref prominent markets.
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. Aspen Insurance Holdings Pc Pref 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.
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 Aspen Insurance Holdings Pc Pref business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Aspen Insurance Holdings Pc Pref has witnessed rapid integration of technology during Covid-19 in the Insurance (Life) industry. As one of the leading players in the industry, Aspen Insurance Holdings Pc Pref needs to keep up with the evolution of technology in the Insurance (Life) 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.
Environmental challenges
– Aspen Insurance Holdings Pc Pref needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Aspen Insurance Holdings Pc Pref can take advantage of this fund but it will also bring new competitors in the Insurance (Life) industry.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Aspen Insurance Holdings Pc Pref in Insurance (Life) industry. The Insurance (Life) 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.
High dependence on third party suppliers
– Aspen Insurance Holdings Pc Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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 Aspen Insurance Holdings Pc Pref in the Insurance (Life) 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. Aspen Insurance Holdings Pc Pref needs to understand the core reasons impacting the Insurance (Life) industry. This will help it in building a better workplace.
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 Aspen Insurance Holdings Pc Pref.
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.
Weighted SWOT Analysis of Aspen Insurance Holdings Pc Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Aspen Insurance Holdings Pc Pref needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Aspen Insurance Holdings Pc Pref is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Aspen Insurance Holdings Pc Pref is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Aspen Insurance Holdings Pc Pref to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Aspen Insurance Holdings Pc Pref needs to make to build a sustainable competitive advantage.