Akbank Turk Anonim Sirketi (AKBTY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Akbank Turk Anonim Sirketi (United States)
Based on various researches at Oak Spring University , Akbank Turk Anonim Sirketi is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, there is increasing trade war between United States & China, supply chains are disrupted by pandemic ,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Akbank Turk Anonim Sirketi
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Akbank Turk Anonim Sirketi can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Akbank Turk Anonim Sirketi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi can be done for the following purposes –
1. Strategic planning of Akbank Turk Anonim Sirketi
2. Improving business portfolio management of Akbank Turk Anonim Sirketi
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 Akbank Turk Anonim Sirketi
Strengths of Akbank Turk Anonim Sirketi | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Akbank Turk Anonim Sirketi are -
Highly skilled collaborators
– Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Akbank Turk Anonim Sirketi 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.
Superior customer experience
– The customer experience strategy of Akbank Turk Anonim Sirketi in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Akbank Turk Anonim Sirketi 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.
Innovation driven organization
– Akbank Turk Anonim Sirketi is one of the most innovative firm in sector.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Akbank Turk Anonim Sirketi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Akbank Turk Anonim Sirketi 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.
Effective Research and Development (R&D)
– Akbank Turk Anonim Sirketi has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Akbank Turk Anonim Sirketi staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Akbank Turk Anonim Sirketi 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.
Strong track record of project management in the industry
– Akbank Turk Anonim Sirketi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in industry
– Akbank Turk Anonim Sirketi has clearly differentiated products in the market place. This has enabled Akbank Turk Anonim Sirketi to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Akbank Turk Anonim Sirketi to invest into research and development (R&D) and innovation.
Learning organization
- Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Akbank Turk Anonim Sirketi emphasize – knowledge, initiative, and innovation.
High brand equity
– Akbank Turk Anonim Sirketi has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Akbank Turk Anonim Sirketi to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Akbank Turk Anonim Sirketi | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Akbank Turk Anonim Sirketi are -
No frontier risks strategy
– From the 10K / annual statement of Akbank Turk Anonim Sirketi, 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 operating costs
– Compare to the competitors, Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi lucrative customers.
Low market penetration in new markets
– Outside its home market of United States, Akbank Turk Anonim Sirketi needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Akbank Turk Anonim Sirketi 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Akbank Turk Anonim Sirketi 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.
Capital Spending Reduction
– Even during the low interest decade, Akbank Turk Anonim Sirketi has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Akbank Turk Anonim Sirketi 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. Akbank Turk Anonim Sirketi should strive to include more intangible value offerings along with its core products and services.
High dependence on Akbank Turk Anonim Sirketi ‘s star products
– The top 2 products and services of Akbank Turk Anonim Sirketi still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Akbank Turk Anonim Sirketi has relatively successful track record of launching new products.
Lack of clear differentiation of Akbank Turk Anonim Sirketi products
– To increase the profitability and margins on the products, Akbank Turk Anonim Sirketi needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Akbank Turk Anonim Sirketi is dominated by functional specialists. It is not different from other players in the industry, but Akbank Turk Anonim Sirketi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Akbank Turk Anonim Sirketi to focus more on services in the industry rather than just following the product 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 Akbank Turk Anonim Sirketi supply chain. Even after few cautionary changes, Akbank Turk Anonim Sirketi is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Akbank Turk Anonim Sirketi vulnerable to further global disruptions in South East Asia.
Akbank Turk Anonim Sirketi Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Akbank Turk Anonim Sirketi are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Akbank Turk Anonim Sirketi can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Akbank Turk Anonim Sirketi to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Akbank Turk Anonim Sirketi 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.
Building a culture of innovation
– managers at Akbank Turk Anonim Sirketi 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Akbank Turk Anonim Sirketi 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Akbank Turk Anonim Sirketi is facing challenges because of the dominance of functional experts in the organization. Akbank Turk Anonim Sirketi 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Akbank Turk Anonim Sirketi 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.
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. Akbank Turk Anonim Sirketi 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. Akbank Turk Anonim Sirketi 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.
Leveraging digital technologies
– Akbank Turk Anonim Sirketi 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.
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. Akbank Turk Anonim Sirketi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Akbank Turk Anonim Sirketi 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.
Using analytics as competitive advantage
– Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi to build a competitive advantage using analytics. The analytics driven competitive advantage can help Akbank Turk Anonim Sirketi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Akbank Turk Anonim Sirketi can use these opportunities to build new business models that can help the communities that Akbank Turk Anonim Sirketi operates in. Secondly it can use opportunities from government spending in sector.
Threats Akbank Turk Anonim Sirketi External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Akbank Turk Anonim Sirketi are -
Technology acceleration in Forth Industrial Revolution
– Akbank Turk Anonim Sirketi has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Akbank Turk Anonim Sirketi 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.
Stagnating economy with rate increase
– Akbank Turk Anonim Sirketi 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.
Increasing wage structure of Akbank Turk Anonim Sirketi
– 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 Akbank Turk Anonim Sirketi.
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. Akbank Turk Anonim Sirketi needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Regulatory challenges
– Akbank Turk Anonim Sirketi 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Akbank Turk Anonim Sirketi 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Akbank Turk Anonim Sirketi can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi in the sector and impact the bottomline of the organization.
Consumer confidence and its impact on Akbank Turk Anonim Sirketi 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.
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 Akbank Turk Anonim Sirketi.
Shortening product life cycle
– it is one of the major threat that Akbank Turk Anonim Sirketi is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Akbank Turk Anonim Sirketi Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi 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 Akbank Turk Anonim Sirketi needs to make to build a sustainable competitive advantage.