UBS AG London Branch ELKS 5 (AMUB) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for UBS AG London Branch ELKS 5 (United States)
Based on various researches at Oak Spring University , UBS AG London Branch ELKS 5 is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, increasing energy prices, talent flight as more people leaving formal jobs,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of UBS AG London Branch ELKS 5
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that UBS AG London Branch ELKS 5 can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the UBS AG London Branch ELKS 5, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 can be done for the following purposes –
1. Strategic planning of UBS AG London Branch ELKS 5
2. Improving business portfolio management of UBS AG London Branch ELKS 5
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 UBS AG London Branch ELKS 5
Strengths of UBS AG London Branch ELKS 5 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of UBS AG London Branch ELKS 5 are -
Operational resilience
– The operational resilience strategy of UBS AG London Branch ELKS 5 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.
Diverse revenue streams
– UBS AG London Branch ELKS 5 is present in almost all the verticals within the industry. This has provided UBS AG London Branch ELKS 5 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.
Ability to recruit top talent
– UBS AG London Branch ELKS 5 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.
Sustainable margins compare to other players in industry
– UBS AG London Branch ELKS 5 has clearly differentiated products in the market place. This has enabled UBS AG London Branch ELKS 5 to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped UBS AG London Branch ELKS 5 to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of UBS AG London Branch ELKS 5 in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the UBS AG London Branch ELKS 5 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.
Training and development
– UBS AG London Branch ELKS 5 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.
Organizational Resilience of UBS AG London Branch ELKS 5
– The covid-19 pandemic has put organizational resilience at the centre of everthing UBS AG London Branch ELKS 5 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management in the industry
– UBS AG London Branch ELKS 5 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)
– UBS AG London Branch ELKS 5 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – UBS AG London Branch ELKS 5 staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– UBS AG London Branch ELKS 5 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. UBS AG London Branch ELKS 5 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.
Weaknesses of UBS AG London Branch ELKS 5 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of UBS AG London Branch ELKS 5 are -
Workers concerns about automation
– As automation is fast increasing in the industry, UBS AG London Branch ELKS 5 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 to strategic competitive environment developments
– As UBS AG London Branch ELKS 5 is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ less understanding of UBS AG London Branch ELKS 5 strategy
– From the outside it seems that the employees of UBS AG London Branch ELKS 5 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 operating costs
– Compare to the competitors, UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 lucrative customers.
Compensation and incentives
– The revenue per employee of UBS AG London Branch ELKS 5 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 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 UBS AG London Branch ELKS 5 supply chain. Even after few cautionary changes, UBS AG London Branch ELKS 5 is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left UBS AG London Branch ELKS 5 vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of UBS AG London Branch ELKS 5 products
– To increase the profitability and margins on the products, UBS AG London Branch ELKS 5 needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– From the 10K / annual statement of UBS AG London Branch ELKS 5, 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.
Interest costs
– Compare to the competition, UBS AG London Branch ELKS 5 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 dependence on UBS AG London Branch ELKS 5 ‘s star products
– The top 2 products and services of UBS AG London Branch ELKS 5 still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though UBS AG London Branch ELKS 5 has relatively successful track record of launching new products.
Products dominated business model
– Even though UBS AG London Branch ELKS 5 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. UBS AG London Branch ELKS 5 should strive to include more intangible value offerings along with its core products and services.
UBS AG London Branch ELKS 5 Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of UBS AG London Branch ELKS 5 are -
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. UBS AG London Branch ELKS 5 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. UBS AG London Branch ELKS 5 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, UBS AG London Branch ELKS 5 can use these opportunities to build new business models that can help the communities that UBS AG London Branch ELKS 5 operates in. Secondly it can use opportunities from government spending in sector.
Manufacturing automation
– UBS AG London Branch ELKS 5 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for UBS AG London Branch ELKS 5 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.
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. UBS AG London Branch ELKS 5 can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for UBS AG London Branch ELKS 5 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.
Better consumer reach
– The expansion of the 5G network will help UBS AG London Branch ELKS 5 to increase its market reach. UBS AG London Branch ELKS 5 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.
Leveraging digital technologies
– UBS AG London Branch ELKS 5 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.
Creating value in data economy
– The success of analytics program of UBS AG London Branch ELKS 5 has opened avenues for new revenue streams for the organization in industry. This can help UBS AG London Branch ELKS 5 to build a more holistic ecosystem for UBS AG London Branch ELKS 5 products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at UBS AG London Branch ELKS 5 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, UBS AG London Branch ELKS 5 is facing challenges because of the dominance of functional experts in the organization. UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 to hire the very best people irrespective of their geographical location.
Threats UBS AG London Branch ELKS 5 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of UBS AG London Branch ELKS 5 are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for UBS AG London Branch ELKS 5 in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 prominent markets.
Shortening product life cycle
– it is one of the major threat that UBS AG London Branch ELKS 5 is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of UBS AG London Branch ELKS 5
– 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 UBS AG London Branch ELKS 5.
High dependence on third party suppliers
– UBS AG London Branch ELKS 5 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.
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. UBS AG London Branch ELKS 5 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Environmental challenges
– UBS AG London Branch ELKS 5 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. UBS AG London Branch ELKS 5 can take advantage of this fund but it will also bring new competitors in the industry.
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. UBS AG London Branch ELKS 5 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.
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 UBS AG London Branch ELKS 5 in the sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– UBS AG London Branch ELKS 5 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.
Consumer confidence and its impact on UBS AG London Branch ELKS 5 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.
Weighted SWOT Analysis of UBS AG London Branch ELKS 5 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 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 UBS AG London Branch ELKS 5 needs to make to build a sustainable competitive advantage.