Based on various researches at Oak Spring University , Anworth Mortgage Asset Corp Pb Pref is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, geopolitical disruptions, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , increasing energy prices, increasing government debt because of Covid-19 spendings,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Anworth Mortgage Asset Corp Pb Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Anworth Mortgage Asset Corp Pb Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anworth Mortgage Asset Corp Pb Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb Pref can be done for the following purposes –
1. Strategic planning of Anworth Mortgage Asset Corp Pb Pref
2. Improving business portfolio management of Anworth Mortgage Asset Corp Pb Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Real Estate Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anworth Mortgage Asset Corp Pb Pref
Strengths of Anworth Mortgage Asset Corp Pb Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anworth Mortgage Asset Corp Pb Pref are -
Ability to recruit top talent
– Anworth Mortgage Asset Corp Pb Pref is one of the leading players in the Real Estate Operations 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 Real Estate Operations industry
– Anworth Mortgage Asset Corp Pb Pref has clearly differentiated products in the market place. This has enabled Anworth Mortgage Asset Corp Pb Pref to fetch slight price premium compare to the competitors in the Real Estate Operations industry. The sustainable margins have also helped Anworth Mortgage Asset Corp Pb Pref to invest into research and development (R&D) and innovation.
Analytics focus
– Anworth Mortgage Asset Corp Pb 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 Real Estate Operations 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.
Cross disciplinary teams
– Horizontal connected teams at the Anworth Mortgage Asset Corp Pb 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.
Successful track record of launching new products
– Anworth Mortgage Asset Corp Pb Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anworth Mortgage Asset Corp Pb Pref 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.
Superior customer experience
– The customer experience strategy of Anworth Mortgage Asset Corp Pb Pref in Real Estate Operations industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Anworth Mortgage Asset Corp Pb Pref in the Services sector have low bargaining power. Anworth Mortgage Asset Corp Pb Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anworth Mortgage Asset Corp Pb Pref to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Anworth Mortgage Asset Corp Pb Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Anworth Mortgage Asset Corp Pb Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Anworth Mortgage Asset Corp Pb Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Real Estate Operations industry. Secondly the value chain collaborators of Anworth Mortgage Asset Corp Pb Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Anworth Mortgage Asset Corp Pb Pref is one of the most innovative firm in Real Estate Operations sector.
High brand equity
– Anworth Mortgage Asset Corp Pb Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Anworth Mortgage Asset Corp Pb Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy of Anworth Mortgage Asset Corp Pb Pref comprises – understanding the underlying the factors in the Real Estate Operations industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses of Anworth Mortgage Asset Corp Pb Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Anworth Mortgage Asset Corp Pb Pref are -
Compensation and incentives
– The revenue per employee of Anworth Mortgage Asset Corp Pb Pref is just above the Real Estate Operations 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.
Increasing silos among functional specialists
– The organizational structure of Anworth Mortgage Asset Corp Pb Pref is dominated by functional specialists. It is not different from other players in the Real Estate Operations industry, but Anworth Mortgage Asset Corp Pb Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Anworth Mortgage Asset Corp Pb Pref to focus more on services in the Real Estate Operations industry rather than just following the product oriented approach.
Skills based hiring in Real Estate Operations industry
– The stress on hiring functional specialists at Anworth Mortgage Asset Corp Pb 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.
Lack of clear differentiation of Anworth Mortgage Asset Corp Pb Pref products
– To increase the profitability and margins on the products, Anworth Mortgage Asset Corp Pb Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Anworth Mortgage Asset Corp Pb Pref is slow explore the new channels of communication. These new channels of communication can help Anworth Mortgage Asset Corp Pb Pref to provide better information regarding Real Estate Operations products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of United States, Anworth Mortgage Asset Corp Pb Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Anworth Mortgage Asset Corp Pb Pref has a high cash cycle compare to other players in the Real Estate Operations industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, Anworth Mortgage Asset Corp Pb Pref has high operating costs in the Real Estate Operations industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Anworth Mortgage Asset Corp Pb Pref lucrative customers.
Employees’ less understanding of Anworth Mortgage Asset Corp Pb Pref strategy
– From the outside it seems that the employees of Anworth Mortgage Asset Corp Pb 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.
Slow decision making process
– As mentioned earlier in the report, Anworth Mortgage Asset Corp Pb Pref has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Real Estate Operations industry over the last five years. Anworth Mortgage Asset Corp Pb Pref 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.
Interest costs
– Compare to the competition, Anworth Mortgage Asset Corp Pb Pref 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.
Anworth Mortgage Asset Corp Pb Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Anworth Mortgage Asset Corp Pb Pref are -
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Real Estate Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Anworth Mortgage Asset Corp Pb Pref 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. Anworth Mortgage Asset Corp Pb Pref 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.
Better consumer reach
– The expansion of the 5G network will help Anworth Mortgage Asset Corp Pb Pref to increase its market reach. Anworth Mortgage Asset Corp Pb 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Anworth Mortgage Asset Corp Pb Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Anworth Mortgage Asset Corp Pb Pref 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 Real Estate Operations industry.
Buying journey improvements
– Anworth Mortgage Asset Corp Pb Pref can improve the customer journey of consumers in the Real Estate Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Anworth Mortgage Asset Corp Pb 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anworth Mortgage Asset Corp Pb Pref is facing challenges because of the dominance of functional experts in the organization. Anworth Mortgage Asset Corp Pb Pref can utilize new technology in the field of Real Estate Operations industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Anworth Mortgage Asset Corp Pb Pref has opened avenues for new revenue streams for the organization in Real Estate Operations industry. This can help Anworth Mortgage Asset Corp Pb Pref to build a more holistic ecosystem for Anworth Mortgage Asset Corp Pb Pref products in the Real Estate Operations industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anworth Mortgage Asset Corp Pb 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 Real Estate Operations 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. Anworth Mortgage Asset Corp Pb Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Anworth Mortgage Asset Corp Pb 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.
Use of Bitcoin and other crypto currencies for transactions in Real Estate Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Anworth Mortgage Asset Corp Pb Pref in the Real Estate Operations industry. Now Anworth Mortgage Asset Corp Pb Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anworth Mortgage Asset Corp Pb Pref can use these opportunities to build new business models that can help the communities that Anworth Mortgage Asset Corp Pb Pref operates in. Secondly it can use opportunities from government spending in Real Estate Operations sector.
Threats Anworth Mortgage Asset Corp Pb Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Anworth Mortgage Asset Corp Pb Pref are -
Technology acceleration in Forth Industrial Revolution
– Anworth Mortgage Asset Corp Pb Pref has witnessed rapid integration of technology during Covid-19 in the Real Estate Operations industry. As one of the leading players in the industry, Anworth Mortgage Asset Corp Pb Pref needs to keep up with the evolution of technology in the Real Estate Operations 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.
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. Anworth Mortgage Asset Corp Pb 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.
Increasing wage structure of Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb Pref.
Shortening product life cycle
– it is one of the major threat that Anworth Mortgage Asset Corp Pb Pref is facing in Real Estate Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Anworth Mortgage Asset Corp Pb Pref 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 Real Estate Operations industry.
Regulatory challenges
– Anworth Mortgage Asset Corp Pb Pref 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 Real Estate Operations industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Anworth Mortgage Asset Corp Pb 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Anworth Mortgage Asset Corp Pb Pref in Real Estate Operations industry. The Real Estate Operations 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.
Consumer confidence and its impact on Anworth Mortgage Asset Corp Pb Pref 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 Real Estate Operations industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Anworth Mortgage Asset Corp Pb Pref may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Real Estate Operations sector.
Easy access to finance
– Easy access to finance in Real Estate Operations industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Anworth Mortgage Asset Corp Pb Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Anworth Mortgage Asset Corp Pb Pref needs to understand the core reasons impacting the Real Estate Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Anworth Mortgage Asset Corp Pb Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb 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 Anworth Mortgage Asset Corp Pb Pref needs to make to build a sustainable competitive advantage.