Associated Banc-Corp Pref D (ASB_pd) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Associated Banc-Corp Pref D (United States)
Based on various researches at Oak Spring University , Associated Banc-Corp Pref D is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing commodity prices, challanges to central banks by blockchain based private currencies,
increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Associated Banc-Corp Pref D
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Associated Banc-Corp Pref D can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Associated Banc-Corp Pref D, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D can be done for the following purposes –
1. Strategic planning of Associated Banc-Corp Pref D
2. Improving business portfolio management of Associated Banc-Corp Pref D
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 Associated Banc-Corp Pref D
Strengths of Associated Banc-Corp Pref D | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Associated Banc-Corp Pref D are -
Cross disciplinary teams
– Horizontal connected teams at the Associated Banc-Corp Pref D 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.
Analytics focus
– Associated Banc-Corp Pref D 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.
Ability to lead change in
– Associated Banc-Corp Pref D is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled Associated Banc-Corp Pref D in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Associated Banc-Corp Pref D in the sector have low bargaining power. Associated Banc-Corp Pref D has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Associated Banc-Corp Pref D to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Associated Banc-Corp Pref D 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.
Successful track record of launching new products
– Associated Banc-Corp Pref D has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Associated Banc-Corp Pref D 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.
High switching costs
– The high switching costs that Associated Banc-Corp Pref D 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.
Effective Research and Development (R&D)
– Associated Banc-Corp Pref D has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Associated Banc-Corp Pref D staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Associated Banc-Corp Pref D emphasize – knowledge, initiative, and innovation.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Associated Banc-Corp Pref D digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Associated Banc-Corp Pref D 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.
Operational resilience
– The operational resilience strategy of Associated Banc-Corp Pref D 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.
Innovation driven organization
– Associated Banc-Corp Pref D is one of the most innovative firm in sector.
Weaknesses of Associated Banc-Corp Pref D | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Associated Banc-Corp Pref D are -
Skills based hiring in industry
– The stress on hiring functional specialists at Associated Banc-Corp Pref D 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.
Increasing silos among functional specialists
– The organizational structure of Associated Banc-Corp Pref D is dominated by functional specialists. It is not different from other players in the industry, but Associated Banc-Corp Pref D needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Associated Banc-Corp Pref D to focus more on services in the industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Associated Banc-Corp Pref D 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.
Lack of clear differentiation of Associated Banc-Corp Pref D products
– To increase the profitability and margins on the products, Associated Banc-Corp Pref D needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on Associated Banc-Corp Pref D ‘s star products
– The top 2 products and services of Associated Banc-Corp Pref D still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Associated Banc-Corp Pref D has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of United States, Associated Banc-Corp Pref D needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Associated Banc-Corp Pref D has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though Associated Banc-Corp Pref D 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. Associated Banc-Corp Pref D should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the industry, Associated Banc-Corp Pref D 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.
High operating costs
– Compare to the competitors, Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D lucrative customers.
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 Associated Banc-Corp Pref D supply chain. Even after few cautionary changes, Associated Banc-Corp Pref D is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Associated Banc-Corp Pref D vulnerable to further global disruptions in South East Asia.
Associated Banc-Corp Pref D Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Associated Banc-Corp Pref D are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Associated Banc-Corp Pref D can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D to build a competitive advantage using analytics. The analytics driven competitive advantage can help Associated Banc-Corp Pref D to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Associated Banc-Corp Pref D 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.
Better consumer reach
– The expansion of the 5G network will help Associated Banc-Corp Pref D to increase its market reach. Associated Banc-Corp Pref D 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Associated Banc-Corp Pref D 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.
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 Associated Banc-Corp Pref D 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Associated Banc-Corp Pref D is facing challenges because of the dominance of functional experts in the organization. Associated Banc-Corp Pref D 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Associated Banc-Corp Pref D can use these opportunities to build new business models that can help the communities that Associated Banc-Corp Pref D operates in. Secondly it can use opportunities from government spending in sector.
Developing new processes and practices
– Associated Banc-Corp Pref D 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.
Manufacturing automation
– Associated Banc-Corp Pref D 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Associated Banc-Corp Pref D in the industry. Now Associated Banc-Corp Pref D can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Associated Banc-Corp Pref D 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.
Loyalty marketing
– Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Associated Banc-Corp Pref D are -
Stagnating economy with rate increase
– Associated Banc-Corp Pref D 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.
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.
Regulatory challenges
– Associated Banc-Corp Pref D 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.
Technology acceleration in Forth Industrial Revolution
– Associated Banc-Corp Pref D has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Associated Banc-Corp Pref D 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.
High dependence on third party suppliers
– Associated Banc-Corp Pref D 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.
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 Associated Banc-Corp Pref D business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Associated Banc-Corp Pref D 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Associated Banc-Corp Pref D with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Associated Banc-Corp Pref D
– 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 Associated Banc-Corp Pref D.
Consumer confidence and its impact on Associated Banc-Corp Pref D 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D prominent markets.
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.
Shortening product life cycle
– it is one of the major threat that Associated Banc-Corp Pref D is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Associated Banc-Corp Pref D Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D 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 Associated Banc-Corp Pref D needs to make to build a sustainable competitive advantage.
