AXIS Capital Holdings Ltd Pd Pref (AXS_pd) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for AXIS Capital Holdings Ltd Pd Pref (United States)
Based on various researches at Oak Spring University , AXIS Capital Holdings Ltd Pd Pref is operating in a macro-environment that has been destablized by – increasing energy prices, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of AXIS Capital Holdings Ltd Pd Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AXIS Capital Holdings Ltd Pd Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AXIS Capital Holdings Ltd Pd Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd Pref can be done for the following purposes –
1. Strategic planning of AXIS Capital Holdings Ltd Pd Pref
2. Improving business portfolio management of AXIS Capital Holdings Ltd Pd Pref
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 AXIS Capital Holdings Ltd Pd Pref
Strengths of AXIS Capital Holdings Ltd Pd Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AXIS Capital Holdings Ltd Pd Pref are -
High brand equity
– AXIS Capital Holdings Ltd Pd Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled AXIS Capital Holdings Ltd Pd Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– AXIS Capital Holdings Ltd Pd Pref 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.
Ability to lead change in
– AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– AXIS Capital Holdings Ltd Pd Pref is one of the most innovative firm in sector.
Effective Research and Development (R&D)
– AXIS Capital Holdings Ltd Pd Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – AXIS Capital Holdings Ltd Pd Pref 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
– AXIS Capital Holdings Ltd Pd Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. AXIS Capital Holdings Ltd Pd 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.
Diverse revenue streams
– AXIS Capital Holdings Ltd Pd Pref is present in almost all the verticals within the industry. This has provided AXIS Capital Holdings Ltd Pd Pref 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.
High switching costs
– The high switching costs that AXIS Capital Holdings Ltd Pd Pref has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– AXIS Capital Holdings Ltd Pd Pref 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.
Low bargaining power of suppliers
– Suppliers of AXIS Capital Holdings Ltd Pd Pref in the sector have low bargaining power. AXIS Capital Holdings Ltd Pd Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AXIS Capital Holdings Ltd Pd Pref to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- AXIS Capital Holdings Ltd Pd Pref is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at AXIS Capital Holdings Ltd Pd Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AXIS Capital Holdings Ltd Pd Pref emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of AXIS Capital Holdings Ltd Pd Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AXIS Capital Holdings Ltd Pd Pref are -
Capital Spending Reduction
– Even during the low interest decade, AXIS Capital Holdings Ltd Pd Pref 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.
Compensation and incentives
– The revenue per employee of AXIS Capital Holdings Ltd Pd Pref 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.
Slow to strategic competitive environment developments
– As AXIS Capital Holdings Ltd Pd Pref 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.
Lack of clear differentiation of AXIS Capital Holdings Ltd Pd Pref products
– To increase the profitability and margins on the products, AXIS Capital Holdings Ltd Pd 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, AXIS Capital Holdings Ltd Pd Pref is slow explore the new channels of communication. These new channels of communication can help AXIS Capital Holdings Ltd Pd Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on AXIS Capital Holdings Ltd Pd Pref ‘s star products
– The top 2 products and services of AXIS Capital Holdings Ltd Pd Pref still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though AXIS Capital Holdings Ltd Pd Pref has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref lucrative customers.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, AXIS Capital Holdings Ltd Pd Pref is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Need for greater diversity
– AXIS Capital Holdings Ltd Pd Pref 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.
Aligning sales with marketing
– From the outside it seems that AXIS Capital Holdings Ltd Pd Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at AXIS Capital Holdings Ltd Pd Pref can leverage the sales team experience to cultivate customer relationships as AXIS Capital Holdings Ltd Pd Pref is planning to shift buying processes online.
Interest costs
– Compare to the competition, AXIS Capital Holdings Ltd Pd 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.
AXIS Capital Holdings Ltd Pd Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AXIS Capital Holdings Ltd Pd Pref are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, AXIS Capital Holdings Ltd Pd Pref is facing challenges because of the dominance of functional experts in the organization. AXIS Capital Holdings Ltd Pd Pref 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.
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 AXIS Capital Holdings Ltd Pd Pref in the industry. Now AXIS Capital Holdings Ltd Pd Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– AXIS Capital Holdings Ltd Pd Pref 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.
Creating value in data economy
– The success of analytics program of AXIS Capital Holdings Ltd Pd Pref has opened avenues for new revenue streams for the organization in industry. This can help AXIS Capital Holdings Ltd Pd Pref to build a more holistic ecosystem for AXIS Capital Holdings Ltd Pd Pref products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd 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 industry.
Manufacturing automation
– AXIS Capital Holdings Ltd Pd Pref 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.
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. AXIS Capital Holdings Ltd Pd Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, AXIS Capital Holdings Ltd Pd 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.
Loyalty marketing
– AXIS Capital Holdings Ltd Pd 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.
Using analytics as competitive advantage
– AXIS Capital Holdings Ltd Pd Pref 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 AXIS Capital Holdings Ltd Pd Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help AXIS Capital Holdings Ltd Pd Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats AXIS Capital Holdings Ltd Pd Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AXIS Capital Holdings Ltd Pd Pref are -
Environmental challenges
– AXIS Capital Holdings Ltd Pd Pref needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. AXIS Capital Holdings Ltd Pd Pref can take advantage of this fund but it will also bring new competitors in the industry.
Increasing wage structure of AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd Pref.
Consumer confidence and its impact on AXIS Capital Holdings Ltd Pd 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 industry and other sectors.
Stagnating economy with rate increase
– AXIS Capital Holdings Ltd Pd 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 industry.
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 AXIS Capital Holdings Ltd Pd Pref.
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.
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 AXIS Capital Holdings Ltd Pd Pref in the sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AXIS Capital Holdings Ltd Pd 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 sector.
Regulatory challenges
– AXIS Capital Holdings Ltd Pd 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 industry regulations.
Technology acceleration in Forth Industrial Revolution
– AXIS Capital Holdings Ltd Pd Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, AXIS Capital Holdings Ltd Pd Pref 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.
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.
Shortening product life cycle
– it is one of the major threat that AXIS Capital Holdings Ltd Pd Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. AXIS Capital Holdings Ltd Pd Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Weighted SWOT Analysis of AXIS Capital Holdings Ltd Pd Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd 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 AXIS Capital Holdings Ltd Pd Pref needs to make to build a sustainable competitive advantage.