AXIS Capital Holdings Ltd Pref E (AXS_pe) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for AXIS Capital Holdings Ltd Pref E (United States)
Based on various researches at Oak Spring University , AXIS Capital Holdings Ltd Pref E is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , increasing commodity prices, there is increasing trade war between United States & China, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing energy prices, central banks are concerned over increasing inflation,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of AXIS Capital Holdings Ltd Pref E
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that AXIS Capital Holdings Ltd Pref E can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the AXIS Capital Holdings Ltd Pref E, 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 Pref E 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 Pref E can be done for the following purposes –
1. Strategic planning of AXIS Capital Holdings Ltd Pref E
2. Improving business portfolio management of AXIS Capital Holdings Ltd Pref E
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 Pref E
Strengths of AXIS Capital Holdings Ltd Pref E | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of AXIS Capital Holdings Ltd Pref E are -
Analytics focus
– AXIS Capital Holdings Ltd Pref E 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.
Strong track record of project management in the industry
– AXIS Capital Holdings Ltd Pref E is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- AXIS Capital Holdings Ltd Pref E 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 Pref E is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at AXIS Capital Holdings Ltd Pref E emphasize – knowledge, initiative, and innovation.
Ability to lead change in
– AXIS Capital Holdings Ltd Pref E 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 Pref E in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that AXIS Capital Holdings Ltd Pref E 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.
Sustainable margins compare to other players in industry
– AXIS Capital Holdings Ltd Pref E has clearly differentiated products in the market place. This has enabled AXIS Capital Holdings Ltd Pref E to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped AXIS Capital Holdings Ltd Pref E to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– AXIS Capital Holdings Ltd Pref E 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 Pref E have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– AXIS Capital Holdings Ltd Pref E 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 Pref E staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– AXIS Capital Holdings Ltd Pref E 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 Pref E to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of AXIS Capital Holdings Ltd Pref E in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– AXIS Capital Holdings Ltd Pref E is present in almost all the verticals within the industry. This has provided AXIS Capital Holdings Ltd Pref E 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.
Low bargaining power of suppliers
– Suppliers of AXIS Capital Holdings Ltd Pref E in the sector have low bargaining power. AXIS Capital Holdings Ltd Pref E has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps AXIS Capital Holdings Ltd Pref E to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of AXIS Capital Holdings Ltd Pref E | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AXIS Capital Holdings Ltd Pref E are -
Slow decision making process
– As mentioned earlier in the report, AXIS Capital Holdings Ltd Pref E has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. AXIS Capital Holdings Ltd Pref E 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.
Low market penetration in new markets
– Outside its home market of United States, AXIS Capital Holdings Ltd Pref E needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, AXIS Capital Holdings Ltd Pref E 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.
High dependence on AXIS Capital Holdings Ltd Pref E ‘s star products
– The top 2 products and services of AXIS Capital Holdings Ltd Pref E 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 Pref E has relatively successful track record of launching new products.
Skills based hiring in industry
– The stress on hiring functional specialists at AXIS Capital Holdings Ltd Pref E 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.
Products dominated business model
– Even though AXIS Capital Holdings Ltd Pref E 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. AXIS Capital Holdings Ltd Pref E should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, AXIS Capital Holdings Ltd Pref E 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.
Increasing silos among functional specialists
– The organizational structure of AXIS Capital Holdings Ltd Pref E is dominated by functional specialists. It is not different from other players in the industry, but AXIS Capital Holdings Ltd Pref E needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help AXIS Capital Holdings Ltd Pref E to focus more on services in the industry rather than just following the product oriented approach.
Need for greater diversity
– AXIS Capital Holdings Ltd Pref E 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.
Employees’ less understanding of AXIS Capital Holdings Ltd Pref E strategy
– From the outside it seems that the employees of AXIS Capital Holdings Ltd Pref E 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.
Compensation and incentives
– The revenue per employee of AXIS Capital Holdings Ltd Pref E 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.
AXIS Capital Holdings Ltd Pref E Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of AXIS Capital Holdings Ltd Pref E are -
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 AXIS Capital Holdings Ltd Pref E 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.
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 Pref E can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at AXIS Capital Holdings Ltd Pref E 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, AXIS Capital Holdings Ltd Pref E can use these opportunities to build new business models that can help the communities that AXIS Capital Holdings Ltd Pref E operates in. Secondly it can use opportunities from government spending in sector.
Creating value in data economy
– The success of analytics program of AXIS Capital Holdings Ltd Pref E has opened avenues for new revenue streams for the organization in industry. This can help AXIS Capital Holdings Ltd Pref E to build a more holistic ecosystem for AXIS Capital Holdings Ltd Pref E products in the 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 AXIS Capital Holdings Ltd Pref E 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.
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 Pref E in the industry. Now AXIS Capital Holdings Ltd Pref E can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for AXIS Capital Holdings Ltd Pref E 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.
Manufacturing automation
– AXIS Capital Holdings Ltd Pref E 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.
Leveraging digital technologies
– AXIS Capital Holdings Ltd Pref E 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects AXIS Capital Holdings Ltd Pref E can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. AXIS Capital Holdings Ltd Pref E 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. AXIS Capital Holdings Ltd Pref E 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.
Developing new processes and practices
– AXIS Capital Holdings Ltd Pref E 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.
Threats AXIS Capital Holdings Ltd Pref E External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of AXIS Capital Holdings Ltd Pref E are -
Stagnating economy with rate increase
– AXIS Capital Holdings Ltd Pref E 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 Pref E.
Technology acceleration in Forth Industrial Revolution
– AXIS Capital Holdings Ltd Pref E 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 Pref E 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for AXIS Capital Holdings Ltd Pref E 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.
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 Pref E needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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 AXIS Capital Holdings Ltd Pref E business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on AXIS Capital Holdings Ltd Pref E 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, AXIS Capital Holdings Ltd Pref E 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.
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. AXIS Capital Holdings Ltd Pref E can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents AXIS Capital Holdings Ltd Pref E with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that AXIS Capital Holdings Ltd Pref E is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of AXIS Capital Holdings Ltd Pref E
– 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 Pref E.
High dependence on third party suppliers
– AXIS Capital Holdings Ltd Pref E 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.
Weighted SWOT Analysis of AXIS Capital Holdings Ltd Pref E 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 Pref E 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 Pref E 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 Pref E 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 Pref E 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 Pref E needs to make to build a sustainable competitive advantage.