Popular Capital Trust II Pref (BPOPM) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Popular Capital Trust II Pref (United States)
Based on various researches at Oak Spring University , Popular Capital Trust II Pref is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, geopolitical disruptions, etc
Introduction to SWOT Analysis of Popular Capital Trust II Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Popular Capital Trust II Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Popular Capital Trust II Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Popular Capital Trust II 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 Popular Capital Trust II Pref can be done for the following purposes –
1. Strategic planning of Popular Capital Trust II Pref
2. Improving business portfolio management of Popular Capital Trust II 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 Popular Capital Trust II Pref
Strengths of Popular Capital Trust II Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Popular Capital Trust II Pref are -
Digital Transformation in industry
- digital transformation varies from industry to industry. For Popular Capital Trust II Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Popular Capital Trust II Pref 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.
Learning organization
- Popular Capital Trust II 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 Popular Capital Trust II Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Popular Capital Trust II Pref emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Popular Capital Trust II Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Popular Capital Trust II 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.
Ability to lead change in
– Popular Capital Trust II 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 Popular Capital Trust II Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Popular Capital Trust II Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Popular Capital Trust II Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in industry
– Popular Capital Trust II Pref has clearly differentiated products in the market place. This has enabled Popular Capital Trust II Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Popular Capital Trust II Pref to invest into research and development (R&D) and innovation.
Innovation driven organization
– Popular Capital Trust II Pref is one of the most innovative firm in sector.
Operational resilience
– The operational resilience strategy of Popular Capital Trust II Pref 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.
Organizational Resilience of Popular Capital Trust II Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Popular Capital Trust II Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Popular Capital Trust II 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.
Low bargaining power of suppliers
– Suppliers of Popular Capital Trust II Pref in the sector have low bargaining power. Popular Capital Trust II Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Popular Capital Trust II Pref to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Popular Capital Trust II Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Popular Capital Trust II Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Popular Capital Trust II Pref are -
Compensation and incentives
– The revenue per employee of Popular Capital Trust II 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Popular Capital Trust II Pref is slow explore the new channels of communication. These new channels of communication can help Popular Capital Trust II Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Popular Capital Trust II 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.
Low market penetration in new markets
– Outside its home market of United States, Popular Capital Trust II Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on Popular Capital Trust II Pref ‘s star products
– The top 2 products and services of Popular Capital Trust II 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 Popular Capital Trust II Pref has relatively successful track record of launching new products.
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 Popular Capital Trust II Pref supply chain. Even after few cautionary changes, Popular Capital Trust II Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Popular Capital Trust II Pref vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Popular Capital Trust II 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.
Employees’ less understanding of Popular Capital Trust II Pref strategy
– From the outside it seems that the employees of Popular Capital Trust II 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.
Products dominated business model
– Even though Popular Capital Trust II Pref 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. Popular Capital Trust II Pref should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative at Popular Capital Trust II Pref, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Popular Capital Trust II Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the industry, Popular Capital Trust II Pref 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.
Popular Capital Trust II Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Popular Capital Trust II Pref are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Popular Capital Trust II 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.
Using analytics as competitive advantage
– Popular Capital Trust II 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 Popular Capital Trust II Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Popular Capital Trust II Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Popular Capital Trust II Pref has opened avenues for new revenue streams for the organization in industry. This can help Popular Capital Trust II Pref to build a more holistic ecosystem for Popular Capital Trust II Pref products in the industry by providing – data insight services, data privacy related products, data based consulting services, 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 Popular Capital Trust II Pref in the industry. Now Popular Capital Trust II Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Popular Capital Trust II Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Popular Capital Trust II Pref to increase its market reach. Popular Capital Trust II 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.
Developing new processes and practices
– Popular Capital Trust II 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Popular Capital Trust II Pref is facing challenges because of the dominance of functional experts in the organization. Popular Capital Trust II 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.
Building a culture of innovation
– managers at Popular Capital Trust II 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.
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. Popular Capital Trust II 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. Popular Capital Trust II 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.
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. Popular Capital Trust II Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Popular Capital Trust II 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Popular Capital Trust II 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 industry, and it will provide faster access to the consumers.
Threats Popular Capital Trust II Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Popular Capital Trust II Pref are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Popular Capital Trust II Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Popular Capital Trust II 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 Popular Capital Trust II 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 Popular Capital Trust II Pref.
Stagnating economy with rate increase
– Popular Capital Trust II 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.
High dependence on third party suppliers
– Popular Capital Trust II 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.
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 Popular Capital Trust II Pref in the sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Popular Capital Trust II Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Popular Capital Trust II 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.
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. Popular Capital Trust II Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Popular Capital Trust II Pref 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 Popular Capital Trust II Pref 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 Popular Capital Trust II Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Popular Capital Trust II Pref.
Weighted SWOT Analysis of Popular Capital Trust II Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Popular Capital Trust II 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 Popular Capital Trust II 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 Popular Capital Trust II 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 Popular Capital Trust II 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 Popular Capital Trust II Pref needs to make to build a sustainable competitive advantage.