Based on various researches at Oak Spring University , Legg Mason BW Globalome Opportunit is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, technology disruption, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Legg Mason BW Globalome Opportunit
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Legg Mason BW Globalome Opportunit can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Legg Mason BW Globalome Opportunit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit can be done for the following purposes –
1. Strategic planning of Legg Mason BW Globalome Opportunit
2. Improving business portfolio management of Legg Mason BW Globalome Opportunit
3. Assessing feasibility of the new initiative in United States
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Legg Mason BW Globalome Opportunit
Strengths of Legg Mason BW Globalome Opportunit | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Legg Mason BW Globalome Opportunit are -
Highly skilled collaborators
– Legg Mason BW Globalome Opportunit has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Legg Mason BW Globalome Opportunit have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Legg Mason BW Globalome Opportunit is one of the leading players in the Misc. Financial Services 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.
High brand equity
– Legg Mason BW Globalome Opportunit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Legg Mason BW Globalome Opportunit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Legg Mason BW Globalome Opportunit has one of the best training and development program in Financial 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.
Ability to lead change in Misc. Financial Services
– Legg Mason BW Globalome Opportunit is one of the leading players in the Misc. Financial Services industry in United States. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United States but also across the existing markets. The ability to lead change has enabled Legg Mason BW Globalome Opportunit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Legg Mason BW Globalome Opportunit
– The covid-19 pandemic has put organizational resilience at the centre of everthing Legg Mason BW Globalome Opportunit does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of Legg Mason BW Globalome Opportunit comprises – understanding the underlying the factors in the Misc. Financial Services 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.
Successful track record of launching new products
– Legg Mason BW Globalome Opportunit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Legg Mason BW Globalome Opportunit 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
– Legg Mason BW Globalome Opportunit is present in almost all the verticals within the Misc. Financial Services industry. This has provided Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry
– Legg Mason BW Globalome Opportunit has clearly differentiated products in the market place. This has enabled Legg Mason BW Globalome Opportunit to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Legg Mason BW Globalome Opportunit to invest into research and development (R&D) and innovation.
Strong track record of project management in the Misc. Financial Services industry
– Legg Mason BW Globalome Opportunit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of Legg Mason BW Globalome Opportunit | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Legg Mason BW Globalome Opportunit are -
Slow to strategic competitive environment developments
– As Legg Mason BW Globalome Opportunit is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Legg Mason BW Globalome Opportunit is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but Legg Mason BW Globalome Opportunit needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Legg Mason BW Globalome Opportunit to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United States, Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry.
Employees’ less understanding of Legg Mason BW Globalome Opportunit strategy
– From the outside it seems that the employees of Legg Mason BW Globalome Opportunit 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.
Need for greater diversity
– Legg Mason BW Globalome Opportunit 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.
Interest costs
– Compare to the competition, Legg Mason BW Globalome Opportunit 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.
No frontier risks strategy
– From the 10K / annual statement of Legg Mason BW Globalome Opportunit, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Legg Mason BW Globalome Opportunit is slow explore the new channels of communication. These new channels of communication can help Legg Mason BW Globalome Opportunit to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential 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 Legg Mason BW Globalome Opportunit supply chain. Even after few cautionary changes, Legg Mason BW Globalome Opportunit is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Legg Mason BW Globalome Opportunit vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Legg Mason BW Globalome Opportunit products
– To increase the profitability and margins on the products, Legg Mason BW Globalome Opportunit needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative at Legg Mason BW Globalome Opportunit, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Legg Mason BW Globalome Opportunit has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Legg Mason BW Globalome Opportunit Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Legg Mason BW Globalome Opportunit are -
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Legg Mason BW Globalome Opportunit in the Misc. Financial Services industry. Now Legg Mason BW Globalome Opportunit can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Legg Mason BW Globalome Opportunit has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Legg Mason BW Globalome Opportunit to build a more holistic ecosystem for Legg Mason BW Globalome Opportunit products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Legg Mason BW Globalome Opportunit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Legg Mason BW Globalome Opportunit has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled Legg Mason BW Globalome Opportunit to build a competitive advantage using analytics. The analytics driven competitive advantage can help Legg Mason BW Globalome Opportunit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Legg Mason BW Globalome Opportunit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Legg Mason BW Globalome Opportunit can develop new processes and procedures in Misc. Financial Services 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Legg Mason BW Globalome Opportunit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Legg Mason BW Globalome Opportunit can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Legg Mason BW Globalome Opportunit 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Legg Mason BW Globalome Opportunit can improve the customer journey of consumers in the Misc. Financial Services 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 Legg Mason BW Globalome Opportunit in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
Threats Legg Mason BW Globalome Opportunit External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Legg Mason BW Globalome Opportunit are -
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 Legg Mason BW Globalome Opportunit in the Misc. Financial Services sector and impact the bottomline of the organization.
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.
Environmental challenges
– Legg Mason BW Globalome Opportunit 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. Legg Mason BW Globalome Opportunit can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
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 Legg Mason BW Globalome Opportunit business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Legg Mason BW Globalome Opportunit high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Legg Mason BW Globalome Opportunit in Misc. Financial Services industry. The Misc. Financial Services 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.
Technology acceleration in Forth Industrial Revolution
– Legg Mason BW Globalome Opportunit has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Legg Mason BW Globalome Opportunit needs to keep up with the evolution of technology in the Misc. Financial Services 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.
Consumer confidence and its impact on Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry and other sectors.
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. Legg Mason BW Globalome Opportunit 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.
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. Legg Mason BW Globalome Opportunit needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit prominent markets.
Regulatory challenges
– Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry regulations.
Increasing wage structure of Legg Mason BW Globalome Opportunit
– 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 Legg Mason BW Globalome Opportunit.
Weighted SWOT Analysis of Legg Mason BW Globalome Opportunit Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit needs to make to build a sustainable competitive advantage.