Based on various researches at Oak Spring University , Legg Mason BW Globalome Opportunit is operating in a macro-environment that has been destablized by – geopolitical disruptions, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
there is backlash against globalization, increasing commodity prices, 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 -
Cross disciplinary teams
– Horizontal connected teams at the Legg Mason BW Globalome Opportunit are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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.
Learning organization
- Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Legg Mason BW Globalome Opportunit emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Legg Mason BW Globalome Opportunit in the Financial sector have low bargaining power. Legg Mason BW Globalome Opportunit has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Legg Mason BW Globalome Opportunit to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
Effective Research and Development (R&D)
– Legg Mason BW Globalome Opportunit has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Legg Mason BW Globalome Opportunit staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Legg Mason BW Globalome Opportunit is one of the most innovative firm in Misc. Financial Services sector.
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.
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 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 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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry using digital technology.
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.
High operating costs
– Compare to the competitors, Legg Mason BW Globalome Opportunit has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Legg Mason BW Globalome Opportunit lucrative customers.
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.
Low market penetration in new markets
– Outside its home market of United States, Legg Mason BW Globalome Opportunit needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 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.
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 -
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Legg Mason BW Globalome Opportunit 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. Legg Mason BW Globalome Opportunit 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.
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.
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 Legg Mason BW Globalome Opportunit 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.
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.
Better consumer reach
– The expansion of the 5G network will help Legg Mason BW Globalome Opportunit to increase its market reach. Legg Mason BW Globalome Opportunit 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
– 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Legg Mason BW Globalome Opportunit 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 Legg Mason BW Globalome Opportunit to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Legg Mason BW Globalome Opportunit 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Legg Mason BW Globalome Opportunit can use these opportunities to build new business models that can help the communities that Legg Mason BW Globalome Opportunit operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
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 -
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.
Easy access to finance
– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Legg Mason BW Globalome Opportunit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Legg Mason BW Globalome Opportunit.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Legg Mason BW Globalome Opportunit may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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.
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.
Shortening product life cycle
– it is one of the major threat that Legg Mason BW Globalome Opportunit is facing in Misc. Financial Services 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. 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.
Stagnating economy with rate increase
– Legg Mason BW Globalome Opportunit 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 Misc. Financial Services industry.
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.
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.
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.
