ClearBridge Energy MLP Total Return (CTR) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for ClearBridge Energy MLP Total Return (United States)
Based on various researches at Oak Spring University , ClearBridge Energy MLP Total Return is operating in a macro-environment that has been destablized by – increasing energy prices, technology disruption, there is backlash against globalization, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of ClearBridge Energy MLP Total Return
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ClearBridge Energy MLP Total Return can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ClearBridge Energy MLP Total Return, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return can be done for the following purposes –
1. Strategic planning of ClearBridge Energy MLP Total Return
2. Improving business portfolio management of ClearBridge Energy MLP Total Return
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 ClearBridge Energy MLP Total Return
Strengths of ClearBridge Energy MLP Total Return | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of ClearBridge Energy MLP Total Return are -
Cross disciplinary teams
– Horizontal connected teams at the ClearBridge Energy MLP Total Return 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.
Effective Research and Development (R&D)
– ClearBridge Energy MLP Total Return has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – ClearBridge Energy MLP Total Return staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– ClearBridge Energy MLP Total Return is one of the most innovative firm in sector.
Successful track record of launching new products
– ClearBridge Energy MLP Total Return has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. ClearBridge Energy MLP Total Return 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.
Analytics focus
– ClearBridge Energy MLP Total Return 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.
Ability to recruit top talent
– ClearBridge Energy MLP Total Return 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.
Diverse revenue streams
– ClearBridge Energy MLP Total Return is present in almost all the verticals within the industry. This has provided ClearBridge Energy MLP Total Return 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For ClearBridge Energy MLP Total Return digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. ClearBridge Energy MLP Total Return 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
- ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at ClearBridge Energy MLP Total Return emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in industry
– ClearBridge Energy MLP Total Return has clearly differentiated products in the market place. This has enabled ClearBridge Energy MLP Total Return to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped ClearBridge Energy MLP Total Return to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of ClearBridge Energy MLP Total Return in the sector have low bargaining power. ClearBridge Energy MLP Total Return has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps ClearBridge Energy MLP Total Return to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management in the industry
– ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ClearBridge Energy MLP Total Return are -
Slow decision making process
– As mentioned earlier in the report, ClearBridge Energy MLP Total Return 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. ClearBridge Energy MLP Total Return 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.
No frontier risks strategy
– From the 10K / annual statement of ClearBridge Energy MLP Total Return, it seems that company is thinking out the frontier risks that can impact 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.
Ability to respond to the competition
– As the decision making is very deliberative at ClearBridge Energy MLP Total Return, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. ClearBridge Energy MLP Total Return has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on ClearBridge Energy MLP Total Return ‘s star products
– The top 2 products and services of ClearBridge Energy MLP Total Return still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though ClearBridge Energy MLP Total Return has relatively successful track record of launching new products.
High cash cycle compare to competitors
ClearBridge Energy MLP Total Return has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of ClearBridge Energy MLP Total Return products
– To increase the profitability and margins on the products, ClearBridge Energy MLP Total Return needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of ClearBridge Energy MLP Total Return is dominated by functional specialists. It is not different from other players in the industry, but ClearBridge Energy MLP Total Return needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help ClearBridge Energy MLP Total Return to focus more on services in the industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, ClearBridge Energy MLP Total Return 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.
Capital Spending Reduction
– Even during the low interest decade, ClearBridge Energy MLP Total Return 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.
Need for greater diversity
– ClearBridge Energy MLP Total Return 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.
Skills based hiring in industry
– The stress on hiring functional specialists at ClearBridge Energy MLP Total Return 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.
ClearBridge Energy MLP Total Return Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of ClearBridge Energy MLP Total Return are -
Leveraging digital technologies
– ClearBridge Energy MLP Total Return 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.
Building a culture of innovation
– managers at ClearBridge Energy MLP Total Return 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.
Learning at scale
– Online learning technologies has now opened space for ClearBridge Energy MLP Total Return 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.
Creating value in data economy
– The success of analytics program of ClearBridge Energy MLP Total Return has opened avenues for new revenue streams for the organization in industry. This can help ClearBridge Energy MLP Total Return to build a more holistic ecosystem for ClearBridge Energy MLP Total Return products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for ClearBridge Energy MLP Total Return 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.
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. ClearBridge Energy MLP Total Return 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. ClearBridge Energy MLP Total Return 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.
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 ClearBridge Energy MLP Total Return 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. ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return to increase its market reach. ClearBridge Energy MLP Total Return 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, ClearBridge Energy MLP Total Return can use these opportunities to build new business models that can help the communities that ClearBridge Energy MLP Total Return operates in. Secondly it can use opportunities from government spending in sector.
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. ClearBridge Energy MLP Total Return can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, ClearBridge Energy MLP Total Return is facing challenges because of the dominance of functional experts in the organization. ClearBridge Energy MLP Total Return 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.
Threats ClearBridge Energy MLP Total Return External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of ClearBridge Energy MLP Total Return are -
Environmental challenges
– ClearBridge Energy MLP Total Return 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. ClearBridge Energy MLP Total Return can take advantage of this fund but it will also bring new competitors in the industry.
Shortening product life cycle
– it is one of the major threat that ClearBridge Energy MLP Total Return is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 ClearBridge Energy MLP Total Return in the sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for ClearBridge Energy MLP Total Return 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.
Technology acceleration in Forth Industrial Revolution
– ClearBridge Energy MLP Total Return has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, ClearBridge Energy MLP Total Return 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.
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. ClearBridge Energy MLP Total Return 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.
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. ClearBridge Energy MLP Total Return can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, ClearBridge Energy MLP Total Return 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.
High dependence on third party suppliers
– ClearBridge Energy MLP Total Return 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.
Regulatory challenges
– ClearBridge Energy MLP Total Return needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the industry regulations.
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. ClearBridge Energy MLP Total Return needs to understand the core reasons impacting the 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, ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return prominent markets.
Stagnating economy with rate increase
– ClearBridge Energy MLP Total Return 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.
Weighted SWOT Analysis of ClearBridge Energy MLP Total Return Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return 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 ClearBridge Energy MLP Total Return needs to make to build a sustainable competitive advantage.
