Customers Bancorp Pref D (CUBI_pd) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Customers Bancorp Pref D (United States)
Based on various researches at Oak Spring University , Customers Bancorp Pref D is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, there is backlash against globalization,
cloud computing is disrupting traditional business models, increasing energy prices, etc
Introduction to SWOT Analysis of Customers Bancorp Pref D
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Customers Bancorp Pref D can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Customers Bancorp Pref D, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Customers Bancorp Pref D 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 Customers Bancorp Pref D can be done for the following purposes –
1. Strategic planning of Customers Bancorp Pref D
2. Improving business portfolio management of Customers Bancorp Pref D
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 Customers Bancorp Pref D
Strengths of Customers Bancorp Pref D | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Customers Bancorp Pref D are -
Ability to lead change in
– Customers Bancorp Pref D 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 Customers Bancorp Pref D in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Customers Bancorp Pref D digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Customers Bancorp Pref D 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.
Successful track record of launching new products
– Customers Bancorp Pref D has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Customers Bancorp Pref D 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
– Customers Bancorp Pref D is present in almost all the verticals within the industry. This has provided Customers Bancorp Pref D 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 Customers Bancorp Pref D 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.
Low bargaining power of suppliers
– Suppliers of Customers Bancorp Pref D in the sector have low bargaining power. Customers Bancorp Pref D has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Customers Bancorp Pref D to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Customers Bancorp Pref D 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.
Analytics focus
– Customers Bancorp Pref D 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.
Organizational Resilience of Customers Bancorp Pref D
– The covid-19 pandemic has put organizational resilience at the centre of everthing Customers Bancorp Pref D does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Customers Bancorp Pref D 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 Customers Bancorp Pref D is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Customers Bancorp Pref D emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in industry
– Customers Bancorp Pref D has clearly differentiated products in the market place. This has enabled Customers Bancorp Pref D to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Customers Bancorp Pref D to invest into research and development (R&D) and innovation.
High brand equity
– Customers Bancorp Pref D has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Customers Bancorp Pref D to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Customers Bancorp Pref D | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Customers Bancorp Pref D are -
Workers concerns about automation
– As automation is fast increasing in the industry, Customers Bancorp Pref D 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.
No frontier risks strategy
– From the 10K / annual statement of Customers Bancorp Pref D, 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.
High dependence on Customers Bancorp Pref D ‘s star products
– The top 2 products and services of Customers Bancorp Pref D still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Customers Bancorp Pref D has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, Customers Bancorp Pref D has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Customers Bancorp Pref D lucrative customers.
Employees’ less understanding of Customers Bancorp Pref D strategy
– From the outside it seems that the employees of Customers Bancorp Pref D 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.
Aligning sales with marketing
– From the outside it seems that Customers Bancorp Pref D needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Customers Bancorp Pref D can leverage the sales team experience to cultivate customer relationships as Customers Bancorp Pref D is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Customers Bancorp Pref D is slow explore the new channels of communication. These new channels of communication can help Customers Bancorp Pref D to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Customers Bancorp Pref D 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. Customers Bancorp Pref D 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.
Compensation and incentives
– The revenue per employee of Customers Bancorp Pref D 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.
Lack of clear differentiation of Customers Bancorp Pref D products
– To increase the profitability and margins on the products, Customers Bancorp Pref D needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Customers Bancorp Pref D 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.
Customers Bancorp Pref D Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Customers Bancorp Pref D are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Customers Bancorp Pref D 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Customers Bancorp Pref D can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Customers Bancorp Pref D 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Customers Bancorp Pref D 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 Customers Bancorp Pref D to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Customers Bancorp Pref D 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
– Customers Bancorp Pref D 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 Customers Bancorp Pref D to build a competitive advantage using analytics. The analytics driven competitive advantage can help Customers Bancorp Pref D to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Customers Bancorp Pref D is facing challenges because of the dominance of functional experts in the organization. Customers Bancorp Pref D 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.
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. Customers Bancorp Pref D can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Customers Bancorp Pref D 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 Customers Bancorp Pref D to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Customers Bancorp Pref D has opened avenues for new revenue streams for the organization in industry. This can help Customers Bancorp Pref D to build a more holistic ecosystem for Customers Bancorp Pref D products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Customers Bancorp Pref D to increase its market reach. Customers Bancorp Pref D 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.
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 Customers Bancorp Pref D in the industry. Now Customers Bancorp Pref D can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Customers Bancorp Pref D has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Customers Bancorp Pref D External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Customers Bancorp Pref D 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 Customers Bancorp Pref D in the sector and impact the bottomline of the organization.
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 Customers Bancorp Pref D business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Customers Bancorp Pref D 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Customers Bancorp Pref D with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Consumer confidence and its impact on Customers Bancorp Pref D demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
Environmental challenges
– Customers Bancorp Pref D 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. Customers Bancorp Pref D can take advantage of this fund but it will also bring new competitors in the industry.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Customers Bancorp Pref D 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Customers Bancorp Pref D 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Customers Bancorp Pref D 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 Customers Bancorp Pref D prominent markets.
Regulatory challenges
– Customers Bancorp Pref D 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.
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 Customers Bancorp Pref D.
Weighted SWOT Analysis of Customers Bancorp Pref D Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Customers Bancorp Pref D 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 Customers Bancorp Pref D 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 Customers Bancorp Pref D 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 Customers Bancorp Pref D 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 Customers Bancorp Pref D needs to make to build a sustainable competitive advantage.