Digital Realty Trust Inc Ph Pref (DLR_ph) SWOT Analysis / TOWS Matrix / MBA Resources
Real Estate Operations
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Digital Realty Trust Inc Ph Pref (United States)
Based on various researches at Oak Spring University , Digital Realty Trust Inc Ph Pref is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Digital Realty Trust Inc Ph Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Digital Realty Trust Inc Ph Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Digital Realty Trust Inc Ph Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Digital Realty Trust Inc Ph Pref operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Digital Realty Trust Inc Ph Pref can be done for the following purposes –
1. Strategic planning of Digital Realty Trust Inc Ph Pref
2. Improving business portfolio management of Digital Realty Trust Inc Ph Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Real Estate Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Digital Realty Trust Inc Ph Pref
Strengths of Digital Realty Trust Inc Ph Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Digital Realty Trust Inc Ph Pref are -
Sustainable margins compare to other players in Real Estate Operations industry
– Digital Realty Trust Inc Ph Pref has clearly differentiated products in the market place. This has enabled Digital Realty Trust Inc Ph Pref to fetch slight price premium compare to the competitors in the Real Estate Operations industry. The sustainable margins have also helped Digital Realty Trust Inc Ph Pref to invest into research and development (R&D) and innovation.
Strong track record of project management in the Real Estate Operations industry
– Digital Realty Trust Inc Ph Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Real Estate Operations industry
- digital transformation varies from industry to industry. For Digital Realty Trust Inc Ph Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Digital Realty Trust Inc Ph Pref has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Digital Realty Trust Inc Ph Pref in the Services sector have low bargaining power. Digital Realty Trust Inc Ph Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Digital Realty Trust Inc Ph Pref to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Digital Realty Trust Inc Ph Pref is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Digital Realty Trust Inc Ph Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Digital Realty Trust Inc Ph Pref emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Digital Realty Trust Inc Ph Pref is one of the most innovative firm in Real Estate Operations sector.
Successful track record of launching new products
– Digital Realty Trust Inc Ph Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Digital Realty Trust Inc Ph Pref has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Digital Realty Trust Inc Ph Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Digital Realty Trust Inc Ph Pref staying ahead in the Real Estate Operations industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Digital Realty Trust Inc Ph Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Digital Realty Trust Inc Ph Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Digital Realty Trust Inc Ph Pref 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.
Highly skilled collaborators
– Digital Realty Trust Inc Ph Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Real Estate Operations industry. Secondly the value chain collaborators of Digital Realty Trust Inc Ph Pref have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Digital Realty Trust Inc Ph Pref 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.
Weaknesses of Digital Realty Trust Inc Ph Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Digital Realty Trust Inc Ph Pref are -
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 Digital Realty Trust Inc Ph Pref supply chain. Even after few cautionary changes, Digital Realty Trust Inc Ph Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Digital Realty Trust Inc Ph Pref vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative at Digital Realty Trust Inc Ph Pref, in the dynamic environment of Real Estate Operations industry it has struggled to respond to the nimble upstart competition. Digital Realty Trust Inc Ph Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, Digital Realty Trust Inc Ph Pref has high operating costs in the Real Estate Operations industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Digital Realty Trust Inc Ph Pref lucrative customers.
High cash cycle compare to competitors
Digital Realty Trust Inc Ph Pref has a high cash cycle compare to other players in the Real Estate Operations industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on Digital Realty Trust Inc Ph Pref ‘s star products
– The top 2 products and services of Digital Realty Trust Inc Ph Pref still accounts for major business revenue. This dependence on star products in Real Estate Operations industry has resulted into insufficient focus on developing new products, even though Digital Realty Trust Inc Ph Pref has relatively successful track record of launching new products.
Employees’ less understanding of Digital Realty Trust Inc Ph Pref strategy
– From the outside it seems that the employees of Digital Realty Trust Inc Ph Pref don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Digital Realty Trust Inc Ph Pref is dominated by functional specialists. It is not different from other players in the Real Estate Operations industry, but Digital Realty Trust Inc Ph Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Digital Realty Trust Inc Ph Pref to focus more on services in the Real Estate Operations industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Digital Realty Trust Inc Ph Pref 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Digital Realty Trust Inc Ph Pref is slow explore the new channels of communication. These new channels of communication can help Digital Realty Trust Inc Ph Pref to provide better information regarding Real Estate Operations products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners in Real Estate Operations industry
– because of the regulatory requirements in United States, Digital Realty Trust Inc Ph Pref 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 Real Estate Operations industry.
Products dominated business model
– Even though Digital Realty Trust Inc Ph Pref has some of the most successful models in the Real Estate Operations industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Digital Realty Trust Inc Ph Pref should strive to include more intangible value offerings along with its core products and services.
Digital Realty Trust Inc Ph Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Digital Realty Trust Inc Ph Pref are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Digital Realty Trust Inc Ph Pref 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 Digital Realty Trust Inc Ph Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Digital Realty Trust Inc Ph Pref can use these opportunities to build new business models that can help the communities that Digital Realty Trust Inc Ph Pref operates in. Secondly it can use opportunities from government spending in Real Estate Operations sector.
Manufacturing automation
– Digital Realty Trust Inc Ph Pref can use the latest technology developments to improve its manufacturing and designing process in Real Estate Operations 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.
Buying journey improvements
– Digital Realty Trust Inc Ph Pref can improve the customer journey of consumers in the Real Estate Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Digital Realty Trust Inc Ph Pref can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Digital Realty Trust Inc Ph Pref to increase its market reach. Digital Realty Trust Inc Ph Pref will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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. Digital Realty Trust Inc Ph Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Digital Realty Trust Inc Ph Pref 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 Digital Realty Trust Inc Ph Pref to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Digital Realty Trust Inc Ph Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Real Estate Operations sector. This continuous investment in analytics has enabled Digital Realty Trust Inc Ph Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Digital Realty Trust Inc Ph Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Digital Realty Trust Inc Ph Pref 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Real Estate Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Digital Realty Trust Inc Ph Pref can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Digital Realty Trust Inc Ph Pref can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Real Estate Operations industry, but it has also influenced the consumer preferences. Digital Realty Trust Inc Ph Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Real Estate Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Digital Realty Trust Inc Ph Pref in the Real Estate Operations industry. Now Digital Realty Trust Inc Ph Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Digital Realty Trust Inc Ph Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Digital Realty Trust Inc Ph Pref are -
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.
Increasing wage structure of Digital Realty Trust Inc Ph Pref
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Digital Realty Trust Inc Ph Pref.
Shortening product life cycle
– it is one of the major threat that Digital Realty Trust Inc Ph Pref is facing in Real Estate Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Digital Realty Trust Inc Ph Pref 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. Digital Realty Trust Inc Ph Pref can take advantage of this fund but it will also bring new competitors in the Real Estate Operations industry.
High dependence on third party suppliers
– Digital Realty Trust Inc Ph Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Real Estate Operations industry are lowering. It can presents Digital Realty Trust Inc Ph Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Real Estate Operations sector.
Regulatory challenges
– Digital Realty Trust Inc Ph Pref 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 Real Estate Operations industry regulations.
Easy access to finance
– Easy access to finance in Real Estate Operations industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Digital Realty Trust Inc Ph Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Digital Realty Trust Inc Ph Pref needs to understand the core reasons impacting the Real Estate Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Digital Realty Trust Inc Ph Pref in Real Estate Operations industry. The Real Estate Operations 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, Digital Realty Trust Inc Ph Pref may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Real Estate Operations sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Digital Realty Trust Inc Ph Pref can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Digital Realty Trust Inc Ph Pref prominent markets.
Weighted SWOT Analysis of Digital Realty Trust Inc Ph Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Digital Realty Trust Inc Ph Pref needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Digital Realty Trust Inc Ph Pref is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Digital Realty Trust Inc Ph Pref is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Digital Realty Trust Inc Ph Pref to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Digital Realty Trust Inc Ph Pref needs to make to build a sustainable competitive advantage.