Deutsche Wohnen ADR (DTCWY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Deutsche Wohnen ADR (United States)
Based on various researches at Oak Spring University , Deutsche Wohnen ADR is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, there is backlash against globalization, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Deutsche Wohnen ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Deutsche Wohnen ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Deutsche Wohnen ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Deutsche Wohnen ADR 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 Deutsche Wohnen ADR can be done for the following purposes –
1. Strategic planning of Deutsche Wohnen ADR
2. Improving business portfolio management of Deutsche Wohnen ADR
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 Deutsche Wohnen ADR
Strengths of Deutsche Wohnen ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Deutsche Wohnen ADR are -
Analytics focus
– Deutsche Wohnen ADR 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Deutsche Wohnen ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Deutsche Wohnen ADR 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 Deutsche Wohnen ADR in the sector have low bargaining power. Deutsche Wohnen ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Deutsche Wohnen ADR to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Deutsche Wohnen ADR is one of the most innovative firm in sector.
High brand equity
– Deutsche Wohnen ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Deutsche Wohnen ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Deutsche Wohnen ADR 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 Deutsche Wohnen ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Deutsche Wohnen ADR emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in industry
– Deutsche Wohnen ADR has clearly differentiated products in the market place. This has enabled Deutsche Wohnen ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Deutsche Wohnen ADR to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Deutsche Wohnen ADR is present in almost all the verticals within the industry. This has provided Deutsche Wohnen ADR 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.
Training and development
– Deutsche Wohnen ADR has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Deutsche Wohnen ADR 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.
Organizational Resilience of Deutsche Wohnen ADR
– The covid-19 pandemic has put organizational resilience at the centre of everthing Deutsche Wohnen ADR does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in
– Deutsche Wohnen ADR 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 Deutsche Wohnen ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Deutsche Wohnen ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Deutsche Wohnen ADR are -
Employees’ less understanding of Deutsche Wohnen ADR strategy
– From the outside it seems that the employees of Deutsche Wohnen ADR 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 Deutsche Wohnen ADR 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 Deutsche Wohnen ADR can leverage the sales team experience to cultivate customer relationships as Deutsche Wohnen ADR is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Deutsche Wohnen ADR 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.
Products dominated business model
– Even though Deutsche Wohnen ADR has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Deutsche Wohnen ADR should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Deutsche Wohnen ADR products
– To increase the profitability and margins on the products, Deutsche Wohnen ADR needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Deutsche Wohnen ADR 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 bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Deutsche Wohnen ADR 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 industry.
Low market penetration in new markets
– Outside its home market of United States, Deutsche Wohnen ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Deutsche Wohnen ADR is dominated by functional specialists. It is not different from other players in the industry, but Deutsche Wohnen ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Deutsche Wohnen ADR to focus more on services in the industry rather than just following the product oriented approach.
High dependence on Deutsche Wohnen ADR ‘s star products
– The top 2 products and services of Deutsche Wohnen ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Deutsche Wohnen ADR has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Deutsche Wohnen ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Deutsche Wohnen ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Deutsche Wohnen ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Deutsche Wohnen ADR are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Deutsche Wohnen ADR 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 Deutsche Wohnen ADR to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Deutsche Wohnen ADR 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 Deutsche Wohnen ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help Deutsche Wohnen ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Deutsche Wohnen ADR 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.
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. Deutsche Wohnen ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Deutsche Wohnen ADR 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Deutsche Wohnen ADR 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.
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. Deutsche Wohnen ADR can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Deutsche Wohnen ADR can use the latest technology developments to improve its manufacturing and designing process in 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.
Developing new processes and practices
– Deutsche Wohnen ADR can develop new processes and procedures in 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 Deutsche Wohnen ADR can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Deutsche Wohnen ADR in the industry. Now Deutsche Wohnen ADR can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Deutsche Wohnen ADR 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.
Leveraging digital technologies
– Deutsche Wohnen ADR 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.
Threats Deutsche Wohnen ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Deutsche Wohnen ADR are -
Environmental challenges
– Deutsche Wohnen ADR 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. Deutsche Wohnen ADR can take advantage of this fund but it will also bring new competitors in the industry.
High dependence on third party suppliers
– Deutsche Wohnen ADR 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 Deutsche Wohnen ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Deutsche Wohnen ADR 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 Deutsche Wohnen ADR prominent markets.
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 Deutsche Wohnen ADR in the sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Deutsche Wohnen ADR 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Deutsche Wohnen ADR 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.
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 Deutsche Wohnen ADR business can come under increasing regulations regarding data privacy, data security, 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. Deutsche Wohnen ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Increasing wage structure of Deutsche Wohnen ADR
– 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 Deutsche Wohnen ADR.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Deutsche Wohnen ADR 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.
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 Deutsche Wohnen ADR.
Weighted SWOT Analysis of Deutsche Wohnen ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Deutsche Wohnen ADR 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 Deutsche Wohnen ADR 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 Deutsche Wohnen ADR 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 Deutsche Wohnen ADR 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 Deutsche Wohnen ADR needs to make to build a sustainable competitive advantage.