Based on various researches at Oak Spring University , Eaton Vance Tax Managed Buy Write is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, wage bills are increasing, there is backlash against globalization, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google,
increasing energy prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Eaton Vance Tax Managed Buy Write
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Eaton Vance Tax Managed Buy Write can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eaton Vance Tax Managed Buy Write, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write can be done for the following purposes –
1. Strategic planning of Eaton Vance Tax Managed Buy Write
2. Improving business portfolio management of Eaton Vance Tax Managed Buy Write
3. Assessing feasibility of the new initiative in United States
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Eaton Vance Tax Managed Buy Write
Strengths of Eaton Vance Tax Managed Buy Write | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eaton Vance Tax Managed Buy Write are -
Learning organization
- Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Eaton Vance Tax Managed Buy Write emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy of Eaton Vance Tax Managed Buy Write comprises – understanding the underlying the factors in the Misc. Financial Services industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Eaton Vance Tax Managed Buy Write digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Eaton Vance Tax Managed Buy Write 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.
Superior customer experience
– The customer experience strategy of Eaton Vance Tax Managed Buy Write in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Eaton Vance Tax Managed Buy Write 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.
Ability to lead change in Misc. Financial Services
– Eaton Vance Tax Managed Buy Write is one of the leading players in the Misc. Financial Services industry in United States. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United States but also across the existing markets. The ability to lead change has enabled Eaton Vance Tax Managed Buy Write in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Eaton Vance Tax Managed Buy Write 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.
Sustainable margins compare to other players in Misc. Financial Services industry
– Eaton Vance Tax Managed Buy Write has clearly differentiated products in the market place. This has enabled Eaton Vance Tax Managed Buy Write to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Eaton Vance Tax Managed Buy Write to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Eaton Vance Tax Managed Buy Write has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Eaton Vance Tax Managed Buy Write staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Eaton Vance Tax Managed Buy Write is one of the most innovative firm in Misc. Financial Services sector.
High brand equity
– Eaton Vance Tax Managed Buy Write has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eaton Vance Tax Managed Buy Write to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Eaton Vance Tax Managed Buy Write
– The covid-19 pandemic has put organizational resilience at the centre of everthing Eaton Vance Tax Managed Buy Write does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Eaton Vance Tax Managed Buy Write | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eaton Vance Tax Managed Buy Write are -
Low market penetration in new markets
– Outside its home market of United States, Eaton Vance Tax Managed Buy Write needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United States, Eaton Vance Tax Managed Buy Write is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Misc. Financial Services industry.
Lack of clear differentiation of Eaton Vance Tax Managed Buy Write products
– To increase the profitability and margins on the products, Eaton Vance Tax Managed Buy Write needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– From the outside it seems that Eaton Vance Tax Managed Buy Write needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Financial Services industry have deep experience in developing customer relationships. Marketing department at Eaton Vance Tax Managed Buy Write can leverage the sales team experience to cultivate customer relationships as Eaton Vance Tax Managed Buy Write is planning to shift buying processes online.
No frontier risks strategy
– From the 10K / annual statement of Eaton Vance Tax Managed Buy Write, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Eaton Vance Tax Managed Buy Write is slow explore the new channels of communication. These new channels of communication can help Eaton Vance Tax Managed Buy Write to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Eaton Vance Tax Managed Buy Write has a high cash cycle compare to other players in the Misc. Financial Services 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 Eaton Vance Tax Managed Buy Write ‘s star products
– The top 2 products and services of Eaton Vance Tax Managed Buy Write still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though Eaton Vance Tax Managed Buy Write has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Eaton Vance Tax Managed Buy Write 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 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 Eaton Vance Tax Managed Buy Write supply chain. Even after few cautionary changes, Eaton Vance Tax Managed Buy Write is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Eaton Vance Tax Managed Buy Write vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Eaton Vance Tax Managed Buy Write is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but Eaton Vance Tax Managed Buy Write needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eaton Vance Tax Managed Buy Write to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
Eaton Vance Tax Managed Buy Write Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Eaton Vance Tax Managed Buy Write are -
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 Eaton Vance Tax Managed Buy Write 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.
Using analytics as competitive advantage
– Eaton Vance Tax Managed Buy Write has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled Eaton Vance Tax Managed Buy Write to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eaton Vance Tax Managed Buy Write to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Eaton Vance Tax Managed Buy Write has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Eaton Vance Tax Managed Buy Write to build a more holistic ecosystem for Eaton Vance Tax Managed Buy Write products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Eaton Vance Tax Managed Buy Write can use these opportunities to build new business models that can help the communities that Eaton Vance Tax Managed Buy Write operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Eaton Vance Tax Managed Buy Write 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. Eaton Vance Tax Managed Buy Write 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.
Loyalty marketing
– Eaton Vance Tax Managed Buy Write 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.
Leveraging digital technologies
– Eaton Vance Tax Managed Buy Write 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Eaton Vance Tax Managed Buy Write can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Eaton Vance Tax Managed Buy Write can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Misc. Financial Services industry.
Buying journey improvements
– Eaton Vance Tax Managed Buy Write can improve the customer journey of consumers in the Misc. Financial Services 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Eaton Vance Tax Managed Buy Write can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Eaton Vance Tax Managed Buy Write can develop new processes and procedures in Misc. Financial Services industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Eaton Vance Tax Managed Buy Write External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Eaton Vance Tax Managed Buy Write are -
Technology acceleration in Forth Industrial Revolution
– Eaton Vance Tax Managed Buy Write has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Eaton Vance Tax Managed Buy Write needs to keep up with the evolution of technology in the Misc. Financial Services 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.
Environmental challenges
– Eaton Vance Tax Managed Buy Write 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. Eaton Vance Tax Managed Buy Write can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Regulatory challenges
– Eaton Vance Tax Managed Buy Write 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 Misc. Financial Services industry regulations.
Consumer confidence and its impact on Eaton Vance Tax Managed Buy Write 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 Misc. Financial Services industry and other sectors.
Easy access to finance
– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Eaton Vance Tax Managed Buy Write can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Eaton Vance Tax Managed Buy Write is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write prominent markets.
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. Eaton Vance Tax Managed Buy Write 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.
Stagnating economy with rate increase
– Eaton Vance Tax Managed Buy Write can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Misc. Financial Services industry.
Increasing wage structure of Eaton Vance Tax Managed Buy Write
– 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 Eaton Vance Tax Managed Buy Write.
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. Eaton Vance Tax Managed Buy Write needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
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 Eaton Vance Tax Managed Buy Write.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Eaton Vance Tax Managed Buy Write with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Weighted SWOT Analysis of Eaton Vance Tax Managed Buy Write Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write 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 Eaton Vance Tax Managed Buy Write needs to make to build a sustainable competitive advantage.