First Trust Strategic Hig II Closed (FHY) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for First Trust Strategic Hig II Closed (United States)
Based on various researches at Oak Spring University , First Trust Strategic Hig II Closed is operating in a macro-environment that has been destablized by – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing government debt because of Covid-19 spendings,
challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of First Trust Strategic Hig II Closed
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that First Trust Strategic Hig II Closed can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the First Trust Strategic Hig II Closed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed can be done for the following purposes –
1. Strategic planning of First Trust Strategic Hig II Closed
2. Improving business portfolio management of First Trust Strategic Hig II Closed
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 First Trust Strategic Hig II Closed
Strengths of First Trust Strategic Hig II Closed | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of First Trust Strategic Hig II Closed are -
Sustainable margins compare to other players in Misc. Financial Services industry
– First Trust Strategic Hig II Closed has clearly differentiated products in the market place. This has enabled First Trust Strategic Hig II Closed to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped First Trust Strategic Hig II Closed to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– First Trust Strategic Hig II Closed has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of First Trust Strategic Hig II Closed have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of First Trust Strategic Hig II Closed in the Financial sector have low bargaining power. First Trust Strategic Hig II Closed has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps First Trust Strategic Hig II Closed to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. First Trust Strategic Hig II Closed has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at First Trust Strategic Hig II Closed emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that First Trust Strategic Hig II Closed 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
– First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– First Trust Strategic Hig II Closed is present in almost all the verticals within the Misc. Financial Services industry. This has provided First Trust Strategic Hig II Closed 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.
Analytics focus
– First Trust Strategic Hig II Closed 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 Misc. Financial Services industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– First Trust Strategic Hig II Closed is one of the leading players in the Misc. Financial Services 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.
Effective Research and Development (R&D)
– First Trust Strategic Hig II Closed has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – First Trust Strategic Hig II Closed 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.
Weaknesses of First Trust Strategic Hig II Closed | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed supply chain. Even after few cautionary changes, First Trust Strategic Hig II Closed is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left First Trust Strategic Hig II Closed vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, First Trust Strategic Hig II Closed is slow explore the new channels of communication. These new channels of communication can help First Trust Strategic Hig II Closed 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 dependence on First Trust Strategic Hig II Closed ‘s star products
– The top 2 products and services of First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of First Trust Strategic Hig II Closed is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but First Trust Strategic Hig II Closed needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help First Trust Strategic Hig II Closed to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
No frontier risks strategy
– From the 10K / annual statement of First Trust Strategic Hig II Closed, 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.
Ability to respond to the competition
– As the decision making is very deliberative at First Trust Strategic Hig II Closed, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. First Trust Strategic Hig II Closed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of First Trust Strategic Hig II Closed products
– To increase the profitability and margins on the products, First Trust Strategic Hig II Closed needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee of First Trust Strategic Hig II Closed is just above the Misc. Financial Services 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.
Slow decision making process
– As mentioned earlier in the report, First Trust Strategic Hig II Closed has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Financial Services industry over the last five years. First Trust Strategic Hig II Closed 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.
Slow to strategic competitive environment developments
– As First Trust Strategic Hig II Closed is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at First Trust Strategic Hig II Closed has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
First Trust Strategic Hig II Closed Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of First Trust Strategic Hig II Closed are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, First Trust Strategic Hig II Closed can use these opportunities to build new business models that can help the communities that First Trust Strategic Hig II Closed operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, First Trust Strategic Hig II Closed is facing challenges because of the dominance of functional experts in the organization. First Trust Strategic Hig II Closed can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– First Trust Strategic Hig II Closed 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.
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. First Trust Strategic Hig II Closed 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. First Trust Strategic Hig II Closed 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.
Creating value in data economy
– The success of analytics program of First Trust Strategic Hig II Closed has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help First Trust Strategic Hig II Closed to build a more holistic ecosystem for First Trust Strategic Hig II Closed products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for First Trust Strategic Hig II Closed 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for First Trust Strategic Hig II Closed in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
Developing new processes and practices
– First Trust Strategic Hig II Closed 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.
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. First Trust Strategic Hig II Closed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed to build a competitive advantage using analytics. The analytics driven competitive advantage can help First Trust Strategic Hig II Closed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– First Trust Strategic Hig II Closed can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
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. First Trust Strategic Hig II Closed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of First Trust Strategic Hig II Closed are -
Increasing wage structure of First Trust Strategic Hig II Closed
– 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 First Trust Strategic Hig II Closed.
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 First Trust Strategic Hig II Closed business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– First Trust Strategic Hig II Closed 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.
Environmental challenges
– First Trust Strategic Hig II Closed 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. First Trust Strategic Hig II Closed can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Regulatory challenges
– First Trust Strategic Hig II Closed 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.
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.
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. First Trust Strategic Hig II Closed needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– First Trust Strategic Hig II Closed has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, First Trust Strategic Hig II Closed 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.
High dependence on third party suppliers
– First Trust Strategic Hig II Closed 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 Misc. Financial Services industry are lowering. It can presents First Trust Strategic Hig II Closed 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, First Trust Strategic Hig II Closed may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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. First Trust Strategic Hig II Closed 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.
Weighted SWOT Analysis of First Trust Strategic Hig II Closed Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed 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 First Trust Strategic Hig II Closed needs to make to build a sustainable competitive advantage.
