First Trust Energy Infrastr Closed (FIF) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for First Trust Energy Infrastr Closed (United States)
Based on various researches at Oak Spring University , First Trust Energy Infrastr Closed is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
wage bills are increasing, increasing energy prices, etc
Introduction to SWOT Analysis of First Trust Energy Infrastr Closed
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that First Trust Energy Infrastr Closed can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the First Trust Energy Infrastr Closed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which First Trust Energy Infrastr 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 Energy Infrastr Closed can be done for the following purposes –
1. Strategic planning of First Trust Energy Infrastr Closed
2. Improving business portfolio management of First Trust Energy Infrastr Closed
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 First Trust Energy Infrastr Closed
Strengths of First Trust Energy Infrastr Closed | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of First Trust Energy Infrastr Closed are -
Cross disciplinary teams
– Horizontal connected teams at the First Trust Energy Infrastr Closed 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
– First Trust Energy Infrastr Closed has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of First Trust Energy Infrastr Closed have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– First Trust Energy Infrastr Closed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled First Trust Energy Infrastr Closed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– First Trust Energy Infrastr Closed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. First Trust Energy Infrastr Closed 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.
Strong track record of project management in the industry
– First Trust Energy Infrastr Closed is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– First Trust Energy Infrastr Closed 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.
Effective Research and Development (R&D)
– First Trust Energy Infrastr 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 Energy Infrastr Closed staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- First Trust Energy Infrastr 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 Energy Infrastr Closed is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at First Trust Energy Infrastr Closed emphasize – knowledge, initiative, and innovation.
Digital Transformation in industry
- digital transformation varies from industry to industry. For First Trust Energy Infrastr Closed digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. First Trust Energy Infrastr 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.
Sustainable margins compare to other players in industry
– First Trust Energy Infrastr Closed has clearly differentiated products in the market place. This has enabled First Trust Energy Infrastr Closed to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped First Trust Energy Infrastr Closed to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that First Trust Energy Infrastr 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.
Operational resilience
– The operational resilience strategy of First Trust Energy Infrastr Closed comprises – understanding the underlying the factors in the 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.
Weaknesses of First Trust Energy Infrastr Closed | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of First Trust Energy Infrastr Closed are -
Slow decision making process
– As mentioned earlier in the report, First Trust Energy Infrastr 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 industry over the last five years. First Trust Energy Infrastr 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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, First Trust Energy Infrastr Closed 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.
Workers concerns about automation
– As automation is fast increasing in the industry, First Trust Energy Infrastr Closed needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Interest costs
– Compare to the competition, First Trust Energy Infrastr Closed 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.
Skills based hiring in industry
– The stress on hiring functional specialists at First Trust Energy Infrastr 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, First Trust Energy Infrastr Closed is slow explore the new channels of communication. These new channels of communication can help First Trust Energy Infrastr Closed to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of First Trust Energy Infrastr Closed is just above the industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative at First Trust Energy Infrastr Closed, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. First Trust Energy Infrastr Closed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– First Trust Energy Infrastr Closed has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Low market penetration in new markets
– Outside its home market of United States, First Trust Energy Infrastr Closed needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Energy Infrastr Closed supply chain. Even after few cautionary changes, First Trust Energy Infrastr 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 Energy Infrastr Closed vulnerable to further global disruptions in South East Asia.
First Trust Energy Infrastr Closed Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of First Trust Energy Infrastr Closed are -
Learning at scale
– Online learning technologies has now opened space for First Trust Energy Infrastr 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.
Better consumer reach
– The expansion of the 5G network will help First Trust Energy Infrastr Closed to increase its market reach. First Trust Energy Infrastr Closed 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.
Leveraging digital technologies
– First Trust Energy Infrastr 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 industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. First Trust Energy Infrastr 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 Energy Infrastr 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects First Trust Energy Infrastr Closed 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 First Trust Energy Infrastr Closed in the industry. Now First Trust Energy Infrastr Closed can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for First Trust Energy Infrastr 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 industry, and it will provide faster access to the consumers.
Developing new processes and practices
– First Trust Energy Infrastr Closed 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, First Trust Energy Infrastr 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 Energy Infrastr 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for First Trust Energy Infrastr Closed 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 First Trust Energy Infrastr Closed to hire the very best people irrespective of their geographical location.
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. First Trust Energy Infrastr Closed can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– First Trust Energy Infrastr Closed 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.
Creating value in data economy
– The success of analytics program of First Trust Energy Infrastr Closed has opened avenues for new revenue streams for the organization in industry. This can help First Trust Energy Infrastr Closed to build a more holistic ecosystem for First Trust Energy Infrastr Closed products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats First Trust Energy Infrastr Closed External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of First Trust Energy Infrastr Closed are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, First Trust Energy Infrastr 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 Energy Infrastr Closed prominent markets.
Shortening product life cycle
– it is one of the major threat that First Trust Energy Infrastr Closed is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– First Trust Energy Infrastr 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 industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for First Trust Energy Infrastr Closed in industry. The industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of First Trust Energy Infrastr 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 Energy Infrastr 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 Energy Infrastr Closed business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– First Trust Energy Infrastr 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 Energy Infrastr Closed can take advantage of this fund but it will also bring new competitors in the industry.
High dependence on third party suppliers
– First Trust Energy Infrastr 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.
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 First Trust Energy Infrastr Closed in the sector and impact the bottomline of the organization.
Consumer confidence and its impact on First Trust Energy Infrastr Closed demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in industry and other sectors.
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.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. First Trust Energy Infrastr Closed can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– First Trust Energy Infrastr Closed has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, First Trust Energy Infrastr Closed needs to keep up with the evolution of technology in the 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.
Weighted SWOT Analysis of First Trust Energy Infrastr 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 Energy Infrastr 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 Energy Infrastr 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 Energy Infrastr 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 Energy Infrastr 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 Energy Infrastr Closed needs to make to build a sustainable competitive advantage.