Federal Home Loan Mortgage CH Pref (FMCCH) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Federal Home Loan Mortgage CH Pref (United States)
Based on various researches at Oak Spring University , Federal Home Loan Mortgage CH Pref is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Federal Home Loan Mortgage CH Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Federal Home Loan Mortgage CH Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Federal Home Loan Mortgage CH Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Federal Home Loan Mortgage CH Pref operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Federal Home Loan Mortgage CH Pref can be done for the following purposes –
1. Strategic planning of Federal Home Loan Mortgage CH Pref
2. Improving business portfolio management of Federal Home Loan Mortgage CH Pref
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 Federal Home Loan Mortgage CH Pref
Strengths of Federal Home Loan Mortgage CH Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Federal Home Loan Mortgage CH Pref are -
Diverse revenue streams
– Federal Home Loan Mortgage CH Pref is present in almost all the verticals within the industry. This has provided Federal Home Loan Mortgage CH Pref 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.
Sustainable margins compare to other players in industry
– Federal Home Loan Mortgage CH Pref has clearly differentiated products in the market place. This has enabled Federal Home Loan Mortgage CH Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Federal Home Loan Mortgage CH Pref to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Federal Home Loan Mortgage CH Pref are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy of Federal Home Loan Mortgage CH Pref 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.
High brand equity
– Federal Home Loan Mortgage CH Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Federal Home Loan Mortgage CH Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Federal Home Loan Mortgage CH Pref 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.
Effective Research and Development (R&D)
– Federal Home Loan Mortgage CH Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Federal Home Loan Mortgage CH Pref staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Federal Home Loan Mortgage CH Pref 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.
High switching costs
– The high switching costs that Federal Home Loan Mortgage CH Pref has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management in the industry
– Federal Home Loan Mortgage CH Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in
– Federal Home Loan Mortgage CH Pref 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 Federal Home Loan Mortgage CH Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Federal Home Loan Mortgage CH Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Federal Home Loan Mortgage CH Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Federal Home Loan Mortgage CH Pref are -
Ability to respond to the competition
– As the decision making is very deliberative at Federal Home Loan Mortgage CH Pref, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Federal Home Loan Mortgage CH Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Federal Home Loan Mortgage CH Pref is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow decision making process
– As mentioned earlier in the report, Federal Home Loan Mortgage CH Pref 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. Federal Home Loan Mortgage CH Pref 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Federal Home Loan Mortgage CH Pref is slow explore the new channels of communication. These new channels of communication can help Federal Home Loan Mortgage CH Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Federal Home Loan Mortgage CH Pref supply chain. Even after few cautionary changes, Federal Home Loan Mortgage CH Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Federal Home Loan Mortgage CH Pref vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of United States, Federal Home Loan Mortgage CH Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Federal Home Loan Mortgage CH Pref is dominated by functional specialists. It is not different from other players in the industry, but Federal Home Loan Mortgage CH Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Federal Home Loan Mortgage CH Pref to focus more on services in the industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Federal Home Loan Mortgage CH Pref 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.
No frontier risks strategy
– From the 10K / annual statement of Federal Home Loan Mortgage CH Pref, it seems that company is thinking out the frontier risks that can impact 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.
High operating costs
– Compare to the competitors, Federal Home Loan Mortgage CH Pref has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Federal Home Loan Mortgage CH Pref lucrative customers.
Skills based hiring in industry
– The stress on hiring functional specialists at Federal Home Loan Mortgage CH Pref 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.
Federal Home Loan Mortgage CH Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Federal Home Loan Mortgage CH Pref are -
Leveraging digital technologies
– Federal Home Loan Mortgage CH Pref 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.
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. Federal Home Loan Mortgage CH Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Federal Home Loan Mortgage CH Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Federal Home Loan Mortgage CH Pref in the industry. Now Federal Home Loan Mortgage CH Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Federal Home Loan Mortgage CH Pref can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Federal Home Loan Mortgage CH Pref can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Federal Home Loan Mortgage CH Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Federal Home Loan Mortgage CH Pref 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.
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. Federal Home Loan Mortgage CH Pref can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Federal Home Loan Mortgage CH Pref can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Federal Home Loan Mortgage CH Pref to increase its market reach. Federal Home Loan Mortgage CH Pref will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Using analytics as competitive advantage
– Federal Home Loan Mortgage CH Pref 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 Federal Home Loan Mortgage CH Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Federal Home Loan Mortgage CH Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Federal Home Loan Mortgage CH Pref is facing challenges because of the dominance of functional experts in the organization. Federal Home Loan Mortgage CH Pref can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Federal Home Loan Mortgage CH Pref 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Federal Home Loan Mortgage CH Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Federal Home Loan Mortgage CH Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Federal Home Loan Mortgage CH Pref are -
Increasing wage structure of Federal Home Loan Mortgage CH Pref
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Federal Home Loan Mortgage CH Pref.
Stagnating economy with rate increase
– Federal Home Loan Mortgage CH Pref 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.
Shortening product life cycle
– it is one of the major threat that Federal Home Loan Mortgage CH Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Federal Home Loan Mortgage CH Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the 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 Federal Home Loan Mortgage CH Pref 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. Federal Home Loan Mortgage CH Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Environmental challenges
– Federal Home Loan Mortgage CH Pref needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Federal Home Loan Mortgage CH Pref can take advantage of this fund but it will also bring new competitors in the industry.
Consumer confidence and its impact on Federal Home Loan Mortgage CH Pref 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.
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 Federal Home Loan Mortgage CH Pref in the sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Federal Home Loan Mortgage CH Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Technology acceleration in Forth Industrial Revolution
– Federal Home Loan Mortgage CH Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Federal Home Loan Mortgage CH Pref 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.
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. Federal Home Loan Mortgage CH Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Federal Home Loan Mortgage CH Pref can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Federal Home Loan Mortgage CH Pref prominent markets.
Weighted SWOT Analysis of Federal Home Loan Mortgage CH Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Federal Home Loan Mortgage CH Pref needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Federal Home Loan Mortgage CH Pref is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Federal Home Loan Mortgage CH Pref is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Federal Home Loan Mortgage CH Pref to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Federal Home Loan Mortgage CH Pref needs to make to build a sustainable competitive advantage.
