Federal Natl Mtg Pfd (FNMAH) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Federal Natl Mtg Pfd (United States)
Based on various researches at Oak Spring University , Federal Natl Mtg Pfd is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , technology disruption, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, there is backlash against globalization, central banks are concerned over increasing inflation,
increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Federal Natl Mtg Pfd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Federal Natl Mtg Pfd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Federal Natl Mtg Pfd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Federal Natl Mtg Pfd 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 Natl Mtg Pfd can be done for the following purposes –
1. Strategic planning of Federal Natl Mtg Pfd
2. Improving business portfolio management of Federal Natl Mtg Pfd
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 Natl Mtg Pfd
Strengths of Federal Natl Mtg Pfd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Federal Natl Mtg Pfd are -
Operational resilience
– The operational resilience strategy of Federal Natl Mtg Pfd 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.
Learning organization
- Federal Natl Mtg Pfd 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 Federal Natl Mtg Pfd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Federal Natl Mtg Pfd emphasize – knowledge, initiative, and innovation.
Analytics focus
– Federal Natl Mtg Pfd 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.
Highly skilled collaborators
– Federal Natl Mtg Pfd 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 Federal Natl Mtg Pfd have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in industry
– Federal Natl Mtg Pfd has clearly differentiated products in the market place. This has enabled Federal Natl Mtg Pfd to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Federal Natl Mtg Pfd to invest into research and development (R&D) and innovation.
Training and development
– Federal Natl Mtg Pfd has one of the best training and development program in industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in
– Federal Natl Mtg Pfd 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 Natl Mtg Pfd 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 Natl Mtg Pfd in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Federal Natl Mtg Pfd 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.
Low bargaining power of suppliers
– Suppliers of Federal Natl Mtg Pfd in the sector have low bargaining power. Federal Natl Mtg Pfd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Federal Natl Mtg Pfd to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Federal Natl Mtg Pfd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Federal Natl Mtg Pfd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Federal Natl Mtg Pfd digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Federal Natl Mtg Pfd 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.
Weaknesses of Federal Natl Mtg Pfd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Federal Natl Mtg Pfd are -
Workers concerns about automation
– As automation is fast increasing in the industry, Federal Natl Mtg Pfd 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Federal Natl Mtg Pfd 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.
High dependence on Federal Natl Mtg Pfd ‘s star products
– The top 2 products and services of Federal Natl Mtg Pfd still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Federal Natl Mtg Pfd has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Federal Natl Mtg Pfd is slow explore the new channels of communication. These new channels of communication can help Federal Natl Mtg Pfd 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 Natl Mtg Pfd supply chain. Even after few cautionary changes, Federal Natl Mtg Pfd is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Federal Natl Mtg Pfd vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Federal Natl Mtg Pfd, 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 bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Federal Natl Mtg Pfd 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.
Aligning sales with marketing
– From the outside it seems that Federal Natl Mtg Pfd needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Federal Natl Mtg Pfd can leverage the sales team experience to cultivate customer relationships as Federal Natl Mtg Pfd is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Federal Natl Mtg Pfd has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Federal Natl Mtg Pfd is dominated by functional specialists. It is not different from other players in the industry, but Federal Natl Mtg Pfd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Federal Natl Mtg Pfd to focus more on services in the industry rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of United States, Federal Natl Mtg Pfd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Federal Natl Mtg Pfd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Federal Natl Mtg Pfd 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 Federal Natl Mtg Pfd 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.
Better consumer reach
– The expansion of the 5G network will help Federal Natl Mtg Pfd to increase its market reach. Federal Natl Mtg Pfd 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Federal Natl Mtg Pfd can use these opportunities to build new business models that can help the communities that Federal Natl Mtg Pfd operates in. Secondly it can use opportunities from government spending in sector.
Buying journey improvements
– Federal Natl Mtg Pfd can improve the customer journey of consumers in the 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.
Learning at scale
– Online learning technologies has now opened space for Federal Natl Mtg Pfd 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.
Loyalty marketing
– Federal Natl Mtg Pfd 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Federal Natl Mtg Pfd is facing challenges because of the dominance of functional experts in the organization. Federal Natl Mtg Pfd 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.
Creating value in data economy
– The success of analytics program of Federal Natl Mtg Pfd has opened avenues for new revenue streams for the organization in industry. This can help Federal Natl Mtg Pfd to build a more holistic ecosystem for Federal Natl Mtg Pfd products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Federal Natl Mtg Pfd 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 Natl Mtg Pfd to build a competitive advantage using analytics. The analytics driven competitive advantage can help Federal Natl Mtg Pfd to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Federal Natl Mtg Pfd 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.
Developing new processes and practices
– Federal Natl Mtg Pfd 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.
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 Natl Mtg Pfd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Federal Natl Mtg Pfd can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Federal Natl Mtg Pfd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Federal Natl Mtg Pfd are -
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. Federal Natl Mtg Pfd 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.
Increasing wage structure of Federal Natl Mtg Pfd
– 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 Natl Mtg Pfd.
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.
Technology acceleration in Forth Industrial Revolution
– Federal Natl Mtg Pfd has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Federal Natl Mtg Pfd 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.
Environmental challenges
– Federal Natl Mtg Pfd 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 Natl Mtg Pfd can take advantage of this fund but it will also bring new competitors 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 Federal Natl Mtg Pfd 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.
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. Federal Natl Mtg Pfd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Federal Natl Mtg Pfd 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 Natl Mtg Pfd business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Federal Natl Mtg Pfd 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.
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 Federal Natl Mtg Pfd.
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 Natl Mtg Pfd needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Federal Natl Mtg Pfd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Federal Natl Mtg Pfd 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 Natl Mtg Pfd 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 Natl Mtg Pfd 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 Natl Mtg Pfd 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 Natl Mtg Pfd needs to make to build a sustainable competitive advantage.