Fed Ntl Mtg Ser Q (FNMAI) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fed Ntl Mtg Ser Q (United States)
Based on various researches at Oak Spring University , Fed Ntl Mtg Ser Q is operating in a macro-environment that has been destablized by – increasing energy prices, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, increasing commodity prices, geopolitical disruptions, there is backlash against globalization,
cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Fed Ntl Mtg Ser Q
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fed Ntl Mtg Ser Q can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fed Ntl Mtg Ser Q, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q can be done for the following purposes –
1. Strategic planning of Fed Ntl Mtg Ser Q
2. Improving business portfolio management of Fed Ntl Mtg Ser Q
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 Fed Ntl Mtg Ser Q
Strengths of Fed Ntl Mtg Ser Q | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fed Ntl Mtg Ser Q are -
Organizational Resilience of Fed Ntl Mtg Ser Q
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fed Ntl Mtg Ser Q does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in industry
– Fed Ntl Mtg Ser Q has clearly differentiated products in the market place. This has enabled Fed Ntl Mtg Ser Q to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Fed Ntl Mtg Ser Q to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Fed Ntl Mtg Ser Q 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.
Innovation driven organization
– Fed Ntl Mtg Ser Q is one of the most innovative firm in sector.
Ability to lead change in
– Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Fed Ntl Mtg Ser Q in the sector have low bargaining power. Fed Ntl Mtg Ser Q has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fed Ntl Mtg Ser Q to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Fed Ntl Mtg Ser Q 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.
Strong track record of project management in the industry
– Fed Ntl Mtg Ser Q is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Fed Ntl Mtg Ser Q is present in almost all the verticals within the industry. This has provided Fed Ntl Mtg Ser Q 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Fed Ntl Mtg Ser Q digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fed Ntl Mtg Ser Q has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Superior customer experience
– The customer experience strategy of Fed Ntl Mtg Ser Q in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Fed Ntl Mtg Ser Q | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fed Ntl Mtg Ser Q are -
Increasing silos among functional specialists
– The organizational structure of Fed Ntl Mtg Ser Q is dominated by functional specialists. It is not different from other players in the industry, but Fed Ntl Mtg Ser Q needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fed Ntl Mtg Ser Q to focus more on services in the industry rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Fed Ntl Mtg Ser Q 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.
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 Fed Ntl Mtg Ser Q supply chain. Even after few cautionary changes, Fed Ntl Mtg Ser Q is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fed Ntl Mtg Ser Q vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Fed Ntl Mtg Ser Q 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.
No frontier risks strategy
– From the 10K / annual statement of Fed Ntl Mtg Ser Q, 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.
Aligning sales with marketing
– From the outside it seems that Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q can leverage the sales team experience to cultivate customer relationships as Fed Ntl Mtg Ser Q is planning to shift buying processes online.
Employees’ less understanding of Fed Ntl Mtg Ser Q strategy
– From the outside it seems that the employees of Fed Ntl Mtg Ser Q don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Fed Ntl Mtg Ser Q 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.
Slow decision making process
– As mentioned earlier in the report, Fed Ntl Mtg Ser Q 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. Fed Ntl Mtg Ser Q 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 operating costs
– Compare to the competitors, Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q lucrative customers.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Fed Ntl Mtg Ser Q 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.
Fed Ntl Mtg Ser Q Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fed Ntl Mtg Ser Q are -
Using analytics as competitive advantage
– Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fed Ntl Mtg Ser Q to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fed Ntl Mtg Ser Q can use these opportunities to build new business models that can help the communities that Fed Ntl Mtg Ser Q operates in. Secondly it can use opportunities from government spending in sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fed Ntl Mtg Ser Q can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fed Ntl Mtg Ser Q 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.
Manufacturing automation
– Fed Ntl Mtg Ser Q can use the latest technology developments to improve its manufacturing and designing process in 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.
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. Fed Ntl Mtg Ser Q can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Fed Ntl Mtg Ser Q in the industry. Now Fed Ntl Mtg Ser Q can target international markets with far fewer capital restrictions requirements than the existing system.
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 Fed Ntl Mtg Ser Q 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fed Ntl Mtg Ser Q 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Fed Ntl Mtg Ser Q 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.
Building a culture of innovation
– managers at Fed Ntl Mtg Ser Q can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the industry.
Threats Fed Ntl Mtg Ser Q External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fed Ntl Mtg Ser Q are -
Regulatory challenges
– Fed Ntl Mtg Ser Q 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 industry regulations.
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 Fed Ntl Mtg Ser Q.
Stagnating economy with rate increase
– Fed Ntl Mtg Ser Q 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.
Increasing wage structure of Fed Ntl Mtg Ser Q
– 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 Fed Ntl Mtg Ser Q.
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. Fed Ntl Mtg Ser Q 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.
Consumer confidence and its impact on Fed Ntl Mtg Ser Q 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.
Environmental challenges
– Fed Ntl Mtg Ser Q 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. Fed Ntl Mtg Ser Q can take advantage of this fund but it will also bring new competitors in the industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fed Ntl Mtg Ser Q may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Fed Ntl Mtg Ser Q with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fed Ntl Mtg Ser Q 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.
Shortening product life cycle
– it is one of the major threat that Fed Ntl Mtg Ser Q is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Fed Ntl Mtg Ser Q in the sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q prominent markets.
Weighted SWOT Analysis of Fed Ntl Mtg Ser Q Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q needs to make to build a sustainable competitive advantage.
