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 – geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing household debt because of falling income levels, wage bills are increasing,
increasing government debt because of Covid-19 spendings, there is backlash against globalization, 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 -
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.
Effective Research and Development (R&D)
– Fed Ntl Mtg Ser Q has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Fed Ntl Mtg Ser Q staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Fed Ntl Mtg Ser Q has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fed Ntl Mtg Ser Q to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Fed Ntl Mtg Ser Q 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 Fed Ntl Mtg Ser Q is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fed Ntl Mtg Ser Q emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Fed Ntl Mtg Ser Q has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fed Ntl Mtg Ser Q 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.
Innovation driven organization
– Fed Ntl Mtg Ser Q is one of the most innovative firm in sector.
Cross disciplinary teams
– Horizontal connected teams at the Fed Ntl Mtg Ser Q 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.
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.
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.
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.
Ability to recruit top talent
– Fed Ntl Mtg Ser Q 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.
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.
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 -
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.
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.
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.
High dependence on Fed Ntl Mtg Ser Q ‘s star products
– The top 2 products and services of Fed Ntl Mtg Ser Q still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Fed Ntl Mtg Ser Q has relatively successful track record of launching new products.
Products dominated business model
– Even though Fed Ntl Mtg Ser Q has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Fed Ntl Mtg Ser Q should strive to include more intangible value offerings along with its core products and services.
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.
Skills based hiring in industry
– The stress on hiring functional specialists at Fed Ntl Mtg Ser Q 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 cash cycle compare to competitors
Fed Ntl Mtg Ser Q has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Ability to respond to the competition
– As the decision making is very deliberative at Fed Ntl Mtg Ser Q, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Fed Ntl Mtg Ser Q has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Compensation and incentives
– The revenue per employee of Fed Ntl Mtg Ser Q 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.
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 -
Better consumer reach
– The expansion of the 5G network will help Fed Ntl Mtg Ser Q to increase its market reach. Fed Ntl Mtg Ser Q 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.
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. Fed Ntl Mtg Ser Q can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Fed Ntl Mtg Ser Q 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.
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.
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.
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. Fed Ntl Mtg Ser Q 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. Fed Ntl Mtg Ser Q 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.
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.
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 -
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.
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.
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.
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
– Fed Ntl Mtg Ser Q has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Fed Ntl Mtg Ser Q 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.
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.
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.
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.
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.
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.
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.
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.
High dependence on third party suppliers
– Fed Ntl Mtg Ser Q 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.
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.
