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 – competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, central banks are concerned over increasing inflation,
increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, 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 -
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.
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.
– 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
Lack of clear differentiation of Fed Ntl Mtg Ser Q products
– To increase the profitability and margins on the products, Fed Ntl Mtg Ser Q needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the industry, Fed Ntl Mtg Ser Q 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.
Low market penetration in new markets
– Outside its home market of United States, Fed Ntl Mtg Ser Q needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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.
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.
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 -
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.
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.
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.
Developing new processes and practices
– Fed Ntl Mtg Ser Q 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.
Creating value in data economy
– The success of analytics program of Fed Ntl Mtg Ser Q has opened avenues for new revenue streams for the organization in industry. This can help Fed Ntl Mtg Ser Q to build a more holistic ecosystem for Fed Ntl Mtg Ser Q products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
– 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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fed Ntl Mtg Ser Q is facing challenges because of the dominance of functional experts in the organization. Fed Ntl Mtg Ser Q 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.
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.
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 -
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.
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.
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.
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.
– 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. Fed Ntl Mtg Ser Q can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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 Fed Ntl Mtg Ser Q business can come under increasing regulations regarding data privacy, data security, etc.
– 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.
– 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.
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.
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.