Fed Natl Mtg Pfd M (FNMAL) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fed Natl Mtg Pfd M (United States)
Based on various researches at Oak Spring University , Fed Natl Mtg Pfd M is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, technology disruption, increasing energy prices, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Fed Natl Mtg Pfd M
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fed Natl Mtg Pfd M can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fed Natl Mtg Pfd M, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M can be done for the following purposes –
1. Strategic planning of Fed Natl Mtg Pfd M
2. Improving business portfolio management of Fed Natl Mtg Pfd M
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 Natl Mtg Pfd M
Strengths of Fed Natl Mtg Pfd M | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fed Natl Mtg Pfd M are -
Analytics focus
– Fed Natl Mtg Pfd M 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.
Organizational Resilience of Fed Natl Mtg Pfd M
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Fed Natl Mtg Pfd M staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of Fed Natl Mtg Pfd M 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.
Training and development
– Fed Natl Mtg Pfd M 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.
Strong track record of project management in the industry
– Fed Natl Mtg Pfd M is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Fed Natl Mtg Pfd M in the sector have low bargaining power. Fed Natl Mtg Pfd M has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fed Natl Mtg Pfd M to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fed Natl Mtg Pfd M emphasize – knowledge, initiative, and innovation.
High brand equity
– Fed Natl Mtg Pfd M has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fed Natl Mtg Pfd M to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Fed Natl Mtg Pfd M is present in almost all the verticals within the industry. This has provided Fed Natl Mtg Pfd M 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.
Ability to recruit top talent
– Fed Natl Mtg Pfd M 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.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Fed Natl Mtg Pfd M digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fed Natl Mtg Pfd M 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 Fed Natl Mtg Pfd M | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fed Natl Mtg Pfd M are -
Slow to strategic competitive environment developments
– As Fed Natl Mtg Pfd M 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.
Employees’ less understanding of Fed Natl Mtg Pfd M strategy
– From the outside it seems that the employees of Fed Natl Mtg Pfd M 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.
Aligning sales with marketing
– From the outside it seems that Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M can leverage the sales team experience to cultivate customer relationships as Fed Natl Mtg Pfd M is planning to shift buying processes online.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Fed Natl Mtg Pfd M 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.
High cash cycle compare to competitors
Fed Natl Mtg Pfd M 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.
Products dominated business model
– Even though Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 dependence on Fed Natl Mtg Pfd M ‘s star products
– The top 2 products and services of Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of Fed Natl Mtg Pfd M 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.
Ability to respond to the competition
– As the decision making is very deliberative at Fed Natl Mtg Pfd M, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Fed Natl Mtg Pfd M has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of United States, Fed Natl Mtg Pfd M needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Fed Natl Mtg Pfd M Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fed Natl Mtg Pfd M are -
Better consumer reach
– The expansion of the 5G network will help Fed Natl Mtg Pfd M to increase its market reach. Fed Natl Mtg Pfd M 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.
Loyalty marketing
– Fed Natl Mtg Pfd M 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.
Learning at scale
– Online learning technologies has now opened space for Fed Natl Mtg Pfd M 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fed Natl Mtg Pfd M can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Fed Natl Mtg Pfd M 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. Fed Natl Mtg Pfd M can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Fed Natl Mtg Pfd M has opened avenues for new revenue streams for the organization in industry. This can help Fed Natl Mtg Pfd M to build a more holistic ecosystem for Fed Natl Mtg Pfd M products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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 Natl Mtg Pfd M 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.
Manufacturing automation
– Fed Natl Mtg Pfd M 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fed Natl Mtg Pfd M 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.
Building a culture of innovation
– managers at Fed Natl Mtg Pfd M 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.
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 Natl Mtg Pfd M in the industry. Now Fed Natl Mtg Pfd M can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Fed Natl Mtg Pfd M External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fed Natl Mtg Pfd M are -
High dependence on third party suppliers
– Fed Natl Mtg Pfd M 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M prominent markets.
Shortening product life cycle
– it is one of the major threat that Fed Natl Mtg Pfd M is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Fed Natl Mtg Pfd M has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Fed Natl Mtg Pfd M 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fed Natl Mtg Pfd M 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.
Increasing wage structure of Fed Natl Mtg Pfd M
– 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 Natl Mtg Pfd M.
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 Natl Mtg Pfd M 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.
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. Fed Natl Mtg Pfd M needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Consumer confidence and its impact on Fed Natl Mtg Pfd M 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Fed Natl Mtg Pfd M 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 Fed Natl Mtg Pfd M business can come under increasing regulations regarding data privacy, data security, etc.
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 Natl Mtg Pfd M.
Weighted SWOT Analysis of Fed Natl Mtg Pfd M Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fed Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 Natl Mtg Pfd M 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 Natl Mtg Pfd M needs to make to build a sustainable competitive advantage.
