Fintech Acquisition Corp III (FTACU) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fintech Acquisition Corp III (United States)
Based on various researches at Oak Spring University , Fintech Acquisition Corp III is operating in a macro-environment that has been destablized by – geopolitical disruptions, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing energy prices, increasing household debt because of falling income levels, technology disruption,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Fintech Acquisition Corp III
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fintech Acquisition Corp III can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fintech Acquisition Corp III, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fintech Acquisition Corp III 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 Fintech Acquisition Corp III can be done for the following purposes –
1. Strategic planning of Fintech Acquisition Corp III
2. Improving business portfolio management of Fintech Acquisition Corp III
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 Fintech Acquisition Corp III
Strengths of Fintech Acquisition Corp III | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fintech Acquisition Corp III are -
High brand equity
– Fintech Acquisition Corp III has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fintech Acquisition Corp III to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Fintech Acquisition Corp III digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fintech Acquisition Corp III 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.
Sustainable margins compare to other players in industry
– Fintech Acquisition Corp III has clearly differentiated products in the market place. This has enabled Fintech Acquisition Corp III to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Fintech Acquisition Corp III to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Fintech Acquisition Corp III 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 Fintech Acquisition Corp III have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Fintech Acquisition Corp III has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fintech Acquisition Corp III 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.
Diverse revenue streams
– Fintech Acquisition Corp III is present in almost all the verticals within the industry. This has provided Fintech Acquisition Corp III 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.
Analytics focus
– Fintech Acquisition Corp III 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.
Superior customer experience
– The customer experience strategy of Fintech Acquisition Corp III in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Fintech Acquisition Corp III in the sector have low bargaining power. Fintech Acquisition Corp III has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fintech Acquisition Corp III to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in
– Fintech Acquisition Corp III 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 Fintech Acquisition Corp III in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management in the industry
– Fintech Acquisition Corp III is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Fintech Acquisition Corp III 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.
Weaknesses of Fintech Acquisition Corp III | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fintech Acquisition Corp III are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fintech Acquisition Corp III is slow explore the new channels of communication. These new channels of communication can help Fintech Acquisition Corp III to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring in industry
– The stress on hiring functional specialists at Fintech Acquisition Corp III 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.
Increasing silos among functional specialists
– The organizational structure of Fintech Acquisition Corp III is dominated by functional specialists. It is not different from other players in the industry, but Fintech Acquisition Corp III needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fintech Acquisition Corp III to focus more on services in the industry rather than just following the product oriented approach.
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 Fintech Acquisition Corp III supply chain. Even after few cautionary changes, Fintech Acquisition Corp III is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fintech Acquisition Corp III vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Fintech Acquisition Corp III 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.
Capital Spending Reduction
– Even during the low interest decade, Fintech Acquisition Corp III 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.
Products dominated business model
– Even though Fintech Acquisition Corp III 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. Fintech Acquisition Corp III should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Fintech Acquisition Corp III 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.
High operating costs
– Compare to the competitors, Fintech Acquisition Corp III 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 Fintech Acquisition Corp III lucrative customers.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Fintech Acquisition Corp III 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 Fintech Acquisition Corp III 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 Fintech Acquisition Corp III can leverage the sales team experience to cultivate customer relationships as Fintech Acquisition Corp III is planning to shift buying processes online.
Fintech Acquisition Corp III Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fintech Acquisition Corp III are -
Developing new processes and practices
– Fintech Acquisition Corp III 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.
Manufacturing automation
– Fintech Acquisition Corp III 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, Fintech Acquisition Corp III 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 Fintech Acquisition Corp III to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Fintech Acquisition Corp III can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fintech Acquisition Corp III 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 Fintech Acquisition Corp III to hire the very best people irrespective of their geographical location.
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 Fintech Acquisition Corp III 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fintech Acquisition Corp III can use these opportunities to build new business models that can help the communities that Fintech Acquisition Corp III operates in. Secondly it can use opportunities from government spending in sector.
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 Fintech Acquisition Corp III in the industry. Now Fintech Acquisition Corp III can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Fintech Acquisition Corp III 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.
Learning at scale
– Online learning technologies has now opened space for Fintech Acquisition Corp III 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.
Building a culture of innovation
– managers at Fintech Acquisition Corp III 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fintech Acquisition Corp III is facing challenges because of the dominance of functional experts in the organization. Fintech Acquisition Corp III 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.
Better consumer reach
– The expansion of the 5G network will help Fintech Acquisition Corp III to increase its market reach. Fintech Acquisition Corp III 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.
Threats Fintech Acquisition Corp III External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fintech Acquisition Corp III are -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fintech Acquisition Corp III 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 Fintech Acquisition Corp III prominent markets.
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. Fintech Acquisition Corp III needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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. Fintech Acquisition Corp III can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fintech Acquisition Corp III 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.
Environmental challenges
– Fintech Acquisition Corp III 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. Fintech Acquisition Corp III can take advantage of this fund but it will also bring new competitors in the industry.
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 Fintech Acquisition Corp III.
Increasing wage structure of Fintech Acquisition Corp III
– 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 Fintech Acquisition Corp III.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fintech Acquisition Corp III 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.
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 Fintech Acquisition Corp III business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Fintech Acquisition Corp III 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.
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. Fintech Acquisition Corp III 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.
Weighted SWOT Analysis of Fintech Acquisition Corp III Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fintech Acquisition Corp III 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 Fintech Acquisition Corp III 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 Fintech Acquisition Corp III 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 Fintech Acquisition Corp III 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 Fintech Acquisition Corp III needs to make to build a sustainable competitive advantage.