Based on various researches at Oak Spring University , Gabelli Equity Trust Inc Pg Pref is operating in a macro-environment that has been destablized by – increasing commodity prices, geopolitical disruptions, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Gabelli Equity Trust Inc Pg Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Gabelli Equity Trust Inc Pg Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gabelli Equity Trust Inc Pg Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref can be done for the following purposes –
1. Strategic planning of Gabelli Equity Trust Inc Pg Pref
2. Improving business portfolio management of Gabelli Equity Trust Inc Pg Pref
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 Gabelli Equity Trust Inc Pg Pref
Strengths of Gabelli Equity Trust Inc Pg Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gabelli Equity Trust Inc Pg Pref are -
Successful track record of launching new products
– Gabelli Equity Trust Inc Pg Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gabelli Equity Trust Inc Pg Pref 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.
Highly skilled collaborators
– Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Gabelli Equity Trust Inc Pg Pref 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.
Cross disciplinary teams
– Horizontal connected teams at the Gabelli Equity Trust Inc Pg Pref 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.
Organizational Resilience of Gabelli Equity Trust Inc Pg Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Gabelli Equity Trust Inc Pg Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the industry
– Gabelli Equity Trust Inc Pg Pref 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
– Gabelli Equity Trust Inc Pg Pref is present in almost all the verticals within the industry. This has provided Gabelli Equity Trust Inc Pg Pref 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.
Low bargaining power of suppliers
– Suppliers of Gabelli Equity Trust Inc Pg Pref in the sector have low bargaining power. Gabelli Equity Trust Inc Pg Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gabelli Equity Trust Inc Pg Pref to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of Gabelli Equity Trust Inc Pg Pref 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.
Learning organization
- Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Gabelli Equity Trust Inc Pg Pref emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Gabelli Equity Trust Inc Pg Pref 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.
Effective Research and Development (R&D)
– Gabelli Equity Trust Inc Pg Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Gabelli Equity Trust Inc Pg Pref staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Gabelli Equity Trust Inc Pg Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gabelli Equity Trust Inc Pg Pref are -
Capital Spending Reduction
– Even during the low interest decade, Gabelli Equity Trust Inc Pg Pref 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 bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref 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. Gabelli Equity Trust Inc Pg Pref should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref lucrative customers.
Compensation and incentives
– The revenue per employee of Gabelli Equity Trust Inc Pg Pref 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.
Increasing silos among functional specialists
– The organizational structure of Gabelli Equity Trust Inc Pg Pref is dominated by functional specialists. It is not different from other players in the industry, but Gabelli Equity Trust Inc Pg Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gabelli Equity Trust Inc Pg Pref to focus more on services in the industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the industry, Gabelli Equity Trust Inc Pg Pref 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gabelli Equity Trust Inc Pg Pref is slow explore the new channels of communication. These new channels of communication can help Gabelli Equity Trust Inc Pg Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Gabelli Equity Trust Inc Pg Pref 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. Gabelli Equity Trust Inc Pg Pref 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.
Interest costs
– Compare to the competition, Gabelli Equity Trust Inc Pg Pref 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.
Low market penetration in new markets
– Outside its home market of United States, Gabelli Equity Trust Inc Pg Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Gabelli Equity Trust Inc Pg Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Gabelli Equity Trust Inc Pg Pref are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gabelli Equity Trust Inc Pg Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Gabelli Equity Trust Inc Pg Pref 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Gabelli Equity Trust Inc Pg Pref to increase its market reach. Gabelli Equity Trust Inc Pg Pref 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.
Manufacturing automation
– Gabelli Equity Trust Inc Pg Pref 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.
Developing new processes and practices
– Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref has opened avenues for new revenue streams for the organization in industry. This can help Gabelli Equity Trust Inc Pg Pref to build a more holistic ecosystem for Gabelli Equity Trust Inc Pg Pref products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Gabelli Equity Trust Inc Pg Pref 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gabelli Equity Trust Inc Pg Pref 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.
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. Gabelli Equity Trust Inc Pg Pref 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. Gabelli Equity Trust Inc Pg Pref 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Gabelli Equity Trust Inc Pg Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Gabelli Equity Trust Inc Pg Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Gabelli Equity Trust Inc Pg Pref are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref prominent markets.
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 wage structure of Gabelli Equity Trust Inc Pg Pref
– 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 Gabelli Equity Trust Inc Pg Pref.
Technology acceleration in Forth Industrial Revolution
– Gabelli Equity Trust Inc Pg Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Gabelli Equity Trust Inc Pg Pref 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.
Regulatory challenges
– Gabelli Equity Trust Inc Pg Pref 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
– Gabelli Equity Trust Inc Pg Pref 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. Gabelli Equity Trust Inc Pg Pref can take advantage of this fund but it will also bring new competitors in the industry.
Shortening product life cycle
– it is one of the major threat that Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref in the sector and impact the bottomline of the organization.
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. Gabelli Equity Trust Inc Pg Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Gabelli Equity Trust Inc Pg Pref.
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. Gabelli Equity Trust Inc Pg Pref 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.
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. Gabelli Equity Trust Inc Pg Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Gabelli Equity Trust Inc Pg Pref 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.
Weighted SWOT Analysis of Gabelli Equity Trust Inc Pg Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref 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 Gabelli Equity Trust Inc Pg Pref needs to make to build a sustainable competitive advantage.