Based on various researches at Oak Spring University , Gabelli Dividend &ome Trust Pd Pref is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, wage bills are increasing, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , geopolitical disruptions, increasing commodity prices, increasing energy prices,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Gabelli Dividend &ome Trust Pd Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Gabelli Dividend &ome Trust Pd Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gabelli Dividend &ome Trust Pd Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref can be done for the following purposes –
1. Strategic planning of Gabelli Dividend &ome Trust Pd Pref
2. Improving business portfolio management of Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref
Strengths of Gabelli Dividend &ome Trust Pd Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gabelli Dividend &ome Trust Pd Pref are -
Superior customer experience
– The customer experience strategy of Gabelli Dividend &ome Trust Pd Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Gabelli Dividend &ome Trust Pd Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gabelli Dividend &ome Trust Pd Pref 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.
Operational resilience
– The operational resilience strategy of Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Gabelli Dividend &ome Trust Pd Pref emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Gabelli Dividend &ome Trust Pd Pref in the sector have low bargaining power. Gabelli Dividend &ome Trust Pd Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gabelli Dividend &ome Trust Pd Pref to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Gabelli Dividend &ome Trust Pd Pref is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in industry
– Gabelli Dividend &ome Trust Pd Pref has clearly differentiated products in the market place. This has enabled Gabelli Dividend &ome Trust Pd Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Gabelli Dividend &ome Trust Pd Pref to invest into research and development (R&D) and innovation.
Strong track record of project management in the industry
– Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref is present in almost all the verticals within the industry. This has provided Gabelli Dividend &ome Trust Pd 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.
Highly skilled collaborators
– Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Gabelli Dividend &ome Trust Pd 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.
Successful track record of launching new products
– Gabelli Dividend &ome Trust Pd Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gabelli Dividend &ome Trust Pd 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.
Weaknesses of Gabelli Dividend &ome Trust Pd Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gabelli Dividend &ome Trust Pd Pref are -
Slow to strategic competitive environment developments
– As Gabelli Dividend &ome Trust Pd Pref 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.
Interest costs
– Compare to the competition, Gabelli Dividend &ome Trust Pd 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gabelli Dividend &ome Trust Pd Pref is slow explore the new channels of communication. These new channels of communication can help Gabelli Dividend &ome Trust Pd Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Gabelli Dividend &ome Trust Pd Pref 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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Gabelli Dividend &ome Trust Pd 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.
Slow decision making process
– As mentioned earlier in the report, Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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.
Workers concerns about automation
– As automation is fast increasing in the industry, Gabelli Dividend &ome Trust Pd 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.
Ability to respond to the competition
– As the decision making is very deliberative at Gabelli Dividend &ome Trust Pd Pref, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Gabelli Dividend &ome Trust Pd Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in industry
– The stress on hiring functional specialists at Gabelli Dividend &ome Trust Pd Pref 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.
Capital Spending Reduction
– Even during the low interest decade, Gabelli Dividend &ome Trust Pd 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 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 Gabelli Dividend &ome Trust Pd Pref supply chain. Even after few cautionary changes, Gabelli Dividend &ome Trust Pd Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Gabelli Dividend &ome Trust Pd Pref vulnerable to further global disruptions in South East Asia.
Gabelli Dividend &ome Trust Pd Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Gabelli Dividend &ome Trust Pd Pref are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gabelli Dividend &ome Trust Pd Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gabelli Dividend &ome Trust Pd 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.
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 Gabelli Dividend &ome Trust Pd Pref in the industry. Now Gabelli Dividend &ome Trust Pd Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Gabelli Dividend &ome Trust Pd 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.
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. Gabelli Dividend &ome Trust Pd Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gabelli Dividend &ome Trust Pd Pref is facing challenges because of the dominance of functional experts in the organization. Gabelli Dividend &ome Trust Pd Pref 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.
Buying journey improvements
– Gabelli Dividend &ome Trust Pd Pref 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.
Manufacturing automation
– Gabelli Dividend &ome Trust Pd 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.
Using analytics as competitive advantage
– Gabelli Dividend &ome Trust Pd Pref 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 Gabelli Dividend &ome Trust Pd Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gabelli Dividend &ome Trust Pd Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Gabelli Dividend &ome Trust Pd Pref 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.
Developing new processes and practices
– Gabelli Dividend &ome Trust Pd 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gabelli Dividend &ome Trust Pd Pref can use these opportunities to build new business models that can help the communities that Gabelli Dividend &ome Trust Pd Pref operates in. Secondly it can use opportunities from government spending in sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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.
Threats Gabelli Dividend &ome Trust Pd Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Gabelli Dividend &ome Trust Pd Pref are -
Regulatory challenges
– Gabelli Dividend &ome Trust Pd 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.
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.
Stagnating economy with rate increase
– Gabelli Dividend &ome Trust Pd 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.
Environmental challenges
– Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref can take advantage of this fund but it will also bring new competitors in the industry.
Consumer confidence and its impact on Gabelli Dividend &ome Trust Pd Pref 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.
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 Dividend &ome Trust Pd 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Gabelli Dividend &ome Trust Pd Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gabelli Dividend &ome Trust Pd Pref 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.
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 Dividend &ome Trust Pd Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Dividend &ome Trust Pd Pref in the sector and impact the bottomline of the organization.
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 Gabelli Dividend &ome Trust Pd Pref business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Gabelli Dividend &ome Trust Pd Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Gabelli Dividend &ome Trust Pd Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Gabelli Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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 Dividend &ome Trust Pd 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 Dividend &ome Trust Pd Pref needs to make to build a sustainable competitive advantage.