Based on various researches at Oak Spring University , Guggenheim Credit Allocation Closed is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing energy prices,
central banks are concerned over increasing inflation, increasing commodity prices, etc
Introduction to SWOT Analysis of Guggenheim Credit Allocation Closed
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Guggenheim Credit Allocation Closed can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guggenheim Credit Allocation Closed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed can be done for the following purposes –
1. Strategic planning of Guggenheim Credit Allocation Closed
2. Improving business portfolio management of Guggenheim Credit Allocation Closed
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 Guggenheim Credit Allocation Closed
Strengths of Guggenheim Credit Allocation Closed | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Guggenheim Credit Allocation Closed are -
Effective Research and Development (R&D)
– Guggenheim Credit Allocation Closed has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Guggenheim Credit Allocation Closed staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Guggenheim Credit Allocation Closed 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.
Operational resilience
– The operational resilience strategy of Guggenheim Credit Allocation Closed 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.
High switching costs
– The high switching costs that Guggenheim Credit Allocation Closed 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.
High brand equity
– Guggenheim Credit Allocation Closed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Guggenheim Credit Allocation Closed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in
– Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed 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
– Guggenheim Credit Allocation Closed is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Guggenheim Credit Allocation Closed is one of the most innovative firm in sector.
Diverse revenue streams
– Guggenheim Credit Allocation Closed is present in almost all the verticals within the industry. This has provided Guggenheim Credit Allocation Closed 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.
Cross disciplinary teams
– Horizontal connected teams at the Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed
– The covid-19 pandemic has put organizational resilience at the centre of everthing Guggenheim Credit Allocation Closed does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Guggenheim Credit Allocation Closed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Guggenheim Credit Allocation Closed are -
Capital Spending Reduction
– Even during the low interest decade, Guggenheim Credit Allocation Closed 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.
Interest costs
– Compare to the competition, Guggenheim Credit Allocation Closed 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 cash cycle compare to competitors
Guggenheim Credit Allocation Closed 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Guggenheim Credit Allocation Closed 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.
Need for greater diversity
– Guggenheim Credit Allocation Closed has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Ability to respond to the competition
– As the decision making is very deliberative at Guggenheim Credit Allocation Closed, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Guggenheim Credit Allocation Closed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on Guggenheim Credit Allocation Closed ‘s star products
– The top 2 products and services of Guggenheim Credit Allocation Closed still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Guggenheim Credit Allocation Closed has relatively successful track record of launching new products.
No frontier risks strategy
– From the 10K / annual statement of Guggenheim Credit Allocation Closed, it seems that company is thinking out the frontier risks that can impact industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 Guggenheim Credit Allocation Closed supply chain. Even after few cautionary changes, Guggenheim Credit Allocation Closed is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guggenheim Credit Allocation Closed vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of Guggenheim Credit Allocation Closed is just above the industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed lucrative customers.
Guggenheim Credit Allocation Closed Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Guggenheim Credit Allocation Closed are -
Creating value in data economy
– The success of analytics program of Guggenheim Credit Allocation Closed has opened avenues for new revenue streams for the organization in industry. This can help Guggenheim Credit Allocation Closed to build a more holistic ecosystem for Guggenheim Credit Allocation Closed products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Guggenheim Credit Allocation Closed 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.
Leveraging digital technologies
– Guggenheim Credit Allocation Closed 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.
Using analytics as competitive advantage
– Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed to build a competitive advantage using analytics. The analytics driven competitive advantage can help Guggenheim Credit Allocation Closed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Guggenheim Credit Allocation Closed 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.
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. Guggenheim Credit Allocation Closed can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Guggenheim Credit Allocation Closed 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, Guggenheim Credit Allocation Closed can use these opportunities to build new business models that can help the communities that Guggenheim Credit Allocation Closed 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, Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Guggenheim Credit Allocation Closed 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. Guggenheim Credit Allocation Closed 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.
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. Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Guggenheim Credit Allocation Closed 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.
Threats Guggenheim Credit Allocation Closed External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Guggenheim Credit Allocation Closed are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Guggenheim Credit Allocation Closed 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed prominent markets.
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
– Guggenheim Credit Allocation Closed 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
– Guggenheim Credit Allocation Closed 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. Guggenheim Credit Allocation Closed can take advantage of this fund but it will also bring new competitors in the industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Guggenheim Credit Allocation Closed 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.
Regulatory challenges
– Guggenheim Credit Allocation Closed 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.
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. Guggenheim Credit Allocation Closed needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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 Guggenheim Credit Allocation Closed in the sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Guggenheim Credit Allocation Closed has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Guggenheim Credit Allocation Closed 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.
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 Guggenheim Credit Allocation Closed.
Shortening product life cycle
– it is one of the major threat that Guggenheim Credit Allocation Closed is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Guggenheim Credit Allocation Closed
– 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 Guggenheim Credit Allocation Closed.
Weighted SWOT Analysis of Guggenheim Credit Allocation Closed Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed 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 Guggenheim Credit Allocation Closed needs to make to build a sustainable competitive advantage.