Merrill Lynch Depositor Inc IC (IPB) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Merrill Lynch Depositor Inc IC (United States)
Based on various researches at Oak Spring University , Merrill Lynch Depositor Inc IC is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Merrill Lynch Depositor Inc IC
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Merrill Lynch Depositor Inc IC can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Merrill Lynch Depositor Inc IC, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC can be done for the following purposes –
1. Strategic planning of Merrill Lynch Depositor Inc IC
2. Improving business portfolio management of Merrill Lynch Depositor Inc IC
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 Merrill Lynch Depositor Inc IC
Strengths of Merrill Lynch Depositor Inc IC | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Merrill Lynch Depositor Inc IC are -
Ability to recruit top talent
– Merrill Lynch Depositor Inc IC 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.
High switching costs
– The high switching costs that Merrill Lynch Depositor Inc IC 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.
Sustainable margins compare to other players in industry
– Merrill Lynch Depositor Inc IC has clearly differentiated products in the market place. This has enabled Merrill Lynch Depositor Inc IC to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Merrill Lynch Depositor Inc IC to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Merrill Lynch Depositor Inc IC in the sector have low bargaining power. Merrill Lynch Depositor Inc IC has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Merrill Lynch Depositor Inc IC to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Merrill Lynch Depositor Inc IC emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Merrill Lynch Depositor Inc IC 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.
Diverse revenue streams
– Merrill Lynch Depositor Inc IC is present in almost all the verticals within the industry. This has provided Merrill Lynch Depositor Inc IC 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.
Superior customer experience
– The customer experience strategy of Merrill Lynch Depositor Inc IC in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Merrill Lynch Depositor Inc IC has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Merrill Lynch Depositor Inc IC 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.
Training and development
– Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC 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.
Weaknesses of Merrill Lynch Depositor Inc IC | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Merrill Lynch Depositor Inc IC are -
Products dominated business model
– Even though Merrill Lynch Depositor Inc IC 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. Merrill Lynch Depositor Inc IC should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Merrill Lynch Depositor Inc IC is slow explore the new channels of communication. These new channels of communication can help Merrill Lynch Depositor Inc IC to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of Merrill Lynch Depositor Inc IC, 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.
Need for greater diversity
– Merrill Lynch Depositor Inc IC 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.
Workers concerns about automation
– As automation is fast increasing in the industry, Merrill Lynch Depositor Inc IC 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.
High cash cycle compare to competitors
Merrill Lynch Depositor Inc IC 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 operating costs
– Compare to the competitors, Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC lucrative customers.
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 Merrill Lynch Depositor Inc IC supply chain. Even after few cautionary changes, Merrill Lynch Depositor Inc IC is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Merrill Lynch Depositor Inc IC vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of United States, Merrill Lynch Depositor Inc IC needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Merrill Lynch Depositor Inc IC is dominated by functional specialists. It is not different from other players in the industry, but Merrill Lynch Depositor Inc IC needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Merrill Lynch Depositor Inc IC to focus more on services in the industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Merrill Lynch Depositor Inc IC, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Merrill Lynch Depositor Inc IC has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Merrill Lynch Depositor Inc IC Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Merrill Lynch Depositor Inc IC are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Merrill Lynch Depositor Inc IC 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.
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 Merrill Lynch Depositor Inc IC 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Merrill Lynch Depositor Inc IC 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, Merrill Lynch Depositor Inc IC 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.
Learning at scale
– Online learning technologies has now opened space for Merrill Lynch Depositor Inc IC 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.
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. Merrill Lynch Depositor Inc IC can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Merrill Lynch Depositor Inc IC 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Merrill Lynch Depositor Inc IC 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.
Buying journey improvements
– Merrill Lynch Depositor Inc IC 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.
Better consumer reach
– The expansion of the 5G network will help Merrill Lynch Depositor Inc IC to increase its market reach. Merrill Lynch Depositor Inc IC 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Merrill Lynch Depositor Inc IC is facing challenges because of the dominance of functional experts in the organization. Merrill Lynch Depositor Inc IC 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.
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. Merrill Lynch Depositor Inc IC 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. Merrill Lynch Depositor Inc IC 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.
Threats Merrill Lynch Depositor Inc IC External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Merrill Lynch Depositor Inc IC are -
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. Merrill Lynch Depositor Inc IC needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Merrill Lynch Depositor Inc IC 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Merrill Lynch Depositor Inc IC 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Merrill Lynch Depositor Inc IC with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Merrill Lynch Depositor Inc IC has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Merrill Lynch Depositor Inc IC 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.
Consumer confidence and its impact on Merrill Lynch Depositor Inc IC 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC prominent markets.
Increasing wage structure of Merrill Lynch Depositor Inc IC
– 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 Merrill Lynch Depositor Inc IC.
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 Merrill Lynch Depositor Inc IC in the sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Merrill Lynch Depositor Inc IC 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.
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.
Shortening product life cycle
– it is one of the major threat that Merrill Lynch Depositor Inc IC is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Merrill Lynch Depositor Inc IC Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC 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 Merrill Lynch Depositor Inc IC needs to make to build a sustainable competitive advantage.