Invesco Mortgage Capital Pb Pref (IVR_pb) SWOT Analysis / TOWS Matrix / MBA Resources
Consumer Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Invesco Mortgage Capital Pb Pref (United States)
Based on various researches at Oak Spring University , Invesco Mortgage Capital Pb Pref is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Invesco Mortgage Capital Pb Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Invesco Mortgage Capital Pb Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Invesco Mortgage Capital Pb Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb Pref can be done for the following purposes –
1. Strategic planning of Invesco Mortgage Capital Pb Pref
2. Improving business portfolio management of Invesco Mortgage Capital Pb Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Consumer Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Invesco Mortgage Capital Pb Pref
Strengths of Invesco Mortgage Capital Pb Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Invesco Mortgage Capital Pb Pref are -
Low bargaining power of suppliers
– Suppliers of Invesco Mortgage Capital Pb Pref in the Financial sector have low bargaining power. Invesco Mortgage Capital Pb Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Invesco Mortgage Capital Pb Pref to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Invesco Mortgage Capital Pb Pref is one of the leading players in the Consumer Financial Services 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 Invesco Mortgage Capital Pb 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.
Diverse revenue streams
– Invesco Mortgage Capital Pb Pref is present in almost all the verticals within the Consumer Financial Services industry. This has provided Invesco Mortgage Capital Pb 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.
Operational resilience
– The operational resilience strategy of Invesco Mortgage Capital Pb Pref comprises – understanding the underlying the factors in the Consumer Financial Services 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.
Effective Research and Development (R&D)
– Invesco Mortgage Capital Pb Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Invesco Mortgage Capital Pb Pref staying ahead in the Consumer Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Invesco Mortgage Capital Pb 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.
Training and development
– Invesco Mortgage Capital Pb Pref has one of the best training and development program in Financial 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.
Innovation driven organization
– Invesco Mortgage Capital Pb Pref is one of the most innovative firm in Consumer Financial Services sector.
Successful track record of launching new products
– Invesco Mortgage Capital Pb Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Invesco Mortgage Capital Pb 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.
Sustainable margins compare to other players in Consumer Financial Services industry
– Invesco Mortgage Capital Pb Pref has clearly differentiated products in the market place. This has enabled Invesco Mortgage Capital Pb Pref to fetch slight price premium compare to the competitors in the Consumer Financial Services industry. The sustainable margins have also helped Invesco Mortgage Capital Pb Pref to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Invesco Mortgage Capital Pb Pref in Consumer Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Invesco Mortgage Capital Pb Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Invesco Mortgage Capital Pb Pref are -
Employees’ less understanding of Invesco Mortgage Capital Pb Pref strategy
– From the outside it seems that the employees of Invesco Mortgage Capital Pb Pref don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow decision making process
– As mentioned earlier in the report, Invesco Mortgage Capital Pb 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 Consumer Financial Services industry over the last five years. Invesco Mortgage Capital Pb 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.
Compensation and incentives
– The revenue per employee of Invesco Mortgage Capital Pb Pref is just above the Consumer Financial Services 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 dependence on Invesco Mortgage Capital Pb Pref ‘s star products
– The top 2 products and services of Invesco Mortgage Capital Pb Pref still accounts for major business revenue. This dependence on star products in Consumer Financial Services industry has resulted into insufficient focus on developing new products, even though Invesco Mortgage Capital Pb Pref has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Invesco Mortgage Capital Pb 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.
Ability to respond to the competition
– As the decision making is very deliberative at Invesco Mortgage Capital Pb Pref, in the dynamic environment of Consumer Financial Services industry it has struggled to respond to the nimble upstart competition. Invesco Mortgage Capital Pb Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Invesco Mortgage Capital Pb Pref products
– To increase the profitability and margins on the products, Invesco Mortgage Capital Pb Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Invesco Mortgage Capital Pb Pref is dominated by functional specialists. It is not different from other players in the Consumer Financial Services industry, but Invesco Mortgage Capital Pb Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Invesco Mortgage Capital Pb Pref to focus more on services in the Consumer Financial Services industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Consumer Financial Services industry, Invesco Mortgage Capital Pb 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.
Aligning sales with marketing
– From the outside it seems that Invesco Mortgage Capital Pb Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Consumer Financial Services industry have deep experience in developing customer relationships. Marketing department at Invesco Mortgage Capital Pb Pref can leverage the sales team experience to cultivate customer relationships as Invesco Mortgage Capital Pb Pref is planning to shift buying processes online.
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 Invesco Mortgage Capital Pb Pref supply chain. Even after few cautionary changes, Invesco Mortgage Capital Pb Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Invesco Mortgage Capital Pb Pref vulnerable to further global disruptions in South East Asia.
Invesco Mortgage Capital Pb Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Invesco Mortgage Capital Pb Pref are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Consumer Financial Services industry, but it has also influenced the consumer preferences. Invesco Mortgage Capital Pb Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Invesco Mortgage Capital Pb 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb Pref to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Invesco Mortgage Capital Pb Pref has opened avenues for new revenue streams for the organization in Consumer Financial Services industry. This can help Invesco Mortgage Capital Pb Pref to build a more holistic ecosystem for Invesco Mortgage Capital Pb Pref products in the Consumer Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Invesco Mortgage Capital Pb Pref can improve the customer journey of consumers in the Consumer Financial Services 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Invesco Mortgage Capital Pb Pref is facing challenges because of the dominance of functional experts in the organization. Invesco Mortgage Capital Pb Pref can utilize new technology in the field of Consumer Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Invesco Mortgage Capital Pb Pref has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Invesco Mortgage Capital Pb 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.
Developing new processes and practices
– Invesco Mortgage Capital Pb Pref can develop new processes and procedures in Consumer Financial Services 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.
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 Invesco Mortgage Capital Pb Pref 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.
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. Invesco Mortgage Capital Pb Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Invesco Mortgage Capital Pb Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Consumer Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Invesco Mortgage Capital Pb Pref in the Consumer Financial Services industry. Now Invesco Mortgage Capital Pb Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Invesco Mortgage Capital Pb Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Invesco Mortgage Capital Pb Pref are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb Pref prominent markets.
Increasing wage structure of Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb Pref.
Stagnating economy with rate increase
– Invesco Mortgage Capital Pb 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 Consumer Financial Services industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Invesco Mortgage Capital Pb Pref.
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. Invesco Mortgage Capital Pb Pref needs to understand the core reasons impacting the Consumer Financial Services industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Consumer Financial Services industry are lowering. It can presents Invesco Mortgage Capital Pb Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Consumer Financial Services sector.
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.
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 Invesco Mortgage Capital Pb Pref business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Invesco Mortgage Capital Pb 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 Consumer Financial Services industry and other sectors.
High dependence on third party suppliers
– Invesco Mortgage Capital Pb 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.
Environmental challenges
– Invesco Mortgage Capital Pb 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. Invesco Mortgage Capital Pb Pref can take advantage of this fund but it will also bring new competitors in the Consumer Financial Services industry.
Technology acceleration in Forth Industrial Revolution
– Invesco Mortgage Capital Pb Pref has witnessed rapid integration of technology during Covid-19 in the Consumer Financial Services industry. As one of the leading players in the industry, Invesco Mortgage Capital Pb Pref needs to keep up with the evolution of technology in the Consumer Financial Services 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.
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 Invesco Mortgage Capital Pb Pref in the Consumer Financial Services sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Invesco Mortgage Capital Pb Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb 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 Invesco Mortgage Capital Pb Pref needs to make to build a sustainable competitive advantage.
