JPMorgan Chase & Co Pg ADR (JPM_pg) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for JPMorgan Chase & Co Pg ADR (United States)
Based on various researches at Oak Spring University , JPMorgan Chase & Co Pg ADR is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing commodity prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, wage bills are increasing,
increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of JPMorgan Chase & Co Pg ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JPMorgan Chase & Co Pg ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JPMorgan Chase & Co Pg ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR can be done for the following purposes –
1. Strategic planning of JPMorgan Chase & Co Pg ADR
2. Improving business portfolio management of JPMorgan Chase & Co Pg ADR
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 JPMorgan Chase & Co Pg ADR
Strengths of JPMorgan Chase & Co Pg ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of JPMorgan Chase & Co Pg ADR are -
Low bargaining power of suppliers
– Suppliers of JPMorgan Chase & Co Pg ADR in the sector have low bargaining power. JPMorgan Chase & Co Pg ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps JPMorgan Chase & Co Pg ADR to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– JPMorgan Chase & Co Pg ADR is present in almost all the verticals within the industry. This has provided JPMorgan Chase & Co Pg ADR 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.
Innovation driven organization
– JPMorgan Chase & Co Pg ADR is one of the most innovative firm in sector.
Successful track record of launching new products
– JPMorgan Chase & Co Pg ADR has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. JPMorgan Chase & Co Pg ADR 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.
Operational resilience
– The operational resilience strategy of JPMorgan Chase & Co Pg ADR 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.
Highly skilled collaborators
– JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in industry
– JPMorgan Chase & Co Pg ADR has clearly differentiated products in the market place. This has enabled JPMorgan Chase & Co Pg ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped JPMorgan Chase & Co Pg ADR to invest into research and development (R&D) and innovation.
Analytics focus
– JPMorgan Chase & Co Pg ADR is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in
– JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of JPMorgan Chase & Co Pg ADR in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of JPMorgan Chase & Co Pg ADR
– The covid-19 pandemic has put organizational resilience at the centre of everthing JPMorgan Chase & Co Pg ADR does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– JPMorgan Chase & Co Pg ADR has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled JPMorgan Chase & Co Pg ADR to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of JPMorgan Chase & Co Pg ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JPMorgan Chase & Co Pg ADR are -
Employees’ less understanding of JPMorgan Chase & Co Pg ADR strategy
– From the outside it seems that the employees of JPMorgan Chase & Co Pg ADR 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.
Workers concerns about automation
– As automation is fast increasing in the industry, JPMorgan Chase & Co Pg ADR 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 operating costs
– Compare to the competitors, JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, JPMorgan Chase & Co Pg ADR is slow explore the new channels of communication. These new channels of communication can help JPMorgan Chase & Co Pg ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– From the outside it seems that JPMorgan Chase & Co Pg ADR needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at JPMorgan Chase & Co Pg ADR can leverage the sales team experience to cultivate customer relationships as JPMorgan Chase & Co Pg ADR is planning to shift buying processes online.
High dependence on JPMorgan Chase & Co Pg ADR ‘s star products
– The top 2 products and services of JPMorgan Chase & Co Pg ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though JPMorgan Chase & Co Pg ADR has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of United States, JPMorgan Chase & Co Pg ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 JPMorgan Chase & Co Pg ADR supply chain. Even after few cautionary changes, JPMorgan Chase & Co Pg ADR is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left JPMorgan Chase & Co Pg ADR vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, JPMorgan Chase & Co Pg ADR 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 decision making process
– As mentioned earlier in the report, JPMorgan Chase & Co Pg ADR 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. JPMorgan Chase & Co Pg ADR 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.
High cash cycle compare to competitors
JPMorgan Chase & Co Pg ADR 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.
JPMorgan Chase & Co Pg ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of JPMorgan Chase & Co Pg ADR are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, JPMorgan Chase & Co Pg ADR can use these opportunities to build new business models that can help the communities that JPMorgan Chase & Co Pg ADR operates in. Secondly it can use opportunities from government spending in sector.
Buying journey improvements
– JPMorgan Chase & Co Pg ADR 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, JPMorgan Chase & Co Pg ADR 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.
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. JPMorgan Chase & Co Pg ADR can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– JPMorgan Chase & Co Pg ADR 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, JPMorgan Chase & Co Pg ADR is facing challenges because of the dominance of functional experts in the organization. JPMorgan Chase & Co Pg ADR 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR to hire the very best people irrespective of their geographical location.
Loyalty marketing
– JPMorgan Chase & Co Pg ADR 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.
Leveraging digital technologies
– JPMorgan Chase & Co Pg ADR 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.
Manufacturing automation
– JPMorgan Chase & Co Pg ADR 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.
Learning at scale
– Online learning technologies has now opened space for JPMorgan Chase & Co Pg ADR 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.
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 JPMorgan Chase & Co Pg ADR in the industry. Now JPMorgan Chase & Co Pg ADR can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of JPMorgan Chase & Co Pg ADR are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents JPMorgan Chase & Co Pg ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. JPMorgan Chase & Co Pg ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– JPMorgan Chase & Co Pg ADR 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, JPMorgan Chase & Co Pg ADR 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.
Technology acceleration in Forth Industrial Revolution
– JPMorgan Chase & Co Pg ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, JPMorgan Chase & Co Pg ADR 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.
Stagnating economy with rate increase
– JPMorgan Chase & Co Pg ADR 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.
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. JPMorgan Chase & Co Pg ADR 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.
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.
Environmental challenges
– JPMorgan Chase & Co Pg ADR 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. JPMorgan Chase & Co Pg ADR can take advantage of this fund but it will also bring new competitors in the industry.
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. JPMorgan Chase & Co Pg ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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 JPMorgan Chase & Co Pg ADR business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of JPMorgan Chase & Co Pg ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR needs to make to build a sustainable competitive advantage.