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 – cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, geopolitical disruptions, there is increasing trade war between United States & China, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, 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 -
Digital Transformation in industry
- digital transformation varies from industry to industry. For JPMorgan Chase & Co Pg ADR digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. JPMorgan Chase & Co Pg ADR 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.
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.
Cross disciplinary teams
– Horizontal connected teams at the JPMorgan Chase & Co Pg ADR 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.
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.
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.
Ability to recruit top talent
– JPMorgan Chase & Co Pg ADR 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.
Training and development
– JPMorgan Chase & Co Pg ADR 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.
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.
Innovation driven organization
– JPMorgan Chase & Co Pg ADR is one of the most innovative firm in sector.
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.
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.
Learning organization
- JPMorgan Chase & Co Pg ADR 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 JPMorgan Chase & Co Pg ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at JPMorgan Chase & Co Pg ADR emphasize – knowledge, initiative, and innovation.
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 -
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.
Capital Spending Reduction
– Even during the low interest decade, JPMorgan Chase & Co Pg ADR 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.
Ability to respond to the competition
– As the decision making is very deliberative at JPMorgan Chase & Co Pg ADR, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. JPMorgan Chase & Co Pg ADR has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Increasing silos among functional specialists
– The organizational structure of JPMorgan Chase & Co Pg ADR is dominated by functional specialists. It is not different from other players in the industry, but JPMorgan Chase & Co Pg ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JPMorgan Chase & Co Pg ADR to focus more on services in the industry rather than just following the product oriented approach.
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.
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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, JPMorgan Chase & Co Pg ADR is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
Need for greater diversity
– JPMorgan Chase & Co Pg ADR 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.
Compensation and incentives
– The revenue per employee of JPMorgan Chase & Co Pg ADR 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.
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 -
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.
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.
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. JPMorgan Chase & Co Pg ADR can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
Creating value in data economy
– The success of analytics program of JPMorgan Chase & Co Pg ADR has opened avenues for new revenue streams for the organization in industry. This can help JPMorgan Chase & Co Pg ADR to build a more holistic ecosystem for JPMorgan Chase & Co Pg ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
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 JPMorgan Chase & Co Pg ADR 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.
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.
Better consumer reach
– The expansion of the 5G network will help JPMorgan Chase & Co Pg ADR to increase its market reach. JPMorgan Chase & Co Pg ADR 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.
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.
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.
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.
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 -
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.
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.
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 JPMorgan Chase & Co Pg ADR in the sector and impact the bottomline of the organization.
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.
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.
Increasing wage structure of JPMorgan Chase & Co Pg ADR
– 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 JPMorgan Chase & Co Pg ADR.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for JPMorgan Chase & Co Pg ADR 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.
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.
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.
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 JPMorgan Chase & Co Pg ADR is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
