BlackRock MuniEnhanced Closed Fund (MEN) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for BlackRock MuniEnhanced Closed Fund (United States)
Based on various researches at Oak Spring University , BlackRock MuniEnhanced Closed Fund is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, technology disruption,
increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of BlackRock MuniEnhanced Closed Fund
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that BlackRock MuniEnhanced Closed Fund can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the BlackRock MuniEnhanced Closed Fund, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund can be done for the following purposes –
1. Strategic planning of BlackRock MuniEnhanced Closed Fund
2. Improving business portfolio management of BlackRock MuniEnhanced Closed Fund
3. Assessing feasibility of the new initiative in United States
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of BlackRock MuniEnhanced Closed Fund
Strengths of BlackRock MuniEnhanced Closed Fund | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of BlackRock MuniEnhanced Closed Fund are -
Cross disciplinary teams
– Horizontal connected teams at the BlackRock MuniEnhanced Closed Fund 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.
Analytics focus
– BlackRock MuniEnhanced Closed Fund 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 Misc. Financial Services 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.
Successful track record of launching new products
– BlackRock MuniEnhanced Closed Fund has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. BlackRock MuniEnhanced Closed Fund 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.
Ability to lead change in Misc. Financial Services
– BlackRock MuniEnhanced Closed Fund is one of the leading players in the Misc. Financial Services industry in United States. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United States but also across the existing markets. The ability to lead change has enabled BlackRock MuniEnhanced Closed Fund in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– BlackRock MuniEnhanced Closed Fund is present in almost all the verticals within the Misc. Financial Services industry. This has provided BlackRock MuniEnhanced Closed Fund 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.
Strong track record of project management in the Misc. Financial Services industry
– BlackRock MuniEnhanced Closed Fund is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– BlackRock MuniEnhanced Closed Fund has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of BlackRock MuniEnhanced Closed Fund have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of BlackRock MuniEnhanced Closed Fund in the Financial sector have low bargaining power. BlackRock MuniEnhanced Closed Fund has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps BlackRock MuniEnhanced Closed Fund to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– BlackRock MuniEnhanced Closed Fund has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled BlackRock MuniEnhanced Closed Fund to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of BlackRock MuniEnhanced Closed Fund
– The covid-19 pandemic has put organizational resilience at the centre of everthing BlackRock MuniEnhanced Closed Fund does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– BlackRock MuniEnhanced Closed Fund has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – BlackRock MuniEnhanced Closed Fund staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– BlackRock MuniEnhanced Closed Fund is one of the most innovative firm in Misc. Financial Services sector.
Weaknesses of BlackRock MuniEnhanced Closed Fund | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BlackRock MuniEnhanced Closed Fund are -
High operating costs
– Compare to the competitors, BlackRock MuniEnhanced Closed Fund has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract BlackRock MuniEnhanced Closed Fund lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, BlackRock MuniEnhanced Closed Fund is slow explore the new channels of communication. These new channels of communication can help BlackRock MuniEnhanced Closed Fund to provide better information regarding Misc. Financial Services products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of BlackRock MuniEnhanced Closed Fund products
– To increase the profitability and margins on the products, BlackRock MuniEnhanced Closed Fund needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, BlackRock MuniEnhanced Closed Fund has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Financial Services industry over the last five years. BlackRock MuniEnhanced Closed Fund 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.
Slow to strategic competitive environment developments
– As BlackRock MuniEnhanced Closed Fund is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United States, BlackRock MuniEnhanced Closed Fund 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 Misc. Financial Services industry.
High dependence on BlackRock MuniEnhanced Closed Fund ‘s star products
– The top 2 products and services of BlackRock MuniEnhanced Closed Fund still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though BlackRock MuniEnhanced Closed Fund has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of United States, BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund supply chain. Even after few cautionary changes, BlackRock MuniEnhanced Closed Fund is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left BlackRock MuniEnhanced Closed Fund vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, BlackRock MuniEnhanced Closed Fund 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.
Capital Spending Reduction
– Even during the low interest decade, BlackRock MuniEnhanced Closed Fund 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 Misc. Financial Services industry using digital technology.
BlackRock MuniEnhanced Closed Fund Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of BlackRock MuniEnhanced Closed Fund are -
Developing new processes and practices
– BlackRock MuniEnhanced Closed Fund can develop new processes and procedures in Misc. 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.
Learning at scale
– Online learning technologies has now opened space for BlackRock MuniEnhanced Closed Fund 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.
Loyalty marketing
– BlackRock MuniEnhanced Closed Fund 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.
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 BlackRock MuniEnhanced Closed Fund to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, BlackRock MuniEnhanced Closed Fund can use these opportunities to build new business models that can help the communities that BlackRock MuniEnhanced Closed Fund operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Manufacturing automation
– BlackRock MuniEnhanced Closed Fund can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, BlackRock MuniEnhanced Closed Fund is facing challenges because of the dominance of functional experts in the organization. BlackRock MuniEnhanced Closed Fund can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects BlackRock MuniEnhanced Closed Fund 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, BlackRock MuniEnhanced Closed Fund 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.
Creating value in data economy
– The success of analytics program of BlackRock MuniEnhanced Closed Fund has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help BlackRock MuniEnhanced Closed Fund to build a more holistic ecosystem for BlackRock MuniEnhanced Closed Fund products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for BlackRock MuniEnhanced Closed Fund in the Misc. Financial Services industry. Now BlackRock MuniEnhanced Closed Fund can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. BlackRock MuniEnhanced Closed Fund 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. BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of BlackRock MuniEnhanced Closed Fund are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for BlackRock MuniEnhanced Closed Fund in Misc. Financial Services industry. The Misc. Financial Services 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.
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 Misc. Financial Services industry are lowering. It can presents BlackRock MuniEnhanced Closed Fund with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
Consumer confidence and its impact on BlackRock MuniEnhanced Closed Fund 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 Misc. Financial Services industry and other sectors.
Increasing wage structure of BlackRock MuniEnhanced Closed Fund
– 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 BlackRock MuniEnhanced Closed Fund.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, BlackRock MuniEnhanced Closed Fund may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
Shortening product life cycle
– it is one of the major threat that BlackRock MuniEnhanced Closed Fund is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– BlackRock MuniEnhanced Closed Fund needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Misc. Financial Services industry regulations.
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 BlackRock MuniEnhanced Closed Fund.
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 BlackRock MuniEnhanced Closed Fund business can come under increasing regulations regarding data privacy, data security, etc.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund prominent markets.
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. BlackRock MuniEnhanced Closed Fund needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Weighted SWOT Analysis of BlackRock MuniEnhanced Closed Fund Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund 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 BlackRock MuniEnhanced Closed Fund needs to make to build a sustainable competitive advantage.