MFS Intermediate Income Trust (MIN) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for MFS Intermediate Income Trust (United States)

Based on various researches at Oak Spring University , MFS Intermediate Income Trust is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, etc

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Introduction to SWOT Analysis of MFS Intermediate Income Trust

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that MFS Intermediate Income Trust can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the MFS Intermediate Income Trust, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which MFS Intermediate Income Trust 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of MFS Intermediate Income Trust can be done for the following purposes –
1. Strategic planning of MFS Intermediate Income Trust
2. Improving business portfolio management of MFS Intermediate Income Trust
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 MFS Intermediate Income Trust

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Strengths of MFS Intermediate Income Trust | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of MFS Intermediate Income Trust are -

Low bargaining power of suppliers

– Suppliers of MFS Intermediate Income Trust in the Financial sector have low bargaining power. MFS Intermediate Income Trust has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps MFS Intermediate Income Trust to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- MFS Intermediate Income Trust 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 MFS Intermediate Income Trust is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at MFS Intermediate Income Trust emphasize – knowledge, initiative, and innovation.

Digital Transformation in Misc. Financial Services industry

- digital transformation varies from industry to industry. For MFS Intermediate Income Trust digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. MFS Intermediate Income Trust 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.

Sustainable margins compare to other players in Misc. Financial Services industry

– MFS Intermediate Income Trust has clearly differentiated products in the market place. This has enabled MFS Intermediate Income Trust to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped MFS Intermediate Income Trust to invest into research and development (R&D) and innovation.

Analytics focus

– MFS Intermediate Income Trust 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.

High brand equity

– MFS Intermediate Income Trust has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled MFS Intermediate Income Trust to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– MFS Intermediate Income Trust has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. MFS Intermediate Income Trust 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.

Diverse revenue streams

– MFS Intermediate Income Trust is present in almost all the verticals within the Misc. Financial Services industry. This has provided MFS Intermediate Income Trust 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

– MFS Intermediate Income Trust is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High switching costs

– The high switching costs that MFS Intermediate Income Trust 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.

Ability to recruit top talent

– MFS Intermediate Income Trust is one of the leading players in the Misc. 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.

Cross disciplinary teams

– Horizontal connected teams at the MFS Intermediate Income Trust 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.

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Weaknesses of MFS Intermediate Income Trust | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of MFS Intermediate Income Trust are -

Slow to strategic competitive environment developments

– As MFS Intermediate Income Trust 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 dependence on MFS Intermediate Income Trust ‘s star products

– The top 2 products and services of MFS Intermediate Income Trust 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 MFS Intermediate Income Trust has relatively successful track record of launching new products.

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 MFS Intermediate Income Trust supply chain. Even after few cautionary changes, MFS Intermediate Income Trust is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left MFS Intermediate Income Trust vulnerable to further global disruptions in South East Asia.

Capital Spending Reduction

– Even during the low interest decade, MFS Intermediate Income Trust 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.

Employees’ less understanding of MFS Intermediate Income Trust strategy

– From the outside it seems that the employees of MFS Intermediate Income Trust 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.

Products dominated business model

– Even though MFS Intermediate Income Trust has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. MFS Intermediate Income Trust should strive to include more intangible value offerings along with its core products and services.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, MFS Intermediate Income Trust is slow explore the new channels of communication. These new channels of communication can help MFS Intermediate Income Trust 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.

Need for greater diversity

– MFS Intermediate Income Trust 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.

Increasing silos among functional specialists

– The organizational structure of MFS Intermediate Income Trust is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but MFS Intermediate Income Trust needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help MFS Intermediate Income Trust to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.

High cash cycle compare to competitors

MFS Intermediate Income Trust has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Interest costs

– Compare to the competition, MFS Intermediate Income Trust 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.

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MFS Intermediate Income Trust Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of MFS Intermediate Income Trust are -

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 MFS Intermediate Income Trust in the Misc. Financial Services industry. Now MFS Intermediate Income Trust can target international markets with far fewer capital restrictions requirements than the existing system.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. MFS Intermediate Income Trust can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– MFS Intermediate Income Trust 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.

Better consumer reach

– The expansion of the 5G network will help MFS Intermediate Income Trust to increase its market reach. MFS Intermediate Income Trust 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.

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. MFS Intermediate Income Trust can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Redefining models of collaboration and team work

– As explained in the weaknesses section, MFS Intermediate Income Trust is facing challenges because of the dominance of functional experts in the organization. MFS Intermediate Income Trust 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.

Building a culture of innovation

– managers at MFS Intermediate Income Trust can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Misc. Financial Services industry.

Creating value in data economy

– The success of analytics program of MFS Intermediate Income Trust has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help MFS Intermediate Income Trust to build a more holistic ecosystem for MFS Intermediate Income Trust products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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. MFS Intermediate Income Trust 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. MFS Intermediate Income Trust 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.

Developing new processes and practices

– MFS Intermediate Income Trust 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, MFS Intermediate Income Trust can use these opportunities to build new business models that can help the communities that MFS Intermediate Income Trust operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.

Using analytics as competitive advantage

– MFS Intermediate Income Trust has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled MFS Intermediate Income Trust to build a competitive advantage using analytics. The analytics driven competitive advantage can help MFS Intermediate Income Trust to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Lowering marketing communication costs

– 5G expansion will open new opportunities for MFS Intermediate Income Trust in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.

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Threats MFS Intermediate Income Trust External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of MFS Intermediate Income Trust 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.

Easy access to finance

– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. MFS Intermediate Income Trust can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

– MFS Intermediate Income Trust has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, MFS Intermediate Income Trust needs to keep up with the evolution of technology in the Misc. 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.

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.

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 MFS Intermediate Income Trust in the Misc. Financial Services sector and impact the bottomline of the organization.

Regulatory challenges

– MFS Intermediate Income Trust 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.

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. MFS Intermediate Income Trust 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.

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 MFS Intermediate Income Trust business can come under increasing regulations regarding data privacy, data security, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for MFS Intermediate Income Trust 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.

Increasing wage structure of MFS Intermediate Income Trust

– 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 MFS Intermediate Income Trust.

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. MFS Intermediate Income Trust needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.

Environmental challenges

– MFS Intermediate Income Trust 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. MFS Intermediate Income Trust can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents MFS Intermediate Income Trust 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.

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Weighted SWOT Analysis of MFS Intermediate Income Trust Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at MFS Intermediate Income Trust 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 MFS Intermediate Income Trust 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 MFS Intermediate Income Trust 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 MFS Intermediate Income Trust 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 MFS Intermediate Income Trust needs to make to build a sustainable competitive advantage.

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