MS&AD Insurance Group Holdings PK (MSADY) SWOT Analysis / TOWS Matrix / MBA Resources
Insurance (Prop. & Casualty)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for MS&AD Insurance Group Holdings PK (United States)
Based on various researches at Oak Spring University , MS&AD Insurance Group Holdings PK is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of MS&AD Insurance Group Holdings PK
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that MS&AD Insurance Group Holdings PK can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the MS&AD Insurance Group Holdings PK, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK can be done for the following purposes –
1. Strategic planning of MS&AD Insurance Group Holdings PK
2. Improving business portfolio management of MS&AD Insurance Group Holdings PK
3. Assessing feasibility of the new initiative in United States
4. Making a Insurance (Prop. & Casualty) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of MS&AD Insurance Group Holdings PK
Strengths of MS&AD Insurance Group Holdings PK | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of MS&AD Insurance Group Holdings PK are -
Strong track record of project management in the Insurance (Prop. & Casualty) industry
– MS&AD Insurance Group Holdings PK is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) 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
– MS&AD Insurance Group Holdings PK has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. MS&AD Insurance Group Holdings PK 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
– MS&AD Insurance Group Holdings PK is present in almost all the verticals within the Insurance (Prop. & Casualty) industry. This has provided MS&AD Insurance Group Holdings PK 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.
Ability to lead change in Insurance (Prop. & Casualty)
– MS&AD Insurance Group Holdings PK is one of the leading players in the Insurance (Prop. & Casualty) industry in United States. Over the years it has not only transformed the business landscape in the Insurance (Prop. & Casualty) industry in United States but also across the existing markets. The ability to lead change has enabled MS&AD Insurance Group Holdings PK in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Insurance (Prop. & Casualty) industry
- digital transformation varies from industry to industry. For MS&AD Insurance Group Holdings PK digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. MS&AD Insurance Group Holdings PK 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.
High switching costs
– The high switching costs that MS&AD Insurance Group Holdings PK 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.
Organizational Resilience of MS&AD Insurance Group Holdings PK
– The covid-19 pandemic has put organizational resilience at the centre of everthing MS&AD Insurance Group Holdings PK does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at MS&AD Insurance Group Holdings PK emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of MS&AD Insurance Group Holdings PK in the Financial sector have low bargaining power. MS&AD Insurance Group Holdings PK has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps MS&AD Insurance Group Holdings PK to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– MS&AD Insurance Group Holdings PK has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Prop. & Casualty) industry. Secondly the value chain collaborators of MS&AD Insurance Group Holdings PK have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– MS&AD Insurance Group Holdings PK is one of the leading players in the Insurance (Prop. & Casualty) 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.
Weaknesses of MS&AD Insurance Group Holdings PK | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MS&AD Insurance Group Holdings PK are -
High bargaining power of channel partners in Insurance (Prop. & Casualty) industry
– because of the regulatory requirements in United States, MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry.
Compensation and incentives
– The revenue per employee of MS&AD Insurance Group Holdings PK is just above the Insurance (Prop. & Casualty) 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.
Capital Spending Reduction
– Even during the low interest decade, MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of MS&AD Insurance Group Holdings PK is dominated by functional specialists. It is not different from other players in the Insurance (Prop. & Casualty) industry, but MS&AD Insurance Group Holdings PK needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help MS&AD Insurance Group Holdings PK to focus more on services in the Insurance (Prop. & Casualty) industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at MS&AD Insurance Group Holdings PK, in the dynamic environment of Insurance (Prop. & Casualty) industry it has struggled to respond to the nimble upstart competition. MS&AD Insurance Group Holdings PK has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
MS&AD Insurance Group Holdings PK has a high cash cycle compare to other players in the Insurance (Prop. & Casualty) industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of MS&AD Insurance Group Holdings PK products
– To increase the profitability and margins on the products, MS&AD Insurance Group Holdings PK 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, MS&AD Insurance Group Holdings PK has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Insurance (Prop. & Casualty) industry over the last five years. MS&AD Insurance Group Holdings PK 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 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 MS&AD Insurance Group Holdings PK supply chain. Even after few cautionary changes, MS&AD Insurance Group Holdings PK is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left MS&AD Insurance Group Holdings PK vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Insurance (Prop. & Casualty) industry, MS&AD Insurance Group Holdings PK 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.
Employees’ less understanding of MS&AD Insurance Group Holdings PK strategy
– From the outside it seems that the employees of MS&AD Insurance Group Holdings PK 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.
MS&AD Insurance Group Holdings PK Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of MS&AD Insurance Group Holdings PK are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Prop. & Casualty) industry, but it has also influenced the consumer preferences. MS&AD Insurance Group Holdings PK can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, MS&AD Insurance Group Holdings PK is facing challenges because of the dominance of functional experts in the organization. MS&AD Insurance Group Holdings PK can utilize new technology in the field of Insurance (Prop. & Casualty) 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 MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK to hire the very best people irrespective of their geographical location.
Loyalty marketing
– MS&AD Insurance Group Holdings PK has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for MS&AD Insurance Group Holdings PK in the Insurance (Prop. & Casualty) industry. Now MS&AD Insurance Group Holdings PK can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry.
Using analytics as competitive advantage
– MS&AD Insurance Group Holdings PK has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Prop. & Casualty) sector. This continuous investment in analytics has enabled MS&AD Insurance Group Holdings PK to build a competitive advantage using analytics. The analytics driven competitive advantage can help MS&AD Insurance Group Holdings PK to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– MS&AD Insurance Group Holdings PK can develop new processes and procedures in Insurance (Prop. & Casualty) 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.
Leveraging digital technologies
– MS&AD Insurance Group Holdings PK 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, MS&AD Insurance Group Holdings PK 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.
Better consumer reach
– The expansion of the 5G network will help MS&AD Insurance Group Holdings PK to increase its market reach. MS&AD Insurance Group Holdings PK 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.
Threats MS&AD Insurance Group Holdings PK External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of MS&AD Insurance Group Holdings PK are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Insurance (Prop. & Casualty) industry are lowering. It can presents MS&AD Insurance Group Holdings PK with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Insurance (Prop. & Casualty) sector.
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. MS&AD Insurance Group Holdings PK 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK prominent markets.
Stagnating economy with rate increase
– MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry.
Easy access to finance
– Easy access to finance in Insurance (Prop. & Casualty) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. MS&AD Insurance Group Holdings PK can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for MS&AD Insurance Group Holdings PK in Insurance (Prop. & Casualty) industry. The Insurance (Prop. & Casualty) 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.
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 MS&AD Insurance Group Holdings PK.
Increasing wage structure of MS&AD Insurance Group Holdings PK
– 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 MS&AD Insurance Group Holdings PK.
Regulatory challenges
– MS&AD Insurance Group Holdings PK 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 Insurance (Prop. & Casualty) industry regulations.
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 MS&AD Insurance Group Holdings PK business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– MS&AD Insurance Group Holdings PK 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. MS&AD Insurance Group Holdings PK can take advantage of this fund but it will also bring new competitors in the Insurance (Prop. & Casualty) industry.
Technology acceleration in Forth Industrial Revolution
– MS&AD Insurance Group Holdings PK has witnessed rapid integration of technology during Covid-19 in the Insurance (Prop. & Casualty) industry. As one of the leading players in the industry, MS&AD Insurance Group Holdings PK needs to keep up with the evolution of technology in the Insurance (Prop. & Casualty) 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.
Weighted SWOT Analysis of MS&AD Insurance Group Holdings PK Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK 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 MS&AD Insurance Group Holdings PK needs to make to build a sustainable competitive advantage.
