M&T Bank Corp Pc Pref (MTB_pc) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for M&T Bank Corp Pc Pref (United States)
Based on various researches at Oak Spring University , M&T Bank Corp Pc Pref is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing energy prices, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of M&T Bank Corp Pc Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that M&T Bank Corp Pc Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the M&T Bank Corp Pc Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref can be done for the following purposes –
1. Strategic planning of M&T Bank Corp Pc Pref
2. Improving business portfolio management of M&T Bank Corp Pc Pref
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 M&T Bank Corp Pc Pref
Strengths of M&T Bank Corp Pc Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of M&T Bank Corp Pc Pref are -
Digital Transformation in industry
- digital transformation varies from industry to industry. For M&T Bank Corp Pc Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. M&T Bank Corp Pc Pref 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.
Successful track record of launching new products
– M&T Bank Corp Pc Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. M&T Bank Corp Pc Pref 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.
Superior customer experience
– The customer experience strategy of M&T Bank Corp Pc Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– M&T Bank Corp Pc Pref 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.
Sustainable margins compare to other players in industry
– M&T Bank Corp Pc Pref has clearly differentiated products in the market place. This has enabled M&T Bank Corp Pc Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped M&T Bank Corp Pc Pref to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy of M&T Bank Corp Pc Pref 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.
Cross disciplinary teams
– Horizontal connected teams at the M&T Bank Corp Pc Pref 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.
Diverse revenue streams
– M&T Bank Corp Pc Pref is present in almost all the verticals within the industry. This has provided M&T Bank Corp Pc Pref a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– M&T Bank Corp Pc Pref is one of the most innovative firm in sector.
Ability to lead change in
– M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– M&T Bank Corp Pc Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled M&T Bank Corp Pc Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of M&T Bank Corp Pc Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing M&T Bank Corp Pc Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of M&T Bank Corp Pc Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of M&T Bank Corp Pc Pref are -
Capital Spending Reduction
– Even during the low interest decade, M&T Bank Corp Pc Pref 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.
Slow to strategic competitive environment developments
– As M&T Bank Corp Pc Pref is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of M&T Bank Corp Pc Pref is dominated by functional specialists. It is not different from other players in the industry, but M&T Bank Corp Pc Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help M&T Bank Corp Pc Pref to focus more on services in the industry rather than just following the product oriented approach.
Employees’ less understanding of M&T Bank Corp Pc Pref strategy
– From the outside it seems that the employees of M&T Bank Corp Pc Pref 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 operating costs
– Compare to the competitors, M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref lucrative customers.
Need for greater diversity
– M&T Bank Corp Pc Pref 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.
Lack of clear differentiation of M&T Bank Corp Pc Pref products
– To increase the profitability and margins on the products, M&T Bank Corp Pc Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative at M&T Bank Corp Pc Pref, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. M&T Bank Corp Pc Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in industry
– The stress on hiring functional specialists at M&T Bank Corp Pc Pref has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, M&T Bank Corp Pc Pref is slow explore the new channels of communication. These new channels of communication can help M&T Bank Corp Pc Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of M&T Bank Corp Pc Pref, it seems that company is thinking out the frontier risks that can impact industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
M&T Bank Corp Pc Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of M&T Bank Corp Pc Pref are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. M&T Bank Corp Pc Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– M&T Bank Corp Pc Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled M&T Bank Corp Pc Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help M&T Bank Corp Pc Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– M&T Bank Corp Pc Pref can use the latest technology developments to improve its manufacturing and designing process in sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Learning at scale
– Online learning technologies has now opened space for M&T Bank Corp Pc Pref 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.
Better consumer reach
– The expansion of the 5G network will help M&T Bank Corp Pc Pref to increase its market reach. M&T Bank Corp Pc Pref 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. M&T Bank Corp Pc Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for M&T Bank Corp Pc Pref in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, M&T Bank Corp Pc Pref can use these opportunities to build new business models that can help the communities that M&T Bank Corp Pc Pref operates in. Secondly it can use opportunities from government spending in sector.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for M&T Bank Corp Pc Pref in the industry. Now M&T Bank Corp Pc Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, M&T Bank Corp Pc Pref is facing challenges because of the dominance of functional experts in the organization. M&T Bank Corp Pc Pref 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects M&T Bank Corp Pc Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– M&T Bank Corp Pc Pref 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.
Threats M&T Bank Corp Pc Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of M&T Bank Corp Pc Pref are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, M&T Bank Corp Pc Pref 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.
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 M&T Bank Corp Pc Pref.
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. M&T Bank Corp Pc Pref 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents M&T Bank Corp Pc Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of M&T Bank Corp Pc Pref
– 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 M&T Bank Corp Pc Pref.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref prominent markets.
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 M&T Bank Corp Pc Pref in the sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– M&T Bank Corp Pc Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, M&T Bank Corp Pc Pref 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.
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 M&T Bank Corp Pc Pref business can come under increasing regulations regarding data privacy, data security, etc.
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. M&T Bank Corp Pc Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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.
Regulatory challenges
– M&T Bank Corp Pc Pref 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 industry regulations.
Shortening product life cycle
– it is one of the major threat that M&T Bank Corp Pc Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of M&T Bank Corp Pc Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref 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 M&T Bank Corp Pc Pref needs to make to build a sustainable competitive advantage.
