Based on various researches at Oak Spring University , Flaherty & Crumrine Preferredome is operating in a macro-environment that has been destablized by – increasing commodity prices, wage bills are increasing, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , there is backlash against globalization, talent flight as more people leaving formal jobs,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Flaherty & Crumrine Preferredome
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Flaherty & Crumrine Preferredome can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Flaherty & Crumrine Preferredome, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome can be done for the following purposes –
1. Strategic planning of Flaherty & Crumrine Preferredome
2. Improving business portfolio management of Flaherty & Crumrine Preferredome
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 Flaherty & Crumrine Preferredome
Strengths of Flaherty & Crumrine Preferredome | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Flaherty & Crumrine Preferredome are -
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Flaherty & Crumrine Preferredome digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Flaherty & Crumrine Preferredome 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.
Training and development
– Flaherty & Crumrine Preferredome has one of the best training and development program in Financial industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Flaherty & Crumrine Preferredome in the Financial sector have low bargaining power. Flaherty & Crumrine Preferredome has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Flaherty & Crumrine Preferredome to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Flaherty & Crumrine Preferredome has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Flaherty & Crumrine Preferredome 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.
High brand equity
– Flaherty & Crumrine Preferredome has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Flaherty & Crumrine Preferredome to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Misc. Financial Services
– Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Flaherty & Crumrine Preferredome in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Misc. Financial Services industry
– Flaherty & Crumrine Preferredome has clearly differentiated products in the market place. This has enabled Flaherty & Crumrine Preferredome to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Flaherty & Crumrine Preferredome to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Flaherty & Crumrine Preferredome 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
– Flaherty & Crumrine Preferredome is present in almost all the verticals within the Misc. Financial Services industry. This has provided Flaherty & Crumrine Preferredome 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.
High switching costs
– The high switching costs that Flaherty & Crumrine Preferredome 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.
Highly skilled collaborators
– Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Flaherty & Crumrine Preferredome | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Flaherty & Crumrine Preferredome are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Flaherty & Crumrine Preferredome is slow explore the new channels of communication. These new channels of communication can help Flaherty & Crumrine Preferredome 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.
Increasing silos among functional specialists
– The organizational structure of Flaherty & Crumrine Preferredome is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but Flaherty & Crumrine Preferredome needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Flaherty & Crumrine Preferredome to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Flaherty & Crumrine Preferredome is just above the Misc. Financial Services 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.
Interest costs
– Compare to the competition, Flaherty & Crumrine Preferredome 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.
Products dominated business model
– Even though Flaherty & Crumrine Preferredome 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. Flaherty & Crumrine Preferredome should strive to include more intangible value offerings along with its core products and services.
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 Flaherty & Crumrine Preferredome supply chain. Even after few cautionary changes, Flaherty & Crumrine Preferredome is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Flaherty & Crumrine Preferredome vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Misc. Financial Services industry, Flaherty & Crumrine Preferredome 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.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in United States, Flaherty & Crumrine Preferredome 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.
Capital Spending Reduction
– Even during the low interest decade, Flaherty & Crumrine Preferredome 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.
Lack of clear differentiation of Flaherty & Crumrine Preferredome products
– To increase the profitability and margins on the products, Flaherty & Crumrine Preferredome needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome lucrative customers.
Flaherty & Crumrine Preferredome Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Flaherty & Crumrine Preferredome are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Flaherty & Crumrine Preferredome 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.
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. Flaherty & Crumrine Preferredome can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Flaherty & Crumrine Preferredome can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Flaherty & Crumrine Preferredome 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, Flaherty & Crumrine Preferredome can use these opportunities to build new business models that can help the communities that Flaherty & Crumrine Preferredome operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Manufacturing automation
– Flaherty & Crumrine Preferredome 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.
Loyalty marketing
– Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome 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.
Creating value in data economy
– The success of analytics program of Flaherty & Crumrine Preferredome has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Flaherty & Crumrine Preferredome to build a more holistic ecosystem for Flaherty & Crumrine Preferredome products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Flaherty & Crumrine Preferredome 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 Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Flaherty & Crumrine Preferredome in the Misc. Financial Services industry. Now Flaherty & Crumrine Preferredome 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, Flaherty & Crumrine Preferredome is facing challenges because of the dominance of functional experts in the organization. Flaherty & Crumrine Preferredome 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.
Buying journey improvements
– Flaherty & Crumrine Preferredome can improve the customer journey of consumers in the Misc. Financial Services industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Flaherty & Crumrine Preferredome External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Flaherty & Crumrine Preferredome are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Flaherty & Crumrine Preferredome 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Flaherty & Crumrine Preferredome 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.
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. Flaherty & Crumrine Preferredome 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, Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome prominent markets.
Shortening product life cycle
– it is one of the major threat that Flaherty & Crumrine Preferredome is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Flaherty & Crumrine Preferredome has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Flaherty & Crumrine Preferredome 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.
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 Flaherty & Crumrine Preferredome in the Misc. Financial Services sector and impact the bottomline of the organization.
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. Flaherty & Crumrine Preferredome needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Flaherty & Crumrine Preferredome 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 Misc. Financial Services industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Flaherty & Crumrine Preferredome business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Flaherty & Crumrine Preferredome 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.
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
– Flaherty & Crumrine Preferredome 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.
Weighted SWOT Analysis of Flaherty & Crumrine Preferredome Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome 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 Flaherty & Crumrine Preferredome needs to make to build a sustainable competitive advantage.
