Preferredplus Trust Ser Czn 1 Pref (PIY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Preferredplus Trust Ser Czn 1 Pref (United States)
Based on various researches at Oak Spring University , Preferredplus Trust Ser Czn 1 Pref is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, wage bills are increasing, there is backlash against globalization, technology disruption, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Preferredplus Trust Ser Czn 1 Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Preferredplus Trust Ser Czn 1 Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Preferredplus Trust Ser Czn 1 Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref can be done for the following purposes –
1. Strategic planning of Preferredplus Trust Ser Czn 1 Pref
2. Improving business portfolio management of Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref
Strengths of Preferredplus Trust Ser Czn 1 Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Preferredplus Trust Ser Czn 1 Pref are -
Ability to recruit top talent
– Preferredplus Trust Ser Czn 1 Pref is one of the leading players in the 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 Preferredplus Trust Ser Czn 1 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.
Ability to lead change in
– Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Preferredplus Trust Ser Czn 1 Pref 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.
Operational resilience
– The operational resilience strategy of Preferredplus Trust Ser Czn 1 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.
Strong track record of project management in the industry
– Preferredplus Trust Ser Czn 1 Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Preferredplus Trust Ser Czn 1 Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Preferredplus Trust Ser Czn 1 Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Preferredplus Trust Ser Czn 1 Pref is present in almost all the verticals within the industry. This has provided Preferredplus Trust Ser Czn 1 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.
Effective Research and Development (R&D)
– Preferredplus Trust Ser Czn 1 Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Preferredplus Trust Ser Czn 1 Pref staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Preferredplus Trust Ser Czn 1 Pref has one of the best training and development program in 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.
High brand equity
– Preferredplus Trust Ser Czn 1 Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Preferredplus Trust Ser Czn 1 Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Preferredplus Trust Ser Czn 1 Pref in the sector have low bargaining power. Preferredplus Trust Ser Czn 1 Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Preferredplus Trust Ser Czn 1 Pref to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Preferredplus Trust Ser Czn 1 Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Preferredplus Trust Ser Czn 1 Pref are -
Slow to strategic competitive environment developments
– As Preferredplus Trust Ser Czn 1 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.
Lack of clear differentiation of Preferredplus Trust Ser Czn 1 Pref products
– To increase the profitability and margins on the products, Preferredplus Trust Ser Czn 1 Pref 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, Preferredplus Trust Ser Czn 1 Pref has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Preferredplus Trust Ser Czn 1 Pref 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Preferredplus Trust Ser Czn 1 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.
Increasing silos among functional specialists
– The organizational structure of Preferredplus Trust Ser Czn 1 Pref is dominated by functional specialists. It is not different from other players in the industry, but Preferredplus Trust Ser Czn 1 Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Preferredplus Trust Ser Czn 1 Pref to focus more on services in the industry rather than just following the product oriented approach.
No frontier risks strategy
– From the 10K / annual statement of Preferredplus Trust Ser Czn 1 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.
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 Preferredplus Trust Ser Czn 1 Pref supply chain. Even after few cautionary changes, Preferredplus Trust Ser Czn 1 Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Preferredplus Trust Ser Czn 1 Pref vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Preferredplus Trust Ser Czn 1 Pref has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ less understanding of Preferredplus Trust Ser Czn 1 Pref strategy
– From the outside it seems that the employees of Preferredplus Trust Ser Czn 1 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Preferredplus Trust Ser Czn 1 Pref is slow explore the new channels of communication. These new channels of communication can help Preferredplus Trust Ser Czn 1 Pref to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Preferredplus Trust Ser Czn 1 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.
Preferredplus Trust Ser Czn 1 Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Preferredplus Trust Ser Czn 1 Pref are -
Manufacturing automation
– Preferredplus Trust Ser Czn 1 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.
Buying journey improvements
– Preferredplus Trust Ser Czn 1 Pref can improve the customer journey of consumers in the 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.
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 Preferredplus Trust Ser Czn 1 Pref 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.
Developing new processes and practices
– Preferredplus Trust Ser Czn 1 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Preferredplus Trust Ser Czn 1 Pref is facing challenges because of the dominance of functional experts in the organization. Preferredplus Trust Ser Czn 1 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Preferredplus Trust Ser Czn 1 Pref can use these opportunities to build new business models that can help the communities that Preferredplus Trust Ser Czn 1 Pref operates in. Secondly it can use opportunities from government spending in sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Preferredplus Trust Ser Czn 1 Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 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.
Learning at scale
– Online learning technologies has now opened space for Preferredplus Trust Ser Czn 1 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Preferredplus Trust Ser Czn 1 Pref 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 Preferredplus Trust Ser Czn 1 Pref to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Preferredplus Trust Ser Czn 1 Pref 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.
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. Preferredplus Trust Ser Czn 1 Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Preferredplus Trust Ser Czn 1 Pref has opened avenues for new revenue streams for the organization in industry. This can help Preferredplus Trust Ser Czn 1 Pref to build a more holistic ecosystem for Preferredplus Trust Ser Czn 1 Pref products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Preferredplus Trust Ser Czn 1 Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Preferredplus Trust Ser Czn 1 Pref are -
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Preferredplus Trust Ser Czn 1 Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Preferredplus Trust Ser Czn 1 Pref.
Technology acceleration in Forth Industrial Revolution
– Preferredplus Trust Ser Czn 1 Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Preferredplus Trust Ser Czn 1 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.
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.
Shortening product life cycle
– it is one of the major threat that Preferredplus Trust Ser Czn 1 Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Preferredplus Trust Ser Czn 1 Pref in industry. The 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.
Environmental challenges
– Preferredplus Trust Ser Czn 1 Pref 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. Preferredplus Trust Ser Czn 1 Pref can take advantage of this fund but it will also bring new competitors in the industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Preferredplus Trust Ser Czn 1 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.
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. Preferredplus Trust Ser Czn 1 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.
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.
Consumer confidence and its impact on Preferredplus Trust Ser Czn 1 Pref 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 industry and other sectors.
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. Preferredplus Trust Ser Czn 1 Pref needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Preferredplus Trust Ser Czn 1 Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref needs to make to build a sustainable competitive advantage.