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 – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing household debt because of falling income levels, increasing energy prices, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, 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 -
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.
Innovation driven organization
– Preferredplus Trust Ser Czn 1 Pref is one of the most innovative firm in sector.
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.
Sustainable margins compare to other players in industry
– Preferredplus Trust Ser Czn 1 Pref has clearly differentiated products in the market place. This has enabled Preferredplus Trust Ser Czn 1 Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Preferredplus Trust Ser Czn 1 Pref to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Preferredplus Trust Ser Czn 1 Pref in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Learning organization
- Preferredplus Trust Ser Czn 1 Pref 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 Preferredplus Trust Ser Czn 1 Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Preferredplus Trust Ser Czn 1 Pref emphasize – knowledge, initiative, and innovation.
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.
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.
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.
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 -
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.
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.
Low market penetration in new markets
– Outside its home market of United States, Preferredplus Trust Ser Czn 1 Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on Preferredplus Trust Ser Czn 1 Pref ‘s star products
– The top 2 products and services of Preferredplus Trust Ser Czn 1 Pref still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Preferredplus Trust Ser Czn 1 Pref has relatively successful track record of launching new products.
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.
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.
Interest costs
– Compare to the competition, Preferredplus Trust Ser Czn 1 Pref 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.
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.
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.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Preferredplus Trust Ser Czn 1 Pref 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 industry.
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.
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 -
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.
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.
Better consumer reach
– The expansion of the 5G network will help Preferredplus Trust Ser Czn 1 Pref to increase its market reach. Preferredplus Trust Ser Czn 1 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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Preferredplus Trust Ser Czn 1 Pref 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Preferredplus Trust Ser Czn 1 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.
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.
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.
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.
Building a culture of innovation
– managers at Preferredplus Trust Ser Czn 1 Pref 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 industry.
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.
Using analytics as competitive advantage
– Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Preferredplus Trust Ser Czn 1 Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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 -
Increasing wage structure of Preferredplus Trust Ser Czn 1 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 Preferredplus Trust Ser Czn 1 Pref.
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.
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.
Regulatory challenges
– Preferredplus Trust Ser Czn 1 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.
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.
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.
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.
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 Preferredplus Trust Ser Czn 1 Pref business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Preferredplus Trust Ser Czn 1 Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
High dependence on third party suppliers
– Preferredplus Trust Ser Czn 1 Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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 Preferredplus Trust Ser Czn 1 Pref in the sector and impact the bottomline of the organization.
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 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.