Royce Global Value Trust Inc (RGT) SWOT Analysis / TOWS Matrix / MBA Resources
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Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Royce Global Value Trust Inc (United States)
Based on various researches at Oak Spring University , Royce Global Value Trust Inc is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, technology disruption, wage bills are increasing, increasing energy prices, increasing commodity prices, geopolitical disruptions,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Royce Global Value Trust Inc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Royce Global Value Trust Inc can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Royce Global Value Trust Inc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Royce Global Value Trust Inc 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 Royce Global Value Trust Inc can be done for the following purposes –
1. Strategic planning of Royce Global Value Trust Inc
2. Improving business portfolio management of Royce Global Value Trust Inc
3. Assessing feasibility of the new initiative in United States
4. Making a Investment Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Royce Global Value Trust Inc
Strengths of Royce Global Value Trust Inc | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Royce Global Value Trust Inc are -
Low bargaining power of suppliers
– Suppliers of Royce Global Value Trust Inc in the Financial sector have low bargaining power. Royce Global Value Trust Inc has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Royce Global Value Trust Inc to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Royce Global Value Trust Inc has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Royce Global Value Trust Inc staying ahead in the Investment Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Royce Global Value Trust Inc is present in almost all the verticals within the Investment Services industry. This has provided Royce Global Value Trust Inc 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.
Digital Transformation in Investment Services industry
- digital transformation varies from industry to industry. For Royce Global Value Trust Inc digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Royce Global Value Trust Inc 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.
Organizational Resilience of Royce Global Value Trust Inc
– The covid-19 pandemic has put organizational resilience at the centre of everthing Royce Global Value Trust Inc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Investment Services industry
– Royce Global Value Trust Inc has clearly differentiated products in the market place. This has enabled Royce Global Value Trust Inc to fetch slight price premium compare to the competitors in the Investment Services industry. The sustainable margins have also helped Royce Global Value Trust Inc to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Royce Global Value Trust Inc is one of the leading players in the Investment Services 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.
Highly skilled collaborators
– Royce Global Value Trust Inc has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Investment Services industry. Secondly the value chain collaborators of Royce Global Value Trust Inc have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Royce Global Value Trust Inc 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 Royce Global Value Trust Inc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Royce Global Value Trust Inc emphasize – knowledge, initiative, and innovation.
High brand equity
– Royce Global Value Trust Inc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Royce Global Value Trust Inc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the Investment Services industry
– Royce Global Value Trust Inc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Royce Global Value Trust Inc comprises – understanding the underlying the factors in the Investment Services 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.
Weaknesses of Royce Global Value Trust Inc | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Royce Global Value Trust Inc are -
Capital Spending Reduction
– Even during the low interest decade, Royce Global Value Trust Inc 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 Investment Services industry using digital technology.
No frontier risks strategy
– From the 10K / annual statement of Royce Global Value Trust Inc, it seems that company is thinking out the frontier risks that can impact Investment Services 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.
Compensation and incentives
– The revenue per employee of Royce Global Value Trust Inc is just above the Investment 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.
Increasing silos among functional specialists
– The organizational structure of Royce Global Value Trust Inc is dominated by functional specialists. It is not different from other players in the Investment Services industry, but Royce Global Value Trust Inc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Royce Global Value Trust Inc to focus more on services in the Investment Services industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Royce Global Value Trust Inc has high operating costs in the Investment Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Royce Global Value Trust Inc lucrative customers.
Aligning sales with marketing
– From the outside it seems that Royce Global Value Trust Inc needs to have more collaboration between its sales team and marketing team. Sales professionals in the Investment Services industry have deep experience in developing customer relationships. Marketing department at Royce Global Value Trust Inc can leverage the sales team experience to cultivate customer relationships as Royce Global Value Trust Inc is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of United States, Royce Global Value Trust Inc needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Royce Global Value Trust Inc supply chain. Even after few cautionary changes, Royce Global Value Trust Inc is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Royce Global Value Trust Inc vulnerable to further global disruptions in South East Asia.
High dependence on Royce Global Value Trust Inc ‘s star products
– The top 2 products and services of Royce Global Value Trust Inc still accounts for major business revenue. This dependence on star products in Investment Services industry has resulted into insufficient focus on developing new products, even though Royce Global Value Trust Inc has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Royce Global Value Trust Inc 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 cash cycle compare to competitors
Royce Global Value Trust Inc has a high cash cycle compare to other players in the Investment Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Royce Global Value Trust Inc Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Royce Global Value Trust Inc are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Royce Global Value Trust Inc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Royce Global Value Trust Inc can improve the customer journey of consumers in the Investment 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.
Loyalty marketing
– Royce Global Value Trust Inc 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Investment Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Royce Global Value Trust Inc can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Royce Global Value Trust Inc can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Royce Global Value Trust Inc has opened avenues for new revenue streams for the organization in Investment Services industry. This can help Royce Global Value Trust Inc to build a more holistic ecosystem for Royce Global Value Trust Inc products in the Investment 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 Royce Global Value Trust Inc 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 Royce Global Value Trust Inc to increase its market reach. Royce Global Value Trust Inc 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.
Building a culture of innovation
– managers at Royce Global Value Trust Inc 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 Investment Services industry.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Royce Global Value Trust Inc is facing challenges because of the dominance of functional experts in the organization. Royce Global Value Trust Inc can utilize new technology in the field of Investment Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Royce Global Value Trust Inc in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Investment Services industry, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Royce Global Value Trust Inc has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Investment Services sector. This continuous investment in analytics has enabled Royce Global Value Trust Inc to build a competitive advantage using analytics. The analytics driven competitive advantage can help Royce Global Value Trust Inc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Investment Services industry, but it has also influenced the consumer preferences. Royce Global Value Trust Inc can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Royce Global Value Trust Inc 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 Royce Global Value Trust Inc to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Royce Global Value Trust Inc External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Royce Global Value Trust Inc are -
Technology acceleration in Forth Industrial Revolution
– Royce Global Value Trust Inc has witnessed rapid integration of technology during Covid-19 in the Investment Services industry. As one of the leading players in the industry, Royce Global Value Trust Inc needs to keep up with the evolution of technology in the Investment 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.
Environmental challenges
– Royce Global Value Trust Inc 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. Royce Global Value Trust Inc can take advantage of this fund but it will also bring new competitors in the Investment Services industry.
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 Royce Global Value Trust Inc.
Shortening product life cycle
– it is one of the major threat that Royce Global Value Trust Inc is facing in Investment Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Royce Global Value Trust Inc in the Investment Services sector and impact the bottomline of the organization.
Regulatory challenges
– Royce Global Value Trust Inc 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 Investment Services industry regulations.
Increasing wage structure of Royce Global Value Trust Inc
– 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 Royce Global Value Trust Inc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Investment Services industry are lowering. It can presents Royce Global Value Trust Inc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Investment Services sector.
Stagnating economy with rate increase
– Royce Global Value Trust Inc 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 Investment Services industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Royce Global Value Trust Inc in Investment Services industry. The Investment 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.
Easy access to finance
– Easy access to finance in Investment Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Royce Global Value Trust Inc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Royce Global Value Trust Inc 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 Royce Global Value Trust Inc prominent markets.
Consumer confidence and its impact on Royce Global Value Trust Inc 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 Investment Services industry and other sectors.
Weighted SWOT Analysis of Royce Global Value Trust Inc Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Royce Global Value Trust Inc 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 Royce Global Value Trust Inc 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 Royce Global Value Trust Inc 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 Royce Global Value Trust Inc 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 Royce Global Value Trust Inc needs to make to build a sustainable competitive advantage.
