Based on various researches at Oak Spring University , Skandinaviska Enskilda Banken ADR is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, technology disruption, there is backlash against globalization, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Skandinaviska Enskilda Banken ADR
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Skandinaviska Enskilda Banken ADR can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Skandinaviska Enskilda Banken ADR, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR can be done for the following purposes –
1. Strategic planning of Skandinaviska Enskilda Banken ADR
2. Improving business portfolio management of Skandinaviska Enskilda Banken ADR
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 Skandinaviska Enskilda Banken ADR
Strengths of Skandinaviska Enskilda Banken ADR | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Skandinaviska Enskilda Banken ADR are -
Sustainable margins compare to other players in industry
– Skandinaviska Enskilda Banken ADR has clearly differentiated products in the market place. This has enabled Skandinaviska Enskilda Banken ADR to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Skandinaviska Enskilda Banken ADR to invest into research and development (R&D) and innovation.
Training and development
– Skandinaviska Enskilda Banken ADR 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.
Innovation driven organization
– Skandinaviska Enskilda Banken ADR is one of the most innovative firm in sector.
Ability to recruit top talent
– Skandinaviska Enskilda Banken ADR 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.
Operational resilience
– The operational resilience strategy of Skandinaviska Enskilda Banken ADR 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
– Skandinaviska Enskilda Banken ADR is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Skandinaviska Enskilda Banken ADR emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Skandinaviska Enskilda Banken ADR in the sector have low bargaining power. Skandinaviska Enskilda Banken ADR has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Skandinaviska Enskilda Banken ADR to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Skandinaviska Enskilda Banken ADR is present in almost all the verticals within the industry. This has provided Skandinaviska Enskilda Banken ADR 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.
Ability to lead change in
– Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Skandinaviska Enskilda Banken ADR 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.
Highly skilled collaborators
– Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Skandinaviska Enskilda Banken ADR | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Skandinaviska Enskilda Banken ADR are -
Slow to strategic competitive environment developments
– As Skandinaviska Enskilda Banken ADR 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.
Slow decision making process
– As mentioned earlier in the report, Skandinaviska Enskilda Banken ADR 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. Skandinaviska Enskilda Banken ADR 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.
Increasing silos among functional specialists
– The organizational structure of Skandinaviska Enskilda Banken ADR is dominated by functional specialists. It is not different from other players in the industry, but Skandinaviska Enskilda Banken ADR needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Skandinaviska Enskilda Banken ADR to focus more on services in the industry rather than just following the product oriented approach.
Products dominated business model
– Even though Skandinaviska Enskilda Banken ADR has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Skandinaviska Enskilda Banken ADR should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Skandinaviska Enskilda Banken ADR is slow explore the new channels of communication. These new channels of communication can help Skandinaviska Enskilda Banken ADR to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on Skandinaviska Enskilda Banken ADR ‘s star products
– The top 2 products and services of Skandinaviska Enskilda Banken ADR still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Skandinaviska Enskilda Banken ADR has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Skandinaviska Enskilda Banken ADR has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of United States, Skandinaviska Enskilda Banken ADR needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ less understanding of Skandinaviska Enskilda Banken ADR strategy
– From the outside it seems that the employees of Skandinaviska Enskilda Banken ADR don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners in industry
– because of the regulatory requirements in United States, Skandinaviska Enskilda Banken ADR 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.
Aligning sales with marketing
– From the outside it seems that Skandinaviska Enskilda Banken ADR needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Skandinaviska Enskilda Banken ADR can leverage the sales team experience to cultivate customer relationships as Skandinaviska Enskilda Banken ADR is planning to shift buying processes online.
Skandinaviska Enskilda Banken ADR Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Skandinaviska Enskilda Banken ADR are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Skandinaviska Enskilda Banken ADR 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Skandinaviska Enskilda Banken ADR 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.
Better consumer reach
– The expansion of the 5G network will help Skandinaviska Enskilda Banken ADR to increase its market reach. Skandinaviska Enskilda Banken ADR 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.
Creating value in data economy
– The success of analytics program of Skandinaviska Enskilda Banken ADR has opened avenues for new revenue streams for the organization in industry. This can help Skandinaviska Enskilda Banken ADR to build a more holistic ecosystem for Skandinaviska Enskilda Banken ADR products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Skandinaviska Enskilda Banken ADR 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Skandinaviska Enskilda Banken ADR 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. Skandinaviska Enskilda Banken ADR 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.
Loyalty marketing
– Skandinaviska Enskilda Banken ADR 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Skandinaviska Enskilda Banken ADR can use these opportunities to build new business models that can help the communities that Skandinaviska Enskilda Banken ADR operates in. Secondly it can use opportunities from government spending in sector.
Using analytics as competitive advantage
– Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR to build a competitive advantage using analytics. The analytics driven competitive advantage can help Skandinaviska Enskilda Banken ADR to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Skandinaviska Enskilda Banken ADR is facing challenges because of the dominance of functional experts in the organization. Skandinaviska Enskilda Banken ADR 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.
Leveraging digital technologies
– Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR to hire the very best people irrespective of their geographical location.
Threats Skandinaviska Enskilda Banken ADR External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Skandinaviska Enskilda Banken ADR are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Skandinaviska Enskilda Banken ADR with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Skandinaviska Enskilda Banken ADR 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.
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.
High dependence on third party suppliers
– Skandinaviska Enskilda Banken ADR 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.
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. Skandinaviska Enskilda Banken ADR can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Skandinaviska Enskilda Banken ADR needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
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 Skandinaviska Enskilda Banken ADR in the sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Skandinaviska Enskilda Banken ADR has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Skandinaviska Enskilda Banken ADR 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.
Regulatory challenges
– Skandinaviska Enskilda Banken ADR 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.
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. Skandinaviska Enskilda Banken ADR 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Skandinaviska Enskilda Banken ADR 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.
Consumer confidence and its impact on Skandinaviska Enskilda Banken ADR 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.
Environmental challenges
– Skandinaviska Enskilda Banken ADR 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. Skandinaviska Enskilda Banken ADR can take advantage of this fund but it will also bring new competitors in the industry.
Weighted SWOT Analysis of Skandinaviska Enskilda Banken ADR Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR 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 Skandinaviska Enskilda Banken ADR needs to make to build a sustainable competitive advantage.