SL Green Realty Corp Pref (SLG_pi) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for SL Green Realty Corp Pref (United States)
Based on various researches at Oak Spring University , SL Green Realty Corp Pref is operating in a macro-environment that has been destablized by – technology disruption, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of SL Green Realty Corp Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that SL Green Realty Corp Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the SL Green Realty Corp Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which SL Green Realty Corp 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 SL Green Realty Corp Pref can be done for the following purposes –
1. Strategic planning of SL Green Realty Corp Pref
2. Improving business portfolio management of SL Green Realty Corp 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 SL Green Realty Corp Pref
Strengths of SL Green Realty Corp Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of SL Green Realty Corp Pref are -
High switching costs
– The high switching costs that SL Green Realty Corp 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
- SL Green Realty Corp 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 SL Green Realty Corp Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at SL Green Realty Corp Pref emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– SL Green Realty Corp 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 SL Green Realty Corp Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in
– SL Green Realty Corp 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 SL Green Realty Corp Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– SL Green Realty Corp Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – SL Green Realty Corp 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.
Sustainable margins compare to other players in industry
– SL Green Realty Corp Pref has clearly differentiated products in the market place. This has enabled SL Green Realty Corp Pref to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped SL Green Realty Corp Pref to invest into research and development (R&D) and innovation.
Analytics focus
– SL Green Realty Corp Pref is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in industry
- digital transformation varies from industry to industry. For SL Green Realty Corp Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. SL Green Realty Corp Pref 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.
Cross disciplinary teams
– Horizontal connected teams at the SL Green Realty Corp 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.
Low bargaining power of suppliers
– Suppliers of SL Green Realty Corp Pref in the sector have low bargaining power. SL Green Realty Corp Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps SL Green Realty Corp Pref to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– SL Green Realty Corp Pref is one of the most innovative firm in sector.
Ability to recruit top talent
– SL Green Realty Corp 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.
Weaknesses of SL Green Realty Corp Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SL Green Realty Corp Pref are -
Capital Spending Reduction
– Even during the low interest decade, SL Green Realty Corp Pref 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.
Increasing silos among functional specialists
– The organizational structure of SL Green Realty Corp Pref is dominated by functional specialists. It is not different from other players in the industry, but SL Green Realty Corp Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help SL Green Realty Corp 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 SL Green Realty Corp 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 cash cycle compare to competitors
SL Green Realty Corp 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.
Aligning sales with marketing
– From the outside it seems that SL Green Realty Corp Pref 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 SL Green Realty Corp Pref can leverage the sales team experience to cultivate customer relationships as SL Green Realty Corp Pref is planning to shift buying processes online.
Lack of clear differentiation of SL Green Realty Corp Pref products
– To increase the profitability and margins on the products, SL Green Realty Corp Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on SL Green Realty Corp Pref ‘s star products
– The top 2 products and services of SL Green Realty Corp 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 SL Green Realty Corp Pref has relatively successful track record of launching new products.
Products dominated business model
– Even though SL Green Realty Corp Pref 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. SL Green Realty Corp Pref should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As SL Green Realty Corp 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.
Employees’ less understanding of SL Green Realty Corp Pref strategy
– From the outside it seems that the employees of SL Green Realty Corp 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.
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 SL Green Realty Corp Pref supply chain. Even after few cautionary changes, SL Green Realty Corp Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left SL Green Realty Corp Pref vulnerable to further global disruptions in South East Asia.
SL Green Realty Corp Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of SL Green Realty Corp Pref are -
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. SL Green Realty Corp Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– SL Green Realty Corp 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 SL Green Realty Corp Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help SL Green Realty Corp Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help SL Green Realty Corp Pref to increase its market reach. SL Green Realty Corp 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, SL Green Realty Corp Pref can use these opportunities to build new business models that can help the communities that SL Green Realty Corp 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 SL Green Realty Corp Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for SL Green Realty Corp 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, SL Green Realty Corp 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 SL Green Realty Corp 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.
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. SL Green Realty Corp Pref 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. SL Green Realty Corp Pref 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.
Building a culture of innovation
– managers at SL Green Realty Corp 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for SL Green Realty Corp Pref in the industry. Now SL Green Realty Corp Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. SL Green Realty Corp Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, SL Green Realty Corp Pref is facing challenges because of the dominance of functional experts in the organization. SL Green Realty Corp 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.
Manufacturing automation
– SL Green Realty Corp 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.
Threats SL Green Realty Corp Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of SL Green Realty Corp Pref are -
Shortening product life cycle
– it is one of the major threat that SL Green Realty Corp Pref is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 SL Green Realty Corp 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.
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. SL Green Realty Corp 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for SL Green Realty Corp 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
– SL Green Realty Corp 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. SL Green Realty Corp Pref can take advantage of this fund but it will also bring new competitors in the industry.
Increasing wage structure of SL Green Realty Corp 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 SL Green Realty Corp Pref.
Technology acceleration in Forth Industrial Revolution
– SL Green Realty Corp Pref has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, SL Green Realty Corp 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.
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 SL Green Realty Corp Pref business can come under increasing regulations regarding data privacy, data security, etc.
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 SL Green Realty Corp Pref.
Stagnating economy with rate increase
– SL Green Realty Corp Pref 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 industry.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, SL Green Realty Corp 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.
Weighted SWOT Analysis of SL Green Realty Corp Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at SL Green Realty Corp 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 SL Green Realty Corp 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 SL Green Realty Corp 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 SL Green Realty Corp 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 SL Green Realty Corp Pref needs to make to build a sustainable competitive advantage.
