WCM Beteiligungs und Grundbesitz (WCMKk) SWOT Analysis / TOWS Matrix / MBA Resources
Real Estate Operations
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for WCM Beteiligungs und Grundbesitz (Germany)
Based on various researches at Oak Spring University , WCM Beteiligungs und Grundbesitz is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing energy prices, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%,
talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of WCM Beteiligungs und Grundbesitz
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that WCM Beteiligungs und Grundbesitz can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the WCM Beteiligungs und Grundbesitz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz can be done for the following purposes –
1. Strategic planning of WCM Beteiligungs und Grundbesitz
2. Improving business portfolio management of WCM Beteiligungs und Grundbesitz
3. Assessing feasibility of the new initiative in Germany
4. Making a Real Estate Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of WCM Beteiligungs und Grundbesitz
Strengths of WCM Beteiligungs und Grundbesitz | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of WCM Beteiligungs und Grundbesitz are -
Successful track record of launching new products
– WCM Beteiligungs und Grundbesitz has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. WCM Beteiligungs und Grundbesitz has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that WCM Beteiligungs und Grundbesitz 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.
Organizational Resilience of WCM Beteiligungs und Grundbesitz
– The covid-19 pandemic has put organizational resilience at the centre of everthing WCM Beteiligungs und Grundbesitz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of WCM Beteiligungs und Grundbesitz comprises – understanding the underlying the factors in the Real Estate Operations 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.
Learning organization
- WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at WCM Beteiligungs und Grundbesitz emphasize – knowledge, initiative, and innovation.
Digital Transformation in Real Estate Operations industry
- digital transformation varies from industry to industry. For WCM Beteiligungs und Grundbesitz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. WCM Beteiligungs und Grundbesitz 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.
High brand equity
– WCM Beteiligungs und Grundbesitz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled WCM Beteiligungs und Grundbesitz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– WCM Beteiligungs und Grundbesitz has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Real Estate Operations industry. Secondly the value chain collaborators of WCM Beteiligungs und Grundbesitz have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– WCM Beteiligungs und Grundbesitz has one of the best training and development program in Services 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
– WCM Beteiligungs und Grundbesitz is one of the most innovative firm in Real Estate Operations sector.
Analytics focus
– WCM Beteiligungs und Grundbesitz 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 Real Estate Operations industry. The technology infrastructure of Germany 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.
Strong track record of project management in the Real Estate Operations industry
– WCM Beteiligungs und Grundbesitz is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of WCM Beteiligungs und Grundbesitz | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of WCM Beteiligungs und Grundbesitz are -
Compensation and incentives
– The revenue per employee of WCM Beteiligungs und Grundbesitz is just above the Real Estate Operations 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.
Need for greater diversity
– WCM Beteiligungs und Grundbesitz has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though WCM Beteiligungs und Grundbesitz has some of the most successful models in the Real Estate Operations industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. WCM Beteiligungs und Grundbesitz should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that WCM Beteiligungs und Grundbesitz needs to have more collaboration between its sales team and marketing team. Sales professionals in the Real Estate Operations industry have deep experience in developing customer relationships. Marketing department at WCM Beteiligungs und Grundbesitz can leverage the sales team experience to cultivate customer relationships as WCM Beteiligungs und Grundbesitz is planning to shift buying processes online.
High operating costs
– Compare to the competitors, WCM Beteiligungs und Grundbesitz has high operating costs in the Real Estate Operations industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract WCM Beteiligungs und Grundbesitz lucrative customers.
Interest costs
– Compare to the competition, WCM Beteiligungs und Grundbesitz 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
WCM Beteiligungs und Grundbesitz has a high cash cycle compare to other players in the Real Estate Operations industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 WCM Beteiligungs und Grundbesitz supply chain. Even after few cautionary changes, WCM Beteiligungs und Grundbesitz is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left WCM Beteiligungs und Grundbesitz vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Germany, WCM Beteiligungs und Grundbesitz needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, WCM Beteiligungs und Grundbesitz is slow explore the new channels of communication. These new channels of communication can help WCM Beteiligungs und Grundbesitz to provide better information regarding Real Estate Operations products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of WCM Beteiligungs und Grundbesitz, it seems that company is thinking out the frontier risks that can impact Real Estate Operations 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.
WCM Beteiligungs und Grundbesitz Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of WCM Beteiligungs und Grundbesitz are -
Leveraging digital technologies
– WCM Beteiligungs und Grundbesitz 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.
Building a culture of innovation
– managers at WCM Beteiligungs und Grundbesitz 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 Real Estate Operations industry.
Use of Bitcoin and other crypto currencies for transactions in Real Estate Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for WCM Beteiligungs und Grundbesitz in the Real Estate Operations industry. Now WCM Beteiligungs und Grundbesitz can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– WCM Beteiligungs und Grundbesitz can develop new processes and procedures in Real Estate Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Loyalty marketing
– WCM Beteiligungs und Grundbesitz 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.
Better consumer reach
– The expansion of the 5G network will help WCM Beteiligungs und Grundbesitz to increase its market reach. WCM Beteiligungs und Grundbesitz 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, WCM Beteiligungs und Grundbesitz can use these opportunities to build new business models that can help the communities that WCM Beteiligungs und Grundbesitz operates in. Secondly it can use opportunities from government spending in Real Estate Operations sector.
Creating value in data economy
– The success of analytics program of WCM Beteiligungs und Grundbesitz has opened avenues for new revenue streams for the organization in Real Estate Operations industry. This can help WCM Beteiligungs und Grundbesitz to build a more holistic ecosystem for WCM Beteiligungs und Grundbesitz products in the Real Estate Operations industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Real Estate Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. WCM Beteiligungs und Grundbesitz 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. WCM Beteiligungs und Grundbesitz 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.
Using analytics as competitive advantage
– WCM Beteiligungs und Grundbesitz has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Real Estate Operations sector. This continuous investment in analytics has enabled WCM Beteiligungs und Grundbesitz to build a competitive advantage using analytics. The analytics driven competitive advantage can help WCM Beteiligungs und Grundbesitz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, WCM Beteiligungs und Grundbesitz 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for WCM Beteiligungs und Grundbesitz 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.
Threats WCM Beteiligungs und Grundbesitz External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of WCM Beteiligungs und Grundbesitz are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for WCM Beteiligungs und Grundbesitz in Real Estate Operations industry. The Real Estate Operations 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz prominent markets.
Environmental challenges
– WCM Beteiligungs und Grundbesitz 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. WCM Beteiligungs und Grundbesitz can take advantage of this fund but it will also bring new competitors in the Real Estate Operations industry.
Consumer confidence and its impact on WCM Beteiligungs und Grundbesitz 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 Real Estate Operations industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, WCM Beteiligungs und Grundbesitz may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Real Estate Operations sector.
Regulatory challenges
– WCM Beteiligungs und Grundbesitz 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 Real Estate Operations industry regulations.
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 WCM Beteiligungs und Grundbesitz.
Technology acceleration in Forth Industrial Revolution
– WCM Beteiligungs und Grundbesitz has witnessed rapid integration of technology during Covid-19 in the Real Estate Operations industry. As one of the leading players in the industry, WCM Beteiligungs und Grundbesitz needs to keep up with the evolution of technology in the Real Estate Operations 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.
Increasing wage structure of WCM Beteiligungs und Grundbesitz
– 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 WCM Beteiligungs und Grundbesitz.
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 WCM Beteiligungs und Grundbesitz business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– WCM Beteiligungs und Grundbesitz 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 Real Estate Operations industry.
Shortening product life cycle
– it is one of the major threat that WCM Beteiligungs und Grundbesitz is facing in Real Estate Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. WCM Beteiligungs und Grundbesitz 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.
Weighted SWOT Analysis of WCM Beteiligungs und Grundbesitz Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz 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 WCM Beteiligungs und Grundbesitz needs to make to build a sustainable competitive advantage.
