Shareholder Value Beteiligungen AG (SHVA) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Financial Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Shareholder Value Beteiligungen AG (Germany)
Based on various researches at Oak Spring University , Shareholder Value Beteiligungen AG is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing energy prices, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Shareholder Value Beteiligungen AG
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shareholder Value Beteiligungen AG can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shareholder Value Beteiligungen AG, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG can be done for the following purposes –
1. Strategic planning of Shareholder Value Beteiligungen AG
2. Improving business portfolio management of Shareholder Value Beteiligungen AG
3. Assessing feasibility of the new initiative in Germany
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shareholder Value Beteiligungen AG
Strengths of Shareholder Value Beteiligungen AG | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shareholder Value Beteiligungen AG are -
Analytics focus
– Shareholder Value Beteiligungen AG 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 Misc. Financial Services 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.
Organizational Resilience of Shareholder Value Beteiligungen AG
– The covid-19 pandemic has put organizational resilience at the centre of everthing Shareholder Value Beteiligungen AG does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Misc. Financial Services
– Shareholder Value Beteiligungen AG is one of the leading players in the Misc. Financial Services industry in Germany. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in Germany but also across the existing markets. The ability to lead change has enabled Shareholder Value Beteiligungen AG in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shareholder Value Beteiligungen AG emphasize – knowledge, initiative, and innovation.
High brand equity
– Shareholder Value Beteiligungen AG has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shareholder Value Beteiligungen AG to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Shareholder Value Beteiligungen AG 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.
Highly skilled collaborators
– Shareholder Value Beteiligungen AG has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Shareholder Value Beteiligungen AG have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Shareholder Value Beteiligungen AG has one of the best training and development program in Financial 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.
Cross disciplinary teams
– Horizontal connected teams at the Shareholder Value Beteiligungen AG 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.
Sustainable margins compare to other players in Misc. Financial Services industry
– Shareholder Value Beteiligungen AG has clearly differentiated products in the market place. This has enabled Shareholder Value Beteiligungen AG to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Shareholder Value Beteiligungen AG to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Shareholder Value Beteiligungen AG is present in almost all the verticals within the Misc. Financial Services industry. This has provided Shareholder Value Beteiligungen AG 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.
Operational resilience
– The operational resilience strategy of Shareholder Value Beteiligungen AG comprises – understanding the underlying the factors in the Misc. Financial 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 Shareholder Value Beteiligungen AG | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shareholder Value Beteiligungen AG are -
Slow to strategic competitive environment developments
– As Shareholder Value Beteiligungen AG is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
High dependence on Shareholder Value Beteiligungen AG ‘s star products
– The top 2 products and services of Shareholder Value Beteiligungen AG still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though Shareholder Value Beteiligungen AG has relatively successful track record of launching new products.
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 Shareholder Value Beteiligungen AG supply chain. Even after few cautionary changes, Shareholder Value Beteiligungen AG is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shareholder Value Beteiligungen AG vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, Shareholder Value Beteiligungen AG has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shareholder Value Beteiligungen AG lucrative customers.
High bargaining power of channel partners in Misc. Financial Services industry
– because of the regulatory requirements in Germany, Shareholder Value Beteiligungen AG 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 Misc. Financial Services industry.
Ability to respond to the competition
– As the decision making is very deliberative at Shareholder Value Beteiligungen AG, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Shareholder Value Beteiligungen AG has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Shareholder Value Beteiligungen AG 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 Misc. Financial Services industry using digital technology.
Employees’ less understanding of Shareholder Value Beteiligungen AG strategy
– From the outside it seems that the employees of Shareholder Value Beteiligungen AG 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.
Products dominated business model
– Even though Shareholder Value Beteiligungen AG has some of the most successful models in the Misc. Financial Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Shareholder Value Beteiligungen AG should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Shareholder Value Beteiligungen AG 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.
Workers concerns about automation
– As automation is fast increasing in the Misc. Financial Services industry, Shareholder Value Beteiligungen AG needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Shareholder Value Beteiligungen AG Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shareholder Value Beteiligungen AG are -
Using analytics as competitive advantage
– Shareholder Value Beteiligungen AG has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Financial Services sector. This continuous investment in analytics has enabled Shareholder Value Beteiligungen AG to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shareholder Value Beteiligungen AG to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Shareholder Value Beteiligungen AG has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Shareholder Value Beteiligungen AG to build a more holistic ecosystem for Shareholder Value Beteiligungen AG products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, 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, Shareholder Value Beteiligungen AG can use these opportunities to build new business models that can help the communities that Shareholder Value Beteiligungen AG operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Developing new processes and practices
– Shareholder Value Beteiligungen AG can develop new processes and procedures in Misc. Financial Services 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shareholder Value Beteiligungen AG in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Shareholder Value Beteiligungen AG can improve the customer journey of consumers in the Misc. Financial 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Shareholder Value Beteiligungen AG can use the latest technology developments to improve its manufacturing and designing process in Misc. Financial Services 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.
Better consumer reach
– The expansion of the 5G network will help Shareholder Value Beteiligungen AG to increase its market reach. Shareholder Value Beteiligungen AG 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shareholder Value Beteiligungen AG is facing challenges because of the dominance of functional experts in the organization. Shareholder Value Beteiligungen AG can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Learning at scale
– Online learning technologies has now opened space for Shareholder Value Beteiligungen AG 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.
Loyalty marketing
– Shareholder Value Beteiligungen AG 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.
Threats Shareholder Value Beteiligungen AG External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shareholder Value Beteiligungen AG are -
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 Shareholder Value Beteiligungen AG business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Shareholder Value Beteiligungen AG 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. Shareholder Value Beteiligungen AG can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Shareholder Value Beteiligungen AG may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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. Shareholder Value Beteiligungen AG 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.
Shortening product life cycle
– it is one of the major threat that Shareholder Value Beteiligungen AG is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Financial Services industry are lowering. It can presents Shareholder Value Beteiligungen AG with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Financial Services sector.
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 Shareholder Value Beteiligungen AG in the Misc. Financial Services sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Shareholder Value Beteiligungen AG has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Shareholder Value Beteiligungen AG needs to keep up with the evolution of technology in the Misc. Financial 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.
Consumer confidence and its impact on Shareholder Value Beteiligungen AG 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 Misc. Financial Services industry and other sectors.
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 Shareholder Value Beteiligungen AG.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG prominent markets.
Stagnating economy with rate increase
– Shareholder Value Beteiligungen AG 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 Misc. Financial Services industry.
Increasing wage structure of Shareholder Value Beteiligungen AG
– 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 Shareholder Value Beteiligungen AG.
Weighted SWOT Analysis of Shareholder Value Beteiligungen AG Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG 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 Shareholder Value Beteiligungen AG needs to make to build a sustainable competitive advantage.