Lang und Schwarz Wertpapierhandel (LUSGn) SWOT Analysis / TOWS Matrix / MBA Resources
Investment Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Lang und Schwarz Wertpapierhandel (Germany)
Based on various researches at Oak Spring University , Lang und Schwarz Wertpapierhandel is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings,
geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Lang und Schwarz Wertpapierhandel
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Lang und Schwarz Wertpapierhandel can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lang und Schwarz Wertpapierhandel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel can be done for the following purposes –
1. Strategic planning of Lang und Schwarz Wertpapierhandel
2. Improving business portfolio management of Lang und Schwarz Wertpapierhandel
3. Assessing feasibility of the new initiative in Germany
4. Making a Investment Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lang und Schwarz Wertpapierhandel
Strengths of Lang und Schwarz Wertpapierhandel | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lang und Schwarz Wertpapierhandel are -
Analytics focus
– Lang und Schwarz Wertpapierhandel 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 Investment 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 Lang und Schwarz Wertpapierhandel
– The covid-19 pandemic has put organizational resilience at the centre of everthing Lang und Schwarz Wertpapierhandel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Lang und Schwarz Wertpapierhandel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lang und Schwarz Wertpapierhandel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Lang und Schwarz Wertpapierhandel in the Financial sector have low bargaining power. Lang und Schwarz Wertpapierhandel has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lang und Schwarz Wertpapierhandel to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Lang und Schwarz Wertpapierhandel in Investment Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Lang und Schwarz Wertpapierhandel 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.
Training and development
– Lang und Schwarz Wertpapierhandel 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.
High switching costs
– The high switching costs that Lang und Schwarz Wertpapierhandel 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
- Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Lang und Schwarz Wertpapierhandel emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Lang und Schwarz Wertpapierhandel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lang und Schwarz Wertpapierhandel 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.
Highly skilled collaborators
– Lang und Schwarz Wertpapierhandel has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Investment Services industry. Secondly the value chain collaborators of Lang und Schwarz Wertpapierhandel have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Investment Services
– Lang und Schwarz Wertpapierhandel is one of the leading players in the Investment Services industry in Germany. Over the years it has not only transformed the business landscape in the Investment Services industry in Germany but also across the existing markets. The ability to lead change has enabled Lang und Schwarz Wertpapierhandel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Lang und Schwarz Wertpapierhandel | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lang und Schwarz Wertpapierhandel are -
Ability to respond to the competition
– As the decision making is very deliberative at Lang und Schwarz Wertpapierhandel, in the dynamic environment of Investment Services industry it has struggled to respond to the nimble upstart competition. Lang und Schwarz Wertpapierhandel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lang und Schwarz Wertpapierhandel is slow explore the new channels of communication. These new channels of communication can help Lang und Schwarz Wertpapierhandel to provide better information regarding Investment Services products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, Lang und Schwarz Wertpapierhandel has high operating costs in the Investment Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Lang und Schwarz Wertpapierhandel lucrative customers.
Slow to strategic competitive environment developments
– As Lang und Schwarz Wertpapierhandel is one of the leading players in the Investment Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Investment Services industry in last five years.
High cash cycle compare to competitors
Lang und Schwarz Wertpapierhandel has a high cash cycle compare to other players in the Investment Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Germany, Lang und Schwarz Wertpapierhandel needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on Lang und Schwarz Wertpapierhandel ‘s star products
– The top 2 products and services of Lang und Schwarz Wertpapierhandel still accounts for major business revenue. This dependence on star products in Investment Services industry has resulted into insufficient focus on developing new products, even though Lang und Schwarz Wertpapierhandel has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the Investment Services industry, Lang und Schwarz Wertpapierhandel 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.
Skills based hiring in Investment Services industry
– The stress on hiring functional specialists at Lang und Schwarz Wertpapierhandel has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Lang und Schwarz Wertpapierhandel products
– To increase the profitability and margins on the products, Lang und Schwarz Wertpapierhandel needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Lang und Schwarz Wertpapierhandel supply chain. Even after few cautionary changes, Lang und Schwarz Wertpapierhandel is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lang und Schwarz Wertpapierhandel vulnerable to further global disruptions in South East Asia.
Lang und Schwarz Wertpapierhandel Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Lang und Schwarz Wertpapierhandel are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Lang und Schwarz Wertpapierhandel can develop new processes and procedures in Investment 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.
Better consumer reach
– The expansion of the 5G network will help Lang und Schwarz Wertpapierhandel to increase its market reach. Lang und Schwarz Wertpapierhandel 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Investment Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Lang und Schwarz Wertpapierhandel 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. Lang und Schwarz Wertpapierhandel 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.
Manufacturing automation
– Lang und Schwarz Wertpapierhandel can use the latest technology developments to improve its manufacturing and designing process in Investment 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.
Leveraging digital technologies
– Lang und Schwarz Wertpapierhandel 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.
Loyalty marketing
– Lang und Schwarz Wertpapierhandel 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.
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. Lang und Schwarz Wertpapierhandel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lang und Schwarz Wertpapierhandel can use these opportunities to build new business models that can help the communities that Lang und Schwarz Wertpapierhandel operates in. Secondly it can use opportunities from government spending in Investment Services sector.
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 Lang und Schwarz Wertpapierhandel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lang und Schwarz Wertpapierhandel is facing challenges because of the dominance of functional experts in the organization. Lang und Schwarz Wertpapierhandel can utilize new technology in the field of Investment Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lang und Schwarz Wertpapierhandel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Lang und Schwarz Wertpapierhandel External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Lang und Schwarz Wertpapierhandel are -
Shortening product life cycle
– it is one of the major threat that Lang und Schwarz Wertpapierhandel is facing in Investment Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Lang und Schwarz Wertpapierhandel business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Lang und Schwarz Wertpapierhandel needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Investment Services industry regulations.
Easy access to finance
– Easy access to finance in Investment Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lang und Schwarz Wertpapierhandel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Lang und Schwarz Wertpapierhandel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Investment Services sector.
Consumer confidence and its impact on Lang und Schwarz Wertpapierhandel demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Investment Services industry and other sectors.
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. Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel in Investment Services industry. The Investment Services industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Lang und Schwarz Wertpapierhandel 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. Lang und Schwarz Wertpapierhandel can take advantage of this fund but it will also bring new competitors in the Investment Services industry.
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 Lang und Schwarz Wertpapierhandel in the Investment Services sector and impact the bottomline of the organization.
Increasing wage structure of Lang und Schwarz Wertpapierhandel
– 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 Lang und Schwarz Wertpapierhandel.
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 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. Lang und Schwarz Wertpapierhandel needs to understand the core reasons impacting the Investment Services industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Lang und Schwarz Wertpapierhandel Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel 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 Lang und Schwarz Wertpapierhandel needs to make to build a sustainable competitive advantage.