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 – digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, there is increasing trade war between United States & China, technology disruption, there is backlash against globalization, central banks are concerned over increasing inflation,
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 -
Innovation driven organization
– Lang und Schwarz Wertpapierhandel is one of the most innovative firm in Investment Services sector.
Ability to recruit top talent
– Lang und Schwarz Wertpapierhandel is one of the leading players in the Investment Services industry in Germany. It is in a position to attract the best talent available in Germany. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
Diverse revenue streams
– Lang und Schwarz Wertpapierhandel is present in almost all the verticals within the Investment Services industry. This has provided Lang und Schwarz Wertpapierhandel 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.
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.
Operational resilience
– The operational resilience strategy of Lang und Schwarz Wertpapierhandel comprises – understanding the underlying the factors in the Investment 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.
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.
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.
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.
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.
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 -
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.
Capital Spending Reduction
– Even during the low interest decade, Lang und Schwarz Wertpapierhandel 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 Investment Services industry using digital technology.
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.
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.
Interest costs
– Compare to the competition, Lang und Schwarz Wertpapierhandel 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.
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.
Aligning sales with marketing
– From the outside it seems that Lang und Schwarz Wertpapierhandel needs to have more collaboration between its sales team and marketing team. Sales professionals in the Investment Services industry have deep experience in developing customer relationships. Marketing department at Lang und Schwarz Wertpapierhandel can leverage the sales team experience to cultivate customer relationships as Lang und Schwarz Wertpapierhandel is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Lang und Schwarz Wertpapierhandel has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Investment Services industry over the last five years. Lang und Schwarz Wertpapierhandel even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Lang und Schwarz Wertpapierhandel has some of the most successful models in the Investment Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Lang und Schwarz Wertpapierhandel should strive to include more intangible value offerings along with its core products and services.
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.
Employees’ less understanding of Lang und Schwarz Wertpapierhandel strategy
– From the outside it seems that the employees of Lang und Schwarz Wertpapierhandel 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.
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 -
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.
Creating value in data economy
– The success of analytics program of Lang und Schwarz Wertpapierhandel has opened avenues for new revenue streams for the organization in Investment Services industry. This can help Lang und Schwarz Wertpapierhandel to build a more holistic ecosystem for Lang und Schwarz Wertpapierhandel products in the Investment Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Investment Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Lang und Schwarz Wertpapierhandel in the Investment Services industry. Now Lang und Schwarz Wertpapierhandel can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Buying journey improvements
– Lang und Schwarz Wertpapierhandel can improve the customer journey of consumers in the Investment 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.
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.
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.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Lang und Schwarz Wertpapierhandel 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 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 -
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.
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.
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.
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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Lang und Schwarz Wertpapierhandel has witnessed rapid integration of technology during Covid-19 in the Investment Services industry. As one of the leading players in the industry, Lang und Schwarz Wertpapierhandel needs to keep up with the evolution of technology in the Investment 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Investment Services industry are lowering. It can presents Lang und Schwarz Wertpapierhandel with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the 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.
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.
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 Lang und Schwarz Wertpapierhandel.
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.