SWOT Analysis / TOWS Matrix for mwb Fairtrade Wertpapierhandels (Germany)
Based on various researches at Oak Spring University , mwb Fairtrade Wertpapierhandels is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, technology disruption, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of mwb Fairtrade Wertpapierhandels
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that mwb Fairtrade Wertpapierhandels can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the mwb Fairtrade Wertpapierhandels, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels can be done for the following purposes –
1. Strategic planning of mwb Fairtrade Wertpapierhandels
2. Improving business portfolio management of mwb Fairtrade Wertpapierhandels
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 mwb Fairtrade Wertpapierhandels
Strengths of mwb Fairtrade Wertpapierhandels | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of mwb Fairtrade Wertpapierhandels are -
Organizational Resilience of mwb Fairtrade Wertpapierhandels
– The covid-19 pandemic has put organizational resilience at the centre of everthing mwb Fairtrade Wertpapierhandels does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the Investment Services industry
– mwb Fairtrade Wertpapierhandels is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– mwb Fairtrade Wertpapierhandels is present in almost all the verticals within the Investment Services industry. This has provided mwb Fairtrade Wertpapierhandels 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.
Ability to recruit top talent
– mwb Fairtrade Wertpapierhandels 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.
Analytics focus
– mwb Fairtrade Wertpapierhandels 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.
Innovation driven organization
– mwb Fairtrade Wertpapierhandels is one of the most innovative firm in Investment Services sector.
Operational resilience
– The operational resilience strategy of mwb Fairtrade Wertpapierhandels 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.
Digital Transformation in Investment Services industry
- digital transformation varies from industry to industry. For mwb Fairtrade Wertpapierhandels digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. mwb Fairtrade Wertpapierhandels 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.
Sustainable margins compare to other players in Investment Services industry
– mwb Fairtrade Wertpapierhandels has clearly differentiated products in the market place. This has enabled mwb Fairtrade Wertpapierhandels to fetch slight price premium compare to the competitors in the Investment Services industry. The sustainable margins have also helped mwb Fairtrade Wertpapierhandels to invest into research and development (R&D) and innovation.
Ability to lead change in Investment Services
– mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– mwb Fairtrade Wertpapierhandels 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.
Effective Research and Development (R&D)
– mwb Fairtrade Wertpapierhandels has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – mwb Fairtrade Wertpapierhandels staying ahead in the Investment Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of mwb Fairtrade Wertpapierhandels | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of mwb Fairtrade Wertpapierhandels are -
High operating costs
– Compare to the competitors, mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels lucrative customers.
Products dominated business model
– Even though mwb Fairtrade Wertpapierhandels 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. mwb Fairtrade Wertpapierhandels should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of mwb Fairtrade Wertpapierhandels products
– To increase the profitability and margins on the products, mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels supply chain. Even after few cautionary changes, mwb Fairtrade Wertpapierhandels is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left mwb Fairtrade Wertpapierhandels vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of mwb Fairtrade Wertpapierhandels is dominated by functional specialists. It is not different from other players in the Investment Services industry, but mwb Fairtrade Wertpapierhandels needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help mwb Fairtrade Wertpapierhandels to focus more on services in the Investment Services industry rather than just following the product oriented approach.
Skills based hiring in Investment Services industry
– The stress on hiring functional specialists at mwb Fairtrade Wertpapierhandels 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.
No frontier risks strategy
– From the 10K / annual statement of mwb Fairtrade Wertpapierhandels, it seems that company is thinking out the frontier risks that can impact Investment Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
mwb Fairtrade Wertpapierhandels 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, mwb Fairtrade Wertpapierhandels needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– mwb Fairtrade Wertpapierhandels 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.
Ability to respond to the competition
– As the decision making is very deliberative at mwb Fairtrade Wertpapierhandels, in the dynamic environment of Investment Services industry it has struggled to respond to the nimble upstart competition. mwb Fairtrade Wertpapierhandels has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
mwb Fairtrade Wertpapierhandels Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of mwb Fairtrade Wertpapierhandels are -
Better consumer reach
– The expansion of the 5G network will help mwb Fairtrade Wertpapierhandels to increase its market reach. mwb Fairtrade Wertpapierhandels 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.
Building a culture of innovation
– managers at mwb Fairtrade Wertpapierhandels 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 Investment Services industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, mwb Fairtrade Wertpapierhandels 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.
Learning at scale
– Online learning technologies has now opened space for mwb Fairtrade Wertpapierhandels 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for mwb Fairtrade Wertpapierhandels in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Investment Services industry, and it will provide faster access to the consumers.
Buying journey improvements
– mwb Fairtrade Wertpapierhandels 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.
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. mwb Fairtrade Wertpapierhandels 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. mwb Fairtrade Wertpapierhandels 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
– mwb Fairtrade Wertpapierhandels 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, mwb Fairtrade Wertpapierhandels can use these opportunities to build new business models that can help the communities that mwb Fairtrade Wertpapierhandels operates in. Secondly it can use opportunities from government spending in Investment Services sector.
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 mwb Fairtrade Wertpapierhandels in the Investment Services industry. Now mwb Fairtrade Wertpapierhandels can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Investment Services industry, but it has also influenced the consumer preferences. mwb Fairtrade Wertpapierhandels can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects mwb Fairtrade Wertpapierhandels can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats mwb Fairtrade Wertpapierhandels External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of mwb Fairtrade Wertpapierhandels are -
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. mwb Fairtrade Wertpapierhandels needs to understand the core reasons impacting the Investment Services industry. This will help it in building a better workplace.
Increasing wage structure of mwb Fairtrade Wertpapierhandels
– 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 mwb Fairtrade Wertpapierhandels.
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 mwb Fairtrade Wertpapierhandels in the Investment Services sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, mwb Fairtrade Wertpapierhandels 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.
Environmental challenges
– mwb Fairtrade Wertpapierhandels 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. mwb Fairtrade Wertpapierhandels can take advantage of this fund but it will also bring new competitors in the Investment Services industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels prominent markets.
Technology acceleration in Forth Industrial Revolution
– mwb Fairtrade Wertpapierhandels has witnessed rapid integration of technology during Covid-19 in the Investment Services industry. As one of the leading players in the industry, mwb Fairtrade Wertpapierhandels 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.
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. mwb Fairtrade Wertpapierhandels can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– mwb Fairtrade Wertpapierhandels 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 Investment Services industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for mwb Fairtrade Wertpapierhandels 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.
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 mwb Fairtrade Wertpapierhandels with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Investment Services sector.
Weighted SWOT Analysis of mwb Fairtrade Wertpapierhandels Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels 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 mwb Fairtrade Wertpapierhandels needs to make to build a sustainable competitive advantage.