Challenger Millennium Series 2007-1E Trust SWOT Analysis / Matrix

Business Essays, Term Papers & Research Papers

SWOT analysis is a vital strategic planning tool that can be used by Challenger Millennium Series 2007-1E Trust managers to do a situational analysis of the organization . It is a handy technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Challenger Millennium Series 2007-1E Trust is facing in its current business environment.

The Challenger Millennium Series 2007-1E Trust is one of the leading firms in its industry. Challenger Millennium Series 2007-1E Trust maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis.  SWOT analysis a highly interactive process and requires effective coordination among various departments within the company such as – marketing, finance, operations, management information systems and strategic planning.


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The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the Challenger Millennium Series 2007-1E Trust to develop four types of strategies:

• SO (strengths-opportunities) Strategies
• WO (weaknesses-opportunities) Strategies
• ST (strengths-threats) Strategies
•  WT (weaknesses-threats) Strategies

SWOT Matrix Strategies Objective

The main purpose of SWOT matrix is to identify the strategies that a firm can use to exploit external opportunities, counter threats, and build on & protect Challenger Millennium Series 2007-1E Trust strengths, and eradicate its weaknesses.

Step by Step Guide to Challenger Millennium Series 2007-1E Trust SWOT Analysis

Strengths of Challenger Millennium Series 2007-1E Trust – Internal Strategic Factors

As one of the leading companies in its industry, Challenger Millennium Series 2007-1E Trust has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Challenger Millennium Series 2007-1E Trust are –

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• Highly skilled workforce through successful training and learning programs. Challenger Millennium Series 2007-1E Trust is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
• Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.
• Strong distribution network – Over the years Challenger Millennium Series 2007-1E Trust has built a reliable distribution network that can reach majority of its potential market.
• Superb Performance in New Markets – Challenger Millennium Series 2007-1E Trust has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.
• Good Returns on Capital Expenditure – Challenger Millennium Series 2007-1E Trust is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
• Highly successful at Go To Market strategies for its products.
• Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
• Successful track record of developing new products – product innovation.

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Weakness of Challenger Millennium Series 2007-1E Trust – Internal Strategic Factors

Weakness are the areas where Challenger Millennium Series 2007-1E Trust can improve upon. Strategy is about making choices and weakness are the areas where a firm can improve using SWOT analysis and build on its competitive advantage and strategic positioning.

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• There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
• Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.
• Investment in Research and Development is below the fastest growing players in the industry. Even though Challenger Millennium Series 2007-1E Trust is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
• Limited success outside core business – Even though Challenger Millennium Series 2007-1E Trust is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
• The profitability ratio and Net Contribution % of Challenger Millennium Series 2007-1E Trust are below the industry average.
• Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of Challenger Millennium Series 2007-1E Trust
• Not highly successful at integrating firms with different work culture. As mentioned earlier even though Challenger Millennium Series 2007-1E Trust is successful at integrating small companies it has its share of failure to merge firms that have different work culture.

Opportunities for Challenger Millennium Series 2007-1E Trust – External Strategic Factors

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• Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Challenger Millennium Series 2007-1E Trust an opportunity to enter a new emerging market.
• Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Challenger Millennium Series 2007-1E Trust.
• The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Challenger Millennium Series 2007-1E Trust to increase its profitability.
• The new technology provides an opportunity to Challenger Millennium Series 2007-1E Trust to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
• Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for Challenger Millennium Series 2007-1E Trust in other product categories.
• New environmental policies – The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Challenger Millennium Series 2007-1E Trust to drive home its advantage in new technology and gain market share in the new product category.
• Government green drive also opens an opportunity for procurement of Challenger Millennium Series 2007-1E Trust products by the state as well as federal government contractors.
• The market development will lead to dilution of competitor’s advantage and enable Challenger Millennium Series 2007-1E Trust to increase its competitiveness compare to the other competitors.

Threats Challenger Millennium Series 2007-1E Trust Facing - External Strategic Factors

• As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.
• Imitation of the counterfeit and low quality product is also a threat to Challenger Millennium Series 2007-1E Trust’s product especially in the emerging markets and low income markets.
• The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.
• Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model.
• No regular supply of innovative products – Over the years the company has developed numerous products but those are often response to the development by other players. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time.
• Rising raw material can pose a threat to the Challenger Millennium Series 2007-1E Trust profitability.
• Liability laws in different countries are different and Challenger Millennium Series 2007-1E Trust may be exposed to various liability claims given change in policies in those markets.
• Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.

Limitations of SWOT Analysis for Challenger Millennium Series 2007-1E Trust

Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.

• Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
• SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
• The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Challenger Millennium Series 2007-1E Trust
• SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
• SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.

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Weighted SWOT Analysis of Challenger Millennium Series 2007-1E Trust

In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.

This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Challenger Millennium Series 2007-1E Trust managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.

Limitation of Weighted SWOT analysis of Challenger Millennium Series 2007-1E Trust

This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.

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Example of Weighted SWOT Analysis

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SWOT Worksheet & Template

If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template.

References / Citations & Bibliography

• M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
• A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
• O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
• L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)
• R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)