Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Ishares Asia 50 Etf SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a strategic planning tool that can be used by Ishares Asia 50 Etf managers to do a situational analysis of the firm . It is a useful technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Ishares Asia 50 Etf is facing in its current business environment.
The Ishares Asia 50 Etf is one of the leading organizatations in its industry. Ishares Asia 50 Etf maintains its dominant 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 firm such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - Ishares Asia 50 Etf SWOT Analysis
Check out- Ishares Asia 50 Etf PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework enables 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 enables the managers of the Ishares Asia 50 Etf 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 core purpose of SWOT matrix is to identify the strategies that a firm can utilize to exploit external opportunities, counter threats, and build on & protect Ishares Asia 50 Etf strengths, and eradicate its weaknesses.
Step by Step Guide to Ishares Asia 50 Etf SWOT Analysis
Strengths of Ishares Asia 50 Etf – Internal Strategic Factors
As one of the leading firms in its industry, Ishares Asia 50 Etf has numerous strengths that help 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 Ishares Asia 50 Etf are –
Read - Ishares Asia 50 Etf Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- High level of customer satisfaction – the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
- Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benefits out of the products.
- Strong Free Cash Flow – Ishares Asia 50 Etf has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Highly skilled workforce through successful training and learning programs. Ishares Asia 50 Etf 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.
- Good Returns on Capital Expenditure – Ishares Asia 50 Etf is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
- Automation of activities brought consistency of quality to Ishares Asia 50 Etf products and has enabled the company to scale up and scale down based on the demand conditions in the market.
- 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.
- Strong distribution network – Over the years Ishares Asia 50 Etf has built a reliable distribution network that can reach majority of its potential market.
Weakness of Ishares Asia 50 Etf – Internal Strategic Factors
Weakness are the areas where Ishares Asia 50 Etf can improve upon. Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- Investment in Research and Development is below the fastest growing players in the industry. Even though Ishares Asia 50 Etf 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.
- 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.
- 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 Ishares Asia 50 Etf
- Not highly successful at integrating firms with different work culture. As mentioned earlier even though Ishares Asia 50 Etf is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
- Limited success outside core business – Even though Ishares Asia 50 Etf is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
- 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.
- Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Ishares Asia 50 Etf needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
Opportunities for Ishares Asia 50 Etf – External Strategic Factors
Article continues after advertisement
- Government green drive also opens an opportunity for procurement of Ishares Asia 50 Etf products by the state as well as federal government contractors.
- 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 Ishares Asia 50 Etf to drive home its advantage in new technology and gain market share in the new product category.
- Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
- Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Ishares Asia 50 Etf an opportunity to enter a new emerging market.
- New trends in the consumer behavior can open up new market for the Ishares Asia 50 Etf . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
- The new technology provides an opportunity to Ishares Asia 50 Etf 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 Ishares Asia 50 Etf in other product categories.
- Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Ishares Asia 50 Etf.
Threats Ishares Asia 50 Etf Facing - External Strategic Factors
- 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.
- Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Ishares Asia 50 Etf
- Imitation of the counterfeit and low quality product is also a threat to Ishares Asia 50 Etf’s product especially in the emerging markets and low income markets.
- Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Ishares Asia 50 Etf in those markets.
- The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.
- Rising raw material can pose a threat to the Ishares Asia 50 Etf profitability.
- Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model.
- Liability laws in different countries are different and Ishares Asia 50 Etf may be exposed to various liability claims given change in policies in those markets.
Limitations of SWOT Analysis for Ishares Asia 50 Etf
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 Ishares Asia 50 Etf
- 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.
Article continues after advertisement
Weighted SWOT Analysis of Ishares Asia 50 Etf
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 Ishares Asia 50 Etf 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 Ishares Asia 50 Etf
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.
Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Ishares Asia 50 Etf
Example of Weighted SWOT Analysis
You can email us to get an example document of Weighted SWOT analysis.
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)
Order Now
Previous 5 SWOT Analysis
- Interstar Millennium Series 2006-4H Trust SWOT Analysis
- Interstar Millennium Series 2006-3L Trust SWOT Analysis
- Interstar Millennium Series 2006-2G Trust SWOT Analysis
- Interstar Millennium Series 2005-2L Trust SWOT Analysis
- Interstar Millennium Series 2004-5 Trust SWOT Analysis
Next 5 SWOT Analysis
- Ishares China Large-Cap Etf SWOT Analysis
- Ishares Europe Etf SWOT Analysis
- Ishares Global 100 Etf SWOT Analysis
- Ishares Msci Bric Etf SWOT Analysis
- Ishares Msci Eafe Etf SWOT Analysis