AdvisorShares Dorsey Wright ADR ETF SWOT Analysis / Matrix

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SWOT analysis is a strategic planning tool that can be used by AdvisorShares Dorsey Wright ADR ETF managers to do a situational analysis of the firm . It is an important technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) AdvisorShares Dorsey Wright ADR ETF is facing in its current business environment.

The AdvisorShares Dorsey Wright ADR ETF is one of the leading organizatations in its industry. AdvisorShares Dorsey Wright ADR ETF maintains its dominant position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis an immensenly 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 called SWOT Matrix.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the AdvisorShares Dorsey Wright ADR ETF to develop four types of strategies:

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

AdvisorShares Dorsey Wright ADR ETF swot analysis / matrix

SWOT Matrix Strategies Objective

The primary purpose of SWOT matrix is to identify the strategies that a company can use to exploit external opportunities, counter threats, and build on & protect AdvisorShares Dorsey Wright ADR ETF strengths, and eradicate its weaknesses.

Step by Step Guide to AdvisorShares Dorsey Wright ADR ETF SWOT Analysis

Strengths of AdvisorShares Dorsey Wright ADR ETF – Internal Strategic Factors

As one of the leading companies in its industry, AdvisorShares Dorsey Wright ADR ETF 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 AdvisorShares Dorsey Wright ADR ETF are –

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Strong distribution network – Over the years AdvisorShares Dorsey Wright ADR ETF has built a reliable distribution network that can reach majority of its potential market.
Good Returns on Capital Expenditure – AdvisorShares Dorsey Wright ADR 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 AdvisorShares Dorsey Wright ADR 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 Brand Portfolio – Over the years AdvisorShares Dorsey Wright ADR ETF has invested in building a strong brand portfolio. The SWOT analysis of AdvisorShares Dorsey Wright ADR ETF just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
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.
Successful track record of developing new products – product innovation.
Superb Performance in New Markets – AdvisorShares Dorsey Wright ADR ETF 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.

Weakness of AdvisorShares Dorsey Wright ADR ETF – Internal Strategic Factors

Weakness are the areas where AdvisorShares Dorsey Wright ADR ETF can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.

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High attrition rate in work force – compare to other organizations in the industry AdvisorShares Dorsey Wright ADR ETF has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Investment in Research and Development is below the fastest growing players in the industry. Even though AdvisorShares Dorsey Wright ADR 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.
Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.
The profitability ratio and Net Contribution % of AdvisorShares Dorsey Wright ADR ETF are below the industry average.
The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. AdvisorShares Dorsey Wright ADR ETF has to build internal feedback mechanism directly from sales team on ground to counter these challenges.

Opportunities for AdvisorShares Dorsey Wright ADR ETF – External Strategic Factors

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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 AdvisorShares Dorsey Wright ADR ETF in other product categories.
The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as AdvisorShares Dorsey Wright ADR ETF to increase its profitability.
Decreasing cost of transportation because of lower shipping prices can also bring down the cost of AdvisorShares Dorsey Wright ADR ETF’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.
Government green drive also opens an opportunity for procurement of AdvisorShares Dorsey Wright ADR ETF products by the state as well as federal government contractors.
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.
New trends in the consumer behavior can open up new market for the AdvisorShares Dorsey Wright ADR ETF . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided AdvisorShares Dorsey Wright ADR ETF an opportunity to enter a new emerging market.
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 AdvisorShares Dorsey Wright ADR ETF to drive home its advantage in new technology and gain market share in the new product category.

Threats AdvisorShares Dorsey Wright ADR ETF Facing - External Strategic Factors

The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets.
New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
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.
Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of AdvisorShares Dorsey Wright ADR ETF
Liability laws in different countries are different and AdvisorShares Dorsey Wright ADR ETF may be exposed to various liability claims given change in policies in those markets.
Rising raw material can pose a threat to the AdvisorShares Dorsey Wright ADR ETF profitability.
Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for AdvisorShares Dorsey Wright ADR ETF in those markets.
Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model.

Limitations of SWOT Analysis for AdvisorShares Dorsey Wright ADR 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 AdvisorShares Dorsey Wright ADR 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.

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Weighted SWOT Analysis of AdvisorShares Dorsey Wright ADR 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 AdvisorShares Dorsey Wright ADR 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 AdvisorShares Dorsey Wright ADR 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.

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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)