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. 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.
SWOT does Swot analysis of western union show how to achieve a competitive advantage, so it must not be an end in itself. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. 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.
Good Returns on Capital Expenditure — The Western Union Company is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. 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.
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. Financial planning is not done properly and efficiently. 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.
As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.
Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
Free Press, ; L. 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. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
Porter, Competitive Strategy New York: Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. Right now the investment in technologies is not at par with the vision of the company.
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. High attrition rate in work force — compare to other organizations in the industry Western Union has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
The matrix is only a starting point for a discussion on how proposed strategies could be implemented. Opportunities for Western Union — External Strategic Factors New environmental policies — The new opportunities will create a level playing field for all the players in the industry.
Opportunities for The Western Union Company — External Strategic Factors Article continues after advertisement Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of The Western Union Company.
Given the scale of expansion and different geographies the company is planning to expand into, The Western Union Company needs to put more money in technology to integrate the processes across the board.
Williamson, Markets and Hierarchies New York: Highly skilled workforce through successful training and learning programs. Even though The Western Union Company 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 represent a great opportunity for The Western Union Company to drive home its advantage in new technology and gain market share in the new product category.
This can impact the long term growth of Western Union Limited success outside core business — Even though Western Union is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. Free Press, ; L. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
Certain capabilities or factors of an organization can be both a strength and weakness at the same time. Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided Western Union an opportunity to enter a new emerging market.
Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for The Western Union Company to capture new customers and increase its market share.
New environmental policies — The new opportunities will create a level playing field for all the players in the industry.
It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Western Union SWOT is a static assessment - analysis of status quo with few prospective changes.
It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. Article continues after advertisement 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.
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.
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.Western Union also offers multi currency payment services, currency market analysis services, bills payment services, prepaid cards, gift cards and mobile wallet services.
The company operates through a network of agents and its branch offices. The company operates in South America, North America, Asia Pacific, Europe, Africa and the Middle East.
Pending its cease the service inWestern Union was the best-known U.S Company in the business of switching cables or messages. SWOT Analysis of Western Union Strengths • Western Union, got developed as domination, it conquered the telegraph industry in the late 19th century.
SWOT Analysis: SWOT analysis is a management technique used to identify and evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a business. SWOT analysis gives a comprehensive set of information which can be used to review the performance of a given company.
SWOT analysis is a vital strategic planning tool that can be used by The Western Union Company 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) The Western Union Company is facing in its current business environment.
The Western Union Company. // Western Union Company SWOT Analysis;Apr, p1. A SWOT analysis of The Western Union Co., a provider of global money transfer and payment services, is presented. The company offers global business payments. Western Union STP.
Segment. Individuals, HNI’s, large firms and anyone looking for money transfer. Target Group. Individuals and large firms.
Positioning. A firm with strong roots in past & rich experience in what it does – money transfer. Western Union SWOT Analysis. Strengths. 1. Presence in over countries & around years of experience 2.Download