There are a wide range of tools that business enterprises deploy in an attempt to assess not only their competitive position, but also their performance. Some of the said tools are inclusive of, but they are not limited to; SWOT analysis and portfolio analysis. These tools are of great relevance to both large and small/medium enterprises. They can also be applied to mature businesses as well as businesses that are just starting out. This text concerns itself with Securitize, one of the startups in FinTech. Assuming the role of Securitizes CEO, I will assess the advantages and disadvantages of each of the two approaches identified above (i.e. SWOT analysis and portfolio analysis), and consider how each approach could be applied to the company.
Over the last few years, a number of startups have mushroomed in FinTech. These are inclusive of, but they are not limited to; Securitize, Coinbase, Opendoor, Paydiant, Spur, Chima, Ripple, etc. Having been founded in the year 2017, Securitize was born out of a mission to decrease friction and create liquidity in the private sector (Securitize, 2022). The founders of the company saw the need to ensure that limited partners had access to both liquidity and automation. In so doing, they sought to deploy blockchain technology. It is important to note that in the past, limited partners have been largely deemed illiquid. One of the stated goals of Securitize happens to be ensuring that all of the digital assets of the world are made digital (Securitize, 2022). Some of the companys key competitors at present are inclusive of, but they are not limited to; Wanchain, Quantstamp, Kadena, and TokenGet. The company is based in San Francisco, CA.
SWOT, as Wheelen, Hunger, Hoffman, and Bamford (2018) indicate, happens to stand for Strengths, Weaknesses, Opportunities, and Threats. It is one of the most widely used tools in strategic management. In the case of Securitize, SWOT analysis would be instrumental in our efforts to assess the competitive position of the enterprise. An assessment of this nature would enable us to come up with, or formulate, a viable and effective strategic plan. The identification of the various Strengths and Weaknesses (highlighted elsewhere in this text) will be of great relevance in the evaluation of the firms internal environment. On the other hand, the identification of the various Opportunities and Threats (also highlighted elsewhere in this text) will be key in the evaluation of the external environment of Securitize.
To begin with, and perhaps most obviously, SWOT analysis permits a multilevel analysis (Amason, 2011). This is to say that the tool does not have to be analyzed as a whole for its benefits to be realized. Thus, at Securitize, we could gather key insights about the company or the environment in which it operates by focusing of a specific category, i.e. strength, weakness, opportunity, or threat. However, for a comprehensive view of the competitive position of Securitize, there would be need to make use of all the category in combination.
Secondly, in comparison to other assessment tools such as portfolio analysis and financial ratio analysis, SWOT analysis happens to be a rather easy tool to apply. This is to say that it does not require complex analysis or computations. Thus, Securitizes SWOT analysis could be undertaken by any of the executives (or teams) that the organization already has in place i.e. with no need to hire an external consultant. All that would be required for successful SWOT analysis in the case of Securitize will be knowledge of the various business operations the company is presently engaged in, as well as knowledge of key industry trends. It should also be noted that as a results of the said simplicity, this particular approach is also cost effective. It does not require significant investment in terms of time, human resources, and money.
Third, it would also be prudent to note that SWOT analysis could be deployed on multiple fronts within the company. For instance, we could apply this particular tool to the entire organization or a certain organizational unit. Further, the versatile nature of the approach means that we could apply it to any of Securitizes key business processes with an intention of evaluating viability.
In as much as SWOT analysis clearly has certain undeniable advantages, it should be noted that there are also a number of shortcomings that we should be aware of in the deployment of this particular tool. One such shortcoming is the fact that there would be no way of telling which of the elements captured or highlighted within the four categories is of greatest significance. This is to say that the approach would not provide us with clear cut weighing factors to more accurately guide or inform decision making. For this reason, we are likely to have a hard time ranking the various elements in the order of significance. This is more so the case given that for some reason or another, i.e. resource constrains, the company may not be able to address all the elements highlighted, i.e. as could be the case with elements under weaknesses and threats.
Next, it should also be noted that SWOT analysis, as Amason (2011) points out, could be somewhat ambiguous. This, according to the author, is more so the case given that the tool advances what could be referred to as a one-dimensional model that places each identified element under the four categories (152). Thus, in the case of Securitize, each factor would have to be identified as either a strength, weakness, opportunity, or threat. The problem with this is that there are some elements which might not firmly fit under a single category. For instance, the companys global footprint could be considered a strength (as has been indicated elsewhere in this text). However, to some extent, this could also be a threat in terms of high cost of operation.
Third, Amason (2011) also indicates that this particular strategic analysis tool is not immune to subjective analysis. This, according to the author, is especially the case given that the bias of persons participating in the exercise could be reflected in the elements selected. Further, Amason (2011) is convinced that SWOT analysis has a rather short expiry date. For instance, external factors could change rather quickly, rendering a just completed Opportunities and Threats assessment stale. For this reason, there is a risk that in the deployment of this tool, Securitize might end up relying on inaccurate data that for decision making.
In the case of Securitize, these could be perceived as all those factors that would come in handy in the companys efforts to achieve its mission. Thus, it should be noted that it is on the basis of the various factors highlighted below that Securitizes success can be further enhanced going forward. Securitize ought to build on these strengths.
There is no doubt that Securitize happens to be one of the most innovative companies in FinTech. As a matter of fact, the company has in the past been recognized as a leading innovator in the realm of blockchain. More specifically, in 2020, with its industry-leading primary issuance and compliance platform, Securitize was recognized by CB Insights as a top 50 global innovator leveraging the blockchain, their first-ever ranking of the most promising companies within the blockchain ecosystem (Securitize, 2022). It therefore follows that Securitize has the capability to boost its bottom line via the formulation and implementation of new services, ideas, as well as processes. As a consequence, the company is likely to stay ahead of the competition going forward via the introduction of new services and adaptation of processes to better meet or address customer needs.
ii. Global footprint
Securitize has presence in various regions and jurisdictions. The companys six principal offie locations at present are: San Francisco, New York, Madrid, Tel Aviv, Tokyo, and Buenos Aires. The company is, thus capable of advancing its agenda and better meeting the needs of its customers across the world.
iii. First Mover Advantage
Securitize also has a first mover advantage owing to the fact that it is a pioneer in the digitization of private market securities on the blockchain (Securitize, 2020). More specifically, it would be prudent to note that Securitize happens to have been the first and only platform to fully integrate compliance protocol with regulated marketplace ATS and to enable live trading security tokens with Securitize Markets (Securitize, 2020). As a consequence, the company has clear advantage over competitors in this arena in terms of: access and size, network effects, recognition, and learning.
These are all the factors that could make it difficult Securitize to not only achieve its potential, but also accomplish its mission. For this reason, there would be need to ensure that the said weaknesses are minimized owing to their negative influence on the growth as well as overall success of the enterprise.
i. Lack of Diversity at the Executive Leadership Level
The company is yet to fully embrace diversity in as far as the composition of its top executives is concerned. For instance, there is only one woman in its top leadership team which comprises of 10 individuals. Further, the company does not have an African-American in this particular team. This essentially means that decision-making efforts could suffer from lack of critical insight, especially with regard to cultural competence.
ii. Not a Registered Breaker-Dealer
As Crunchbase (2022) indicates, Securitize does not make offerings endorsement because it is yet to be registered as a broker dealer.
In basic terms, these are the various openings or chances that the external environment offers, and that could be of benefit to Securitize. For this reason, there would be need for Securitize to recognize and exploit these unique chances as they may not be available for long periods of time.
i. Expanding Market
The cryptocurency market size is fast-growing and by some estimates, it is expected to grow from USD 1.6 billion in 2021 to USD 2.2 billion by 2026, at a CAGR of 7.1% (Markets and Markets, 2021). This presents a unique opportunity for Securitize to further expand its market share, and thus bottom-line going forward.
ii. Strategic Partnerships/Alliances
Securitize could partner with various other enterprises so as to acquire new capabilities or gain access to new markets. For instance, crypto assets happen to be rather popular in Russia. However, the company could find it difficult to gain access to this particular market due to existing regulations on the establishment and operation of foreign companies, and other barriers to entry. With this in mind, Securitize could partner with a Russian company or enterprise operating in the digital securities realm so as to gain seamless access to this key market.
Finally, when it comes to threats, these are inclusive of all the external environment conditions and scenarios that could get in the way of Securitizes ability to better its performance or accomplish certain business goals. They may not be within the control of Securitize.
i. Government Regulation
Securitize operates in a market that could witness increased government regulation going forward. This is more so the case with the recent growth of the said markets, i.e. cryptocurencies. Already, there have been concerns about the possible use or utilization of certain digital assets in the commission of criminal activities. Further, most of the assets could be perceived as new innovative financial instruments or technologies. It is for these and other reasons that they could attract increased scrutiny from governments and the various regulatory agencies going forward.
With new and innovative products being introduced on a daily basis in this particular market, it is likely that Securitize will continue facing increased competition. Some of the key competitors of the firm are: Wanchain, Quantstamp, Kadena, and TokenGet.
iii. Economic Conditions
It is important to note that digital assets routinely face major fluctuations as a consequence of a constellation of factors that affect their demand and supply. One such factor is macroeconomic events. For instance, in case of a downturn in economic activity, people would have less disposable income, and thus less to apportion to such alternative assets.
As Wheelen, Hunger, Hoffman, and Bamford (2018) indicate, the relevance of portfolio analysis cannot be understated in efforts to promote sound decision-making in enterprises that have several products and businesses. In the present case involving Securitize, there would be need to make a determination as to how corporate performance could be further enhanced or improved via the management of its various services. This is where portfolio analysis comes in. This is a task that would most effectively be performed at the managerial level. Indeed, Wheelen, Hunger, Hoffman, and Bamford (2018) are categorical that portfolio analysis puts corporate headquarters into the role of an internal banker (206). Just as is the case with SWOT analysis, there are advantages and disadvantages of portfolio analysis.
One of the key advantages of portfolio analysis happens to be that it inspires the top executives of an enterprise to assess the various business units of an organization (Wheelen, Hunger, Hoffman, and Bamford, 2018). Following the said assessment, goals can be formulated and resources assigned for each of the said units. Thus, in the case of Securitize, portfolio analysis will be an important tool in efforts to ensure proper planning as well as allocation of resources across the various business units.
Secondly, portfolio analysis could also come in handy in efforts to promote Securitizes management decision-making abilities. This is more so the case given that in this case, managers can be able to forecast and thus come up with more accurate future expectations.
Third, portfolio analysis, as Wheelen, Hunger, Hoffman, and Bamford (2018) observe, promotes communication due to its ability to come up with the relevant graphical depictions. For instance, as has been indicated elsewhere in this text, the BCG growth share matrix with its four segments – presents the relevant information in a graphical and easy to understand or comprehend manner. Thus, this is a tool that could be used at Securitize as a way to communicate the relevant information about the companys business units to various stakeholders within and outside the firm.
One of the key disadvantages of portfolio analysis happens to be the fact that defining the market/product segments could be an uphill task. For instance, in the case of Securitize, it would be difficult to appropriately categorize the said segments or products under the four categories, i.e. stars, question marks, cash cows, and dogs. This is more so the case given that to a large extent, the company does not have multiple clearly defined strategic business units.
Secondly, portfolio analysis is largely founded on future estimates. This is to say that in the case of Securitize, there would be need to forecast the future using the relevant data. The downside on this front is that the said data could be inaccurate for one reason or another resulting in erroneous forecasts. Indeed, as Wheelen, Hunger, Hoffman, and Bamford (2018) indicate, portfolio analysis provides an illusion of scientific rigor, when in reality positions are based on subjective judgments (209).
Lastly, portfolio analysis would essentially limit us to the products that Securitize presently offers. This effectively means that the management could end up eing oblivious of the various other alternative ventures that could contribute even more to the companys bottom-line.
According to Wilkinson and Kannan (2013), there are a number of portfolio analysis approaches that have been proposed in the past. These are inclusive of Arthur D. little portfolio matrix, Anosoffs product-market growth matrix, market life cycle-competitive strength matrix, the BCG growth share matrix, etc. In the context of Securitize, the most ideal approach to make use of would be the BCG growth share matrix. This, as Wheelen, Hunger, Hoffman, and Bamford (2018) indicate, happens to be one of the most popular portfolio analysis approaches. There are four categories under which products could be placed on this front. These have been identified by Wheelen, Hunger, Hoffman, and Bamford (2018) as question marks, stars, cash cows, and dogs.
To begin with, dogs are representative of low market share and as Wilkinson and Kannan (2013) indicate, the probability of a product in this category to contribute significantly to the bottom line happens to be rather low. Cash cows, on the other hand rake in significant amounts of money with the profits earned in this case being significantly higher than costs incurred in the maintenance of market share. When it comes to stars, Wheelen, Hunger, Hoffman, and Bamford (2018) describe these as products that could be considered market leaders and whose contribution to the bottom line is still significant. However, products in this category are almost near their peak. Lastly, question marks, according to Wheelen, Hunger, Hoffman, and Bamford (2018), are new products with the potential for success, but needing a lot of cash for development (207).
At present, Securitize has two strategic business units: the primary market, and the secondary market. While the primary market largely involves institutional investors funding businesses that are just starting out, the secondary market comprises of digital asset securities trading. Both would be categorized appropriately following further assessment.
In the final analysis, I feel that SWOT analysis would be more beneficial than portfolio analysis. My assertion is on this front founded on the ease of application of this method and the fact that it provides a more accurate picture of crucial factors that could influence the success of the company going forward. In the case of Securitize, portfolio analysis would be an ineffective approach owing to the challenges likely to be involved in the assignment of products to the various categories.
Amason, A. (2011). Strategic Management: From Theory to Practice. Routledge.
Crunchbase (2022). Securitize. https://www.crunchbase.com/organization/securitize-inc
Markets and Markets (2021). Cryptocurrency Market. https://www.marketsandmarkets.com/Market-Reports/cryptocurrency-market-158061641.html
Securitize (2022). About Us. https://securitize.io/about-us#our-story
Wheelen, T., Hunger, J.D., Hoffman, A.N. & Bamford, C.E. (2018). Concepts in Strategic Management and Business Policy. Pearson Education
Wilkinson, T.J. & Kannan, V.R. (2013). Strategic Management in the 21st Century. ABC-CLIO.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!