This investment has opened new sales channel for Mastercard Incorporated. Thus Mastercard needs to leverage the digital economy to be the laeding player in its segment and retain its competitive advantage. Article continues after advertisement Limited success outside core business — Even though Mastercard Incorporated is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.
Mastercard competitor analysis
Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. 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. This should open a window of opportunity for Mastercard Incorporated in other product categories. With more cash in bank the company can invest in new technologies as well as in new products segments. Stable free cash flow provides opportunities to invest in adjacent product segments. Limitation of Weighted SWOT analysis of Mastercard Incorporated 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. Certain capabilities or factors of an organization can be both a strength and weakness at the same time. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. The answer might surprise you. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
This can impact the long term growth of MasterCard Opportunities for MasterCard — External Strategic Factors Stable free cash flow provides opportunities to invest in adjacent product segments.
These programs will achieve a two-fold objective — economic inclusion and growth and growth for the company in underpenetrated markets.
As mentioned earlier even though MasterCard is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
Government green drive also opens an opportunity for procurement of Mastercard Incorporated products by the state as well as federal government contractors.
Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Mastercard Incorporated. New trends in the consumer behavior can open up new market for the Mastercard Incorporated. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. It has come across as a mature firm looking forward to bring out products based on tested features in the market. New trends in the consumer behavior can open up new market for the MasterCard. The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as MasterCard to increase its profitability. It deals with consumers, financial institutions, merchants, governments and businesses; facilitating transactions between them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. Certain capabilities or factors of an organization can be both a strength and weakness at the same time.
Threats MasterCard 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.
This lack of choice can give a new competitor a foothold in the market.
Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of MasterCard.
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