Esg Investment Report Case Study Solution
Beacon Pointe SWOT Analysis
A SWOT analysis has been performed over the Beacon Pointe Company, which has enabled us to identify the key strategies for exploiting the external opportunities available in the ESG industry, controlling the threats, overcoming the weaknesses and building on the company’s strengths. The SWOT analysis has been detailed as below
Strengths
- The Beacon Pointe has developed a strong brand portfolio, which would enable the company the company to expand and penetrate into the new investment-opportunities, coming from the ESG industry.
- The company focuses on developing new products i.e. the production innovation is at the priority of its existing portfolio, which is good for adapting itself to the changing climatic conditions and related investments in the ESD mutual funds.
- The company has the ability to invest in new projects and generate a good return over the capital expenditure incurred.
- The company has expanded to new markets and such expansion has reduced the company related risk, as it has led to a higher revenue stream with lower economic risks affecting the returns of the company.
- The company enjoys a dominant position in the market, as it has maintained a dedicated customer relationship department for handling the customers and striving for their customer satisfaction and the overall brand equity.
Weaknesses
- The investment in the research and development by the Beacon Pointe is relatively less than the competitors, which needs to be increased, as the identification of opportunities in the ESG sector requires extensive research and development.
- Moreover, the company is not much successful in handling the challenges posed by the new entrant in the market and it has lost its market share in its niche markets slightly.
- The profitability ratio and the net contribution percentage is s lightly lower than industry ratios, which can be enhanced by investments in the ESG. It is because the Beacons are expensive and the covid-19 has impacted the purchasing power of the customers, as a result of which it is supposed that the customers would have shifted towards other competitors, thereby hurting Beacon’s profitability levels and market share(Global New Wire, 2020).
Opportunities
- Due to changing climatic conditions, new environmental policies are expected to emerge, which would create significant opportunities for different players of the industry and being the largest player, the Beacon Pointe has the ability to take advantage of the ESG market through its expansion and product innovation ability.
- The shifting patterns in the consumer behavior, whereby the customers have started preferring to invest in the green bonds or the investment relies on sustainable investing, can also create significant expansion opportunity for the Beacon Pointe Company to develop its product portfolio in accordance with the ESG criteria.
Threats
- The company may be under threat to different litigation or liability laws created to protect the environment and to maintain sustainable standards as per the ESG criteria.
- The competition has been intense especially with the firms based in United States and Europe, which could put a downward pressure over the company’s profitability and its overalls revenue streams.................
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