Teachers Insurance and Annuity Association of America (TIAA) SWOT and PESTLE Analysis
COMPANY PROFILE -Teachers Insurance and Annuity Association of America (TIAA)
Business Sector :Insurance
Operating Geography :United States, North America, Global
About Teachers Insurance and Annuity Association of America (TIAA) :
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF) is a Fortune 100 financial services company that offers financial services in the academic, research, medical, cultural, and governmental sectors. TIAA manages assets with holdings in more than 50 countries and provides services to over 5 million active and retired employees participating at more than 15,000 institutions. The organization was founded in 1918 by Andrew Carnegie and his Carnegie Foundation for the Advancement of Teaching under the leadership of Henry S. Pritchett as a fully funded system of pensions for academics. With taxable subsidiaries, it is now set up as a nonprofit corporation. The TIAA decision established how much of its income to distribute each year to TIAA Traditional account policyholders. As of March 2022, there were 146 offices in the United States, with New York serving as the headquarters. On September 7, 2022, TIAA stated that it had partnered with Google Cloud to use its artificial intelligence (AI) technology to improve analysis for more efficient interactions in its National Contact Center (NCC), optimize self-service, and increase customer experience.
The Teachers Insurance and Annuity Association of Americas' USP lies in its being a pioneer in meeting the financial needs of those in the academic, governmental, medical, cultural, and other nonprofit sectors by offering cutting-edge technology and support services. The Teachers Insurance and Annuity Association of Americas (TIAA)'s mission statement reads, "TIAA is dedicated to helping those who teach, heal and serve to achieve financial well-being".
Teachers Insurance and Annuity Association of America (TIAA) Revenue :
$29,589 million - FY ending 31st December 2021 (y-o-y growth -9.4%)
$32,661 million - FY ending 31st December 2020
Competitive Analysis of Teachers Insurance and Annuity Association of America (TIAA)
Strengths | Weaknesses |
1. Strong partnerships and dealer community 2. Using automation technology to enhance product quality 3. The products are innovative, flexible, and cost-efficient 4. #1 not-for-profit retirement provider firm 5. Global presence of 211+ offices in 24 countries | 1. Weak net promoter score implying weak customer satisfaction 2. Decrease in year-on-year revenue implies unstable financial operations |
Opportunities | Threats |
1. Technology innovation like creating apps using automation leads to increase in customer base 2. High growth opportunity in Florida in commercial real estate | 1. Allegations and lawsuits harm the reputation of the company 2. Intense competition will increase the risk of decline in market share 3. Currency fluctuation, inflation and other economic factors affect the company’s operations |
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Detailed SWOT Analysis of Teachers Insurance and Annuity Association of America (TIAA)
Strength
1. Strong partnerships and dealer community: The TIAA Institute collaborates with top research institutions, organisations, and think tanks to deliver the broad expertise of many groups, offering data-driven content to assist leaders in making wise decisions. In order to increase access, success, affordability, and equity in higher education, the TIAA Institute collaborates with NEBHE. Additionally, it collaborates with PRC on research and gatherings that aim to improve the American retirement system and inform people, organisations, and policymakers. The Institute and GFLEC have collaborated on issues pertaining to financial capability and literacy among particular populations, such as African Americans, working women, and Generation Y. Further, the TIAA Institute works with ACE to support academic leadership development and assist campus leaders in addressing pressing issues. Other partners are College and University Professional Association for Human Resources (CUPA-HR), The Association of Public and Land-grant Universities (APLU), etc.
2. Using automation technology to enhance product quality: TIAA pioneered an agile, DevOps, and microservices-based software production model. The initiative, called Refactor initiative has resulted in both a significant decrease in costs and an increase in the time it takes TIAA to onboard new clients. That's a significant victory for a big organisation that looks after nearly $1 trillion in retirement funds for 15,000 clients who are plan sponsors and 5 million customers. Refactor used the Scaled Agile Framework (SAFe) to adopt agile in large enterprises and DevOps techniques for continuous integration and deployment, winning a 2019 CIO 100 Award for IT Excellence. The Red Hat OpenShift containerization management platform is used by TIAA to implement CICD (continuous integration and deployment) pipelines for automated development and testing. Due to this, testing efforts were reduced from 130 people and six weeks for a single test pass to one hour and a fully automated test pass. The underlying service and data architecture of Refactor, which handles requests 200 times faster than the prior system, is where the real magic happens. By abandoning the conventional n-tier architecture, in which the functions of presentation, application processing, and data management are physically separated, TIAA was able to accomplish this feat. Instead, domain-driven services were developed and arranged into business concepts with question/answer interfaces. By combining these microservices, MuleSoft's API management tool was able to produce virtual product interfaces.
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Weakness
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Opportunity
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Threat
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Major Competitors :
- Principal financial services
- Empower retirement LLC
- Nationwide mutual insurance co.
- Manulife
- Metlife
- Hartford financial services
- FINRA
Major Brands :
- Retirement annuities
- IRAs
- Mutual funds
- Banking
- Brokerage accounts
- HSAs
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Teachers Insurance and Annuity Association of America (TIAA) SWOT & PESTLE Analysis Report
1. Partnerships - https://www.tiaainstitute.org/about/partnerships
2. TIAA accelerates software delivery with IT-business union - https://www.cio.com/article/220424/tiaa-accelerates-software-delivery-with-it-business-union.html
3. Innovative, flexible, low-cost retirement solution - https://www.tiaa.org/public/pdf/i/IVA_Product_Guide.pdf
4. Helping secure the future for millions - https://www.tiaa.org/public/pdf/f/facts_and_stats.pdf
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Teachers Insurance and Annuity Association of America (TIAA) SWOT and PESTLE analysis has been conducted by Chandrashikha and reviewed by senior analysts from Barakaat Consulting.
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