Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex

In 1999, the International Horticultural Exposition was held in Kunming, capital of Yunnan Province in China. Recognised as an international exposition by the Bureau International des Expositions (BIE), the event was organised by the International Association of Horticultural Producers (AIPH), based in Paris, France. It was the first international mega-exposition hosted in China, and had strong support from Kunming's local government agencies. The six-month long exposition (Expo Garden) attracted more than 9 million visitors from around the world with a daily average of 49,000 park visitors and hitting a peak of more than 110,000 visitors in a single day. After the exhibition ended, Kunming government decided to continue to keep the venue open as a tourist destination, and major transformations were made to Expo Garden's management structure and business operations. A decade later, Expo Garden had lost its position as a prime tourist destination in Yunnan, as other destinations such as Dali, Shangri-la and Lijiang became the top tourist draws. During this time, domestic tourists emerged as the main engine of growth in Yunnan's tourism industry. In 2012, the group that owned and managed Expo Gardens, Yunnan Tourism Co. Ltd, a state-owned company listed in the Shenzhen stock exchange, needed a turnaround strategy to enhance the attractiveness of Expo Garden, its major asset. The aim was to: o transform Expo Garden into a major player in Yunnan Province's tourism industry; and o to boost Expo Garden's income growth substantially and improve the financial performance of the company.

Authors :: Russell Arthur Smith, Beng Geok Wee, Wei Chen

Topics :: Strategy & Execution

Tags :: , SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex" written by Russell Arthur Smith, Beng Geok Wee, Wei Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Expo Yunnan facing as an external strategic factors. Some of the topics covered in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex case study are - Strategic Management Strategies, and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc

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Introduction to SWOT Analysis of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Expo Yunnan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Expo Yunnan operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex can be done for the following purposes –
1. Strategic planning using facts provided in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex case study
2. Improving business portfolio management of Expo Yunnan
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Expo Yunnan

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Strengths Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Expo Yunnan in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex Harvard Business Review case study are -

Diverse revenue streams

– Expo Yunnan is present in almost all the verticals within the industry. This has provided firm in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Strong track record of project management

– Expo Yunnan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Organizational Resilience of Expo Yunnan

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Expo Yunnan does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Training and development

– Expo Yunnan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Highly skilled collaborators

– Expo Yunnan has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Learning organization

- Expo Yunnan is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Expo Yunnan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Low bargaining power of suppliers

– Suppliers of Expo Yunnan in the sector have low bargaining power. Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Expo Yunnan to manage not only supply disruptions but also source products at highly competitive prices.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Expo Yunnan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Expo Yunnan has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

High switching costs

– The high switching costs that Expo Yunnan has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Ability to recruit top talent

– Expo Yunnan is one of the leading recruiters in the industry. Managers in the Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Successful track record of launching new products

– Expo Yunnan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Expo Yunnan has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Innovation driven organization

– Expo Yunnan is one of the most innovative firm in sector. Manager in Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

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Weaknesses Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex are -

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex, in the dynamic environment Expo Yunnan has struggled to respond to the nimble upstart competition. Expo Yunnan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Increasing silos among functional specialists

– The organizational structure of Expo Yunnan is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Expo Yunnan needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Expo Yunnan to focus more on services rather than just following the product oriented approach.

No frontier risks strategy

– After analyzing the HBR case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Expo Yunnan has relatively successful track record of launching new products.

Slow decision making process

– As mentioned earlier in the report, Expo Yunnan has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Expo Yunnan even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Products dominated business model

– Even though Expo Yunnan has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex should strive to include more intangible value offerings along with its core products and services.

Skills based hiring

– The stress on hiring functional specialists at Expo Yunnan has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Workers concerns about automation

– As automation is fast increasing in the segment, Expo Yunnan needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

High cash cycle compare to competitors

Expo Yunnan has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Need for greater diversity

– Expo Yunnan has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High operating costs

– Compare to the competitors, firm in the HBR case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Expo Yunnan 's lucrative customers.

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Opportunities Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex are -

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Expo Yunnan can use these opportunities to build new business models that can help the communities that Expo Yunnan operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Learning at scale

– Online learning technologies has now opened space for Expo Yunnan to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Expo Yunnan can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Expo Yunnan can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Expo Yunnan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Manufacturing automation

– Expo Yunnan can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Better consumer reach

– The expansion of the 5G network will help Expo Yunnan to increase its market reach. Expo Yunnan will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Developing new processes and practices

– Expo Yunnan can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Loyalty marketing

– Expo Yunnan has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Expo Yunnan can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Leveraging digital technologies

– Expo Yunnan can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Creating value in data economy

– The success of analytics program of Expo Yunnan has opened avenues for new revenue streams for the organization in the industry. This can help Expo Yunnan to build a more holistic ecosystem as suggested in the Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex case study. Expo Yunnan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Expo Yunnan to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

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Threats Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex are -

Consumer confidence and its impact on Expo Yunnan demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Expo Yunnan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Expo Yunnan.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Environmental challenges

– Expo Yunnan needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Expo Yunnan can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Expo Yunnan business can come under increasing regulations regarding data privacy, data security, etc.

Stagnating economy with rate increase

– Expo Yunnan can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Expo Yunnan needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Expo Yunnan in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Expo Yunnan can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex .

Shortening product life cycle

– it is one of the major threat that Expo Yunnan is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Expo Yunnan needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex, Expo Yunnan may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

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Weighted SWOT Analysis of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Yunnan Tourism Co., Ltd: Developing Garden Expo '99 Site into a First-Class Urban Eco-Cultural Complex is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Expo Yunnan needs to make to build a sustainable competitive advantage.

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