The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note
This industry note provides an extensive overview of the wireless communications industry in China at the end of 2012. At the time China had over 1.1 billion mobile subscribers, and the country was predicted to have 500 million smartphones in use by the end of 2013. The note discusses the industry's value chain (carriers, device manufactures, component providers, content and applications providers, and telecom equipment providers), and the role of the Chinese government in the industry's evolution. The note also presents the strategic positioning and business models of China's three main carriers (China Mobile, China Unicorn, and China Telecom), and of the major international and domestic handset manufacturers, including Samsung, ZTE, Nokia, Apple, Lenovo and Huawei. In addition, the note covers the strategic positioning of the main chipset suppliers in the Chinese wireless market: Qualcomm, MediaTek, Samsung and Intel.
Authors :: Gang Zheng, Wang Yajuan, Robert A. Burgelman
Swot Analysis of "The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note" written by Gang Zheng, Wang Yajuan, Robert A. Burgelman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Note Wireless facing as an external strategic factors. Some of the topics covered in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note case study are - Strategic Management Strategies, Government, International business, Marketing, Mobile, Strategic thinking and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note casestudy better are - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, geopolitical disruptions,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Note Wireless, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Note Wireless 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note can be done for the following purposes –
1. Strategic planning using facts provided in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note case study
2. Improving business portfolio management of Note Wireless
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 Note Wireless
Strengths The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Note Wireless in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note Harvard Business Review case study are -
Effective Research and Development (R&D)
– Note Wireless has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Note Wireless is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Gang Zheng, Wang Yajuan, Robert A. Burgelman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Diverse revenue streams
– Note Wireless is present in almost all the verticals within the industry. This has provided firm in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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.
Superior customer experience
– The customer experience strategy of Note Wireless in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Note Wireless has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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.
Organizational Resilience of Note Wireless
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Note Wireless does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Note Wireless 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 Note Wireless is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Note Wireless digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Note Wireless 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.
Operational resilience
– The operational resilience strategy in the The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Note Wireless 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Note Wireless has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Note Wireless to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Note Wireless has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Note Wireless 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.
Weaknesses The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note are -
High cash cycle compare to competitors
Note Wireless 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note, in the dynamic environment Note Wireless has struggled to respond to the nimble upstart competition. Note Wireless has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Note Wireless supply chain. Even after few cautionary changes mentioned in the HBR case study - The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Note Wireless vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Note Wireless 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. Note Wireless 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.
Skills based hiring
– The stress on hiring functional specialists at Note Wireless 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.
Slow to strategic competitive environment developments
– As The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note HBR case study mentions - Note Wireless takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note, it seems that the employees of Note Wireless don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Note Wireless, firm in the HBR case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 Note Wireless has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note, 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.
Lack of clear differentiation of Note Wireless products
– To increase the profitability and margins on the products, Note Wireless needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note | 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note are -
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Note Wireless in the consumer business. Now Note Wireless can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Note Wireless can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Note Wireless 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, The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Note Wireless 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Note Wireless is facing challenges because of the dominance of functional experts in the organization. The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Note Wireless can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Note Wireless can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Note Wireless 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.
Creating value in data economy
– The success of analytics program of Note Wireless has opened avenues for new revenue streams for the organization in the industry. This can help Note Wireless to build a more holistic ecosystem as suggested in the The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note case study. Note Wireless can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Note Wireless in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Note Wireless to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Note Wireless to hire the very best people irrespective of their geographical location.
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. Note Wireless can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Note Wireless can use these opportunities to build new business models that can help the communities that Note Wireless operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Note Wireless 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 Note Wireless.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Note Wireless 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.
Regulatory challenges
– Note Wireless 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Note Wireless in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Note Wireless 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Note Wireless business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Note Wireless
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Note Wireless.
High dependence on third party suppliers
– Note Wireless high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Note Wireless 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Note Wireless will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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. Note Wireless needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 The Chinese Wireless Communications Industry in 2012 and Beyond: An Industry Note 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 Note Wireless needs to make to build a sustainable competitive advantage.