China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise

Science Fiction World (SFW) was set up in 1979 as a publishing unit of China's state-owned Science and Technology Organization to promote science and technology. For more than three decades, this leading science fiction publisher had survived China's tightly regulated publishing industry. However, with the accelerated technological and social changes sweeping across China, SFW faced new challenges and had to assess how the changes could impact the future sustainability of its print-based book and magazine publishing business.

Authors :: Beng Geok Wee, Jin Jiang Yan, Xizi Chen

Topics :: Strategy & Execution

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

Swot Analysis of "China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise" written by Beng Geok Wee, Jin Jiang Yan, Xizi Chen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Science Fiction facing as an external strategic factors. Some of the topics covered in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise case study are - Strategic Management Strategies, Government and Strategy & Execution.

Some of the macro environment factors that can be used to understand the China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, increasing commodity prices, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, etc

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Introduction to SWOT Analysis of China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Science Fiction, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Science Fiction 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise can be done for the following purposes –
1. Strategic planning using facts provided in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise case study
2. Improving business portfolio management of Science Fiction
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 Science Fiction

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Strengths China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Science Fiction in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise Harvard Business Review case study are -

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Science Fiction digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Science Fiction 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 Science Fiction 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

– Science Fiction is one of the leading recruiters in the industry. Managers in the China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Science Fiction

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

Diverse revenue streams

– Science Fiction is present in almost all the verticals within the industry. This has provided firm in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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.

Analytics focus

– Science Fiction 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 Beng Geok Wee, Jin Jiang Yan, Xizi Chen 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.

Learning organization

- Science Fiction 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 Science Fiction is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Sustainable margins compare to other players in Strategy & Execution industry

– China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise firm has clearly differentiated products in the market place. This has enabled Science Fiction to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Science Fiction to invest into research and development (R&D) and innovation.

Low bargaining power of suppliers

– Suppliers of Science Fiction in the sector have low bargaining power. China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Science Fiction to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy in the China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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.

Ability to lead change in Strategy & Execution field

– Science Fiction is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Science Fiction in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Science Fiction 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise are -

Skills based hiring

– The stress on hiring functional specialists at Science Fiction 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.

High cash cycle compare to competitors

Science Fiction 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.

Increasing silos among functional specialists

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

Workers concerns about automation

– As automation is fast increasing in the segment, Science Fiction 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.

Need for greater diversity

– Science Fiction 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 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 Science Fiction supply chain. Even after few cautionary changes mentioned in the HBR case study - China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Science Fiction vulnerable to further global disruptions in South East Asia.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise, it seems that the employees of Science Fiction 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 Science Fiction, firm in the HBR case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Lack of clear differentiation of Science Fiction products

– To increase the profitability and margins on the products, Science Fiction needs to provide more differentiated products than what it is currently offering in the marketplace.

Capital Spending Reduction

– Even during the low interest decade, Science Fiction has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Science Fiction is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise | 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Science Fiction 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.

Creating value in data economy

– The success of analytics program of Science Fiction has opened avenues for new revenue streams for the organization in the industry. This can help Science Fiction to build a more holistic ecosystem as suggested in the China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise case study. Science Fiction can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Using analytics as competitive advantage

– Science Fiction has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Science Fiction to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Loyalty marketing

– Science Fiction 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.

Building a culture of innovation

– managers at Science Fiction can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.

Better consumer reach

– The expansion of the 5G network will help Science Fiction to increase its market reach. Science Fiction 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.

Learning at scale

– Online learning technologies has now opened space for Science Fiction 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.

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. Science Fiction can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Science Fiction 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 Science Fiction to hire the very best people irrespective of their geographical location.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Science Fiction 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, China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Science Fiction is facing challenges because of the dominance of functional experts in the organization. China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Science Fiction can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Science Fiction can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Buying journey improvements

– Science Fiction can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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.

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Threats China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise are -

Consumer confidence and its impact on Science Fiction 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.

Increasing wage structure of Science Fiction

– 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 Science Fiction.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise, Science Fiction 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 .

Easy access to finance

– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Science Fiction can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Science Fiction 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.

Environmental challenges

– Science Fiction 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. Science Fiction 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 Science Fiction business can come under increasing regulations regarding data privacy, data security, etc.

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. Science Fiction needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

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.

High dependence on third party suppliers

– Science Fiction 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.

Barriers of entry lowering

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

Shortening product life cycle

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

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.

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Weighted SWOT Analysis of China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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 China's Science Fiction World Publisher - Developing a New Business Strategy for a Small Enterprise 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 Science Fiction needs to make to build a sustainable competitive advantage.

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