iFLYTEK: Leading Chinese Speech Technology SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of iFLYTEK: Leading Chinese Speech Technology
By 2014, iFLYTEK was a proven leader in the Chinese speech technology industry with over 70 per cent of the domestic market; however, the company's growth had become stagnant. As competitive pressures were rising, iFLYTEK's chief executive officer needed to determine whether the company should continue to pursue its current business-to-business strategy or instead adopt new opportunities in the business-to-consumer market. Jingui Xie is affiliated with School of Management. Zhiying Liu is affiliated with School of Management.
Swot Analysis of "iFLYTEK: Leading Chinese Speech Technology" written by Jingui Xie, Zhiying Liu, Muhammad Adnan Zahid Chudhery, Renzhi Yu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Iflytek Speech facing as an external strategic factors. Some of the topics covered in iFLYTEK: Leading Chinese Speech Technology case study are - Strategic Management Strategies, Design, Entrepreneurship, International business, Marketing, Mobile and Strategy & Execution.
Some of the macro environment factors that can be used to understand the iFLYTEK: Leading Chinese Speech Technology casestudy better are - – challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, wage bills are increasing, increasing commodity prices,
talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of iFLYTEK: Leading Chinese Speech Technology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in iFLYTEK: Leading Chinese Speech Technology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Iflytek Speech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology can be done for the following purposes –
1. Strategic planning using facts provided in iFLYTEK: Leading Chinese Speech Technology case study
2. Improving business portfolio management of Iflytek Speech
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 Iflytek Speech
Strengths iFLYTEK: Leading Chinese Speech Technology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Iflytek Speech in iFLYTEK: Leading Chinese Speech Technology Harvard Business Review case study are -
Successful track record of launching new products
– Iflytek Speech has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Iflytek Speech 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.
Training and development
– Iflytek Speech has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in iFLYTEK: Leading Chinese Speech Technology 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.
Cross disciplinary teams
– Horizontal connected teams at the Iflytek Speech are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Strategy & Execution field
– Iflytek Speech 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 Iflytek Speech in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– iFLYTEK: Leading Chinese Speech Technology firm has clearly differentiated products in the market place. This has enabled Iflytek Speech to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Iflytek Speech to invest into research and development (R&D) and innovation.
Learning organization
- Iflytek Speech 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 Iflytek Speech is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in iFLYTEK: Leading Chinese Speech Technology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Iflytek Speech is present in almost all the verticals within the industry. This has provided firm in iFLYTEK: Leading Chinese Speech Technology 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
– Iflytek Speech 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 Jingui Xie, Zhiying Liu, Muhammad Adnan Zahid Chudhery, Renzhi Yu 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.
Organizational Resilience of Iflytek Speech
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Iflytek Speech does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Iflytek Speech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Iflytek Speech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Iflytek Speech is one of the most innovative firm in sector. Manager in iFLYTEK: Leading Chinese Speech Technology Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses iFLYTEK: Leading Chinese Speech Technology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of iFLYTEK: Leading Chinese Speech Technology are -
Slow decision making process
– As mentioned earlier in the report, Iflytek Speech 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. Iflytek Speech 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.
Low market penetration in new markets
– Outside its home market of Iflytek Speech, firm in the HBR case study iFLYTEK: Leading Chinese Speech Technology needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Iflytek Speech 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 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 Iflytek Speech supply chain. Even after few cautionary changes mentioned in the HBR case study - iFLYTEK: Leading Chinese Speech Technology, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Iflytek Speech vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Jingui Xie, Zhiying Liu, Muhammad Adnan Zahid Chudhery, Renzhi Yu suggests that, Iflytek Speech is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Iflytek Speech is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Iflytek Speech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Iflytek Speech to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Iflytek Speech 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.
Slow to strategic competitive environment developments
– As iFLYTEK: Leading Chinese Speech Technology HBR case study mentions - Iflytek Speech 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.
Lack of clear differentiation of Iflytek Speech products
– To increase the profitability and margins on the products, Iflytek Speech needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Iflytek Speech is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study iFLYTEK: Leading Chinese Speech Technology can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study iFLYTEK: Leading Chinese Speech Technology, in the dynamic environment Iflytek Speech has struggled to respond to the nimble upstart competition. Iflytek Speech has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities iFLYTEK: Leading Chinese Speech Technology | 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 iFLYTEK: Leading Chinese Speech Technology are -
Developing new processes and practices
– Iflytek Speech 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.
Leveraging digital technologies
– Iflytek Speech 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.
Better consumer reach
– The expansion of the 5G network will help Iflytek Speech to increase its market reach. Iflytek Speech 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Iflytek Speech can use these opportunities to build new business models that can help the communities that Iflytek Speech operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Iflytek Speech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Iflytek Speech 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, iFLYTEK: Leading Chinese Speech Technology, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Iflytek Speech can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Iflytek Speech 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.
Building a culture of innovation
– managers at Iflytek Speech 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.
Buying journey improvements
– Iflytek Speech can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. iFLYTEK: Leading Chinese Speech Technology 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Iflytek Speech 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Iflytek Speech is facing challenges because of the dominance of functional experts in the organization. iFLYTEK: Leading Chinese Speech Technology 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.
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 Iflytek Speech 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.
Threats iFLYTEK: Leading Chinese Speech Technology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study iFLYTEK: Leading Chinese Speech Technology are -
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 Iflytek Speech.
Technology acceleration in Forth Industrial Revolution
– Iflytek Speech has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Iflytek Speech needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Iflytek Speech 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.
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.
Regulatory challenges
– Iflytek Speech 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Iflytek Speech with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Iflytek Speech 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. Iflytek Speech can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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 Iflytek Speech in the Strategy & Execution sector and impact the bottomline 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 Iflytek Speech business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Iflytek Speech 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.
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. Iflytek Speech can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of iFLYTEK: Leading Chinese Speech Technology 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 iFLYTEK: Leading Chinese Speech Technology 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 iFLYTEK: Leading Chinese Speech Technology 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 iFLYTEK: Leading Chinese Speech Technology 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 iFLYTEK: Leading Chinese Speech Technology 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 Iflytek Speech needs to make to build a sustainable competitive advantage.
