Building China's NII: Policy Coordination and the "Golden Projects" SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Building China's NII: Policy Coordination and the "Golden Projects"
In 1993, China's version of the National Information Infrastructure (NII) was launched, an "informatization" policy office was initiated, and actual implementation of the "information superhighway" begun. These actions distinguished China from much of the rest of the world, both developed and developing. The initiative was to be developed in three stages with the first stage to be completed by the year 2000, at which time the basics of the NII would be in place. By that time, the government expected to have established a high-speed communications platform covering the entire country. The platform would primarily support the "Golden series," a national economic information network, which included a variety of specific information service systems. Why and how was China able to develop and coordinate an NII initiative? Where would it encounter problems?
Swot Analysis of "Building China's NII: Policy Coordination and the "Golden Projects"" written by Ali F. Farhoomand, Peter Lovelock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nii Golden facing as an external strategic factors. Some of the topics covered in Building China's NII: Policy Coordination and the "Golden Projects" case study are - Strategic Management Strategies, International business, IT, Policy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Building China's NII: Policy Coordination and the "Golden Projects" casestudy better are - – there is backlash against globalization, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels,
talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Building China's NII: Policy Coordination and the "Golden Projects"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Building China's NII: Policy Coordination and the "Golden Projects" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nii Golden, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nii Golden 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 Building China's NII: Policy Coordination and the "Golden Projects" can be done for the following purposes –
1. Strategic planning using facts provided in Building China's NII: Policy Coordination and the "Golden Projects" case study
2. Improving business portfolio management of Nii Golden
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 Nii Golden
Strengths Building China's NII: Policy Coordination and the "Golden Projects" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nii Golden in Building China's NII: Policy Coordination and the "Golden Projects" Harvard Business Review case study are -
High brand equity
– Nii Golden has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nii Golden to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Nii Golden 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Building China's NII: Policy Coordination and the "Golden Projects" firm has clearly differentiated products in the market place. This has enabled Nii Golden to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Nii Golden to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Nii Golden in the sector have low bargaining power. Building China's NII: Policy Coordination and the "Golden Projects" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nii Golden to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Nii Golden is present in almost all the verticals within the industry. This has provided firm in Building China's NII: Policy Coordination and the "Golden Projects" 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.
Successful track record of launching new products
– Nii Golden has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nii Golden 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.
Organizational Resilience of Nii Golden
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Nii Golden does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Nii Golden is one of the leading recruiters in the industry. Managers in the Building China's NII: Policy Coordination and the "Golden Projects" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Nii Golden has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Building China's NII: Policy Coordination and the "Golden Projects" 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.
Innovation driven organization
– Nii Golden is one of the most innovative firm in sector. Manager in Building China's NII: Policy Coordination and the "Golden Projects" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Nii Golden is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Nii Golden 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.
Weaknesses Building China's NII: Policy Coordination and the "Golden Projects" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Building China's NII: Policy Coordination and the "Golden Projects" are -
Products dominated business model
– Even though Nii Golden 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 - Building China's NII: Policy Coordination and the "Golden Projects" should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Nii Golden 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nii Golden is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Building China's NII: Policy Coordination and the "Golden Projects" can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Building China's NII: Policy Coordination and the "Golden Projects", is just above the industry average. Nii Golden needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Building China's NII: Policy Coordination and the "Golden Projects", in the dynamic environment Nii Golden has struggled to respond to the nimble upstart competition. Nii Golden has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Building China's NII: Policy Coordination and the "Golden Projects" 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 Nii Golden 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Building China's NII: Policy Coordination and the "Golden Projects", 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Building China's NII: Policy Coordination and the "Golden Projects", it seems that the employees of Nii Golden 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.
Lack of clear differentiation of Nii Golden products
– To increase the profitability and margins on the products, Nii Golden needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Building China's NII: Policy Coordination and the "Golden Projects" 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 Nii Golden has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Nii Golden 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.
Opportunities Building China's NII: Policy Coordination and the "Golden Projects" | 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 Building China's NII: Policy Coordination and the "Golden Projects" are -
Loyalty marketing
– Nii Golden 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.
Using analytics as competitive advantage
– Nii Golden 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 Building China's NII: Policy Coordination and the "Golden Projects" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nii Golden to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nii Golden 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, Building China's NII: Policy Coordination and the "Golden Projects", 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
– Nii Golden 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.
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. Nii Golden 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. Nii Golden 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.
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. Nii Golden can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nii Golden can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Nii Golden has opened avenues for new revenue streams for the organization in the industry. This can help Nii Golden to build a more holistic ecosystem as suggested in the Building China's NII: Policy Coordination and the "Golden Projects" case study. Nii Golden can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Nii Golden can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Nii Golden 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.
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 Nii Golden in the consumer business. Now Nii Golden can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nii Golden is facing challenges because of the dominance of functional experts in the organization. Building China's NII: Policy Coordination and the "Golden Projects" 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 Nii Golden 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 Building China's NII: Policy Coordination and the "Golden Projects" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Building China's NII: Policy Coordination and the "Golden Projects" are -
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 Nii Golden business can come under increasing regulations regarding data privacy, data security, etc.
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. Nii Golden can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Nii Golden 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. Nii Golden can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Nii Golden has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Nii Golden 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Building China's NII: Policy Coordination and the "Golden Projects", Nii Golden 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 .
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. Nii Golden 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.
Shortening product life cycle
– it is one of the major threat that Nii Golden is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Nii Golden in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Nii Golden 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.
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 Nii Golden.
Regulatory challenges
– Nii Golden 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.
Stagnating economy with rate increase
– Nii Golden 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.
Increasing wage structure of Nii Golden
– 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 Nii Golden.
Weighted SWOT Analysis of Building China's NII: Policy Coordination and the "Golden Projects" 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 Building China's NII: Policy Coordination and the "Golden Projects" 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 Building China's NII: Policy Coordination and the "Golden Projects" 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 Building China's NII: Policy Coordination and the "Golden Projects" 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 Building China's NII: Policy Coordination and the "Golden Projects" 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 Nii Golden needs to make to build a sustainable competitive advantage.
