Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd.
Mobile Internet has imposed an increasing impact on traditional finance. Firstly, some financial business modules can be operated via mobile Internet, and the corresponding transaction cost is greatly reduced. For example, payment by traditional bank draft is replaced by Internet payment through Alipay (China) Network Technology Co., Ltd. Secondly, some financial businesses can be conducted through mobile Internet. For instance, Alibaba Group launched a microfinance program on the Internet. Thirdly, with the aid of mobile Internet, new financial products can be developed, and Yu'ebao in this case study is a kind of financial product based on mobile Internet.
Authors :: F. Warren McFarlan, Yongjun Jin, Xiaohui Li
Swot Analysis of "Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd." written by F. Warren McFarlan, Yongjun Jin, Xiaohui Li includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Internet Mobile facing as an external strategic factors. Some of the topics covered in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. case study are - Strategic Management Strategies, Internet and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, wage bills are increasing, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Internet Mobile, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Internet Mobile 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. case study
2. Improving business portfolio management of Internet Mobile
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Internet Mobile
Strengths Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Internet Mobile in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. Harvard Business Review case study are -
Diverse revenue streams
– Internet Mobile is present in almost all the verticals within the industry. This has provided firm in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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.
Ability to recruit top talent
– Internet Mobile is one of the leading recruiters in the industry. Managers in the Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Internet Mobile 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Internet Mobile has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Internet Mobile 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.
Strong track record of project management
– Internet Mobile is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Internet Mobile 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.
Cross disciplinary teams
– Horizontal connected teams at the Internet Mobile 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.
Operational resilience
– The operational resilience strategy in the Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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.
Sustainable margins compare to other players in Finance & Accounting industry
– Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. firm has clearly differentiated products in the market place. This has enabled Internet Mobile to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Internet Mobile to invest into research and development (R&D) and innovation.
Organizational Resilience of Internet Mobile
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Internet Mobile does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Internet Mobile is one of the most innovative firm in sector. Manager in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Internet Mobile 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 Internet Mobile is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. are -
Products dominated business model
– Even though Internet Mobile 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 - Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Internet Mobile 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Internet Mobile has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. can leverage the sales team experience to cultivate customer relationships as Internet Mobile is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Internet Mobile 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.
Interest costs
– Compare to the competition, Internet Mobile has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Internet Mobile products
– To increase the profitability and margins on the products, Internet Mobile 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, Internet Mobile is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Internet Mobile 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.
Capital Spending Reduction
– Even during the low interest decade, Internet Mobile 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd., it seems that the employees of Internet Mobile 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.
Opportunities Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. | 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. are -
Better consumer reach
– The expansion of the 5G network will help Internet Mobile to increase its market reach. Internet Mobile 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Internet Mobile 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, Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Internet Mobile 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. Internet Mobile 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Internet Mobile can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Internet Mobile can develop new processes and procedures in Finance & Accounting 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.
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 Internet Mobile 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.
Creating value in data economy
– The success of analytics program of Internet Mobile has opened avenues for new revenue streams for the organization in the industry. This can help Internet Mobile to build a more holistic ecosystem as suggested in the Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. case study. Internet Mobile can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Internet Mobile in the consumer business. Now Internet Mobile can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Internet Mobile 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Internet Mobile in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Loyalty marketing
– Internet Mobile 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
– Internet Mobile 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Internet Mobile to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Internet Mobile 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 Finance & Accounting segment.
Threats Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. are -
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. Internet Mobile 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.
Stagnating economy with rate increase
– Internet Mobile 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.
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 Internet Mobile business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd., Internet Mobile may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Internet Mobile.
High dependence on third party suppliers
– Internet Mobile 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.
Regulatory challenges
– Internet Mobile 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 Finance & Accounting industry regulations.
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.
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 Internet Mobile in the Finance & Accounting sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Internet Mobile with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Technology acceleration in Forth Industrial Revolution
– Internet Mobile has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Internet Mobile needs to keep up with the evolution of technology in the Finance & Accounting 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.
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. Internet Mobile needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Internet Mobile needs to make to build a sustainable competitive advantage.
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