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 government debt because of Covid-19 spendings, wage bills are increasing, increasing energy prices, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , increasing household debt because of falling income levels, 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 -
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.
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.
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.
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.
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.
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.
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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Internet Mobile digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Internet Mobile 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.
Analytics focus
– Internet Mobile 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 F. Warren McFarlan, Yongjun Jin, Xiaohui Li 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.
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.
Low bargaining power of suppliers
– Suppliers of Internet Mobile in the sector have low bargaining power. Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Internet Mobile to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Finance & Accounting field
– Internet Mobile 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 Internet Mobile in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
Low market penetration in new markets
– Outside its home market of Internet Mobile, firm in the HBR case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 Internet Mobile supply chain. Even after few cautionary changes mentioned in the HBR case study - Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Internet Mobile vulnerable to further global disruptions in South East Asia.
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.
Increasing silos among functional specialists
– The organizational structure of Internet Mobile is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Internet Mobile needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Internet Mobile to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Internet Mobile 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. Internet Mobile 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.
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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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 Internet Mobile 's lucrative customers.
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.
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.
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 -
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Internet Mobile can use these opportunities to build new business models that can help the communities that Internet Mobile operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Internet Mobile can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Buying journey improvements
– Internet Mobile can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Zenglibao: An Internet Money Market Fund Run by Tianhong Asset Management Co., Ltd. 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Internet Mobile can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Leveraging digital technologies
– Internet Mobile 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.
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.
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.
Manufacturing automation
– Internet Mobile can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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.
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 -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Internet Mobile in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– 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.
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 Internet Mobile in the Finance & Accounting sector and impact the bottomline of the organization.
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.
Shortening product life cycle
– it is one of the major threat that Internet Mobile is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Internet Mobile 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
– Internet Mobile 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. Internet Mobile can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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.
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.
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.
Consumer confidence and its impact on Internet Mobile 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.
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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