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 - – increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, 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 -
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.
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.
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.
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.
Operational resilience
– The operational resilience strategy in the iFLYTEK: Leading Chinese Speech Technology 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.
Highly skilled collaborators
– Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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 switching costs
– The high switching costs that Iflytek Speech 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.
Low bargaining power of suppliers
– Suppliers of Iflytek Speech in the sector have low bargaining power. iFLYTEK: Leading Chinese Speech Technology has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Iflytek Speech to manage not only supply disruptions but also source products at highly competitive prices.
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Iflytek Speech 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.
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.
Skills based hiring
– The stress on hiring functional specialists at Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology 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 Iflytek Speech has relatively successful track record of launching new products.
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.
Need for greater diversity
– Iflytek Speech 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, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study iFLYTEK: Leading Chinese Speech Technology 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 Iflytek Speech 's lucrative customers.
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.
No frontier risks strategy
– After analyzing the HBR case study iFLYTEK: Leading Chinese Speech Technology, 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.
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 -
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.
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.
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 Iflytek Speech in the consumer business. Now Iflytek Speech can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Iflytek Speech 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.
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.
Using analytics as competitive advantage
– Iflytek Speech 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 iFLYTEK: Leading Chinese Speech Technology - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Iflytek Speech to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Iflytek Speech can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Creating value in data economy
– The success of analytics program of Iflytek Speech has opened avenues for new revenue streams for the organization in the industry. This can help Iflytek Speech to build a more holistic ecosystem as suggested in the iFLYTEK: Leading Chinese Speech Technology case study. Iflytek Speech can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 -
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.
Increasing wage structure of Iflytek Speech
– 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 Iflytek Speech.
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.
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. Iflytek Speech 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.
Consumer confidence and its impact on Iflytek Speech demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing 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 .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study iFLYTEK: Leading Chinese Speech Technology, Iflytek Speech 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 .
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Iflytek Speech is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
High dependence on third party suppliers
– Iflytek Speech 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.
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.
