Jinjiang Group: Globalization Through State Ownership and Political Connection SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jinjiang Group: Globalization Through State Ownership and Political Connection
Since its founding in 1951, Chinese state-owned Jinjiang International (Group) Company Limited (Jinjiang) had become a leading international company in the travel and hospitality industry with business divisions in hotels, transportation, travel, realty, investments, and finance. The Jinjiang brand was well-known in China, and the group had been pursuing a conservative investment approach. However, in response to the Chinese government's "Going Global" and "One Belt and One Road" policies, and in order to strengthen the firm's international competitiveness, Jinjiang made a series of aggressive mergers and acquisitions between 2014 and 2016. The acquisitions-especially those of two large hotel groups-had worsened Jinjiang's debt position, while integration was proving difficult due to the acquired firms' different corporate cultures and values. The hospitality market was also becoming mature and highly competitive; host-country governments were increasingly wary of foreign state-owned companies acquiring domestic assets. How could Jinjiang overcome these challenges to achieve its aspiration of building a world-class brand, while fulfilling the Chinese government's political agendas through a series of aggressive globalization efforts? Wiboon Kittilaksanawong is affiliated with Saitama University. Qiannan Shi is affiliated with Nagoya University of Commerce & Business.
Swot Analysis of "Jinjiang Group: Globalization Through State Ownership and Political Connection" written by Wiboon Kittilaksanawong, Qiannan Shi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jinjiang Hospitality facing as an external strategic factors. Some of the topics covered in Jinjiang Group: Globalization Through State Ownership and Political Connection case study are - Strategic Management Strategies, Globalization, Government and Global Business.
Some of the macro environment factors that can be used to understand the Jinjiang Group: Globalization Through State Ownership and Political Connection casestudy better are - – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, there is backlash against globalization, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
increasing energy prices, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Jinjiang Group: Globalization Through State Ownership and Political Connection
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jinjiang Group: Globalization Through State Ownership and Political Connection case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jinjiang Hospitality, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jinjiang Hospitality 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 Jinjiang Group: Globalization Through State Ownership and Political Connection can be done for the following purposes –
1. Strategic planning using facts provided in Jinjiang Group: Globalization Through State Ownership and Political Connection case study
2. Improving business portfolio management of Jinjiang Hospitality
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jinjiang Hospitality
Strengths Jinjiang Group: Globalization Through State Ownership and Political Connection | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jinjiang Hospitality in Jinjiang Group: Globalization Through State Ownership and Political Connection Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Jinjiang Hospitality 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.
Superior customer experience
– The customer experience strategy of Jinjiang Hospitality in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Jinjiang Group: Globalization Through State Ownership and Political Connection 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
– Jinjiang Hospitality 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 Jinjiang Group: Globalization Through State Ownership and Political Connection HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Jinjiang Hospitality in the sector have low bargaining power. Jinjiang Group: Globalization Through State Ownership and Political Connection has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jinjiang Hospitality to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Jinjiang Hospitality has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jinjiang Hospitality 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.
High brand equity
– Jinjiang Hospitality has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jinjiang Hospitality to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Jinjiang Hospitality 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 Wiboon Kittilaksanawong, Qiannan Shi 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.
High switching costs
– The high switching costs that Jinjiang Hospitality 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.
Effective Research and Development (R&D)
– Jinjiang Hospitality 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 Jinjiang Group: Globalization Through State Ownership and Political Connection - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Jinjiang Hospitality is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Jinjiang Hospitality has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jinjiang Group: Globalization Through State Ownership and Political Connection 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.
Weaknesses Jinjiang Group: Globalization Through State Ownership and Political Connection | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jinjiang Group: Globalization Through State Ownership and Political Connection are -
Products dominated business model
– Even though Jinjiang Hospitality 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 - Jinjiang Group: Globalization Through State Ownership and Political Connection should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Hospitality has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Wiboon Kittilaksanawong, Qiannan Shi suggests that, Jinjiang Hospitality is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow decision making process
– As mentioned earlier in the report, Jinjiang Hospitality 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. Jinjiang Hospitality 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.
High cash cycle compare to competitors
Jinjiang Hospitality 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jinjiang Group: Globalization Through State Ownership and Political Connection, in the dynamic environment Jinjiang Hospitality has struggled to respond to the nimble upstart competition. Jinjiang Hospitality has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jinjiang Group: Globalization Through State Ownership and Political Connection, is just above the industry average. Jinjiang Hospitality 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.
Need for greater diversity
– Jinjiang Hospitality 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.
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 Jinjiang Hospitality supply chain. Even after few cautionary changes mentioned in the HBR case study - Jinjiang Group: Globalization Through State Ownership and Political Connection, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jinjiang Hospitality vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Jinjiang Group: Globalization Through State Ownership and Political Connection, it seems that the employees of Jinjiang Hospitality 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.
Low market penetration in new markets
– Outside its home market of Jinjiang Hospitality, firm in the HBR case study Jinjiang Group: Globalization Through State Ownership and Political Connection needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Jinjiang Group: Globalization Through State Ownership and Political Connection | 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 Jinjiang Group: Globalization Through State Ownership and Political Connection are -
Buying journey improvements
– Jinjiang Hospitality can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jinjiang Group: Globalization Through State Ownership and Political Connection 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, Jinjiang Hospitality 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jinjiang Hospitality can use these opportunities to build new business models that can help the communities that Jinjiang Hospitality operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Jinjiang Hospitality 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 Jinjiang Group: Globalization Through State Ownership and Political Connection - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jinjiang Hospitality to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Jinjiang Hospitality 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.
Learning at scale
– Online learning technologies has now opened space for Jinjiang Hospitality 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jinjiang Hospitality 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, Jinjiang Group: Globalization Through State Ownership and Political Connection, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jinjiang Hospitality to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Jinjiang Hospitality to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jinjiang Hospitality is facing challenges because of the dominance of functional experts in the organization. Jinjiang Group: Globalization Through State Ownership and Political Connection 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.
Building a culture of innovation
– managers at Jinjiang Hospitality 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 Global Business segment.
Loyalty marketing
– Jinjiang Hospitality 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.
Leveraging digital technologies
– Jinjiang Hospitality 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.
Developing new processes and practices
– Jinjiang Hospitality can develop new processes and procedures in Global Business 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.
Threats Jinjiang Group: Globalization Through State Ownership and Political Connection External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jinjiang Group: Globalization Through State Ownership and Political Connection are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jinjiang Hospitality 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 Jinjiang Group: Globalization Through State Ownership and Political Connection .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jinjiang Hospitality can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jinjiang Group: Globalization Through State Ownership and Political Connection, Jinjiang Hospitality may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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 Jinjiang Hospitality.
Technology acceleration in Forth Industrial Revolution
– Jinjiang Hospitality has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Jinjiang Hospitality needs to keep up with the evolution of technology in the Global Business 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.
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 Jinjiang Hospitality in the Global Business sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Jinjiang Hospitality is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Jinjiang Hospitality 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.
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 Jinjiang Hospitality business can come under increasing regulations regarding data privacy, data security, etc.
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. Jinjiang Hospitality needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Jinjiang Hospitality 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jinjiang Hospitality in the Global Business industry. The Global Business 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.
Weighted SWOT Analysis of Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Group: Globalization Through State Ownership and Political Connection 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 Jinjiang Hospitality needs to make to build a sustainable competitive advantage.