Anhui LIGOO: A Battery Management System for New Energy Vehicles SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Anhui LIGOO: A Battery Management System for New Energy Vehicles
Anhui LIGOO New Energy Technology Co., Ltd. (LIGOO) had survived and made developments in the field of battery management systems (BMS) in the changing environment of new energy vehicles (NEVs), amid policy adjustment in China. Established in 2010, LIGOO had achieved a respectable market share and acquired a reputation as possessing excellent BMS technology in the electric vehicle industry. However, due to a cold market in the industry and weak reception for these vehicles, LIGOO's performance began to decline. The company made its first transformation, applying BMS technology to the communications and coal mining industries, enabling LIGOO's survival and ability to improve BMS technology when many other BMS technology companies were going bankrupt. In 2013 and 2014, the Chinese government began to enhance its support for the NEV industry, prompting LIGOO's chief executive officer to consider whether LIGOO should continue its existing business in the communications and coal mining industries or rejoin the NEV industry. Jin Hong and Ping Deng and Zheng Zhao are affiliated with University of Science and Technology of China. Hao Lu is affiliated with Room 604, School of Management. Xiumei Guo is affiliated with Curtin University.
Authors :: Jin Hong, Ping Deng, Zheng Zhao, Hao Lu
Swot Analysis of "Anhui LIGOO: A Battery Management System for New Energy Vehicles" written by Jin Hong, Ping Deng, Zheng Zhao, Hao Lu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ligoo Bms facing as an external strategic factors. Some of the topics covered in Anhui LIGOO: A Battery Management System for New Energy Vehicles case study are - Strategic Management Strategies, Competitive strategy, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Anhui LIGOO: A Battery Management System for New Energy Vehicles casestudy better are - – talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
wage bills are increasing, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Anhui LIGOO: A Battery Management System for New Energy Vehicles
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Anhui LIGOO: A Battery Management System for New Energy Vehicles case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ligoo Bms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ligoo Bms 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles can be done for the following purposes –
1. Strategic planning using facts provided in Anhui LIGOO: A Battery Management System for New Energy Vehicles case study
2. Improving business portfolio management of Ligoo Bms
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 Ligoo Bms
Strengths Anhui LIGOO: A Battery Management System for New Energy Vehicles | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ligoo Bms in Anhui LIGOO: A Battery Management System for New Energy Vehicles Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Ligoo Bms 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.
Effective Research and Development (R&D)
– Ligoo Bms 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Ligoo Bms 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 Jin Hong, Ping Deng, Zheng Zhao, Hao Lu 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.
Innovation driven organization
– Ligoo Bms is one of the most innovative firm in sector. Manager in Anhui LIGOO: A Battery Management System for New Energy Vehicles Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Ligoo Bms in the sector have low bargaining power. Anhui LIGOO: A Battery Management System for New Energy Vehicles has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ligoo Bms to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Ligoo Bms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Ligoo Bms 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Ligoo Bms is one of the leading recruiters in the industry. Managers in the Anhui LIGOO: A Battery Management System for New Energy Vehicles are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Ligoo Bms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ligoo Bms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Ligoo Bms is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Ligoo Bms
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ligoo Bms does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Ligoo Bms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ligoo Bms 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.
Weaknesses Anhui LIGOO: A Battery Management System for New Energy Vehicles | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Anhui LIGOO: A Battery Management System for New Energy Vehicles are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ligoo Bms is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Anhui LIGOO: A Battery Management System for New Energy Vehicles can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Ligoo Bms 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Ligoo Bms has relatively successful track record of launching new products.
Products dominated business model
– Even though Ligoo Bms 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 - Anhui LIGOO: A Battery Management System for New Energy Vehicles should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles can leverage the sales team experience to cultivate customer relationships as Ligoo Bms is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Anhui LIGOO: A Battery Management System for New Energy Vehicles HBR case study mentions - Ligoo Bms takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Anhui LIGOO: A Battery Management System for New Energy Vehicles, is just above the industry average. Ligoo Bms 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.
No frontier risks strategy
– After analyzing the HBR case study Anhui LIGOO: A Battery Management System for New Energy Vehicles, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Anhui LIGOO: A Battery Management System for New Energy Vehicles, it seems that the employees of Ligoo Bms 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.
Skills based hiring
– The stress on hiring functional specialists at Ligoo Bms 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 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 Ligoo Bms supply chain. Even after few cautionary changes mentioned in the HBR case study - Anhui LIGOO: A Battery Management System for New Energy Vehicles, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ligoo Bms vulnerable to further global disruptions in South East Asia.
Opportunities Anhui LIGOO: A Battery Management System for New Energy Vehicles | 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ligoo Bms is facing challenges because of the dominance of functional experts in the organization. Anhui LIGOO: A Battery Management System for New Energy Vehicles 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.
Manufacturing automation
– Ligoo Bms can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ligoo Bms 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 Ligoo Bms to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Ligoo Bms 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ligoo Bms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ligoo Bms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Ligoo Bms 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 Ligoo Bms in the consumer business. Now Ligoo Bms can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ligoo Bms 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. Ligoo Bms 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.
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. Ligoo Bms can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Ligoo Bms has opened avenues for new revenue streams for the organization in the industry. This can help Ligoo Bms to build a more holistic ecosystem as suggested in the Anhui LIGOO: A Battery Management System for New Energy Vehicles case study. Ligoo Bms can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ligoo Bms can use these opportunities to build new business models that can help the communities that Ligoo Bms operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Ligoo Bms 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ligoo Bms 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, Anhui LIGOO: A Battery Management System for New Energy Vehicles, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Anhui LIGOO: A Battery Management System for New Energy Vehicles External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Anhui LIGOO: A Battery Management System for New Energy Vehicles are -
Shortening product life cycle
– it is one of the major threat that Ligoo Bms is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Ligoo Bms.
Increasing wage structure of Ligoo Bms
– 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 Ligoo Bms.
Consumer confidence and its impact on Ligoo Bms 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ligoo Bms 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.
Environmental challenges
– Ligoo Bms 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. Ligoo Bms can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Ligoo Bms 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.
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 Ligoo Bms in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Ligoo Bms has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ligoo Bms needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ligoo Bms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Regulatory challenges
– Ligoo Bms 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.
Weighted SWOT Analysis of Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Anhui LIGOO: A Battery Management System for New Energy Vehicles 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 Ligoo Bms needs to make to build a sustainable competitive advantage.
