Low-Carbon, Indigenous Innovation in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Low-Carbon, Indigenous Innovation in China
For the past seven years or so, the Chinese government has been powering ahead with industrial policies to promote low-carbon energy technologies-wind, solar, electric batteries and vehicles, nuclear power, and even carbon capture and sequestration. In 2009, the government focused broadly on "indigenous innovation," a policy to adopt and then develop technology in dozens of high-tech sectors. As with the earlier focus on renewables, explicit governmental policies and subsidies discriminate against foreign products and foreign companies invested in China. The net effects of these initiatives leave low-carbon energy industries in the United States in the dust.
Swot Analysis of "Low-Carbon, Indigenous Innovation in China" written by Richard H.K. Vietor includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Carbon Indigenous facing as an external strategic factors. Some of the topics covered in Low-Carbon, Indigenous Innovation in China case study are - Strategic Management Strategies, Corporate governance, Globalization, Policy, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Low-Carbon, Indigenous Innovation in China casestudy better are - – geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Low-Carbon, Indigenous Innovation in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Low-Carbon, Indigenous Innovation in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Carbon Indigenous, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Carbon Indigenous 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 Low-Carbon, Indigenous Innovation in China can be done for the following purposes –
1. Strategic planning using facts provided in Low-Carbon, Indigenous Innovation in China case study
2. Improving business portfolio management of Carbon Indigenous
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 Carbon Indigenous
Strengths Low-Carbon, Indigenous Innovation in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Carbon Indigenous in Low-Carbon, Indigenous Innovation in China Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Carbon Indigenous digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Carbon Indigenous 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.
Innovation driven organization
– Carbon Indigenous is one of the most innovative firm in sector. Manager in Low-Carbon, Indigenous Innovation in China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Carbon Indigenous is present in almost all the verticals within the industry. This has provided firm in Low-Carbon, Indigenous Innovation in China 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.
Analytics focus
– Carbon Indigenous 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 Richard H.K. Vietor 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.
Low bargaining power of suppliers
– Suppliers of Carbon Indigenous in the sector have low bargaining power. Low-Carbon, Indigenous Innovation in China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Carbon Indigenous to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Carbon Indigenous 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.
Organizational Resilience of Carbon Indigenous
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Carbon Indigenous does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Carbon Indigenous has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Carbon Indigenous to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Carbon Indigenous 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 Carbon Indigenous in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Carbon Indigenous in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– Low-Carbon, Indigenous Innovation in China firm has clearly differentiated products in the market place. This has enabled Carbon Indigenous to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Carbon Indigenous to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Carbon Indigenous 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 Low-Carbon, Indigenous Innovation in China - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Low-Carbon, Indigenous Innovation in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Low-Carbon, Indigenous Innovation in China are -
Increasing silos among functional specialists
– The organizational structure of Carbon Indigenous is dominated by functional specialists. It is not different from other players in the Global Business segment. Carbon Indigenous needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Carbon Indigenous to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Low-Carbon, Indigenous Innovation in China 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 Carbon Indigenous 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Carbon Indigenous 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. Carbon Indigenous 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 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 Carbon Indigenous supply chain. Even after few cautionary changes mentioned in the HBR case study - Low-Carbon, Indigenous Innovation in China, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Carbon Indigenous vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Low-Carbon, Indigenous Innovation in China, in the dynamic environment Carbon Indigenous has struggled to respond to the nimble upstart competition. Carbon Indigenous has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Low-Carbon, Indigenous Innovation in China 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 Low-Carbon, Indigenous Innovation in China can leverage the sales team experience to cultivate customer relationships as Carbon Indigenous is planning to shift buying processes online.
High cash cycle compare to competitors
Carbon Indigenous 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Richard H.K. Vietor suggests that, Carbon Indigenous 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.
No frontier risks strategy
– After analyzing the HBR case study Low-Carbon, Indigenous Innovation in China, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Products dominated business model
– Even though Carbon Indigenous 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 - Low-Carbon, Indigenous Innovation in China should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Carbon Indigenous has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Low-Carbon, Indigenous Innovation in China | 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 Low-Carbon, Indigenous Innovation in China are -
Leveraging digital technologies
– Carbon Indigenous 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.
Learning at scale
– Online learning technologies has now opened space for Carbon Indigenous 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Carbon Indigenous is facing challenges because of the dominance of functional experts in the organization. Low-Carbon, Indigenous Innovation in China 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.
Buying journey improvements
– Carbon Indigenous can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Low-Carbon, Indigenous Innovation in China 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.
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 Carbon Indigenous in the consumer business. Now Carbon Indigenous can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Carbon Indigenous can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Carbon Indigenous 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.
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. Carbon Indigenous can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Carbon Indigenous 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.
Using analytics as competitive advantage
– Carbon Indigenous 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 Low-Carbon, Indigenous Innovation in China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Carbon Indigenous to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Carbon Indigenous has opened avenues for new revenue streams for the organization in the industry. This can help Carbon Indigenous to build a more holistic ecosystem as suggested in the Low-Carbon, Indigenous Innovation in China case study. Carbon Indigenous can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Carbon Indigenous to increase its market reach. Carbon Indigenous will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Carbon Indigenous can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Low-Carbon, Indigenous Innovation in China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Low-Carbon, Indigenous Innovation in China are -
High dependence on third party suppliers
– Carbon Indigenous 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
– Carbon Indigenous has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Carbon Indigenous 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.
Shortening product life cycle
– it is one of the major threat that Carbon Indigenous is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Carbon Indigenous 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 Global Business industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Carbon Indigenous 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.
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 Carbon Indigenous business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Carbon Indigenous 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.
Environmental challenges
– Carbon Indigenous 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. Carbon Indigenous can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Carbon Indigenous.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Carbon Indigenous with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Carbon Indigenous in the Global Business sector and impact the bottomline of the organization.
Increasing wage structure of Carbon Indigenous
– 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 Carbon Indigenous.
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.
Weighted SWOT Analysis of Low-Carbon, Indigenous Innovation in China 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 Low-Carbon, Indigenous Innovation in China 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 Low-Carbon, Indigenous Innovation in China 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 Low-Carbon, Indigenous Innovation in China 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 Low-Carbon, Indigenous Innovation in China 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 Carbon Indigenous needs to make to build a sustainable competitive advantage.
