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AAC Technologies (A): Entrepreneurship, Growth and Transformation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of AAC Technologies (A): Entrepreneurship, Growth and Transformation


This case traces Shenzhen-based AAC Technology's entrepreneurial journey, depicting their motivations, experiences, learning and foresight. It discusses the inter-generational transfer between the entrepreneur and his son, and their cooperation with VCs, thereby laying the foundations for a Chinese family business to transform into a first-source global supplier to several major mobile device manufacturers. Scoring wins in miniaturization and the mobile phone market, AAC continued to build its competitive advantages in high quality and fast response products. Case B examines the strategies undertaken by AAC for growth and expansion after its IPO in 2005.

Authors :: Boon Siong Neo, Gillian Yeo, Yu Zou

Topics :: Innovation & Entrepreneurship

Tags :: Growth strategy, Innovation, IT, Leadership, Manufacturing, Mobile, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "AAC Technologies (A): Entrepreneurship, Growth and Transformation" written by Boon Siong Neo, Gillian Yeo, Yu Zou includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aac Miniaturization facing as an external strategic factors. Some of the topics covered in AAC Technologies (A): Entrepreneurship, Growth and Transformation case study are - Strategic Management Strategies, Growth strategy, Innovation, IT, Leadership, Manufacturing, Mobile and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the AAC Technologies (A): Entrepreneurship, Growth and Transformation casestudy better are - – cloud computing is disrupting traditional business models, geopolitical disruptions, increasing household debt because of falling income levels, technology disruption, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, etc



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Introduction to SWOT Analysis of AAC Technologies (A): Entrepreneurship, Growth and Transformation


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AAC Technologies (A): Entrepreneurship, Growth and Transformation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aac Miniaturization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aac Miniaturization 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation can be done for the following purposes –
1. Strategic planning using facts provided in AAC Technologies (A): Entrepreneurship, Growth and Transformation case study
2. Improving business portfolio management of Aac Miniaturization
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Aac Miniaturization




Strengths AAC Technologies (A): Entrepreneurship, Growth and Transformation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Aac Miniaturization in AAC Technologies (A): Entrepreneurship, Growth and Transformation Harvard Business Review case study are -

High brand equity

– Aac Miniaturization has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Aac Miniaturization to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Strong track record of project management

– Aac Miniaturization is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Aac Miniaturization digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Aac Miniaturization 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.

Highly skilled collaborators

– Aac Miniaturization 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Cross disciplinary teams

– Horizontal connected teams at the Aac Miniaturization 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.

Organizational Resilience of Aac Miniaturization

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Aac Miniaturization does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Learning organization

- Aac Miniaturization 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 Aac Miniaturization is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AAC Technologies (A): Entrepreneurship, Growth and Transformation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Aac Miniaturization 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Innovation driven organization

– Aac Miniaturization is one of the most innovative firm in sector. Manager in AAC Technologies (A): Entrepreneurship, Growth and Transformation Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Training and development

– Aac Miniaturization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AAC Technologies (A): Entrepreneurship, Growth and Transformation 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.

Low bargaining power of suppliers

– Suppliers of Aac Miniaturization in the sector have low bargaining power. AAC Technologies (A): Entrepreneurship, Growth and Transformation has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aac Miniaturization to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy in the AAC Technologies (A): Entrepreneurship, Growth and Transformation 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.






Weaknesses AAC Technologies (A): Entrepreneurship, Growth and Transformation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of AAC Technologies (A): Entrepreneurship, Growth and Transformation are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study AAC Technologies (A): Entrepreneurship, Growth and Transformation, is just above the industry average. Aac Miniaturization 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.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study AAC Technologies (A): Entrepreneurship, Growth and Transformation, it seems that the employees of Aac Miniaturization 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.

Products dominated business model

– Even though Aac Miniaturization 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 - AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation can leverage the sales team experience to cultivate customer relationships as Aac Miniaturization is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As AAC Technologies (A): Entrepreneurship, Growth and Transformation HBR case study mentions - Aac Miniaturization 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.

Increasing silos among functional specialists

– The organizational structure of Aac Miniaturization is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Aac Miniaturization needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aac Miniaturization to focus more on services rather than just following the product oriented approach.

No frontier risks strategy

– After analyzing the HBR case study AAC Technologies (A): Entrepreneurship, Growth and Transformation, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.

High cash cycle compare to competitors

Aac Miniaturization 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Aac Miniaturization 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 bargaining power of channel partners

– Because of the regulatory requirements, Boon Siong Neo, Gillian Yeo, Yu Zou suggests that, Aac Miniaturization 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.

Capital Spending Reduction

– Even during the low interest decade, Aac Miniaturization 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.




Opportunities AAC Technologies (A): Entrepreneurship, Growth and Transformation | 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Aac Miniaturization 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 Aac Miniaturization to hire the very best people irrespective of their geographical location.

Building a culture of innovation

– managers at Aac Miniaturization 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 Innovation & Entrepreneurship segment.

Better consumer reach

– The expansion of the 5G network will help Aac Miniaturization to increase its market reach. Aac Miniaturization 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.

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. Aac Miniaturization can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Aac Miniaturization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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 Aac Miniaturization in the consumer business. Now Aac Miniaturization 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 Aac Miniaturization 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.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Aac Miniaturization 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. Aac Miniaturization 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.

Creating value in data economy

– The success of analytics program of Aac Miniaturization has opened avenues for new revenue streams for the organization in the industry. This can help Aac Miniaturization to build a more holistic ecosystem as suggested in the AAC Technologies (A): Entrepreneurship, Growth and Transformation case study. Aac Miniaturization can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Aac Miniaturization can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AAC Technologies (A): Entrepreneurship, Growth and Transformation 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Aac Miniaturization is facing challenges because of the dominance of functional experts in the organization. AAC Technologies (A): Entrepreneurship, Growth and Transformation 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Aac Miniaturization in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Loyalty marketing

– Aac Miniaturization 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.




Threats AAC Technologies (A): Entrepreneurship, Growth and Transformation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study AAC Technologies (A): Entrepreneurship, Growth and Transformation are -

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.

Increasing wage structure of Aac Miniaturization

– 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 Aac Miniaturization.

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. Aac Miniaturization 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 Aac Miniaturization 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.

Stagnating economy with rate increase

– Aac Miniaturization 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.

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 Aac Miniaturization business can come under increasing regulations regarding data privacy, data security, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Aac Miniaturization in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.

Shortening product life cycle

– it is one of the major threat that Aac Miniaturization is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 AAC Technologies (A): Entrepreneurship, Growth and Transformation, Aac Miniaturization may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .

Regulatory challenges

– Aac Miniaturization 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 Innovation & Entrepreneurship industry regulations.

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 Aac Miniaturization.

Technology acceleration in Forth Industrial Revolution

– Aac Miniaturization has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Aac Miniaturization needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.




Weighted SWOT Analysis of AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 AAC Technologies (A): Entrepreneurship, Growth and Transformation 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 Aac Miniaturization needs to make to build a sustainable competitive advantage.



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