Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?
China's accession to the World Trade Organization promised to open up its booming mobile and fixed-line telecommunications market. Although steps have been taken in that general direction, full and true compliance is still an issue. It needs an independent telecommunications regulator or the current regulator, Ministry of Information Industry (MII), must stop meddling in company affairs. Legislation must allow for real foreign direct investment to take place.
Swot Analysis of "Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?" written by M. Bushehri, Kasra Mottahedeh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telecommunications Regulator facing as an external strategic factors. Some of the topics covered in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? case study are - Strategic Management Strategies, Global strategy, Government and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? casestudy better are - – increasing energy prices, increasing commodity prices, supply chains are disrupted by pandemic , wage bills are increasing, increasing government debt because of Covid-19 spendings, geopolitical disruptions, cloud computing is disrupting traditional business models,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telecommunications Regulator, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telecommunications Regulator 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? can be done for the following purposes –
1. Strategic planning using facts provided in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? case study
2. Improving business portfolio management of Telecommunications Regulator
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Telecommunications Regulator
Strengths Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telecommunications Regulator in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? Harvard Business Review case study are -
High brand equity
– Telecommunications Regulator has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telecommunications Regulator to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Telecommunications Regulator is one of the most innovative firm in sector. Manager in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Telecommunications Regulator in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Telecommunications Regulator 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 Telecommunications Regulator
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Telecommunications Regulator does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Telecommunications Regulator is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Leadership & Managing People field
– Telecommunications Regulator 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 Telecommunications Regulator in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Telecommunications Regulator 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 Telecommunications Regulator is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Telecommunications Regulator 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 M. Bushehri, Kasra Mottahedeh 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.
Successful track record of launching new products
– Telecommunications Regulator has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telecommunications Regulator 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Telecommunications Regulator digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Telecommunications Regulator 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.
Operational resilience
– The operational resilience strategy in the Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? are -
Slow decision making process
– As mentioned earlier in the report, Telecommunications Regulator 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. Telecommunications Regulator 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 star products
– The top 2 products and services of the firm as mentioned in the Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Telecommunications Regulator has relatively successful track record of launching new products.
High cash cycle compare to competitors
Telecommunications Regulator 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 operating costs
– Compare to the competitors, firm in the HBR case study Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Telecommunications Regulator 's lucrative customers.
Interest costs
– Compare to the competition, Telecommunications Regulator 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.
No frontier risks strategy
– After analyzing the HBR case study Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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 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 Telecommunications Regulator supply chain. Even after few cautionary changes mentioned in the HBR case study - Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Telecommunications Regulator vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, M. Bushehri, Kasra Mottahedeh suggests that, Telecommunications Regulator 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.
Need for greater diversity
– Telecommunications Regulator has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? HBR case study mentions - Telecommunications Regulator 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.
Aligning sales with marketing
– It come across in the case study Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? can leverage the sales team experience to cultivate customer relationships as Telecommunications Regulator is planning to shift buying processes online.
Opportunities Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? | 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? are -
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 Telecommunications Regulator in the consumer business. Now Telecommunications Regulator can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Telecommunications Regulator can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Telecommunications Regulator 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, Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Telecommunications Regulator 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.
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 Telecommunications Regulator 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 Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Telecommunications Regulator 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. Telecommunications Regulator 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.
Building a culture of innovation
– managers at Telecommunications Regulator 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 Leadership & Managing People segment.
Buying journey improvements
– Telecommunications Regulator can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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.
Developing new processes and practices
– Telecommunications Regulator can develop new processes and procedures in Leadership & Managing People 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.
Creating value in data economy
– The success of analytics program of Telecommunications Regulator has opened avenues for new revenue streams for the organization in the industry. This can help Telecommunications Regulator to build a more holistic ecosystem as suggested in the Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? case study. Telecommunications Regulator 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, Telecommunications Regulator can use these opportunities to build new business models that can help the communities that Telecommunications Regulator operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Telecommunications Regulator 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 Telecommunications Regulator to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Telecommunications Regulator in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Threats Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? are -
Consumer confidence and its impact on Telecommunications Regulator 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.
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. Telecommunications Regulator needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Telecommunications Regulator 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Telecommunications Regulator can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Telecommunications Regulator.
Regulatory challenges
– Telecommunications Regulator 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 Leadership & Managing People industry regulations.
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. Telecommunications Regulator 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.
Stagnating economy with rate increase
– Telecommunications Regulator 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 Telecommunications Regulator in the Leadership & Managing People sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telecommunications Regulator with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust?, Telecommunications Regulator may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Shortening product life cycle
– it is one of the major threat that Telecommunications Regulator is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Post-WTO Regulation of China's Telecommunications Sector: Boom or Bust? 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 Telecommunications Regulator needs to make to build a sustainable competitive advantage.