Swot Analysis of "INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL" written by Didier Cossin, Hongze Abraham Lu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imd571 Industrial facing as an external strategic factors. Some of the topics covered in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL case study are - Strategic Management Strategies, Emerging markets, Government and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL casestudy better are - – increasing government debt because of Covid-19 spendings, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic ,
increasing commodity prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imd571 Industrial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imd571 Industrial 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL can be done for the following purposes –
1. Strategic planning using facts provided in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL case study
2. Improving business portfolio management of Imd571 Industrial
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 Imd571 Industrial
Strengths INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imd571 Industrial in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL Harvard Business Review case study are -
High switching costs
– The high switching costs that Imd571 Industrial 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.
Successful track record of launching new products
– Imd571 Industrial has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Imd571 Industrial 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.
Highly skilled collaborators
– Imd571 Industrial 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Imd571 Industrial 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 Imd571 Industrial is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Imd571 Industrial is one of the leading recruiters in the industry. Managers in the INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Imd571 Industrial in the sector have low bargaining power. INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Imd571 Industrial to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Imd571 Industrial 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL firm has clearly differentiated products in the market place. This has enabled Imd571 Industrial to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Imd571 Industrial to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Imd571 Industrial digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imd571 Industrial 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.
Cross disciplinary teams
– Horizontal connected teams at the Imd571 Industrial 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.
Diverse revenue streams
– Imd571 Industrial is present in almost all the verticals within the industry. This has provided firm in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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.
Innovation driven organization
– Imd571 Industrial is one of the most innovative firm in sector. Manager in INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL, is just above the industry average. Imd571 Industrial 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Imd571 Industrial 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.
Products dominated business model
– Even though Imd571 Industrial 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 - INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Imd571 Industrial 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. Imd571 Industrial 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 Imd571 Industrial supply chain. Even after few cautionary changes mentioned in the HBR case study - INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Imd571 Industrial 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL, in the dynamic environment Imd571 Industrial has struggled to respond to the nimble upstart competition. Imd571 Industrial 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL can leverage the sales team experience to cultivate customer relationships as Imd571 Industrial is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Imd571 Industrial 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.
Slow to strategic competitive environment developments
– As INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL HBR case study mentions - Imd571 Industrial 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.
Interest costs
– Compare to the competition, Imd571 Industrial 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.
Lack of clear differentiation of Imd571 Industrial products
– To increase the profitability and margins on the products, Imd571 Industrial needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL | 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL are -
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. Imd571 Industrial 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. Imd571 Industrial 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.
Manufacturing automation
– Imd571 Industrial 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.
Leveraging digital technologies
– Imd571 Industrial 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Imd571 Industrial 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.
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. Imd571 Industrial can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Imd571 Industrial to increase its market reach. Imd571 Industrial 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.
Developing new processes and practices
– Imd571 Industrial 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Imd571 Industrial is facing challenges because of the dominance of functional experts in the organization. INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Imd571 Industrial 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 Imd571 Industrial to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Imd571 Industrial can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Imd571 Industrial can use these opportunities to build new business models that can help the communities that Imd571 Industrial operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Imd571 Industrial 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.
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 Imd571 Industrial 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.
Threats INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL are -
Increasing wage structure of Imd571 Industrial
– 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 Imd571 Industrial.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imd571 Industrial with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Imd571 Industrial can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Imd571 Industrial 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.
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. Imd571 Industrial needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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 Imd571 Industrial in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Imd571 Industrial can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL .
Shortening product life cycle
– it is one of the major threat that Imd571 Industrial is facing in Leadership & Managing People 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 Imd571 Industrial.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Imd571 Industrial in the Leadership & Managing People industry. The Leadership & Managing People 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL, Imd571 Industrial 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 .
Technology acceleration in Forth Industrial Revolution
– Imd571 Industrial has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Imd571 Industrial needs to keep up with the evolution of technology in the Leadership & Managing People 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 INDUSTRIAL AND COMMERCIAL BANK OF CHINA: THE GOVERNANCE MODEL 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 Imd571 Industrial needs to make to build a sustainable competitive advantage.
