China Hongkong Photo Products (1123) SWOT Analysis / TOWS Matrix / MBA Resources
Photography
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for China Hongkong Photo Products (Hong Kong)
Based on various researches at Oak Spring University , China Hongkong Photo Products is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, technology disruption, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, increasing energy prices, etc
Introduction to SWOT Analysis of China Hongkong Photo Products
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that China Hongkong Photo Products can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the China Hongkong Photo Products, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which China Hongkong Photo Products 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 China Hongkong Photo Products can be done for the following purposes –
1. Strategic planning of China Hongkong Photo Products
2. Improving business portfolio management of China Hongkong Photo Products
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Photography sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of China Hongkong Photo Products
Strengths of China Hongkong Photo Products | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of China Hongkong Photo Products are -
Successful track record of launching new products
– China Hongkong Photo Products has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. China Hongkong Photo Products 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.
Training and development
– China Hongkong Photo Products has one of the best training and development program in Consumer Cyclical industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– China Hongkong Photo Products has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled China Hongkong Photo Products to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the China Hongkong Photo Products 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
– China Hongkong Photo Products is present in almost all the verticals within the Photography industry. This has provided China Hongkong Photo Products 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.
Low bargaining power of suppliers
– Suppliers of China Hongkong Photo Products in the Consumer Cyclical sector have low bargaining power. China Hongkong Photo Products has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps China Hongkong Photo Products to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Photography
– China Hongkong Photo Products is one of the leading players in the Photography industry in Hong Kong. Over the years it has not only transformed the business landscape in the Photography industry in Hong Kong but also across the existing markets. The ability to lead change has enabled China Hongkong Photo Products in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management in the Photography industry
– China Hongkong Photo Products is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– China Hongkong Photo Products has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Photography industry. Secondly the value chain collaborators of China Hongkong Photo Products have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Photography industry
– China Hongkong Photo Products has clearly differentiated products in the market place. This has enabled China Hongkong Photo Products to fetch slight price premium compare to the competitors in the Photography industry. The sustainable margins have also helped China Hongkong Photo Products to invest into research and development (R&D) and innovation.
Learning organization
- China Hongkong Photo Products 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 China Hongkong Photo Products is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at China Hongkong Photo Products emphasize – knowledge, initiative, and innovation.
Organizational Resilience of China Hongkong Photo Products
– The covid-19 pandemic has put organizational resilience at the centre of everthing China Hongkong Photo Products does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of China Hongkong Photo Products | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of China Hongkong Photo Products are -
High cash cycle compare to competitors
China Hongkong Photo Products has a high cash cycle compare to other players in the Photography 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 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 China Hongkong Photo Products supply chain. Even after few cautionary changes, China Hongkong Photo Products is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left China Hongkong Photo Products vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, China Hongkong Photo Products 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.
High operating costs
– Compare to the competitors, China Hongkong Photo Products has high operating costs in the Photography industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract China Hongkong Photo Products lucrative customers.
Low market penetration in new markets
– Outside its home market of Hong Kong, China Hongkong Photo Products needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Photography industry
– because of the regulatory requirements in Hong Kong, China Hongkong Photo Products 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 Photography industry.
Capital Spending Reduction
– Even during the low interest decade, China Hongkong Photo Products 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 Photography industry using digital technology.
Need for greater diversity
– China Hongkong Photo Products 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, China Hongkong Photo Products is slow explore the new channels of communication. These new channels of communication can help China Hongkong Photo Products to provide better information regarding Photography products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of China Hongkong Photo Products is dominated by functional specialists. It is not different from other players in the Photography industry, but China Hongkong Photo Products needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help China Hongkong Photo Products to focus more on services in the Photography industry rather than just following the product oriented approach.
Skills based hiring in Photography industry
– The stress on hiring functional specialists at China Hongkong Photo Products 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.
China Hongkong Photo Products Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of China Hongkong Photo Products are -
Using analytics as competitive advantage
– China Hongkong Photo Products has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Photography sector. This continuous investment in analytics has enabled China Hongkong Photo Products to build a competitive advantage using analytics. The analytics driven competitive advantage can help China Hongkong Photo Products to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Photography industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for China Hongkong Photo Products in the Photography industry. Now China Hongkong Photo Products 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 China Hongkong Photo Products 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.
Manufacturing automation
– China Hongkong Photo Products can use the latest technology developments to improve its manufacturing and designing process in Photography sector. 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.
Creating value in data economy
– The success of analytics program of China Hongkong Photo Products has opened avenues for new revenue streams for the organization in Photography industry. This can help China Hongkong Photo Products to build a more holistic ecosystem for China Hongkong Photo Products products in the Photography industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, China Hongkong Photo Products 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 China Hongkong Photo Products to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– China Hongkong Photo Products 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.
Loyalty marketing
– China Hongkong Photo Products 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.
Buying journey improvements
– China Hongkong Photo Products can improve the customer journey of consumers in the Photography industry by using analytics and artificial intelligence. It 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for China Hongkong Photo Products in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Photography industry, and it will provide faster access to the consumers.
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. China Hongkong Photo Products 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 China Hongkong Photo Products can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– China Hongkong Photo Products can develop new processes and procedures in Photography 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.
Threats China Hongkong Photo Products External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of China Hongkong Photo Products 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.
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. China Hongkong Photo Products needs to understand the core reasons impacting the Photography industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, China Hongkong Photo Products may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Photography sector.
Shortening product life cycle
– it is one of the major threat that China Hongkong Photo Products is facing in Photography sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– China Hongkong Photo Products 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 Photography industry.
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 China Hongkong Photo Products in the Photography sector and impact the bottomline of the organization.
Environmental challenges
– China Hongkong Photo Products 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. China Hongkong Photo Products can take advantage of this fund but it will also bring new competitors in the Photography industry.
Technology acceleration in Forth Industrial Revolution
– China Hongkong Photo Products has witnessed rapid integration of technology during Covid-19 in the Photography industry. As one of the leading players in the industry, China Hongkong Photo Products needs to keep up with the evolution of technology in the Photography 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.
Easy access to finance
– Easy access to finance in Photography industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. China Hongkong Photo Products can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of China Hongkong Photo Products
– 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 China Hongkong Photo Products.
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. China Hongkong Photo Products 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.
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 China Hongkong Photo Products business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– China Hongkong Photo Products 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.
Weighted SWOT Analysis of China Hongkong Photo Products Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at China Hongkong Photo Products 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 China Hongkong Photo Products 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 China Hongkong Photo Products 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 China Hongkong Photo Products 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 China Hongkong Photo Products needs to make to build a sustainable competitive advantage.