Loudong General Nice Resources China (988) SWOT Analysis / TOWS Matrix / MBA Resources
Coal
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Loudong General Nice Resources China (Hong Kong)
Based on various researches at Oak Spring University , Loudong General Nice Resources China is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, there is increasing trade war between United States & China,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Loudong General Nice Resources China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Loudong General Nice Resources China can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Loudong General Nice Resources China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Loudong General Nice Resources China 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 Loudong General Nice Resources China can be done for the following purposes –
1. Strategic planning of Loudong General Nice Resources China
2. Improving business portfolio management of Loudong General Nice Resources China
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Coal sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Loudong General Nice Resources China
Strengths of Loudong General Nice Resources China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Loudong General Nice Resources China are -
Learning organization
- Loudong General Nice Resources China 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 Loudong General Nice Resources China is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Loudong General Nice Resources China emphasize – knowledge, initiative, and innovation.
High brand equity
– Loudong General Nice Resources China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Loudong General Nice Resources China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Loudong General Nice Resources China in the Energy sector have low bargaining power. Loudong General Nice Resources China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Loudong General Nice Resources China to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Loudong General Nice Resources China
– The covid-19 pandemic has put organizational resilience at the centre of everthing Loudong General Nice Resources China does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Loudong General Nice Resources China has one of the best training and development program in Energy 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.
Innovation driven organization
– Loudong General Nice Resources China is one of the most innovative firm in Coal sector.
Cross disciplinary teams
– Horizontal connected teams at the Loudong General Nice Resources China 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.
Ability to recruit top talent
– Loudong General Nice Resources China is one of the leading players in the Coal industry in Hong Kong. It is in a position to attract the best talent available in Hong Kong. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Loudong General Nice Resources China 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 Coal industry. The technology infrastructure of Hong Kong is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Coal industry
– Loudong General Nice Resources China has clearly differentiated products in the market place. This has enabled Loudong General Nice Resources China to fetch slight price premium compare to the competitors in the Coal industry. The sustainable margins have also helped Loudong General Nice Resources China to invest into research and development (R&D) and innovation.
Strong track record of project management in the Coal industry
– Loudong General Nice Resources China is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Loudong General Nice Resources China comprises – understanding the underlying the factors in the Coal 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 of Loudong General Nice Resources China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Loudong General Nice Resources China are -
Aligning sales with marketing
– From the outside it seems that Loudong General Nice Resources China needs to have more collaboration between its sales team and marketing team. Sales professionals in the Coal industry have deep experience in developing customer relationships. Marketing department at Loudong General Nice Resources China can leverage the sales team experience to cultivate customer relationships as Loudong General Nice Resources China is planning to shift buying processes online.
Lack of clear differentiation of Loudong General Nice Resources China products
– To increase the profitability and margins on the products, Loudong General Nice Resources China needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Loudong General Nice Resources China has some of the most successful models in the Coal industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Loudong General Nice Resources China should strive to include more intangible value offerings along with its core products and services.
Employees’ less understanding of Loudong General Nice Resources China strategy
– From the outside it seems that the employees of Loudong General Nice Resources China 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.
High dependence on Loudong General Nice Resources China ‘s star products
– The top 2 products and services of Loudong General Nice Resources China still accounts for major business revenue. This dependence on star products in Coal industry has resulted into insufficient focus on developing new products, even though Loudong General Nice Resources China has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Loudong General Nice Resources China is dominated by functional specialists. It is not different from other players in the Coal industry, but Loudong General Nice Resources China needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Loudong General Nice Resources China to focus more on services in the Coal industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Loudong General Nice Resources China, in the dynamic environment of Coal industry it has struggled to respond to the nimble upstart competition. Loudong General Nice Resources China has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Hong Kong, Loudong General Nice Resources China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Loudong General Nice Resources China supply chain. Even after few cautionary changes, Loudong General Nice Resources China is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Loudong General Nice Resources China vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners in Coal industry
– because of the regulatory requirements in Hong Kong, Loudong General Nice Resources China 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 Coal industry.
Slow to strategic competitive environment developments
– As Loudong General Nice Resources China is one of the leading players in the Coal industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Coal industry in last five years.
Loudong General Nice Resources China Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Loudong General Nice Resources China are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Loudong General Nice Resources China is facing challenges because of the dominance of functional experts in the organization. Loudong General Nice Resources China can utilize new technology in the field of Coal industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Loudong General Nice Resources China 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.
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. Loudong General Nice Resources China can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Loudong General Nice Resources China 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.
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 Loudong General Nice Resources China 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Loudong General Nice Resources China can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Loudong General Nice Resources China 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.
Building a culture of innovation
– managers at Loudong General Nice Resources China 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 Coal industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Coal industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Loudong General Nice Resources China 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. Loudong General Nice Resources China 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.
Developing new processes and practices
– Loudong General Nice Resources China can develop new processes and procedures in Coal 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Loudong General Nice Resources China 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 Loudong General Nice Resources China to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Loudong General Nice Resources China can improve the customer journey of consumers in the Coal 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.
Using analytics as competitive advantage
– Loudong General Nice Resources China has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Coal sector. This continuous investment in analytics has enabled Loudong General Nice Resources China to build a competitive advantage using analytics. The analytics driven competitive advantage can help Loudong General Nice Resources China to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Loudong General Nice Resources China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Loudong General Nice Resources China are -
Regulatory challenges
– Loudong General Nice Resources China 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 Coal 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. Loudong General Nice Resources China needs to understand the core reasons impacting the Coal 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.
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 Loudong General Nice Resources China.
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 Loudong General Nice Resources China in the Coal sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Loudong General Nice Resources China has witnessed rapid integration of technology during Covid-19 in the Coal industry. As one of the leading players in the industry, Loudong General Nice Resources China needs to keep up with the evolution of technology in the Coal 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.
Increasing wage structure of Loudong General Nice Resources China
– 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 Loudong General Nice Resources China.
Shortening product life cycle
– it is one of the major threat that Loudong General Nice Resources China is facing in Coal sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Loudong General Nice Resources China 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. Loudong General Nice Resources China can take advantage of this fund but it will also bring new competitors in the Coal industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Loudong General Nice Resources China may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Coal sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Loudong General Nice Resources China 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 Loudong General Nice Resources China prominent markets.
Consumer confidence and its impact on Loudong General Nice Resources China 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 Coal industry and other sectors.
Stagnating economy with rate increase
– Loudong General Nice Resources China 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 Coal industry.
Weighted SWOT Analysis of Loudong General Nice Resources China Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Loudong General Nice Resources China needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Loudong General Nice Resources China is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Loudong General Nice Resources China is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Loudong General Nice Resources China 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 Loudong General Nice Resources China needs to make to build a sustainable competitive advantage.