Anxian Yuan China (922) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Anxian Yuan China (Hong Kong)

Based on various researches at Oak Spring University , Anxian Yuan China is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions, there is increasing trade war between United States & China, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc

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Introduction to SWOT Analysis of Anxian Yuan China

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Anxian Yuan China can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anxian Yuan China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anxian Yuan 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Anxian Yuan China can be done for the following purposes –
1. Strategic planning of Anxian Yuan China
2. Improving business portfolio management of Anxian Yuan China
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Personal Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anxian Yuan China

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Strengths of Anxian Yuan China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Anxian Yuan China are -

Digital Transformation in Personal Services industry

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

Low bargaining power of suppliers

– Suppliers of Anxian Yuan China in the Services sector have low bargaining power. Anxian Yuan China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anxian Yuan China to manage not only supply disruptions but also source products at highly competitive prices.

Effective Research and Development (R&D)

– Anxian Yuan China has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Anxian Yuan China staying ahead in the Personal Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Diverse revenue streams

– Anxian Yuan China is present in almost all the verticals within the Personal Services industry. This has provided Anxian Yuan China 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.

Highly skilled collaborators

– Anxian Yuan China has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Personal Services industry. Secondly the value chain collaborators of Anxian Yuan China have helped the firm to develop new products and bring them quickly to the marketplace.

High switching costs

– The high switching costs that Anxian Yuan China 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.

Innovation driven organization

– Anxian Yuan China is one of the most innovative firm in Personal Services sector.

Successful track record of launching new products

– Anxian Yuan China has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anxian Yuan China 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.

Operational resilience

– The operational resilience strategy of Anxian Yuan China comprises – understanding the underlying the factors in the Personal Services 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.

Learning organization

- Anxian Yuan 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 Anxian Yuan China is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Anxian Yuan China emphasize – knowledge, initiative, and innovation.

Analytics focus

– Anxian Yuan 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 Personal Services 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.

High brand equity

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

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Weaknesses of Anxian Yuan China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Anxian Yuan China are -

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 Anxian Yuan China supply chain. Even after few cautionary changes, Anxian Yuan China is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Anxian Yuan China vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners in Personal Services industry

– because of the regulatory requirements in Hong Kong, Anxian Yuan 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 Personal Services industry.

Skills based hiring in Personal Services industry

– The stress on hiring functional specialists at Anxian Yuan China 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.

Need for greater diversity

– Anxian Yuan China 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.

Interest costs

– Compare to the competition, Anxian Yuan China 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 dependence on Anxian Yuan China ‘s star products

– The top 2 products and services of Anxian Yuan China still accounts for major business revenue. This dependence on star products in Personal Services industry has resulted into insufficient focus on developing new products, even though Anxian Yuan China has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, Anxian Yuan China has high operating costs in the Personal Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Anxian Yuan China lucrative customers.

Products dominated business model

– Even though Anxian Yuan China has some of the most successful models in the Personal Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Anxian Yuan China should strive to include more intangible value offerings along with its core products and services.

Increasing silos among functional specialists

– The organizational structure of Anxian Yuan China is dominated by functional specialists. It is not different from other players in the Personal Services industry, but Anxian Yuan China needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Anxian Yuan China to focus more on services in the Personal Services industry rather than just following the product oriented approach.

Aligning sales with marketing

– From the outside it seems that Anxian Yuan China needs to have more collaboration between its sales team and marketing team. Sales professionals in the Personal Services industry have deep experience in developing customer relationships. Marketing department at Anxian Yuan China can leverage the sales team experience to cultivate customer relationships as Anxian Yuan China is planning to shift buying processes online.

Employees’ less understanding of Anxian Yuan China strategy

– From the outside it seems that the employees of Anxian Yuan 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.

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Anxian Yuan China Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Anxian Yuan China are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Anxian Yuan China 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 Anxian Yuan China to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, Anxian Yuan 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 Anxian Yuan 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.

Leveraging digital technologies

– Anxian Yuan 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.

Better consumer reach

– The expansion of the 5G network will help Anxian Yuan China to increase its market reach. Anxian Yuan China 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.

Use of Bitcoin and other crypto currencies for transactions in Personal Services industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Anxian Yuan China in the Personal Services industry. Now Anxian Yuan China can target international markets with far fewer capital restrictions requirements than the existing system.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anxian Yuan China can use these opportunities to build new business models that can help the communities that Anxian Yuan China operates in. Secondly it can use opportunities from government spending in Personal Services sector.

Loyalty marketing

– Anxian Yuan China 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.

Learning at scale

– Online learning technologies has now opened space for Anxian Yuan 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.

Creating value in data economy

– The success of analytics program of Anxian Yuan China has opened avenues for new revenue streams for the organization in Personal Services industry. This can help Anxian Yuan China to build a more holistic ecosystem for Anxian Yuan China products in the Personal Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Personal Services industry, but it has also influenced the consumer preferences. Anxian Yuan China can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Anxian Yuan China can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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Threats Anxian Yuan China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Anxian Yuan China are -

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 Anxian Yuan China business can come under increasing regulations regarding data privacy, data security, etc.

Technology acceleration in Forth Industrial Revolution

– Anxian Yuan China has witnessed rapid integration of technology during Covid-19 in the Personal Services industry. As one of the leading players in the industry, Anxian Yuan China needs to keep up with the evolution of technology in the Personal Services 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 Personal Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Anxian Yuan China 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.

Increasing wage structure of Anxian Yuan 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 Anxian Yuan China.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Anxian Yuan 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 Personal Services sector.

High dependence on third party suppliers

– Anxian Yuan China 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.

Shortening product life cycle

– it is one of the major threat that Anxian Yuan China is facing in Personal Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Anxian Yuan 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 Personal Services industry regulations.

Environmental challenges

– Anxian Yuan 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. Anxian Yuan China can take advantage of this fund but it will also bring new competitors in the Personal Services industry.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Anxian Yuan China in Personal Services industry. The Personal Services 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Anxian Yuan 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 Anxian Yuan China prominent markets.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Personal Services industry are lowering. It can presents Anxian Yuan China with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Personal Services sector.

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Weighted SWOT Analysis of Anxian Yuan China Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Anxian Yuan 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 Anxian Yuan 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 Anxian Yuan 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 Anxian Yuan 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 Anxian Yuan China needs to make to build a sustainable competitive advantage.

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