Hang Sang Siu Po Intl (3626) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Hang Sang Siu Po Intl (Hong Kong)

Based on various researches at Oak Spring University , Hang Sang Siu Po Intl is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, technology disruption, there is backlash against globalization, increasing commodity prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, etc

---

---

---

---

Introduction to SWOT Analysis of Hang Sang Siu Po Intl

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hang Sang Siu Po Intl can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hang Sang Siu Po Intl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl can be done for the following purposes –
1. Strategic planning of Hang Sang Siu Po Intl
2. Improving business portfolio management of Hang Sang Siu Po Intl
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Containers & Packaging sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hang Sang Siu Po Intl

---

Strengths of Hang Sang Siu Po Intl | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hang Sang Siu Po Intl are -

Organizational Resilience of Hang Sang Siu Po Intl

– The covid-19 pandemic has put organizational resilience at the centre of everthing Hang Sang Siu Po Intl does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Sustainable margins compare to other players in Containers & Packaging industry

– Hang Sang Siu Po Intl has clearly differentiated products in the market place. This has enabled Hang Sang Siu Po Intl to fetch slight price premium compare to the competitors in the Containers & Packaging industry. The sustainable margins have also helped Hang Sang Siu Po Intl to invest into research and development (R&D) and innovation.

Diverse revenue streams

– Hang Sang Siu Po Intl is present in almost all the verticals within the Containers & Packaging industry. This has provided Hang Sang Siu Po Intl 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.

Superior customer experience

– The customer experience strategy of Hang Sang Siu Po Intl in Containers & Packaging industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Effective Research and Development (R&D)

– Hang Sang Siu Po Intl has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hang Sang Siu Po Intl staying ahead in the Containers & Packaging industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Digital Transformation in Containers & Packaging industry

- digital transformation varies from industry to industry. For Hang Sang Siu Po Intl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hang Sang Siu Po Intl 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.

Analytics focus

– Hang Sang Siu Po Intl 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 Containers & Packaging 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.

Successful track record of launching new products

– Hang Sang Siu Po Intl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hang Sang Siu Po Intl 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.

High brand equity

– Hang Sang Siu Po Intl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hang Sang Siu Po Intl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Highly skilled collaborators

– Hang Sang Siu Po Intl has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Containers & Packaging industry. Secondly the value chain collaborators of Hang Sang Siu Po Intl have helped the firm to develop new products and bring them quickly to the marketplace.

Ability to recruit top talent

– Hang Sang Siu Po Intl is one of the leading players in the Containers & Packaging 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.

Strong track record of project management in the Containers & Packaging industry

– Hang Sang Siu Po Intl is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

---

---

Weaknesses of Hang Sang Siu Po Intl | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hang Sang Siu Po Intl are -

Lack of clear differentiation of Hang Sang Siu Po Intl products

– To increase the profitability and margins on the products, Hang Sang Siu Po Intl needs to provide more differentiated products than what it is currently offering in the marketplace.

Ability to respond to the competition

– As the decision making is very deliberative at Hang Sang Siu Po Intl, in the dynamic environment of Containers & Packaging industry it has struggled to respond to the nimble upstart competition. Hang Sang Siu Po Intl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Products dominated business model

– Even though Hang Sang Siu Po Intl has some of the most successful models in the Containers & Packaging industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Hang Sang Siu Po Intl should strive to include more intangible value offerings along with its core products and services.

Interest costs

– Compare to the competition, Hang Sang Siu Po Intl 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.

Skills based hiring in Containers & Packaging industry

– The stress on hiring functional specialists at Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl is one of the leading players in the Containers & Packaging industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Containers & Packaging industry in last five years.

Slow decision making process

– As mentioned earlier in the report, Hang Sang Siu Po Intl has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Containers & Packaging industry over the last five years. Hang Sang Siu Po Intl 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 operating costs

– Compare to the competitors, Hang Sang Siu Po Intl has high operating costs in the Containers & Packaging industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hang Sang Siu Po Intl lucrative customers.

High cash cycle compare to competitors

Hang Sang Siu Po Intl has a high cash cycle compare to other players in the Containers & Packaging industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Increasing silos among functional specialists

– The organizational structure of Hang Sang Siu Po Intl is dominated by functional specialists. It is not different from other players in the Containers & Packaging industry, but Hang Sang Siu Po Intl needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hang Sang Siu Po Intl to focus more on services in the Containers & Packaging industry rather than just following the product oriented approach.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hang Sang Siu Po Intl is slow explore the new channels of communication. These new channels of communication can help Hang Sang Siu Po Intl to provide better information regarding Containers & Packaging products and services. It can also build an online community to further reach out to potential customers.

---

Hang Sang Siu Po Intl Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Hang Sang Siu Po Intl are -

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Containers & Packaging industry, but it has also influenced the consumer preferences. Hang Sang Siu Po Intl can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hang Sang Siu Po Intl in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Containers & Packaging industry, and it will provide faster access to the consumers.

Building a culture of innovation

– managers at Hang Sang Siu Po Intl 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 Containers & Packaging industry.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl to hire the very best people irrespective of their geographical location.

Learning at scale

– Online learning technologies has now opened space for Hang Sang Siu Po Intl 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.

Better consumer reach

– The expansion of the 5G network will help Hang Sang Siu Po Intl to increase its market reach. Hang Sang Siu Po Intl 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Containers & Packaging industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hang Sang Siu Po Intl 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. Hang Sang Siu Po Intl 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.

Reforming the budgeting process

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

Manufacturing automation

– Hang Sang Siu Po Intl can use the latest technology developments to improve its manufacturing and designing process in Containers & Packaging 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.

Using analytics as competitive advantage

– Hang Sang Siu Po Intl has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Containers & Packaging sector. This continuous investment in analytics has enabled Hang Sang Siu Po Intl to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hang Sang Siu Po Intl to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hang Sang Siu Po Intl 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. Hang Sang Siu Po Intl can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Harnessing reconfiguration of the global supply chains

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

---

Threats Hang Sang Siu Po Intl External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Hang Sang Siu Po Intl are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Hang Sang Siu Po Intl in Containers & Packaging industry. The Containers & Packaging 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, Hang Sang Siu Po Intl may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Containers & Packaging sector.

Shortening product life cycle

– it is one of the major threat that Hang Sang Siu Po Intl is facing in Containers & Packaging sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Easy access to finance

– Easy access to finance in Containers & Packaging industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hang Sang Siu Po Intl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Hang Sang Siu Po Intl needs to understand the core reasons impacting the Containers & Packaging industry. This will help it in building a better workplace.

Stagnating economy with rate increase

– Hang Sang Siu Po Intl 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 Containers & Packaging industry.

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.

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. Hang Sang Siu Po Intl 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.

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 Hang Sang Siu Po Intl in the Containers & Packaging sector and impact the bottomline of the organization.

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 Hang Sang Siu Po Intl business can come under increasing regulations regarding data privacy, data security, etc.

Increasing wage structure of Hang Sang Siu Po Intl

– 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 Hang Sang Siu Po Intl.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Containers & Packaging industry are lowering. It can presents Hang Sang Siu Po Intl with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Containers & Packaging sector.

Environmental challenges

– Hang Sang Siu Po Intl 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. Hang Sang Siu Po Intl can take advantage of this fund but it will also bring new competitors in the Containers & Packaging industry.

---

Weighted SWOT Analysis of Hang Sang Siu Po Intl Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl 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 Hang Sang Siu Po Intl needs to make to build a sustainable competitive advantage.

--- ---