Goal Rise Logistics China (8457) SWOT Analysis / TOWS Matrix / MBA Resources
Trucking
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Goal Rise Logistics China (Hong Kong)
Based on various researches at Oak Spring University , Goal Rise Logistics China is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, there is backlash against globalization,
geopolitical disruptions, wage bills are increasing, etc
Introduction to SWOT Analysis of Goal Rise Logistics China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Goal Rise Logistics China can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goal Rise Logistics China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goal Rise Logistics 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 Goal Rise Logistics China can be done for the following purposes –
1. Strategic planning of Goal Rise Logistics China
2. Improving business portfolio management of Goal Rise Logistics China
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Trucking sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Goal Rise Logistics China
Strengths of Goal Rise Logistics China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goal Rise Logistics China are -
Effective Research and Development (R&D)
– Goal Rise Logistics China has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Goal Rise Logistics China staying ahead in the Trucking industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management in the Trucking industry
– Goal Rise Logistics 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.
Diverse revenue streams
– Goal Rise Logistics China is present in almost all the verticals within the Trucking industry. This has provided Goal Rise Logistics 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.
Low bargaining power of suppliers
– Suppliers of Goal Rise Logistics China in the Transportation sector have low bargaining power. Goal Rise Logistics China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Goal Rise Logistics China to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Goal Rise Logistics China
– The covid-19 pandemic has put organizational resilience at the centre of everthing Goal Rise Logistics China does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Goal Rise Logistics China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Goal Rise Logistics China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Goal Rise Logistics China is one of the leading players in the Trucking 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
– Goal Rise Logistics 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 Trucking 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.
Highly skilled collaborators
– Goal Rise Logistics China has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Trucking industry. Secondly the value chain collaborators of Goal Rise Logistics China have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Goal Rise Logistics China is one of the most innovative firm in Trucking sector.
Ability to lead change in Trucking
– Goal Rise Logistics China is one of the leading players in the Trucking industry in Hong Kong. Over the years it has not only transformed the business landscape in the Trucking industry in Hong Kong but also across the existing markets. The ability to lead change has enabled Goal Rise Logistics China in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Trucking industry
– Goal Rise Logistics China has clearly differentiated products in the market place. This has enabled Goal Rise Logistics China to fetch slight price premium compare to the competitors in the Trucking industry. The sustainable margins have also helped Goal Rise Logistics China to invest into research and development (R&D) and innovation.
Weaknesses of Goal Rise Logistics China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goal Rise Logistics China are -
No frontier risks strategy
– From the 10K / annual statement of Goal Rise Logistics China, it seems that company is thinking out the frontier risks that can impact Trucking industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Goal Rise Logistics China products
– To increase the profitability and margins on the products, Goal Rise Logistics China needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Goal Rise Logistics 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, Goal Rise Logistics 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 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 Goal Rise Logistics China supply chain. Even after few cautionary changes, Goal Rise Logistics China is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Goal Rise Logistics China vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goal Rise Logistics China is slow explore the new channels of communication. These new channels of communication can help Goal Rise Logistics China to provide better information regarding Trucking products and services. It can also build an online community to further reach out to potential customers.
Employees’ less understanding of Goal Rise Logistics China strategy
– From the outside it seems that the employees of Goal Rise Logistics 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 operating costs
– Compare to the competitors, Goal Rise Logistics China has high operating costs in the Trucking industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Goal Rise Logistics China lucrative customers.
Low market penetration in new markets
– Outside its home market of Hong Kong, Goal Rise Logistics China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the Trucking industry, Goal Rise Logistics China needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on Goal Rise Logistics China ‘s star products
– The top 2 products and services of Goal Rise Logistics China still accounts for major business revenue. This dependence on star products in Trucking industry has resulted into insufficient focus on developing new products, even though Goal Rise Logistics China has relatively successful track record of launching new products.
Goal Rise Logistics China Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Goal Rise Logistics China are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Goal Rise Logistics 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 Goal Rise Logistics China to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Goal Rise Logistics China can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Goal Rise Logistics China can use these opportunities to build new business models that can help the communities that Goal Rise Logistics China operates in. Secondly it can use opportunities from government spending in Trucking sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Goal Rise Logistics 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 Goal Rise Logistics 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.
Better consumer reach
– The expansion of the 5G network will help Goal Rise Logistics China to increase its market reach. Goal Rise Logistics 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.
Using analytics as competitive advantage
– Goal Rise Logistics China has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Trucking sector. This continuous investment in analytics has enabled Goal Rise Logistics China to build a competitive advantage using analytics. The analytics driven competitive advantage can help Goal Rise Logistics China 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 Trucking industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Goal Rise Logistics China in the Trucking industry. Now Goal Rise Logistics China can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Goal Rise Logistics 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.
Manufacturing automation
– Goal Rise Logistics China can use the latest technology developments to improve its manufacturing and designing process in Trucking 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Trucking industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Goal Rise Logistics 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. Goal Rise Logistics 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
– Goal Rise Logistics China can develop new processes and procedures in Trucking 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.
Buying journey improvements
– Goal Rise Logistics China can improve the customer journey of consumers in the Trucking 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.
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 Goal Rise Logistics 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.
Threats Goal Rise Logistics China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Goal Rise Logistics China 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.
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.
Regulatory challenges
– Goal Rise Logistics 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 Trucking industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Goal Rise Logistics 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 Trucking sector.
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. Goal Rise Logistics China 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.
Technology acceleration in Forth Industrial Revolution
– Goal Rise Logistics China has witnessed rapid integration of technology during Covid-19 in the Trucking industry. As one of the leading players in the industry, Goal Rise Logistics China needs to keep up with the evolution of technology in the Trucking 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.
Environmental challenges
– Goal Rise Logistics 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. Goal Rise Logistics China can take advantage of this fund but it will also bring new competitors in the Trucking industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Goal Rise Logistics China in Trucking industry. The Trucking 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.
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 Goal Rise Logistics China business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Goal Rise Logistics 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 Trucking industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Goal Rise Logistics 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 Goal Rise Logistics China prominent markets.
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. Goal Rise Logistics China needs to understand the core reasons impacting the Trucking industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Trucking industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Goal Rise Logistics China can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Goal Rise Logistics China Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Goal Rise Logistics 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 Goal Rise Logistics 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 Goal Rise Logistics 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 Goal Rise Logistics 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 Goal Rise Logistics China needs to make to build a sustainable competitive advantage.