Wan Cheng Metal Packaging (8291) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Wan Cheng Metal Packaging (Hong Kong)

Based on various researches at Oak Spring University , Wan Cheng Metal Packaging is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing commodity prices, etc

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Introduction to SWOT Analysis of Wan Cheng Metal Packaging

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Wan Cheng Metal Packaging can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wan Cheng Metal Packaging, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging can be done for the following purposes –
1. Strategic planning of Wan Cheng Metal Packaging
2. Improving business portfolio management of Wan Cheng Metal Packaging
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 Wan Cheng Metal Packaging

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Strengths of Wan Cheng Metal Packaging | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Wan Cheng Metal Packaging are -

Diverse revenue streams

– Wan Cheng Metal Packaging is present in almost all the verticals within the Containers & Packaging industry. This has provided Wan Cheng Metal Packaging 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.

Operational resilience

– The operational resilience strategy of Wan Cheng Metal Packaging comprises – understanding the underlying the factors in the Containers & Packaging 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.

High switching costs

– The high switching costs that Wan Cheng Metal Packaging 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.

Ability to recruit top talent

– Wan Cheng Metal Packaging 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.

Analytics focus

– Wan Cheng Metal Packaging 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.

High brand equity

– Wan Cheng Metal Packaging has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wan Cheng Metal Packaging to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Digital Transformation in Containers & Packaging industry

- digital transformation varies from industry to industry. For Wan Cheng Metal Packaging digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wan Cheng Metal Packaging 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.

Learning organization

- Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Wan Cheng Metal Packaging emphasize – knowledge, initiative, and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Wan Cheng Metal Packaging 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.

Effective Research and Development (R&D)

– Wan Cheng Metal Packaging has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Wan Cheng Metal Packaging 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.

Sustainable margins compare to other players in Containers & Packaging industry

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

Innovation driven organization

– Wan Cheng Metal Packaging is one of the most innovative firm in Containers & Packaging sector.

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Weaknesses of Wan Cheng Metal Packaging | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging supply chain. Even after few cautionary changes, Wan Cheng Metal Packaging is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wan Cheng Metal Packaging vulnerable to further global disruptions in South East Asia.

High cash cycle compare to competitors

Wan Cheng Metal Packaging 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.

Compensation and incentives

– The revenue per employee of Wan Cheng Metal Packaging is just above the Containers & Packaging industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

High bargaining power of channel partners in Containers & Packaging industry

– because of the regulatory requirements in Hong Kong, Wan Cheng Metal Packaging 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 Containers & Packaging industry.

Interest costs

– Compare to the competition, Wan Cheng Metal Packaging 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.

Increasing silos among functional specialists

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

Employees’ less understanding of Wan Cheng Metal Packaging strategy

– From the outside it seems that the employees of Wan Cheng Metal Packaging 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.

Workers concerns about automation

– As automation is fast increasing in the Containers & Packaging industry, Wan Cheng Metal Packaging 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.

Products dominated business model

– Even though Wan Cheng Metal Packaging 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. Wan Cheng Metal Packaging should strive to include more intangible value offerings along with its core products and services.

High dependence on Wan Cheng Metal Packaging ‘s star products

– The top 2 products and services of Wan Cheng Metal Packaging still accounts for major business revenue. This dependence on star products in Containers & Packaging industry has resulted into insufficient focus on developing new products, even though Wan Cheng Metal Packaging has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Wan Cheng Metal Packaging 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.

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Wan Cheng Metal Packaging Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Wan Cheng Metal Packaging are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging to hire the very best people irrespective of their geographical location.

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. Wan Cheng Metal Packaging 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. Wan Cheng Metal Packaging 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.

Creating value in data economy

– The success of analytics program of Wan Cheng Metal Packaging has opened avenues for new revenue streams for the organization in Containers & Packaging industry. This can help Wan Cheng Metal Packaging to build a more holistic ecosystem for Wan Cheng Metal Packaging products in the Containers & Packaging industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging to increase its market reach. Wan Cheng Metal Packaging 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 Containers & Packaging industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Wan Cheng Metal Packaging in the Containers & Packaging industry. Now Wan Cheng Metal Packaging can target international markets with far fewer capital restrictions requirements than the existing system.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Wan Cheng Metal Packaging 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, Wan Cheng Metal Packaging 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.

Leveraging digital technologies

– Wan Cheng Metal Packaging 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.

Using analytics as competitive advantage

– Wan Cheng Metal Packaging 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 Wan Cheng Metal Packaging to build a competitive advantage using analytics. The analytics driven competitive advantage can help Wan Cheng Metal Packaging to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Loyalty marketing

– Wan Cheng Metal Packaging 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.

Developing new processes and practices

– Wan Cheng Metal Packaging can develop new processes and procedures in Containers & Packaging 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.

Building a culture of innovation

– managers at Wan Cheng Metal Packaging 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.

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Threats Wan Cheng Metal Packaging External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Wan Cheng Metal Packaging are -

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. Wan Cheng Metal Packaging needs to understand the core reasons impacting the Containers & Packaging industry. This will help it in building a better workplace.

Technology acceleration in Forth Industrial Revolution

– Wan Cheng Metal Packaging has witnessed rapid integration of technology during Covid-19 in the Containers & Packaging industry. As one of the leading players in the industry, Wan Cheng Metal Packaging needs to keep up with the evolution of technology in the Containers & Packaging 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 Wan Cheng Metal Packaging

– 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 Wan Cheng Metal Packaging.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Wan Cheng Metal Packaging 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.

Environmental challenges

– Wan Cheng Metal Packaging 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. Wan Cheng Metal Packaging can take advantage of this fund but it will also bring new competitors in the Containers & Packaging industry.

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 Wan Cheng Metal Packaging.

Consumer confidence and its impact on Wan Cheng Metal Packaging 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 Containers & Packaging industry and other sectors.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Wan Cheng Metal Packaging 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.

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 Wan Cheng Metal Packaging business can come under increasing regulations regarding data privacy, data security, etc.

Regulatory challenges

– Wan Cheng Metal Packaging 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 Containers & Packaging industry regulations.

Barriers of entry lowering

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

Stagnating economy with rate increase

– Wan Cheng Metal Packaging 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.

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.

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Weighted SWOT Analysis of Wan Cheng Metal Packaging Template, Example

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

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