Jiajiafu Modern Agri (JJF) SWOT Analysis / TOWS Matrix / MBA Resources
Crops
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Jiajiafu Modern Agri (Australia)
Based on various researches at Oak Spring University , Jiajiafu Modern Agri is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, technology disruption, wage bills are increasing, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, there is backlash against globalization, increasing energy prices,
challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Jiajiafu Modern Agri
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jiajiafu Modern Agri can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jiajiafu Modern Agri, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jiajiafu Modern Agri 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 Jiajiafu Modern Agri can be done for the following purposes –
1. Strategic planning of Jiajiafu Modern Agri
2. Improving business portfolio management of Jiajiafu Modern Agri
3. Assessing feasibility of the new initiative in Australia
4. Making a Crops sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jiajiafu Modern Agri
Strengths of Jiajiafu Modern Agri | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jiajiafu Modern Agri are -
Digital Transformation in Crops industry
- digital transformation varies from industry to industry. For Jiajiafu Modern Agri digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jiajiafu Modern Agri 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.
Sustainable margins compare to other players in Crops industry
– Jiajiafu Modern Agri has clearly differentiated products in the market place. This has enabled Jiajiafu Modern Agri to fetch slight price premium compare to the competitors in the Crops industry. The sustainable margins have also helped Jiajiafu Modern Agri to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Jiajiafu Modern Agri in Crops industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Jiajiafu Modern Agri is one of the most innovative firm in Crops sector.
Highly skilled collaborators
– Jiajiafu Modern Agri has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Crops industry. Secondly the value chain collaborators of Jiajiafu Modern Agri have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Jiajiafu Modern Agri
– The covid-19 pandemic has put organizational resilience at the centre of everthing Jiajiafu Modern Agri does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Jiajiafu Modern Agri is one of the leading players in the Crops industry in Australia. It is in a position to attract the best talent available in Australia. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Jiajiafu Modern Agri 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 Crops industry. The technology infrastructure of Australia 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
– Jiajiafu Modern Agri has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jiajiafu Modern Agri to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Crops
– Jiajiafu Modern Agri is one of the leading players in the Crops industry in Australia. Over the years it has not only transformed the business landscape in the Crops industry in Australia but also across the existing markets. The ability to lead change has enabled Jiajiafu Modern Agri in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Jiajiafu Modern Agri is present in almost all the verticals within the Crops industry. This has provided Jiajiafu Modern Agri 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.
Strong track record of project management in the Crops industry
– Jiajiafu Modern Agri 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 Jiajiafu Modern Agri | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jiajiafu Modern Agri are -
Lack of clear differentiation of Jiajiafu Modern Agri products
– To increase the profitability and margins on the products, Jiajiafu Modern Agri needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jiajiafu Modern Agri is slow explore the new channels of communication. These new channels of communication can help Jiajiafu Modern Agri to provide better information regarding Crops products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Jiajiafu Modern Agri 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.
High operating costs
– Compare to the competitors, Jiajiafu Modern Agri has high operating costs in the Crops industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jiajiafu Modern Agri lucrative customers.
Slow to strategic competitive environment developments
– As Jiajiafu Modern Agri is one of the leading players in the Crops industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Crops industry in last five years.
Employees’ less understanding of Jiajiafu Modern Agri strategy
– From the outside it seems that the employees of Jiajiafu Modern Agri 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.
Skills based hiring in Crops industry
– The stress on hiring functional specialists at Jiajiafu Modern Agri 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.
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 Jiajiafu Modern Agri supply chain. Even after few cautionary changes, Jiajiafu Modern Agri is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jiajiafu Modern Agri vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Jiajiafu Modern Agri has a high cash cycle compare to other players in the Crops 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 Jiajiafu Modern Agri is dominated by functional specialists. It is not different from other players in the Crops industry, but Jiajiafu Modern Agri needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jiajiafu Modern Agri to focus more on services in the Crops industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Jiajiafu Modern Agri 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.
Jiajiafu Modern Agri Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jiajiafu Modern Agri are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jiajiafu Modern Agri can use these opportunities to build new business models that can help the communities that Jiajiafu Modern Agri operates in. Secondly it can use opportunities from government spending in Crops sector.
Building a culture of innovation
– managers at Jiajiafu Modern Agri 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 Crops industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jiajiafu Modern Agri 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.
Learning at scale
– Online learning technologies has now opened space for Jiajiafu Modern Agri 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 Jiajiafu Modern Agri to increase its market reach. Jiajiafu Modern Agri 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.
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 Jiajiafu Modern Agri 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
– Jiajiafu Modern Agri 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.
Creating value in data economy
– The success of analytics program of Jiajiafu Modern Agri has opened avenues for new revenue streams for the organization in Crops industry. This can help Jiajiafu Modern Agri to build a more holistic ecosystem for Jiajiafu Modern Agri products in the Crops industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Jiajiafu Modern Agri has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Crops sector. This continuous investment in analytics has enabled Jiajiafu Modern Agri to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jiajiafu Modern Agri 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 Crops industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jiajiafu Modern Agri in the Crops industry. Now Jiajiafu Modern Agri can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Jiajiafu Modern Agri can improve the customer journey of consumers in the Crops 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.
Manufacturing automation
– Jiajiafu Modern Agri can use the latest technology developments to improve its manufacturing and designing process in Crops 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jiajiafu Modern Agri is facing challenges because of the dominance of functional experts in the organization. Jiajiafu Modern Agri can utilize new technology in the field of Crops industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Jiajiafu Modern Agri External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jiajiafu Modern Agri are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Crops industry are lowering. It can presents Jiajiafu Modern Agri with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Crops sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jiajiafu Modern Agri in Crops industry. The Crops 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.
Technology acceleration in Forth Industrial Revolution
– Jiajiafu Modern Agri has witnessed rapid integration of technology during Covid-19 in the Crops industry. As one of the leading players in the industry, Jiajiafu Modern Agri needs to keep up with the evolution of technology in the Crops 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.
Stagnating economy with rate increase
– Jiajiafu Modern Agri 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 Crops industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jiajiafu Modern Agri 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 Jiajiafu Modern Agri prominent markets.
Environmental challenges
– Jiajiafu Modern Agri 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. Jiajiafu Modern Agri can take advantage of this fund but it will also bring new competitors in the Crops industry.
Easy access to finance
– Easy access to finance in Crops industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jiajiafu Modern Agri can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Jiajiafu Modern Agri 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jiajiafu Modern Agri.
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. Jiajiafu Modern Agri 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.
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. Jiajiafu Modern Agri needs to understand the core reasons impacting the Crops industry. This will help it in building a better workplace.
Regulatory challenges
– Jiajiafu Modern Agri 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 Crops industry regulations.
Weighted SWOT Analysis of Jiajiafu Modern Agri Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jiajiafu Modern Agri 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 Jiajiafu Modern Agri 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 Jiajiafu Modern Agri 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 Jiajiafu Modern Agri 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 Jiajiafu Modern Agri needs to make to build a sustainable competitive advantage.