China Jinjiang Environment (CJEH) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for China Jinjiang Environment (Singapore)

Based on various researches at Oak Spring University , China Jinjiang Environment is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, geopolitical disruptions, technology disruption, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, there is backlash against globalization, etc

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Introduction to SWOT Analysis of China Jinjiang Environment

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

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

The strengths of China Jinjiang Environment are -

Cross disciplinary teams

– Horizontal connected teams at the China Jinjiang Environment 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.

Organizational Resilience of China Jinjiang Environment

– The covid-19 pandemic has put organizational resilience at the centre of everthing China Jinjiang Environment does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Learning organization

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

Effective Research and Development (R&D)

– China Jinjiang Environment has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – China Jinjiang Environment 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.

Ability to lead change in Trucking

– China Jinjiang Environment is one of the leading players in the Trucking industry in Singapore. Over the years it has not only transformed the business landscape in the Trucking industry in Singapore but also across the existing markets. The ability to lead change has enabled China Jinjiang Environment in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Strong track record of project management in the Trucking industry

– China Jinjiang Environment is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Sustainable margins compare to other players in Trucking industry

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

Digital Transformation in Trucking industry

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

– China Jinjiang Environment 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 Singapore 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.

Diverse revenue streams

– China Jinjiang Environment is present in almost all the verticals within the Trucking industry. This has provided China Jinjiang Environment 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 China Jinjiang Environment comprises – understanding the underlying the factors in the Trucking 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.

Highly skilled collaborators

– China Jinjiang Environment 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 China Jinjiang Environment have helped the firm to develop new products and bring them quickly to the marketplace.

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

The weaknesses of China Jinjiang Environment are -

Increasing silos among functional specialists

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

High bargaining power of channel partners in Trucking industry

– because of the regulatory requirements in Singapore, China Jinjiang Environment 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 Trucking industry.

High cash cycle compare to competitors

China Jinjiang Environment has a high cash cycle compare to other players in the Trucking industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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

Lack of clear differentiation of China Jinjiang Environment products

– To increase the profitability and margins on the products, China Jinjiang Environment needs to provide more differentiated products than what it is currently offering in the marketplace.

Aligning sales with marketing

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

Slow decision making process

– As mentioned earlier in the report, China Jinjiang Environment has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Trucking industry over the last five years. China Jinjiang Environment 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, China Jinjiang Environment is slow explore the new channels of communication. These new channels of communication can help China Jinjiang Environment to provide better information regarding Trucking products and services. It can also build an online community to further reach out to potential customers.

Ability to respond to the competition

– As the decision making is very deliberative at China Jinjiang Environment, in the dynamic environment of Trucking industry it has struggled to respond to the nimble upstart competition. China Jinjiang Environment has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Compensation and incentives

– The revenue per employee of China Jinjiang Environment is just above the Trucking 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.

Interest costs

– Compare to the competition, China Jinjiang Environment 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.

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

The opportunities of China Jinjiang Environment are -

Building a culture of innovation

– managers at China Jinjiang Environment 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 Trucking industry.

Lowering marketing communication costs

– 5G expansion will open new opportunities for China Jinjiang Environment in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Trucking industry, and it will provide faster access to the consumers.

Better consumer reach

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

Manufacturing automation

– China Jinjiang Environment 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.

Buying journey improvements

– China Jinjiang Environment 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.

Loyalty marketing

– China Jinjiang Environment 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.

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 China Jinjiang Environment in the Trucking industry. Now China Jinjiang Environment can target international markets with far fewer capital restrictions requirements than the existing system.

Increase in government spending

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

Redefining models of collaboration and team work

– As explained in the weaknesses section, China Jinjiang Environment is facing challenges because of the dominance of functional experts in the organization. China Jinjiang Environment can utilize new technology in the field of Trucking industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Leveraging digital technologies

– China Jinjiang Environment 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.

Harnessing reconfiguration of the global supply chains

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

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for China Jinjiang Environment 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 China Jinjiang Environment to hire the very best people irrespective of their geographical location.

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. China Jinjiang Environment 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. China Jinjiang Environment 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.

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Threats China Jinjiang Environment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of China Jinjiang Environment are -

Shortening product life cycle

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

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, China Jinjiang Environment 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, China Jinjiang Environment 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 China Jinjiang Environment prominent markets.

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 China Jinjiang Environment in the Trucking sector and impact the bottomline of the organization.

Barriers of entry lowering

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

High dependence on third party suppliers

– China Jinjiang Environment 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.

Technology acceleration in Forth Industrial Revolution

– China Jinjiang Environment has witnessed rapid integration of technology during Covid-19 in the Trucking industry. As one of the leading players in the industry, China Jinjiang Environment 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for China Jinjiang Environment 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.

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 China Jinjiang Environment.

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 China Jinjiang Environment business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– China Jinjiang Environment 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. China Jinjiang Environment can take advantage of this fund but it will also bring new competitors in the Trucking industry.

Stagnating economy with rate increase

– China Jinjiang Environment 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.

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Weighted SWOT Analysis of China Jinjiang Environment Template, Example

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

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