SWOT Analysis / TOWS Matrix for Shinyoung Happy Tomorrow 3 (South Korea)
Based on various researches at Oak Spring University , Shinyoung Happy Tomorrow 3 is operating in a macro-environment that has been destablized by – increasing commodity prices, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing energy prices,
increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Shinyoung Happy Tomorrow 3
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shinyoung Happy Tomorrow 3 can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shinyoung Happy Tomorrow 3, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 can be done for the following purposes –
1. Strategic planning of Shinyoung Happy Tomorrow 3
2. Improving business portfolio management of Shinyoung Happy Tomorrow 3
3. Assessing feasibility of the new initiative in South Korea
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shinyoung Happy Tomorrow 3
Strengths of Shinyoung Happy Tomorrow 3 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shinyoung Happy Tomorrow 3 are -
Low bargaining power of suppliers
– Suppliers of Shinyoung Happy Tomorrow 3 in the Financial sector have low bargaining power. Shinyoung Happy Tomorrow 3 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shinyoung Happy Tomorrow 3 to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of Shinyoung Happy Tomorrow 3 comprises – understanding the underlying the factors in the Misc. Financial Services 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 Shinyoung Happy Tomorrow 3 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.
Strong track record of project management in the Misc. Financial Services industry
– Shinyoung Happy Tomorrow 3 is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Shinyoung Happy Tomorrow 3 has one of the best training and development program in Financial industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Shinyoung Happy Tomorrow 3 is present in almost all the verticals within the Misc. Financial Services industry. This has provided Shinyoung Happy Tomorrow 3 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.
Effective Research and Development (R&D)
– Shinyoung Happy Tomorrow 3 has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Shinyoung Happy Tomorrow 3 staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Shinyoung Happy Tomorrow 3 has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shinyoung Happy Tomorrow 3 has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Highly skilled collaborators
– Shinyoung Happy Tomorrow 3 has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Shinyoung Happy Tomorrow 3 have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Shinyoung Happy Tomorrow 3 in Misc. Financial Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Shinyoung Happy Tomorrow 3
– The covid-19 pandemic has put organizational resilience at the centre of everthing Shinyoung Happy Tomorrow 3 does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Shinyoung Happy Tomorrow 3 digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shinyoung Happy Tomorrow 3 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.
Weaknesses of Shinyoung Happy Tomorrow 3 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shinyoung Happy Tomorrow 3 are -
Ability to respond to the competition
– As the decision making is very deliberative at Shinyoung Happy Tomorrow 3, in the dynamic environment of Misc. Financial Services industry it has struggled to respond to the nimble upstart competition. Shinyoung Happy Tomorrow 3 has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 supply chain. Even after few cautionary changes, Shinyoung Happy Tomorrow 3 is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shinyoung Happy Tomorrow 3 vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Shinyoung Happy Tomorrow 3 is one of the leading players in the Misc. Financial Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Financial Services industry in last five years.
Need for greater diversity
– Shinyoung Happy Tomorrow 3 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 cash cycle compare to competitors
Shinyoung Happy Tomorrow 3 has a high cash cycle compare to other players in the Misc. Financial Services 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 Shinyoung Happy Tomorrow 3 is dominated by functional specialists. It is not different from other players in the Misc. Financial Services industry, but Shinyoung Happy Tomorrow 3 needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shinyoung Happy Tomorrow 3 to focus more on services in the Misc. Financial Services industry rather than just following the product oriented approach.
No frontier risks strategy
– From the 10K / annual statement of Shinyoung Happy Tomorrow 3, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services 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.
Aligning sales with marketing
– From the outside it seems that Shinyoung Happy Tomorrow 3 needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Financial Services industry have deep experience in developing customer relationships. Marketing department at Shinyoung Happy Tomorrow 3 can leverage the sales team experience to cultivate customer relationships as Shinyoung Happy Tomorrow 3 is planning to shift buying processes online.
High operating costs
– Compare to the competitors, Shinyoung Happy Tomorrow 3 has high operating costs in the Misc. Financial Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shinyoung Happy Tomorrow 3 lucrative customers.
Lack of clear differentiation of Shinyoung Happy Tomorrow 3 products
– To increase the profitability and margins on the products, Shinyoung Happy Tomorrow 3 needs to provide more differentiated products than what it is currently offering in the marketplace.
Shinyoung Happy Tomorrow 3 Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shinyoung Happy Tomorrow 3 are -
Buying journey improvements
– Shinyoung Happy Tomorrow 3 can improve the customer journey of consumers in the Misc. Financial Services 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.
Building a culture of innovation
– managers at Shinyoung Happy Tomorrow 3 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 Misc. Financial Services industry.
Creating value in data economy
– The success of analytics program of Shinyoung Happy Tomorrow 3 has opened avenues for new revenue streams for the organization in Misc. Financial Services industry. This can help Shinyoung Happy Tomorrow 3 to build a more holistic ecosystem for Shinyoung Happy Tomorrow 3 products in the Misc. Financial Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Shinyoung Happy Tomorrow 3 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shinyoung Happy Tomorrow 3 is facing challenges because of the dominance of functional experts in the organization. Shinyoung Happy Tomorrow 3 can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Shinyoung Happy Tomorrow 3 to increase its market reach. Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shinyoung Happy Tomorrow 3 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shinyoung Happy Tomorrow 3 can use these opportunities to build new business models that can help the communities that Shinyoung Happy Tomorrow 3 operates in. Secondly it can use opportunities from government spending in Misc. Financial Services sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Shinyoung Happy Tomorrow 3 can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Shinyoung Happy Tomorrow 3 can develop new processes and procedures in Misc. Financial Services 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.
Threats Shinyoung Happy Tomorrow 3 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shinyoung Happy Tomorrow 3 are -
Easy access to finance
– Easy access to finance in Misc. Financial Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shinyoung Happy Tomorrow 3 can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Shinyoung Happy Tomorrow 3 needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Environmental challenges
– Shinyoung Happy Tomorrow 3 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. Shinyoung Happy Tomorrow 3 can take advantage of this fund but it will also bring new competitors in the Misc. Financial Services industry.
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 Shinyoung Happy Tomorrow 3 business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Shinyoung Happy Tomorrow 3 may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shinyoung Happy Tomorrow 3 in Misc. Financial Services industry. The Misc. Financial Services 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 Shinyoung Happy Tomorrow 3.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 prominent markets.
Increasing wage structure of Shinyoung Happy Tomorrow 3
– 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 Shinyoung Happy Tomorrow 3.
Stagnating economy with rate increase
– Shinyoung Happy Tomorrow 3 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 Misc. Financial Services industry.
Consumer confidence and its impact on Shinyoung Happy Tomorrow 3 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 Misc. Financial Services industry and other sectors.
Weighted SWOT Analysis of Shinyoung Happy Tomorrow 3 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 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 Shinyoung Happy Tomorrow 3 needs to make to build a sustainable competitive advantage.
