Hankuk Steel Wire (25550) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Hankuk Steel Wire (South Korea)

Based on various researches at Oak Spring University , Hankuk Steel Wire is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, increasing energy prices, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, challanges to central banks by blockchain based private currencies, etc

12 Hrs

per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

24 Hrs

per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

48 Hrs

per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

Introduction to SWOT Analysis of Hankuk Steel Wire

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

Strengths of Hankuk Steel Wire | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hankuk Steel Wire are -

Analytics focus

– Hankuk Steel Wire 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 Iron & Steel industry. The technology infrastructure of South Korea 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.

Organizational Resilience of Hankuk Steel Wire

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

Effective Research and Development (R&D)

– Hankuk Steel Wire has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hankuk Steel Wire staying ahead in the Iron & Steel industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Superior customer experience

– The customer experience strategy of Hankuk Steel Wire in Iron & Steel industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Iron & Steel industry

- digital transformation varies from industry to industry. For Hankuk Steel Wire digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hankuk Steel Wire 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 Iron & Steel industry

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

Strong track record of project management in the Iron & Steel industry

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

Successful track record of launching new products

– Hankuk Steel Wire has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hankuk Steel Wire 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.

Innovation driven organization

– Hankuk Steel Wire is one of the most innovative firm in Iron & Steel sector.

Low bargaining power of suppliers

– Suppliers of Hankuk Steel Wire in the Basic Materials sector have low bargaining power. Hankuk Steel Wire has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hankuk Steel Wire to manage not only supply disruptions but also source products at highly competitive prices.

Diverse revenue streams

– Hankuk Steel Wire is present in almost all the verticals within the Iron & Steel industry. This has provided Hankuk Steel Wire 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.

Ability to lead change in Iron & Steel

– Hankuk Steel Wire is one of the leading players in the Iron & Steel industry in South Korea. Over the years it has not only transformed the business landscape in the Iron & Steel industry in South Korea but also across the existing markets. The ability to lead change has enabled Hankuk Steel Wire in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Weaknesses of Hankuk Steel Wire | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hankuk Steel Wire are -

Aligning sales with marketing

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

Employees’ less understanding of Hankuk Steel Wire strategy

– From the outside it seems that the employees of Hankuk Steel Wire 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.

No frontier risks strategy

– From the 10K / annual statement of Hankuk Steel Wire, it seems that company is thinking out the frontier risks that can impact Iron & Steel 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.

Ability to respond to the competition

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

Need for greater diversity

– Hankuk Steel Wire 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.

Workers concerns about automation

– As automation is fast increasing in the Iron & Steel industry, Hankuk Steel Wire needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

High dependence on 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 Hankuk Steel Wire supply chain. Even after few cautionary changes, Hankuk Steel Wire is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hankuk Steel Wire vulnerable to further global disruptions in South East Asia.

Capital Spending Reduction

– Even during the low interest decade, Hankuk Steel Wire has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Iron & Steel industry using digital technology.

High dependence on Hankuk Steel Wire ‘s star products

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

Slow to strategic competitive environment developments

– As Hankuk Steel Wire is one of the leading players in the Iron & Steel industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Iron & Steel industry in last five years.

High operating costs

– Compare to the competitors, Hankuk Steel Wire has high operating costs in the Iron & Steel industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hankuk Steel Wire lucrative customers.

Hankuk Steel Wire Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Hankuk Steel Wire 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, Hankuk Steel Wire can use these opportunities to build new business models that can help the communities that Hankuk Steel Wire operates in. Secondly it can use opportunities from government spending in Iron & Steel sector.

Developing new processes and practices

– Hankuk Steel Wire can develop new processes and procedures in Iron & Steel 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.

Loyalty marketing

– Hankuk Steel Wire 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hankuk Steel Wire 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.

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 Hankuk Steel Wire 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hankuk Steel Wire in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Iron & Steel industry, and it will provide faster access to the consumers.

Using analytics as competitive advantage

– Hankuk Steel Wire has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Iron & Steel sector. This continuous investment in analytics has enabled Hankuk Steel Wire to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hankuk Steel Wire to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Iron & Steel industry, but it has also influenced the consumer preferences. Hankuk Steel Wire can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Building a culture of innovation

– managers at Hankuk Steel Wire 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 Iron & Steel industry.

Redefining models of collaboration and team work

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

Creating value in data economy

– The success of analytics program of Hankuk Steel Wire has opened avenues for new revenue streams for the organization in Iron & Steel industry. This can help Hankuk Steel Wire to build a more holistic ecosystem for Hankuk Steel Wire products in the Iron & Steel 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, Hankuk Steel Wire 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 Hankuk Steel Wire to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Iron & Steel industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hankuk Steel Wire 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. Hankuk Steel Wire 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.

Threats Hankuk Steel Wire External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Hankuk Steel Wire are -

Stagnating economy with rate increase

– Hankuk Steel Wire 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 Iron & Steel 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 Hankuk Steel Wire.

Technology acceleration in Forth Industrial Revolution

– Hankuk Steel Wire has witnessed rapid integration of technology during Covid-19 in the Iron & Steel industry. As one of the leading players in the industry, Hankuk Steel Wire needs to keep up with the evolution of technology in the Iron & Steel 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.

Barriers of entry lowering

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

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 Hankuk Steel Wire in the Iron & Steel sector and impact the bottomline of the organization.

Regulatory challenges

– Hankuk Steel Wire 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 Iron & Steel industry regulations.

Consumer confidence and its impact on Hankuk Steel Wire 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 Iron & Steel industry and other sectors.

Increasing wage structure of Hankuk Steel Wire

– 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 Hankuk Steel Wire.

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. Hankuk Steel Wire needs to understand the core reasons impacting the Iron & Steel industry. This will help it in building a better workplace.

Shortening product life cycle

– it is one of the major threat that Hankuk Steel Wire is facing in Iron & Steel sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

High dependence on third party suppliers

– Hankuk Steel Wire 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.

Easy access to finance

– Easy access to finance in Iron & Steel industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hankuk Steel Wire can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Weighted SWOT Analysis of Hankuk Steel Wire Template, Example

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

--- ---

Vinci SWOT Analysis / TOWS Matrix

Capital Goods , Construction Services

Sejong Industrial SWOT Analysis / TOWS Matrix

Consumer Cyclical , Auto & Truck Parts

Engenco SWOT Analysis / TOWS Matrix

Capital Goods , Construction Services

Fujisash SWOT Analysis / TOWS Matrix

Capital Goods , Constr. - Supplies & Fixtures

Tiffany&Co SWOT Analysis / TOWS Matrix

Services , Retail (Specialty)

Challenger Tech SWOT Analysis / TOWS Matrix

Services , Retail (Technology)

LGL Group SWOT Analysis / TOWS Matrix

Technology , Electronic Instr. & Controls

Tanco SWOT Analysis / TOWS Matrix

Capital Goods , Construction Services

Innophoss SWOT Analysis / TOWS Matrix

Basic Materials , Chemical Manufacturing

Aspinwall & Co SWOT Analysis / TOWS Matrix

Transportation , Misc. Transportation