Mirae Asset Tiger Synth China (204480) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Mirae Asset Tiger Synth China (South Korea)
Based on various researches at Oak Spring University , Mirae Asset Tiger Synth China is operating in a macro-environment that has been destablized by – increasing commodity prices, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing energy prices,
central banks are concerned over increasing inflation, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Mirae Asset Tiger Synth China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mirae Asset Tiger Synth China can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mirae Asset Tiger Synth China, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China can be done for the following purposes –
1. Strategic planning of Mirae Asset Tiger Synth China
2. Improving business portfolio management of Mirae Asset Tiger Synth China
3. Assessing feasibility of the new initiative in South Korea
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mirae Asset Tiger Synth China
Strengths of Mirae Asset Tiger Synth China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mirae Asset Tiger Synth China are -
Cross disciplinary teams
– Horizontal connected teams at the Mirae Asset Tiger Synth China 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.
Learning organization
- Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Mirae Asset Tiger Synth China emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Mirae Asset Tiger Synth China in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Mirae Asset Tiger Synth China has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Mirae Asset Tiger Synth China have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in industry
– Mirae Asset Tiger Synth China has clearly differentiated products in the market place. This has enabled Mirae Asset Tiger Synth China to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Mirae Asset Tiger Synth China to invest into research and development (R&D) and innovation.
Innovation driven organization
– Mirae Asset Tiger Synth China is one of the most innovative firm in sector.
Successful track record of launching new products
– Mirae Asset Tiger Synth China has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mirae Asset Tiger Synth China 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.
Organizational Resilience of Mirae Asset Tiger Synth China
– The covid-19 pandemic has put organizational resilience at the centre of everthing Mirae Asset Tiger Synth China does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Mirae Asset Tiger Synth China 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 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.
Strong track record of project management in the industry
– Mirae Asset Tiger Synth China is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Mirae Asset Tiger Synth China digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mirae Asset Tiger Synth China 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.
Low bargaining power of suppliers
– Suppliers of Mirae Asset Tiger Synth China in the sector have low bargaining power. Mirae Asset Tiger Synth China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mirae Asset Tiger Synth China to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Mirae Asset Tiger Synth China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mirae Asset Tiger Synth China are -
Interest costs
– Compare to the competition, Mirae Asset Tiger Synth China 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.
Compensation and incentives
– The revenue per employee of Mirae Asset Tiger Synth China is just above the 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.
Skills based hiring in industry
– The stress on hiring functional specialists at Mirae Asset Tiger Synth China 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mirae Asset Tiger Synth China is slow explore the new channels of communication. These new channels of communication can help Mirae Asset Tiger Synth China to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners in industry
– because of the regulatory requirements in South Korea, Mirae Asset Tiger Synth China 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 industry.
Need for greater diversity
– Mirae Asset Tiger Synth China 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 dependence on Mirae Asset Tiger Synth China ‘s star products
– The top 2 products and services of Mirae Asset Tiger Synth China still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Mirae Asset Tiger Synth China has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Mirae Asset Tiger Synth China is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative at Mirae Asset Tiger Synth China, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Mirae Asset Tiger Synth China has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Mirae Asset Tiger Synth China needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department at Mirae Asset Tiger Synth China can leverage the sales team experience to cultivate customer relationships as Mirae Asset Tiger Synth China is planning to shift buying processes online.
Employees’ less understanding of Mirae Asset Tiger Synth China strategy
– From the outside it seems that the employees of Mirae Asset Tiger Synth China 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.
Mirae Asset Tiger Synth China Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Mirae Asset Tiger Synth China 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, Mirae Asset Tiger Synth China can use these opportunities to build new business models that can help the communities that Mirae Asset Tiger Synth China operates in. Secondly it can use opportunities from government spending in sector.
Building a culture of innovation
– managers at Mirae Asset Tiger Synth China 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 industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mirae Asset Tiger Synth China 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.
Better consumer reach
– The expansion of the 5G network will help Mirae Asset Tiger Synth China to increase its market reach. Mirae Asset Tiger Synth China 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.
Buying journey improvements
– Mirae Asset Tiger Synth China can improve the customer journey of consumers in the 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.
Leveraging digital technologies
– Mirae Asset Tiger Synth China 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mirae Asset Tiger Synth China is facing challenges because of the dominance of functional experts in the organization. Mirae Asset Tiger Synth China can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Manufacturing automation
– Mirae Asset Tiger Synth China can use the latest technology developments to improve its manufacturing and designing process in 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mirae Asset Tiger Synth China can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mirae Asset Tiger Synth China in the industry. Now Mirae Asset Tiger Synth China can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Mirae Asset Tiger Synth China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Mirae Asset Tiger Synth China are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mirae Asset Tiger Synth China in industry. The 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.
Environmental challenges
– Mirae Asset Tiger Synth China 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. Mirae Asset Tiger Synth China can take advantage of this fund but it will also bring new competitors in the industry.
Technology acceleration in Forth Industrial Revolution
– Mirae Asset Tiger Synth China has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Mirae Asset Tiger Synth China needs to keep up with the evolution of technology in the 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
– Mirae Asset Tiger Synth China 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 industry.
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.
Consumer confidence and its impact on Mirae Asset Tiger Synth China 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 industry and other sectors.
Regulatory challenges
– Mirae Asset Tiger Synth China 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 industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China prominent markets.
Shortening product life cycle
– it is one of the major threat that Mirae Asset Tiger Synth China is facing in 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, Mirae Asset Tiger Synth China may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
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 Mirae Asset Tiger Synth China business can come under increasing regulations regarding data privacy, data security, etc.
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 Mirae Asset Tiger Synth China in the sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Mirae Asset Tiger Synth China with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Mirae Asset Tiger Synth China Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China 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 Mirae Asset Tiger Synth China needs to make to build a sustainable competitive advantage.
