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 household debt because of falling income levels, wage bills are increasing, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing energy prices,
supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, 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 -
Operational resilience
– The operational resilience strategy of Mirae Asset Tiger Synth China comprises – understanding the underlying the factors in the 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.
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.
High switching costs
– The high switching costs that Mirae Asset Tiger Synth China 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.
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.
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.
High brand equity
– Mirae Asset Tiger Synth China has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mirae Asset Tiger Synth China to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Mirae Asset Tiger Synth China has one of the best training and development program in 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.
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.
Effective Research and Development (R&D)
– Mirae Asset Tiger Synth China has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Mirae Asset Tiger Synth China staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Innovation driven organization
– Mirae Asset Tiger Synth China is one of the most innovative firm in sector.
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.
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 -
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.
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.
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.
No frontier risks strategy
– From the 10K / annual statement of Mirae Asset Tiger Synth China, it seems that company is thinking out the frontier risks that can impact 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.
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.
Slow decision making process
– As mentioned earlier in the report, Mirae Asset Tiger Synth China has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mirae Asset Tiger Synth China 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.
Increasing silos among functional specialists
– The organizational structure of Mirae Asset Tiger Synth China is dominated by functional specialists. It is not different from other players in the industry, but Mirae Asset Tiger Synth China needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mirae Asset Tiger Synth China to focus more on services in the industry rather than just following the product oriented approach.
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.
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 Mirae Asset Tiger Synth China supply chain. Even after few cautionary changes, Mirae Asset Tiger Synth China is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mirae Asset Tiger Synth China vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Mirae Asset Tiger Synth China has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Mirae Asset Tiger Synth China should strive to include more intangible value offerings along with its core products and services.
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.
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 -
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.
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.
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.
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.
Creating value in data economy
– The success of analytics program of Mirae Asset Tiger Synth China has opened avenues for new revenue streams for the organization in industry. This can help Mirae Asset Tiger Synth China to build a more holistic ecosystem for Mirae Asset Tiger Synth China products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mirae Asset Tiger Synth China 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. Mirae Asset Tiger Synth China 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.
Using analytics as competitive advantage
– Mirae Asset Tiger Synth China has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Mirae Asset Tiger Synth China to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mirae Asset Tiger Synth China to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Mirae Asset Tiger Synth China can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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 -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mirae Asset Tiger Synth China will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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.
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.
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.
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 Mirae Asset Tiger Synth China.
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.
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.
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.
Increasing wage structure of Mirae Asset Tiger Synth China
– 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 Mirae Asset Tiger Synth China.
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.
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.
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.
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.