Chaoda Modern Agriculture (CMGHF) SWOT Analysis / TOWS Matrix / MBA Resources
Crops
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Chaoda Modern Agriculture (United States)
Based on various researches at Oak Spring University , Chaoda Modern Agriculture is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, geopolitical disruptions, etc
Introduction to SWOT Analysis of Chaoda Modern Agriculture
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Chaoda Modern Agriculture can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chaoda Modern Agriculture, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chaoda Modern Agriculture 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 Chaoda Modern Agriculture can be done for the following purposes –
1. Strategic planning of Chaoda Modern Agriculture
2. Improving business portfolio management of Chaoda Modern Agriculture
3. Assessing feasibility of the new initiative in United States
4. Making a Crops sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chaoda Modern Agriculture
Strengths of Chaoda Modern Agriculture | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chaoda Modern Agriculture are -
Highly skilled collaborators
– Chaoda Modern Agriculture has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Crops industry. Secondly the value chain collaborators of Chaoda Modern Agriculture have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Crops industry
– Chaoda Modern Agriculture has clearly differentiated products in the market place. This has enabled Chaoda Modern Agriculture to fetch slight price premium compare to the competitors in the Crops industry. The sustainable margins have also helped Chaoda Modern Agriculture to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Chaoda Modern Agriculture is one of the leading players in the Crops industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Chaoda Modern Agriculture are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Chaoda Modern Agriculture
– The covid-19 pandemic has put organizational resilience at the centre of everthing Chaoda Modern Agriculture does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Chaoda Modern Agriculture in the Consumer/Non-Cyclical sector have low bargaining power. Chaoda Modern Agriculture has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chaoda Modern Agriculture to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Chaoda Modern Agriculture in Crops industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the Crops industry
– Chaoda Modern Agriculture is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Chaoda Modern Agriculture 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.
High brand equity
– Chaoda Modern Agriculture has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chaoda Modern Agriculture to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Crops
– Chaoda Modern Agriculture is one of the leading players in the Crops industry in United States. Over the years it has not only transformed the business landscape in the Crops industry in United States but also across the existing markets. The ability to lead change has enabled Chaoda Modern Agriculture in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Chaoda Modern Agriculture has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Chaoda Modern Agriculture staying ahead in the Crops industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Chaoda Modern Agriculture | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Chaoda Modern Agriculture are -
Low market penetration in new markets
– Outside its home market of United States, Chaoda Modern Agriculture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at Chaoda Modern Agriculture, in the dynamic environment of Crops industry it has struggled to respond to the nimble upstart competition. Chaoda Modern Agriculture has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Chaoda Modern Agriculture is slow explore the new channels of communication. These new channels of communication can help Chaoda Modern Agriculture to provide better information regarding Crops products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of Chaoda Modern Agriculture is just above the Crops 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 Chaoda Modern Agriculture, it seems that company is thinking out the frontier risks that can impact Crops 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.
High dependence on Chaoda Modern Agriculture ‘s star products
– The top 2 products and services of Chaoda Modern Agriculture still accounts for major business revenue. This dependence on star products in Crops industry has resulted into insufficient focus on developing new products, even though Chaoda Modern Agriculture 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 Chaoda Modern Agriculture supply chain. Even after few cautionary changes, Chaoda Modern Agriculture is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Chaoda Modern Agriculture vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Chaoda Modern Agriculture has a high cash cycle compare to other players in the Crops 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 Chaoda Modern Agriculture is dominated by functional specialists. It is not different from other players in the Crops industry, but Chaoda Modern Agriculture needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chaoda Modern Agriculture to focus more on services in the Crops industry rather than just following the product oriented approach.
High bargaining power of channel partners in Crops industry
– because of the regulatory requirements in United States, Chaoda Modern Agriculture 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 Crops industry.
Interest costs
– Compare to the competition, Chaoda Modern Agriculture 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.
Chaoda Modern Agriculture Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Chaoda Modern Agriculture are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Chaoda Modern Agriculture can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Crops industry, but it has also influenced the consumer preferences. Chaoda Modern Agriculture can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Chaoda Modern Agriculture 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.
Use of Bitcoin and other crypto currencies for transactions in Crops industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Chaoda Modern Agriculture in the Crops industry. Now Chaoda Modern Agriculture can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Chaoda Modern Agriculture can improve the customer journey of consumers in the Crops 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 Chaoda Modern Agriculture 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 Crops industry.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chaoda Modern Agriculture in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Crops industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Chaoda Modern Agriculture to increase its market reach. Chaoda Modern Agriculture 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chaoda Modern Agriculture 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.
Learning at scale
– Online learning technologies has now opened space for Chaoda Modern Agriculture 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.
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 Chaoda Modern Agriculture 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.
Loyalty marketing
– Chaoda Modern Agriculture 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chaoda Modern Agriculture 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 Chaoda Modern Agriculture 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 Chaoda Modern Agriculture External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Chaoda Modern Agriculture are -
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 Chaoda Modern Agriculture in the Crops sector and impact the bottomline of the organization.
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. Chaoda Modern Agriculture needs to understand the core reasons impacting the Crops industry. This will help it in building a better workplace.
Regulatory challenges
– Chaoda Modern Agriculture 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 Crops industry regulations.
Stagnating economy with rate increase
– Chaoda Modern Agriculture 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 Crops industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chaoda Modern Agriculture in Crops industry. The Crops 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Crops industry are lowering. It can presents Chaoda Modern Agriculture with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Crops sector.
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. Chaoda Modern Agriculture 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.
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 wage structure of Chaoda Modern Agriculture
– 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 Chaoda Modern Agriculture.
Environmental challenges
– Chaoda Modern Agriculture 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. Chaoda Modern Agriculture can take advantage of this fund but it will also bring new competitors in the Crops industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Chaoda Modern Agriculture may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Crops sector.
Consumer confidence and its impact on Chaoda Modern Agriculture 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 Crops industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chaoda Modern Agriculture 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 Chaoda Modern Agriculture prominent markets.
Weighted SWOT Analysis of Chaoda Modern Agriculture Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Chaoda Modern Agriculture 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 Chaoda Modern Agriculture 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 Chaoda Modern Agriculture 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 Chaoda Modern Agriculture 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 Chaoda Modern Agriculture needs to make to build a sustainable competitive advantage.