Inspur Electronic Info Industr (977) SWOT Analysis / TOWS Matrix / MBA Resources
Computer Peripherals
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Inspur Electronic Info Industr (China)
Based on various researches at Oak Spring University , Inspur Electronic Info Industr is operating in a macro-environment that has been destablized by – increasing commodity prices, there is backlash against globalization, increasing energy prices, increasing transportation and logistics costs, supply chains are disrupted by pandemic , wage bills are increasing, increasing government debt because of Covid-19 spendings,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Inspur Electronic Info Industr
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Inspur Electronic Info Industr can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inspur Electronic Info Industr, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inspur Electronic Info Industr 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 Inspur Electronic Info Industr can be done for the following purposes –
1. Strategic planning of Inspur Electronic Info Industr
2. Improving business portfolio management of Inspur Electronic Info Industr
3. Assessing feasibility of the new initiative in China
4. Making a Computer Peripherals sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Inspur Electronic Info Industr
Strengths of Inspur Electronic Info Industr | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Inspur Electronic Info Industr are -
Innovation driven organization
– Inspur Electronic Info Industr is one of the most innovative firm in Computer Peripherals sector.
Learning organization
- Inspur Electronic Info Industr 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 Inspur Electronic Info Industr is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Inspur Electronic Info Industr emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Inspur Electronic Info Industr has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Computer Peripherals industry. Secondly the value chain collaborators of Inspur Electronic Info Industr have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Inspur Electronic Info Industr has one of the best training and development program in Technology 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.
Operational resilience
– The operational resilience strategy of Inspur Electronic Info Industr comprises – understanding the underlying the factors in the Computer Peripherals 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.
Digital Transformation in Computer Peripherals industry
- digital transformation varies from industry to industry. For Inspur Electronic Info Industr digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Inspur Electronic Info Industr 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 Computer Peripherals industry
– Inspur Electronic Info Industr has clearly differentiated products in the market place. This has enabled Inspur Electronic Info Industr to fetch slight price premium compare to the competitors in the Computer Peripherals industry. The sustainable margins have also helped Inspur Electronic Info Industr to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Inspur Electronic Info Industr in Computer Peripherals industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Computer Peripherals
– Inspur Electronic Info Industr is one of the leading players in the Computer Peripherals industry in China. Over the years it has not only transformed the business landscape in the Computer Peripherals industry in China but also across the existing markets. The ability to lead change has enabled Inspur Electronic Info Industr 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)
– Inspur Electronic Info Industr has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Inspur Electronic Info Industr staying ahead in the Computer Peripherals industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Inspur Electronic Info Industr has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Inspur Electronic Info Industr 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.
High brand equity
– Inspur Electronic Info Industr has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Inspur Electronic Info Industr to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Inspur Electronic Info Industr | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Inspur Electronic Info Industr are -
Skills based hiring in Computer Peripherals industry
– The stress on hiring functional specialists at Inspur Electronic Info Industr 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.
Capital Spending Reduction
– Even during the low interest decade, Inspur Electronic Info Industr 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 Computer Peripherals industry using digital technology.
No frontier risks strategy
– From the 10K / annual statement of Inspur Electronic Info Industr, it seems that company is thinking out the frontier risks that can impact Computer Peripherals 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, Inspur Electronic Info Industr 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 to strategic competitive environment developments
– As Inspur Electronic Info Industr is one of the leading players in the Computer Peripherals industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Computer Peripherals industry in last five years.
Low market penetration in new markets
– Outside its home market of China, Inspur Electronic Info Industr needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Inspur Electronic Info Industr supply chain. Even after few cautionary changes, Inspur Electronic Info Industr is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Inspur Electronic Info Industr vulnerable to further global disruptions in South East Asia.
High dependence on Inspur Electronic Info Industr ‘s star products
– The top 2 products and services of Inspur Electronic Info Industr still accounts for major business revenue. This dependence on star products in Computer Peripherals industry has resulted into insufficient focus on developing new products, even though Inspur Electronic Info Industr has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Inspur Electronic Info Industr, in the dynamic environment of Computer Peripherals industry it has struggled to respond to the nimble upstart competition. Inspur Electronic Info Industr has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the Computer Peripherals industry, Inspur Electronic Info Industr 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.
Compensation and incentives
– The revenue per employee of Inspur Electronic Info Industr is just above the Computer Peripherals 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.
Inspur Electronic Info Industr Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Inspur Electronic Info Industr are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Inspur Electronic Info Industr is facing challenges because of the dominance of functional experts in the organization. Inspur Electronic Info Industr can utilize new technology in the field of Computer Peripherals industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Inspur Electronic Info Industr can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Inspur Electronic Info Industr can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Inspur Electronic Info Industr 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Computer Peripherals industry, but it has also influenced the consumer preferences. Inspur Electronic Info Industr can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Inspur Electronic Info Industr to increase its market reach. Inspur Electronic Info Industr 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Inspur Electronic Info Industr can use these opportunities to build new business models that can help the communities that Inspur Electronic Info Industr operates in. Secondly it can use opportunities from government spending in Computer Peripherals sector.
Developing new processes and practices
– Inspur Electronic Info Industr can develop new processes and procedures in Computer Peripherals 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Inspur Electronic Info Industr to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Inspur Electronic Info Industr to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Inspur Electronic Info Industr can use the latest technology developments to improve its manufacturing and designing process in Computer Peripherals 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.
Building a culture of innovation
– managers at Inspur Electronic Info Industr 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 Computer Peripherals industry.
Leveraging digital technologies
– Inspur Electronic Info Industr 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.
Using analytics as competitive advantage
– Inspur Electronic Info Industr has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Computer Peripherals sector. This continuous investment in analytics has enabled Inspur Electronic Info Industr to build a competitive advantage using analytics. The analytics driven competitive advantage can help Inspur Electronic Info Industr to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Inspur Electronic Info Industr External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Inspur Electronic Info Industr are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Computer Peripherals industry are lowering. It can presents Inspur Electronic Info Industr with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Peripherals sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
Technology acceleration in Forth Industrial Revolution
– Inspur Electronic Info Industr has witnessed rapid integration of technology during Covid-19 in the Computer Peripherals industry. As one of the leading players in the industry, Inspur Electronic Info Industr needs to keep up with the evolution of technology in the Computer Peripherals 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.
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 Inspur Electronic Info Industr.
Environmental challenges
– Inspur Electronic Info Industr 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. Inspur Electronic Info Industr can take advantage of this fund but it will also bring new competitors in the Computer Peripherals industry.
Stagnating economy with rate increase
– Inspur Electronic Info Industr 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 Computer Peripherals industry.
Increasing wage structure of Inspur Electronic Info Industr
– 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 Inspur Electronic Info Industr.
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 Inspur Electronic Info Industr business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Inspur Electronic Info Industr 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 Computer Peripherals industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Inspur Electronic Info Industr is facing in Computer Peripherals sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Inspur Electronic Info Industr 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 Inspur Electronic Info Industr prominent markets.
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. Inspur Electronic Info Industr needs to understand the core reasons impacting the Computer Peripherals industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Inspur Electronic Info Industr Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Inspur Electronic Info Industr 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 Inspur Electronic Info Industr 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 Inspur Electronic Info Industr 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 Inspur Electronic Info Industr 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 Inspur Electronic Info Industr needs to make to build a sustainable competitive advantage.