Jason Furniture Hangzhou (603816) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Jason Furniture Hangzhou (China)

Based on various researches at Oak Spring University , Jason Furniture Hangzhou is operating in a macro-environment that has been destablized by – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, there is backlash against globalization, geopolitical disruptions, wage bills are increasing, technology disruption, etc

---

---

---

---

Introduction to SWOT Analysis of Jason Furniture Hangzhou

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

---

Strengths of Jason Furniture Hangzhou | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Jason Furniture Hangzhou are -

Sustainable margins compare to other players in Furniture & Fixtures industry

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

Digital Transformation in Furniture & Fixtures industry

- digital transformation varies from industry to industry. For Jason Furniture Hangzhou digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jason Furniture Hangzhou 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.

Diverse revenue streams

– Jason Furniture Hangzhou is present in almost all the verticals within the Furniture & Fixtures industry. This has provided Jason Furniture Hangzhou a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Highly skilled collaborators

– Jason Furniture Hangzhou has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Furniture & Fixtures industry. Secondly the value chain collaborators of Jason Furniture Hangzhou have helped the firm to develop new products and bring them quickly to the marketplace.

Analytics focus

– Jason Furniture Hangzhou 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 Furniture & Fixtures industry. The technology infrastructure of China 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.

Operational resilience

– The operational resilience strategy of Jason Furniture Hangzhou comprises – understanding the underlying the factors in the Furniture & Fixtures 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.

Effective Research and Development (R&D)

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

Superior customer experience

– The customer experience strategy of Jason Furniture Hangzhou in Furniture & Fixtures 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 Furniture & Fixtures industry

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

Learning organization

- Jason Furniture Hangzhou 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 Jason Furniture Hangzhou is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jason Furniture Hangzhou emphasize – knowledge, initiative, and innovation.

Successful track record of launching new products

– Jason Furniture Hangzhou has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jason Furniture Hangzhou 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.

Ability to lead change in Furniture & Fixtures

– Jason Furniture Hangzhou is one of the leading players in the Furniture & Fixtures industry in China. Over the years it has not only transformed the business landscape in the Furniture & Fixtures industry in China but also across the existing markets. The ability to lead change has enabled Jason Furniture Hangzhou in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

---

---

Weaknesses of Jason Furniture Hangzhou | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Jason Furniture Hangzhou are -

Lack of clear differentiation of Jason Furniture Hangzhou products

– To increase the profitability and margins on the products, Jason Furniture Hangzhou needs to provide more differentiated products than what it is currently offering in the marketplace.

Aligning sales with marketing

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

Workers concerns about automation

– As automation is fast increasing in the Furniture & Fixtures industry, Jason Furniture Hangzhou 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.

Employees’ less understanding of Jason Furniture Hangzhou strategy

– From the outside it seems that the employees of Jason Furniture Hangzhou 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.

Skills based hiring in Furniture & Fixtures industry

– The stress on hiring functional specialists at Jason Furniture Hangzhou 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.

Need for greater diversity

– Jason Furniture Hangzhou 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.

Slow to strategic competitive environment developments

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

High operating costs

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

Ability to respond to the competition

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

High dependence on Jason Furniture Hangzhou ‘s star products

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

High bargaining power of channel partners in Furniture & Fixtures industry

– because of the regulatory requirements in China, Jason Furniture Hangzhou 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 Furniture & Fixtures industry.

---

Jason Furniture Hangzhou Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Jason Furniture Hangzhou are -

Loyalty marketing

– Jason Furniture Hangzhou 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.

Creating value in data economy

– The success of analytics program of Jason Furniture Hangzhou has opened avenues for new revenue streams for the organization in Furniture & Fixtures industry. This can help Jason Furniture Hangzhou to build a more holistic ecosystem for Jason Furniture Hangzhou products in the Furniture & Fixtures industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Jason Furniture Hangzhou can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Lowering marketing communication costs

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

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jason Furniture Hangzhou 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 Jason Furniture Hangzhou to hire the very best people irrespective of their geographical location.

Buying journey improvements

– Jason Furniture Hangzhou can improve the customer journey of consumers in the Furniture & Fixtures 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jason Furniture Hangzhou can use these opportunities to build new business models that can help the communities that Jason Furniture Hangzhou operates in. Secondly it can use opportunities from government spending in Furniture & Fixtures sector.

Redefining models of collaboration and team work

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

Better consumer reach

– The expansion of the 5G network will help Jason Furniture Hangzhou to increase its market reach. Jason Furniture Hangzhou 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.

Using analytics as competitive advantage

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

Learning at scale

– Online learning technologies has now opened space for Jason Furniture Hangzhou 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.

Manufacturing automation

– Jason Furniture Hangzhou can use the latest technology developments to improve its manufacturing and designing process in Furniture & Fixtures 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 Jason Furniture Hangzhou 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 Furniture & Fixtures industry.

---

Threats Jason Furniture Hangzhou External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Jason Furniture Hangzhou are -

Stagnating economy with rate increase

– Jason Furniture Hangzhou 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 Furniture & Fixtures industry.

Easy access to finance

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

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 Jason Furniture Hangzhou in the Furniture & Fixtures sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Jason Furniture Hangzhou high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Jason Furniture Hangzhou may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Furniture & Fixtures sector.

Regulatory challenges

– Jason Furniture Hangzhou 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 Furniture & Fixtures industry regulations.

Barriers of entry lowering

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

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 Jason Furniture Hangzhou.

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 Jason Furniture Hangzhou is facing in Furniture & Fixtures sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Consumer confidence and its impact on Jason Furniture Hangzhou 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 Furniture & Fixtures industry and other sectors.

Technology acceleration in Forth Industrial Revolution

– Jason Furniture Hangzhou has witnessed rapid integration of technology during Covid-19 in the Furniture & Fixtures industry. As one of the leading players in the industry, Jason Furniture Hangzhou needs to keep up with the evolution of technology in the Furniture & Fixtures 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.

---

Weighted SWOT Analysis of Jason Furniture Hangzhou Template, Example

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

--- ---