Shanxi Baiyuan Trousers Chain A (2640) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Shanxi Baiyuan Trousers Chain A (China)

Based on various researches at Oak Spring University , Shanxi Baiyuan Trousers Chain A is operating in a macro-environment that has been destablized by – geopolitical disruptions, technology disruption, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing energy prices, etc

---

---

---

---

Introduction to SWOT Analysis of Shanxi Baiyuan Trousers Chain A

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

---

Strengths of Shanxi Baiyuan Trousers Chain A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Shanxi Baiyuan Trousers Chain A are -

Highly skilled collaborators

– Shanxi Baiyuan Trousers Chain A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Retail (Apparel) industry. Secondly the value chain collaborators of Shanxi Baiyuan Trousers Chain A have helped the firm to develop new products and bring them quickly to the marketplace.

Organizational Resilience of Shanxi Baiyuan Trousers Chain A

– The covid-19 pandemic has put organizational resilience at the centre of everthing Shanxi Baiyuan Trousers Chain A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Learning organization

- Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shanxi Baiyuan Trousers Chain A emphasize – knowledge, initiative, and innovation.

High switching costs

– The high switching costs that Shanxi Baiyuan Trousers Chain A 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

– Shanxi Baiyuan Trousers Chain A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shanxi Baiyuan Trousers Chain A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Effective Research and Development (R&D)

– Shanxi Baiyuan Trousers Chain A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Shanxi Baiyuan Trousers Chain A staying ahead in the Retail (Apparel) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Sustainable margins compare to other players in Retail (Apparel) industry

– Shanxi Baiyuan Trousers Chain A has clearly differentiated products in the market place. This has enabled Shanxi Baiyuan Trousers Chain A to fetch slight price premium compare to the competitors in the Retail (Apparel) industry. The sustainable margins have also helped Shanxi Baiyuan Trousers Chain A to invest into research and development (R&D) and innovation.

Operational resilience

– The operational resilience strategy of Shanxi Baiyuan Trousers Chain A comprises – understanding the underlying the factors in the Retail (Apparel) 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 Shanxi Baiyuan Trousers Chain A in Retail (Apparel) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to recruit top talent

– Shanxi Baiyuan Trousers Chain A is one of the leading players in the Retail (Apparel) industry in China. It is in a position to attract the best talent available in China. The firm has a robust talent identification program that helps in identifying the brightest.

Training and development

– Shanxi Baiyuan Trousers Chain A has one of the best training and development program in Services 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.

Strong track record of project management in the Retail (Apparel) industry

– Shanxi Baiyuan Trousers Chain A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

---

---

Weaknesses of Shanxi Baiyuan Trousers Chain A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Shanxi Baiyuan Trousers Chain A are -

Aligning sales with marketing

– From the outside it seems that Shanxi Baiyuan Trousers Chain A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Retail (Apparel) industry have deep experience in developing customer relationships. Marketing department at Shanxi Baiyuan Trousers Chain A can leverage the sales team experience to cultivate customer relationships as Shanxi Baiyuan Trousers Chain A is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Shanxi Baiyuan Trousers Chain A is one of the leading players in the Retail (Apparel) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Retail (Apparel) industry in last five years.

High dependence on Shanxi Baiyuan Trousers Chain A ‘s star products

– The top 2 products and services of Shanxi Baiyuan Trousers Chain A still accounts for major business revenue. This dependence on star products in Retail (Apparel) industry has resulted into insufficient focus on developing new products, even though Shanxi Baiyuan Trousers Chain A has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, Shanxi Baiyuan Trousers Chain A has high operating costs in the Retail (Apparel) industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shanxi Baiyuan Trousers Chain A lucrative customers.

Capital Spending Reduction

– Even during the low interest decade, Shanxi Baiyuan Trousers Chain A 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 Retail (Apparel) industry using digital technology.

Workers concerns about automation

– As automation is fast increasing in the Retail (Apparel) industry, Shanxi Baiyuan Trousers Chain A 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.

Products dominated business model

– Even though Shanxi Baiyuan Trousers Chain A has some of the most successful models in the Retail (Apparel) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Shanxi Baiyuan Trousers Chain A should strive to include more intangible value offerings along with its core products and services.

Skills based hiring in Retail (Apparel) industry

– The stress on hiring functional specialists at Shanxi Baiyuan Trousers Chain A has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Slow decision making process

– As mentioned earlier in the report, Shanxi Baiyuan Trousers Chain A has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Retail (Apparel) industry over the last five years. Shanxi Baiyuan Trousers Chain A 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.

High cash cycle compare to competitors

Shanxi Baiyuan Trousers Chain A has a high cash cycle compare to other players in the Retail (Apparel) industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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 Shanxi Baiyuan Trousers Chain A supply chain. Even after few cautionary changes, Shanxi Baiyuan Trousers Chain A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shanxi Baiyuan Trousers Chain A vulnerable to further global disruptions in South East Asia.

---

Shanxi Baiyuan Trousers Chain A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Shanxi Baiyuan Trousers Chain A are -

Better consumer reach

– The expansion of the 5G network will help Shanxi Baiyuan Trousers Chain A to increase its market reach. Shanxi Baiyuan Trousers Chain A 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.

Reforming the budgeting process

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

Using analytics as competitive advantage

– Shanxi Baiyuan Trousers Chain A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Retail (Apparel) sector. This continuous investment in analytics has enabled Shanxi Baiyuan Trousers Chain A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shanxi Baiyuan Trousers Chain A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Manufacturing automation

– Shanxi Baiyuan Trousers Chain A can use the latest technology developments to improve its manufacturing and designing process in Retail (Apparel) 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Shanxi Baiyuan Trousers Chain A 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.

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 Shanxi Baiyuan Trousers Chain A 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shanxi Baiyuan Trousers Chain A can use these opportunities to build new business models that can help the communities that Shanxi Baiyuan Trousers Chain A operates in. Secondly it can use opportunities from government spending in Retail (Apparel) sector.

Leveraging digital technologies

– Shanxi Baiyuan Trousers Chain A 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

– Shanxi Baiyuan Trousers Chain A can improve the customer journey of consumers in the Retail (Apparel) 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A to hire the very best people irrespective of their geographical location.

Learning at scale

– Online learning technologies has now opened space for Shanxi Baiyuan Trousers Chain A 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Retail (Apparel) industry, but it has also influenced the consumer preferences. Shanxi Baiyuan Trousers Chain A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Shanxi Baiyuan Trousers Chain A can explore opportunities that can attract volunteers and are consistent with its mission and vision.

---

Threats Shanxi Baiyuan Trousers Chain A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Shanxi Baiyuan Trousers Chain A are -

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 Shanxi Baiyuan Trousers Chain A business can come under increasing regulations regarding data privacy, data security, etc.

Regulatory challenges

– Shanxi Baiyuan Trousers Chain A 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 Retail (Apparel) industry regulations.

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 Shanxi Baiyuan Trousers Chain A.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Shanxi Baiyuan Trousers Chain A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Retail (Apparel) sector.

High dependence on third party suppliers

– Shanxi Baiyuan Trousers Chain A 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.

Consumer confidence and its impact on Shanxi Baiyuan Trousers Chain A 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 Retail (Apparel) industry and other sectors.

Environmental challenges

– Shanxi Baiyuan Trousers Chain A 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. Shanxi Baiyuan Trousers Chain A can take advantage of this fund but it will also bring new competitors in the Retail (Apparel) industry.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

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. Shanxi Baiyuan Trousers Chain A needs to understand the core reasons impacting the Retail (Apparel) industry. This will help it in building a better workplace.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Shanxi Baiyuan Trousers Chain A in Retail (Apparel) industry. The Retail (Apparel) 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.

Technology acceleration in Forth Industrial Revolution

– Shanxi Baiyuan Trousers Chain A has witnessed rapid integration of technology during Covid-19 in the Retail (Apparel) industry. As one of the leading players in the industry, Shanxi Baiyuan Trousers Chain A needs to keep up with the evolution of technology in the Retail (Apparel) 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.

Shortening product life cycle

– it is one of the major threat that Shanxi Baiyuan Trousers Chain A is facing in Retail (Apparel) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

---

Weighted SWOT Analysis of Shanxi Baiyuan Trousers Chain A Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A 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 Shanxi Baiyuan Trousers Chain A needs to make to build a sustainable competitive advantage.

--- ---