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Weifu High Tech Group (200581) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Weifu High Tech Group (China)


Based on various researches at Oak Spring University , Weifu High Tech Group is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, there is increasing trade war between United States & China, increasing commodity prices, cloud computing is disrupting traditional business models, technology disruption, etc



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Introduction to SWOT Analysis of Weifu High Tech Group


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




Strengths of Weifu High Tech Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Weifu High Tech Group are -

Diverse revenue streams

– Weifu High Tech Group is present in almost all the verticals within the Auto & Truck Parts industry. This has provided Weifu High Tech Group 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.

Innovation driven organization

– Weifu High Tech Group is one of the most innovative firm in Auto & Truck Parts sector.

Digital Transformation in Auto & Truck Parts industry

- digital transformation varies from industry to industry. For Weifu High Tech Group digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Weifu High Tech Group 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 Auto & Truck Parts industry

– Weifu High Tech Group has clearly differentiated products in the market place. This has enabled Weifu High Tech Group to fetch slight price premium compare to the competitors in the Auto & Truck Parts industry. The sustainable margins have also helped Weifu High Tech Group to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Weifu High Tech Group 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.

Learning organization

- Weifu High Tech Group 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 Weifu High Tech Group is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Weifu High Tech Group emphasize – knowledge, initiative, and innovation.

Ability to lead change in Auto & Truck Parts

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

Highly skilled collaborators

– Weifu High Tech Group has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Auto & Truck Parts industry. Secondly the value chain collaborators of Weifu High Tech Group have helped the firm to develop new products and bring them quickly to the marketplace.

Training and development

– Weifu High Tech Group has one of the best training and development program in Consumer Cyclical 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 Auto & Truck Parts industry

– Weifu High Tech Group is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Weifu High Tech Group has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Weifu High Tech Group staying ahead in the Auto & Truck Parts 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

– Weifu High Tech Group has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Weifu High Tech Group 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.






Weaknesses of Weifu High Tech Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Weifu High Tech Group are -

Employees’ less understanding of Weifu High Tech Group strategy

– From the outside it seems that the employees of Weifu High Tech Group 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.

Increasing silos among functional specialists

– The organizational structure of Weifu High Tech Group is dominated by functional specialists. It is not different from other players in the Auto & Truck Parts industry, but Weifu High Tech Group needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Weifu High Tech Group to focus more on services in the Auto & Truck Parts industry rather than just following the product oriented approach.

High bargaining power of channel partners in Auto & Truck Parts industry

– because of the regulatory requirements in China, Weifu High Tech Group 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 Auto & Truck Parts industry.

Compensation and incentives

– The revenue per employee of Weifu High Tech Group is just above the Auto & Truck Parts 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.

Slow to strategic competitive environment developments

– As Weifu High Tech Group is one of the leading players in the Auto & Truck Parts industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Auto & Truck Parts industry in last five years.

Lack of clear differentiation of Weifu High Tech Group products

– To increase the profitability and margins on the products, Weifu High Tech Group needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

– Outside its home market of China, Weifu High Tech Group needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Workers concerns about automation

– As automation is fast increasing in the Auto & Truck Parts industry, Weifu High Tech Group 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Weifu High Tech Group is slow explore the new channels of communication. These new channels of communication can help Weifu High Tech Group to provide better information regarding Auto & Truck Parts products and services. It can also build an online community to further reach out to potential customers.

High cash cycle compare to competitors

Weifu High Tech Group has a high cash cycle compare to other players in the Auto & Truck Parts 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 Weifu High Tech Group supply chain. Even after few cautionary changes, Weifu High Tech Group is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Weifu High Tech Group vulnerable to further global disruptions in South East Asia.




Weifu High Tech Group Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Weifu High Tech Group are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Weifu High Tech Group is facing challenges because of the dominance of functional experts in the organization. Weifu High Tech Group can utilize new technology in the field of Auto & Truck Parts industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Using analytics as competitive advantage

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

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Weifu High Tech Group 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 Weifu High Tech Group in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Auto & Truck Parts industry, and it will provide faster access to the consumers.

Use of Bitcoin and other crypto currencies for transactions in Auto & Truck Parts industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Weifu High Tech Group in the Auto & Truck Parts industry. Now Weifu High Tech Group can target international markets with far fewer capital restrictions requirements than the existing system.

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. Weifu High Tech Group can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Leveraging digital technologies

– Weifu High Tech Group 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Weifu High Tech Group 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 Weifu High Tech Group to hire the very best people irrespective of their geographical location.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Weifu High Tech Group 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 Weifu High Tech Group to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Weifu High Tech Group to increase its market reach. Weifu High Tech Group 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.

Creating value in data economy

– The success of analytics program of Weifu High Tech Group has opened avenues for new revenue streams for the organization in Auto & Truck Parts industry. This can help Weifu High Tech Group to build a more holistic ecosystem for Weifu High Tech Group products in the Auto & Truck Parts industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 Weifu High Tech Group 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, Weifu High Tech Group can use these opportunities to build new business models that can help the communities that Weifu High Tech Group operates in. Secondly it can use opportunities from government spending in Auto & Truck Parts sector.




Threats Weifu High Tech Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Weifu High Tech Group are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Auto & Truck Parts industry are lowering. It can presents Weifu High Tech Group with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Auto & Truck Parts sector.

High dependence on third party suppliers

– Weifu High Tech Group 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.

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.

Shortening product life cycle

– it is one of the major threat that Weifu High Tech Group is facing in Auto & Truck Parts 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, Weifu High Tech Group 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 Weifu High Tech Group prominent markets.

Technology acceleration in Forth Industrial Revolution

– Weifu High Tech Group has witnessed rapid integration of technology during Covid-19 in the Auto & Truck Parts industry. As one of the leading players in the industry, Weifu High Tech Group needs to keep up with the evolution of technology in the Auto & Truck Parts 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.

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 Weifu High Tech Group in the Auto & Truck Parts sector and impact the bottomline of the organization.

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.

Stagnating economy with rate increase

– Weifu High Tech Group 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 Auto & Truck Parts industry.

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. Weifu High Tech Group 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.

Easy access to finance

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

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. Weifu High Tech Group needs to understand the core reasons impacting the Auto & Truck Parts industry. This will help it in building a better workplace.

Consumer confidence and its impact on Weifu High Tech Group 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 Auto & Truck Parts industry and other sectors.




Weighted SWOT Analysis of Weifu High Tech Group Template, Example


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



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