Hefei Meiya Optoelectronic Tec A (2690) SWOT Analysis / TOWS Matrix / MBA Resources
Scientific & Technical Instr.
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Hefei Meiya Optoelectronic Tec A (China)
Based on various researches at Oak Spring University , Hefei Meiya Optoelectronic Tec A is operating in a macro-environment that has been destablized by – wage bills are increasing, increasing commodity prices, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic ,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Hefei Meiya Optoelectronic Tec A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hefei Meiya Optoelectronic Tec A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hefei Meiya Optoelectronic Tec A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec A can be done for the following purposes –
1. Strategic planning of Hefei Meiya Optoelectronic Tec A
2. Improving business portfolio management of Hefei Meiya Optoelectronic Tec A
3. Assessing feasibility of the new initiative in China
4. Making a Scientific & Technical Instr. sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hefei Meiya Optoelectronic Tec A
Strengths of Hefei Meiya Optoelectronic Tec A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hefei Meiya Optoelectronic Tec A are -
Digital Transformation in Scientific & Technical Instr. industry
- digital transformation varies from industry to industry. For Hefei Meiya Optoelectronic Tec A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hefei Meiya Optoelectronic Tec A 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.
Organizational Resilience of Hefei Meiya Optoelectronic Tec A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Hefei Meiya Optoelectronic Tec A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Hefei Meiya Optoelectronic Tec A 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 Scientific & Technical Instr. 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.
High switching costs
– The high switching costs that Hefei Meiya Optoelectronic Tec 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.
Highly skilled collaborators
– Hefei Meiya Optoelectronic Tec A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Scientific & Technical Instr. industry. Secondly the value chain collaborators of Hefei Meiya Optoelectronic Tec A have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Hefei Meiya Optoelectronic Tec A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hefei Meiya Optoelectronic Tec A staying ahead in the Scientific & Technical Instr. industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Hefei Meiya Optoelectronic Tec A emphasize – knowledge, initiative, and innovation.
Training and development
– Hefei Meiya Optoelectronic Tec A 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 Hefei Meiya Optoelectronic Tec A comprises – understanding the underlying the factors in the Scientific & Technical Instr. 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.
Strong track record of project management in the Scientific & Technical Instr. industry
– Hefei Meiya Optoelectronic Tec 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.
Superior customer experience
– The customer experience strategy of Hefei Meiya Optoelectronic Tec A in Scientific & Technical Instr. industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Hefei Meiya Optoelectronic Tec A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hefei Meiya Optoelectronic Tec A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Hefei Meiya Optoelectronic Tec A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hefei Meiya Optoelectronic Tec A are -
High cash cycle compare to competitors
Hefei Meiya Optoelectronic Tec A has a high cash cycle compare to other players in the Scientific & Technical Instr. industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Scientific & Technical Instr. industry
– The stress on hiring functional specialists at Hefei Meiya Optoelectronic Tec 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.
Increasing silos among functional specialists
– The organizational structure of Hefei Meiya Optoelectronic Tec A is dominated by functional specialists. It is not different from other players in the Scientific & Technical Instr. industry, but Hefei Meiya Optoelectronic Tec A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hefei Meiya Optoelectronic Tec A to focus more on services in the Scientific & Technical Instr. industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Hefei Meiya Optoelectronic Tec A has high operating costs in the Scientific & Technical Instr. industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hefei Meiya Optoelectronic Tec A lucrative customers.
Aligning sales with marketing
– From the outside it seems that Hefei Meiya Optoelectronic Tec A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Scientific & Technical Instr. industry have deep experience in developing customer relationships. Marketing department at Hefei Meiya Optoelectronic Tec A can leverage the sales team experience to cultivate customer relationships as Hefei Meiya Optoelectronic Tec A is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Hefei Meiya Optoelectronic Tec 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 Scientific & Technical Instr. industry over the last five years. Hefei Meiya Optoelectronic Tec 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 dependence on Hefei Meiya Optoelectronic Tec A ‘s star products
– The top 2 products and services of Hefei Meiya Optoelectronic Tec A still accounts for major business revenue. This dependence on star products in Scientific & Technical Instr. industry has resulted into insufficient focus on developing new products, even though Hefei Meiya Optoelectronic Tec A has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of China, Hefei Meiya Optoelectronic Tec A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ less understanding of Hefei Meiya Optoelectronic Tec A strategy
– From the outside it seems that the employees of Hefei Meiya Optoelectronic Tec A 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hefei Meiya Optoelectronic Tec A is slow explore the new channels of communication. These new channels of communication can help Hefei Meiya Optoelectronic Tec A to provide better information regarding Scientific & Technical Instr. products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Hefei Meiya Optoelectronic Tec A 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.
Hefei Meiya Optoelectronic Tec A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Hefei Meiya Optoelectronic Tec A are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hefei Meiya Optoelectronic Tec A is facing challenges because of the dominance of functional experts in the organization. Hefei Meiya Optoelectronic Tec A can utilize new technology in the field of Scientific & Technical Instr. industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Hefei Meiya Optoelectronic Tec A can use the latest technology developments to improve its manufacturing and designing process in Scientific & Technical Instr. 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, Hefei Meiya Optoelectronic Tec 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.
Leveraging digital technologies
– Hefei Meiya Optoelectronic Tec 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec A to hire the very best people irrespective of their geographical location.
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. Hefei Meiya Optoelectronic Tec A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Hefei Meiya Optoelectronic Tec A 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hefei Meiya Optoelectronic Tec A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Scientific & Technical Instr. industry, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Hefei Meiya Optoelectronic Tec A 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 Scientific & Technical Instr. industry.
Use of Bitcoin and other crypto currencies for transactions in Scientific & Technical Instr. industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hefei Meiya Optoelectronic Tec A in the Scientific & Technical Instr. industry. Now Hefei Meiya Optoelectronic Tec A can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Hefei Meiya Optoelectronic Tec A can improve the customer journey of consumers in the Scientific & Technical Instr. 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, Hefei Meiya Optoelectronic Tec A can use these opportunities to build new business models that can help the communities that Hefei Meiya Optoelectronic Tec A operates in. Secondly it can use opportunities from government spending in Scientific & Technical Instr. sector.
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 Hefei Meiya Optoelectronic Tec 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.
Threats Hefei Meiya Optoelectronic Tec A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Hefei Meiya Optoelectronic Tec A are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hefei Meiya Optoelectronic Tec A 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 Hefei Meiya Optoelectronic Tec A prominent markets.
Consumer confidence and its impact on Hefei Meiya Optoelectronic Tec 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 Scientific & Technical Instr. industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hefei Meiya Optoelectronic Tec A in Scientific & Technical Instr. industry. The Scientific & Technical Instr. 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.
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. Hefei Meiya Optoelectronic Tec A needs to understand the core reasons impacting the Scientific & Technical Instr. industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Hefei Meiya Optoelectronic Tec 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 Scientific & Technical Instr. sector.
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 Hefei Meiya Optoelectronic Tec A in the Scientific & Technical Instr. sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Scientific & Technical Instr. industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hefei Meiya Optoelectronic Tec A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Hefei Meiya Optoelectronic Tec A has witnessed rapid integration of technology during Covid-19 in the Scientific & Technical Instr. industry. As one of the leading players in the industry, Hefei Meiya Optoelectronic Tec A needs to keep up with the evolution of technology in the Scientific & Technical Instr. 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.
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
– Hefei Meiya Optoelectronic Tec A 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 Scientific & Technical Instr. industry.
Regulatory challenges
– Hefei Meiya Optoelectronic Tec 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 Scientific & Technical Instr. industry regulations.
Environmental challenges
– Hefei Meiya Optoelectronic Tec 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. Hefei Meiya Optoelectronic Tec A can take advantage of this fund but it will also bring new competitors in the Scientific & Technical Instr. industry.
Weighted SWOT Analysis of Hefei Meiya Optoelectronic Tec A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec 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 Hefei Meiya Optoelectronic Tec A needs to make to build a sustainable competitive advantage.