Centre Testing Intl Shenzhen (300012) SWOT Analysis / TOWS Matrix / MBA Resources
Business Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Centre Testing Intl Shenzhen (China)
Based on various researches at Oak Spring University , Centre Testing Intl Shenzhen is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing energy prices, increasing transportation and logistics costs, there is backlash against globalization, wage bills are increasing, challanges to central banks by blockchain based private currencies,
cloud computing is disrupting traditional business models, geopolitical disruptions, etc
Introduction to SWOT Analysis of Centre Testing Intl Shenzhen
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Centre Testing Intl Shenzhen can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Centre Testing Intl Shenzhen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen can be done for the following purposes –
1. Strategic planning of Centre Testing Intl Shenzhen
2. Improving business portfolio management of Centre Testing Intl Shenzhen
3. Assessing feasibility of the new initiative in China
4. Making a Business Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Centre Testing Intl Shenzhen
Strengths of Centre Testing Intl Shenzhen | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Centre Testing Intl Shenzhen are -
Effective Research and Development (R&D)
– Centre Testing Intl Shenzhen has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Centre Testing Intl Shenzhen staying ahead in the Business Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Centre Testing Intl Shenzhen 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.
Cross disciplinary teams
– Horizontal connected teams at the Centre Testing Intl Shenzhen 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
- Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Centre Testing Intl Shenzhen emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Centre Testing Intl Shenzhen
– The covid-19 pandemic has put organizational resilience at the centre of everthing Centre Testing Intl Shenzhen does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Centre Testing Intl Shenzhen in the Services sector have low bargaining power. Centre Testing Intl Shenzhen has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Centre Testing Intl Shenzhen to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Centre Testing Intl Shenzhen is present in almost all the verticals within the Business Services industry. This has provided Centre Testing Intl Shenzhen 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.
Analytics focus
– Centre Testing Intl Shenzhen 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 Business Services 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 Centre Testing Intl Shenzhen comprises – understanding the underlying the factors in the Business Services 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.
Highly skilled collaborators
– Centre Testing Intl Shenzhen has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Business Services industry. Secondly the value chain collaborators of Centre Testing Intl Shenzhen have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Centre Testing Intl Shenzhen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Centre Testing Intl Shenzhen 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.
Sustainable margins compare to other players in Business Services industry
– Centre Testing Intl Shenzhen has clearly differentiated products in the market place. This has enabled Centre Testing Intl Shenzhen to fetch slight price premium compare to the competitors in the Business Services industry. The sustainable margins have also helped Centre Testing Intl Shenzhen to invest into research and development (R&D) and innovation.
Weaknesses of Centre Testing Intl Shenzhen | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Centre Testing Intl Shenzhen are -
Employees’ less understanding of Centre Testing Intl Shenzhen strategy
– From the outside it seems that the employees of Centre Testing Intl Shenzhen 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.
Interest costs
– Compare to the competition, Centre Testing Intl Shenzhen 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.
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 Centre Testing Intl Shenzhen supply chain. Even after few cautionary changes, Centre Testing Intl Shenzhen is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Centre Testing Intl Shenzhen vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Centre Testing Intl Shenzhen 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 Business Services industry using digital technology.
Lack of clear differentiation of Centre Testing Intl Shenzhen products
– To increase the profitability and margins on the products, Centre Testing Intl Shenzhen needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Centre Testing Intl Shenzhen is slow explore the new channels of communication. These new channels of communication can help Centre Testing Intl Shenzhen to provide better information regarding Business Services products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, Centre Testing Intl Shenzhen has high operating costs in the Business Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Centre Testing Intl Shenzhen lucrative customers.
No frontier risks strategy
– From the 10K / annual statement of Centre Testing Intl Shenzhen, it seems that company is thinking out the frontier risks that can impact Business Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Aligning sales with marketing
– From the outside it seems that Centre Testing Intl Shenzhen needs to have more collaboration between its sales team and marketing team. Sales professionals in the Business Services industry have deep experience in developing customer relationships. Marketing department at Centre Testing Intl Shenzhen can leverage the sales team experience to cultivate customer relationships as Centre Testing Intl Shenzhen is planning to shift buying processes online.
High bargaining power of channel partners in Business Services industry
– because of the regulatory requirements in China, Centre Testing Intl Shenzhen 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 Business Services industry.
Slow to strategic competitive environment developments
– As Centre Testing Intl Shenzhen is one of the leading players in the Business Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Business Services industry in last five years.
Centre Testing Intl Shenzhen Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Centre Testing Intl Shenzhen are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Centre Testing Intl Shenzhen has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Business Services sector. This continuous investment in analytics has enabled Centre Testing Intl Shenzhen to build a competitive advantage using analytics. The analytics driven competitive advantage can help Centre Testing Intl Shenzhen to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Centre Testing Intl Shenzhen is facing challenges because of the dominance of functional experts in the organization. Centre Testing Intl Shenzhen can utilize new technology in the field of Business Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Centre Testing Intl Shenzhen 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.
Loyalty marketing
– Centre Testing Intl Shenzhen 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Centre Testing Intl Shenzhen can use these opportunities to build new business models that can help the communities that Centre Testing Intl Shenzhen operates in. Secondly it can use opportunities from government spending in Business Services sector.
Developing new processes and practices
– Centre Testing Intl Shenzhen can develop new processes and procedures in Business Services industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Business Services industry, but it has also influenced the consumer preferences. Centre Testing Intl Shenzhen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Centre Testing Intl Shenzhen can improve the customer journey of consumers in the Business Services 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Business Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Centre Testing Intl Shenzhen can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Centre Testing Intl Shenzhen can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Centre Testing Intl Shenzhen to increase its market reach. Centre Testing Intl Shenzhen 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.
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. Centre Testing Intl Shenzhen can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Centre Testing Intl Shenzhen has opened avenues for new revenue streams for the organization in Business Services industry. This can help Centre Testing Intl Shenzhen to build a more holistic ecosystem for Centre Testing Intl Shenzhen products in the Business Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Centre Testing Intl Shenzhen External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Business Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Centre Testing Intl Shenzhen can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Centre Testing Intl Shenzhen.
Stagnating economy with rate increase
– Centre Testing Intl Shenzhen 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 Business Services industry.
Shortening product life cycle
– it is one of the major threat that Centre Testing Intl Shenzhen is facing in Business Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Centre Testing Intl Shenzhen 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 Business Services industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Centre Testing Intl Shenzhen in Business Services industry. The Business Services 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
– Centre Testing Intl Shenzhen has witnessed rapid integration of technology during Covid-19 in the Business Services industry. As one of the leading players in the industry, Centre Testing Intl Shenzhen needs to keep up with the evolution of technology in the Business Services 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Centre Testing Intl Shenzhen may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Business Services 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. Centre Testing Intl Shenzhen 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.
Environmental challenges
– Centre Testing Intl Shenzhen 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. Centre Testing Intl Shenzhen can take advantage of this fund but it will also bring new competitors in the Business Services industry.
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.
Weighted SWOT Analysis of Centre Testing Intl Shenzhen Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen 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 Centre Testing Intl Shenzhen needs to make to build a sustainable competitive advantage.
