Centre Testing Intl Shenzhen (300012) SWOT Analysis / TOWS Matrix / 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 – geopolitical disruptions, 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 transportation and logistics costs, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, etc

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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.

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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

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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 -

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.

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.

Ability to lead change in Business Services

– Centre Testing Intl Shenzhen is one of the leading players in the Business Services industry in China. Over the years it has not only transformed the business landscape in the Business Services industry in China but also across the existing markets. The ability to lead change has enabled Centre Testing Intl Shenzhen in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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.

Ability to recruit top talent

– Centre Testing Intl Shenzhen is one of the leading players in the Business Services 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.

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.

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.

Digital Transformation in Business Services industry

- digital transformation varies from industry to industry. For Centre Testing Intl Shenzhen digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Centre Testing Intl Shenzhen has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Diverse revenue streams

– 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.

High switching costs

– The high switching costs that Centre Testing Intl Shenzhen 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.

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.

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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 -

Increasing silos among functional specialists

– The organizational structure of Centre Testing Intl Shenzhen is dominated by functional specialists. It is not different from other players in the Business Services industry, but Centre Testing Intl Shenzhen needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Centre Testing Intl Shenzhen to focus more on services in the Business Services industry rather than just following the product oriented approach.

Skills based hiring in Business Services industry

– The stress on hiring functional specialists at Centre Testing Intl Shenzhen 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.

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.

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.

High dependence on Centre Testing Intl Shenzhen ‘s star products

– The top 2 products and services of Centre Testing Intl Shenzhen still accounts for major business revenue. This dependence on star products in Business Services industry has resulted into insufficient focus on developing new products, even though Centre Testing Intl Shenzhen has relatively successful track record of launching new products.

Compensation and incentives

– The revenue per employee of Centre Testing Intl Shenzhen is just above the Business Services 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.

Need for greater diversity

– Centre Testing Intl Shenzhen has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High cash cycle compare to competitors

Centre Testing Intl Shenzhen has a high cash cycle compare to other players in the Business Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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.

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.

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.

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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 -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Centre Testing Intl Shenzhen in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Business Services industry, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for Centre Testing Intl Shenzhen 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.

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 Centre Testing Intl Shenzhen 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.

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.

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.

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.

Reforming the budgeting process

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

Building a culture of innovation

– managers at Centre Testing Intl Shenzhen 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 Business Services industry.

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.

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.

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.

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.

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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 -

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.

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.

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. Centre Testing Intl Shenzhen needs to understand the core reasons impacting the Business Services industry. This will help it in building a better workplace.

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.

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.

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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Business Services industry are lowering. It can presents Centre Testing Intl Shenzhen with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Business Services sector.

High dependence on third party suppliers

– Centre Testing Intl Shenzhen 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.

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.

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.

Regulatory challenges

– Centre Testing Intl Shenzhen 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 Business Services industry regulations.

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.

Increasing wage structure of Centre Testing Intl Shenzhen

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Centre Testing Intl Shenzhen.

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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.

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