Eastern Pioneer Driving School (603377) SWOT Analysis / TOWS Matrix / MBA Resources
Schools
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Eastern Pioneer Driving School (China)
Based on various researches at Oak Spring University , Eastern Pioneer Driving School is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google,
wage bills are increasing, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Eastern Pioneer Driving School
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Eastern Pioneer Driving School can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eastern Pioneer Driving School, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eastern Pioneer Driving School 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 Eastern Pioneer Driving School can be done for the following purposes –
1. Strategic planning of Eastern Pioneer Driving School
2. Improving business portfolio management of Eastern Pioneer Driving School
3. Assessing feasibility of the new initiative in China
4. Making a Schools sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Eastern Pioneer Driving School
Strengths of Eastern Pioneer Driving School | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eastern Pioneer Driving School are -
Strong track record of project management in the Schools industry
– Eastern Pioneer Driving School is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Schools
– Eastern Pioneer Driving School is one of the leading players in the Schools industry in China. Over the years it has not only transformed the business landscape in the Schools industry in China but also across the existing markets. The ability to lead change has enabled Eastern Pioneer Driving School in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Eastern Pioneer Driving School 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.
Superior customer experience
– The customer experience strategy of Eastern Pioneer Driving School in Schools industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Eastern Pioneer Driving School 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 Schools 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.
Innovation driven organization
– Eastern Pioneer Driving School is one of the most innovative firm in Schools sector.
Diverse revenue streams
– Eastern Pioneer Driving School is present in almost all the verticals within the Schools industry. This has provided Eastern Pioneer Driving School 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.
Operational resilience
– The operational resilience strategy of Eastern Pioneer Driving School comprises – understanding the underlying the factors in the Schools 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.
Effective Research and Development (R&D)
– Eastern Pioneer Driving School has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Eastern Pioneer Driving School staying ahead in the Schools industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Eastern Pioneer Driving School has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Schools industry. Secondly the value chain collaborators of Eastern Pioneer Driving School have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Eastern Pioneer Driving School has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eastern Pioneer Driving School 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 Schools industry
– Eastern Pioneer Driving School has clearly differentiated products in the market place. This has enabled Eastern Pioneer Driving School to fetch slight price premium compare to the competitors in the Schools industry. The sustainable margins have also helped Eastern Pioneer Driving School to invest into research and development (R&D) and innovation.
Weaknesses of Eastern Pioneer Driving School | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eastern Pioneer Driving School are -
High bargaining power of channel partners in Schools industry
– because of the regulatory requirements in China, Eastern Pioneer Driving School 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 Schools industry.
Capital Spending Reduction
– Even during the low interest decade, Eastern Pioneer Driving School 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 Schools industry using digital technology.
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 Eastern Pioneer Driving School supply chain. Even after few cautionary changes, Eastern Pioneer Driving School is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Eastern Pioneer Driving School vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Eastern Pioneer Driving School is one of the leading players in the Schools industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Schools industry in last five years.
High cash cycle compare to competitors
Eastern Pioneer Driving School has a high cash cycle compare to other players in the Schools industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Eastern Pioneer Driving School is dominated by functional specialists. It is not different from other players in the Schools industry, but Eastern Pioneer Driving School needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eastern Pioneer Driving School to focus more on services in the Schools industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Schools industry, Eastern Pioneer Driving School 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.
Ability to respond to the competition
– As the decision making is very deliberative at Eastern Pioneer Driving School, in the dynamic environment of Schools industry it has struggled to respond to the nimble upstart competition. Eastern Pioneer Driving School has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Eastern Pioneer Driving School 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 operating costs
– Compare to the competitors, Eastern Pioneer Driving School has high operating costs in the Schools industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Eastern Pioneer Driving School lucrative customers.
High dependence on Eastern Pioneer Driving School ‘s star products
– The top 2 products and services of Eastern Pioneer Driving School still accounts for major business revenue. This dependence on star products in Schools industry has resulted into insufficient focus on developing new products, even though Eastern Pioneer Driving School has relatively successful track record of launching new products.
Eastern Pioneer Driving School Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Eastern Pioneer Driving School are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eastern Pioneer Driving School is facing challenges because of the dominance of functional experts in the organization. Eastern Pioneer Driving School can utilize new technology in the field of Schools industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Schools industry, but it has also influenced the consumer preferences. Eastern Pioneer Driving School can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Eastern Pioneer Driving School in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Schools industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Eastern Pioneer Driving School 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 Eastern Pioneer Driving School to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Eastern Pioneer Driving School has opened avenues for new revenue streams for the organization in Schools industry. This can help Eastern Pioneer Driving School to build a more holistic ecosystem for Eastern Pioneer Driving School products in the Schools industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Schools industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Eastern Pioneer Driving School 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. Eastern Pioneer Driving School 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.
Manufacturing automation
– Eastern Pioneer Driving School can use the latest technology developments to improve its manufacturing and designing process in Schools 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.
Learning at scale
– Online learning technologies has now opened space for Eastern Pioneer Driving School 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.
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. Eastern Pioneer Driving School can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Eastern Pioneer Driving School 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.
Use of Bitcoin and other crypto currencies for transactions in Schools industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Eastern Pioneer Driving School in the Schools industry. Now Eastern Pioneer Driving School can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Eastern Pioneer Driving School can improve the customer journey of consumers in the Schools 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.
Loyalty marketing
– Eastern Pioneer Driving School 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.
Threats Eastern Pioneer Driving School External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Eastern Pioneer Driving School are -
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.
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 Eastern Pioneer Driving School in the Schools sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Eastern Pioneer Driving School may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Schools 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 Eastern Pioneer Driving School.
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 Eastern Pioneer Driving School business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Eastern Pioneer Driving School is facing in Schools sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Eastern Pioneer Driving School 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 Schools industry.
Regulatory challenges
– Eastern Pioneer Driving School 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 Schools industry regulations.
Technology acceleration in Forth Industrial Revolution
– Eastern Pioneer Driving School has witnessed rapid integration of technology during Covid-19 in the Schools industry. As one of the leading players in the industry, Eastern Pioneer Driving School needs to keep up with the evolution of technology in the Schools 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.
Consumer confidence and its impact on Eastern Pioneer Driving School 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 Schools industry and other sectors.
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. Eastern Pioneer Driving School 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.
High dependence on third party suppliers
– Eastern Pioneer Driving School 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.
Environmental challenges
– Eastern Pioneer Driving School 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. Eastern Pioneer Driving School can take advantage of this fund but it will also bring new competitors in the Schools industry.
Weighted SWOT Analysis of Eastern Pioneer Driving School Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Eastern Pioneer Driving School 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 Eastern Pioneer Driving School 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 Eastern Pioneer Driving School 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 Eastern Pioneer Driving School 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 Eastern Pioneer Driving School needs to make to build a sustainable competitive advantage.
