Based on various researches at Oak Spring University , Inner Mongolia Hotision Monsod is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , there is backlash against globalization, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, wage bills are increasing, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion,
talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Inner Mongolia Hotision Monsod
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Inner Mongolia Hotision Monsod can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inner Mongolia Hotision Monsod, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod can be done for the following purposes –
1. Strategic planning of Inner Mongolia Hotision Monsod
2. Improving business portfolio management of Inner Mongolia Hotision Monsod
3. Assessing feasibility of the new initiative in China
4. Making a Personal Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Inner Mongolia Hotision Monsod
Strengths of Inner Mongolia Hotision Monsod | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Inner Mongolia Hotision Monsod are -
Low bargaining power of suppliers
– Suppliers of Inner Mongolia Hotision Monsod in the Services sector have low bargaining power. Inner Mongolia Hotision Monsod has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Inner Mongolia Hotision Monsod to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Personal Services industry
– Inner Mongolia Hotision Monsod has clearly differentiated products in the market place. This has enabled Inner Mongolia Hotision Monsod to fetch slight price premium compare to the competitors in the Personal Services industry. The sustainable margins have also helped Inner Mongolia Hotision Monsod to invest into research and development (R&D) and innovation.
Strong track record of project management in the Personal Services industry
– Inner Mongolia Hotision Monsod is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Inner Mongolia Hotision Monsod emphasize – knowledge, initiative, and innovation.
Training and development
– Inner Mongolia Hotision Monsod 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.
Ability to recruit top talent
– Inner Mongolia Hotision Monsod is one of the leading players in the Personal 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.
High switching costs
– The high switching costs that Inner Mongolia Hotision Monsod 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.
Superior customer experience
– The customer experience strategy of Inner Mongolia Hotision Monsod in Personal Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Inner Mongolia Hotision Monsod has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Inner Mongolia Hotision Monsod staying ahead in the Personal Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Inner Mongolia Hotision Monsod is one of the most innovative firm in Personal Services sector.
Diverse revenue streams
– Inner Mongolia Hotision Monsod is present in almost all the verticals within the Personal Services industry. This has provided Inner Mongolia Hotision Monsod 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.
Digital Transformation in Personal Services industry
- digital transformation varies from industry to industry. For Inner Mongolia Hotision Monsod digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Inner Mongolia Hotision Monsod 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.
Weaknesses of Inner Mongolia Hotision Monsod | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Inner Mongolia Hotision Monsod are -
Workers concerns about automation
– As automation is fast increasing in the Personal Services industry, Inner Mongolia Hotision Monsod 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.
Employees’ less understanding of Inner Mongolia Hotision Monsod strategy
– From the outside it seems that the employees of Inner Mongolia Hotision Monsod 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.
Compensation and incentives
– The revenue per employee of Inner Mongolia Hotision Monsod is just above the Personal 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.
Aligning sales with marketing
– From the outside it seems that Inner Mongolia Hotision Monsod needs to have more collaboration between its sales team and marketing team. Sales professionals in the Personal Services industry have deep experience in developing customer relationships. Marketing department at Inner Mongolia Hotision Monsod can leverage the sales team experience to cultivate customer relationships as Inner Mongolia Hotision Monsod is planning to shift buying processes online.
Lack of clear differentiation of Inner Mongolia Hotision Monsod products
– To increase the profitability and margins on the products, Inner Mongolia Hotision Monsod needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Inner Mongolia Hotision Monsod has some of the most successful models in the Personal Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Inner Mongolia Hotision Monsod should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– From the 10K / annual statement of Inner Mongolia Hotision Monsod, it seems that company is thinking out the frontier risks that can impact Personal 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.
Low market penetration in new markets
– Outside its home market of China, Inner Mongolia Hotision Monsod needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, Inner Mongolia Hotision Monsod has high operating costs in the Personal Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Inner Mongolia Hotision Monsod lucrative customers.
High dependence on Inner Mongolia Hotision Monsod ‘s star products
– The top 2 products and services of Inner Mongolia Hotision Monsod still accounts for major business revenue. This dependence on star products in Personal Services industry has resulted into insufficient focus on developing new products, even though Inner Mongolia Hotision Monsod has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Inner Mongolia Hotision Monsod 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.
Inner Mongolia Hotision Monsod Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Inner Mongolia Hotision Monsod are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Personal Services industry, but it has also influenced the consumer preferences. Inner Mongolia Hotision Monsod can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Inner Mongolia Hotision Monsod can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Inner Mongolia Hotision Monsod can use these opportunities to build new business models that can help the communities that Inner Mongolia Hotision Monsod operates in. Secondly it can use opportunities from government spending in Personal Services sector.
Developing new processes and practices
– Inner Mongolia Hotision Monsod can develop new processes and procedures in Personal 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.
Buying journey improvements
– Inner Mongolia Hotision Monsod can improve the customer journey of consumers in the Personal 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Inner Mongolia Hotision Monsod can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Inner Mongolia Hotision Monsod to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Inner Mongolia Hotision Monsod 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. Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Inner Mongolia Hotision Monsod can use the latest technology developments to improve its manufacturing and designing process in Personal Services 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, Inner Mongolia Hotision Monsod 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Personal Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Inner Mongolia Hotision Monsod 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. Inner Mongolia Hotision Monsod 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.
Creating value in data economy
– The success of analytics program of Inner Mongolia Hotision Monsod has opened avenues for new revenue streams for the organization in Personal Services industry. This can help Inner Mongolia Hotision Monsod to build a more holistic ecosystem for Inner Mongolia Hotision Monsod products in the Personal Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Inner Mongolia Hotision Monsod External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Inner Mongolia Hotision Monsod are -
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. Inner Mongolia Hotision Monsod needs to understand the core reasons impacting the Personal Services industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Inner Mongolia Hotision Monsod may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Personal Services sector.
Regulatory challenges
– Inner Mongolia Hotision Monsod 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 Personal Services industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Personal Services industry are lowering. It can presents Inner Mongolia Hotision Monsod with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Personal Services sector.
Easy access to finance
– Easy access to finance in Personal Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Inner Mongolia Hotision Monsod can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Inner Mongolia Hotision Monsod 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. Inner Mongolia Hotision Monsod can take advantage of this fund but it will also bring new competitors in the Personal Services industry.
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 Inner Mongolia Hotision Monsod.
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 Inner Mongolia Hotision Monsod in the Personal Services sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod prominent markets.
Increasing wage structure of Inner Mongolia Hotision Monsod
– 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 Inner Mongolia Hotision Monsod.
Technology acceleration in Forth Industrial Revolution
– Inner Mongolia Hotision Monsod has witnessed rapid integration of technology during Covid-19 in the Personal Services industry. As one of the leading players in the industry, Inner Mongolia Hotision Monsod needs to keep up with the evolution of technology in the Personal 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Inner Mongolia Hotision Monsod in Personal Services industry. The Personal 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.
Weighted SWOT Analysis of Inner Mongolia Hotision Monsod Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod 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 Inner Mongolia Hotision Monsod needs to make to build a sustainable competitive advantage.