Shenzhen Tempus Global Business (300178) SWOT Analysis / TOWS Matrix / MBA Resources
Recreational Activities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Shenzhen Tempus Global Business (China)
Based on various researches at Oak Spring University , Shenzhen Tempus Global Business is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, wage bills are increasing, cloud computing is disrupting traditional business models,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of Shenzhen Tempus Global Business
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shenzhen Tempus Global Business can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shenzhen Tempus Global Business, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business can be done for the following purposes –
1. Strategic planning of Shenzhen Tempus Global Business
2. Improving business portfolio management of Shenzhen Tempus Global Business
3. Assessing feasibility of the new initiative in China
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shenzhen Tempus Global Business
Strengths of Shenzhen Tempus Global Business | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shenzhen Tempus Global Business are -
Organizational Resilience of Shenzhen Tempus Global Business
– The covid-19 pandemic has put organizational resilience at the centre of everthing Shenzhen Tempus Global Business does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Recreational Activities industry
- digital transformation varies from industry to industry. For Shenzhen Tempus Global Business digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shenzhen Tempus Global Business 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.
Training and development
– Shenzhen Tempus Global Business 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.
Low bargaining power of suppliers
– Suppliers of Shenzhen Tempus Global Business in the Services sector have low bargaining power. Shenzhen Tempus Global Business has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shenzhen Tempus Global Business to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Recreational Activities
– Shenzhen Tempus Global Business is one of the leading players in the Recreational Activities industry in China. Over the years it has not only transformed the business landscape in the Recreational Activities industry in China but also across the existing markets. The ability to lead change has enabled Shenzhen Tempus Global Business in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shenzhen Tempus Global Business emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Recreational Activities industry
– Shenzhen Tempus Global Business has clearly differentiated products in the market place. This has enabled Shenzhen Tempus Global Business to fetch slight price premium compare to the competitors in the Recreational Activities industry. The sustainable margins have also helped Shenzhen Tempus Global Business to invest into research and development (R&D) and innovation.
Strong track record of project management in the Recreational Activities industry
– Shenzhen Tempus Global Business is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Shenzhen Tempus Global Business has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Shenzhen Tempus Global Business staying ahead in the Recreational Activities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Shenzhen Tempus Global Business has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shenzhen Tempus Global Business 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.
Operational resilience
– The operational resilience strategy of Shenzhen Tempus Global Business comprises – understanding the underlying the factors in the Recreational Activities 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.
High brand equity
– Shenzhen Tempus Global Business has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shenzhen Tempus Global Business to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Shenzhen Tempus Global Business | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shenzhen Tempus Global Business are -
Employees’ less understanding of Shenzhen Tempus Global Business strategy
– From the outside it seems that the employees of Shenzhen Tempus Global Business 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.
Low market penetration in new markets
– Outside its home market of China, Shenzhen Tempus Global Business needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Shenzhen Tempus Global Business products
– To increase the profitability and margins on the products, Shenzhen Tempus Global Business needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Shenzhen Tempus Global Business 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 Recreational Activities industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Shenzhen Tempus Global Business is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but Shenzhen Tempus Global Business needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shenzhen Tempus Global Business to focus more on services in the Recreational Activities industry rather than just following the product oriented approach.
High bargaining power of channel partners in Recreational Activities industry
– because of the regulatory requirements in China, Shenzhen Tempus Global Business 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 Recreational Activities industry.
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 Shenzhen Tempus Global Business supply chain. Even after few cautionary changes, Shenzhen Tempus Global Business is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shenzhen Tempus Global Business vulnerable to further global disruptions in South East Asia.
Skills based hiring in Recreational Activities industry
– The stress on hiring functional specialists at Shenzhen Tempus Global Business 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 dependence on Shenzhen Tempus Global Business ‘s star products
– The top 2 products and services of Shenzhen Tempus Global Business still accounts for major business revenue. This dependence on star products in Recreational Activities industry has resulted into insufficient focus on developing new products, even though Shenzhen Tempus Global Business has relatively successful track record of launching new products.
Need for greater diversity
– Shenzhen Tempus Global Business 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.
Aligning sales with marketing
– From the outside it seems that Shenzhen Tempus Global Business needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Activities industry have deep experience in developing customer relationships. Marketing department at Shenzhen Tempus Global Business can leverage the sales team experience to cultivate customer relationships as Shenzhen Tempus Global Business is planning to shift buying processes online.
Shenzhen Tempus Global Business Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shenzhen Tempus Global Business are -
Use of Bitcoin and other crypto currencies for transactions in Recreational Activities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Shenzhen Tempus Global Business in the Recreational Activities industry. Now Shenzhen Tempus Global Business can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shenzhen Tempus Global Business in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Recreational Activities industry, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Shenzhen Tempus Global Business 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.
Better consumer reach
– The expansion of the 5G network will help Shenzhen Tempus Global Business to increase its market reach. Shenzhen Tempus Global Business 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Recreational Activities industry, but it has also influenced the consumer preferences. Shenzhen Tempus Global Business 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
– Shenzhen Tempus Global Business can improve the customer journey of consumers in the Recreational Activities 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shenzhen Tempus Global Business can use these opportunities to build new business models that can help the communities that Shenzhen Tempus Global Business operates in. Secondly it can use opportunities from government spending in Recreational Activities sector.
Leveraging digital technologies
– Shenzhen Tempus Global Business 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.
Building a culture of innovation
– managers at Shenzhen Tempus Global Business 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 Recreational Activities industry.
Using analytics as competitive advantage
– Shenzhen Tempus Global Business has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Recreational Activities sector. This continuous investment in analytics has enabled Shenzhen Tempus Global Business to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shenzhen Tempus Global Business to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Shenzhen Tempus Global Business can use the latest technology developments to improve its manufacturing and designing process in Recreational Activities 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.
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. Shenzhen Tempus Global Business can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Shenzhen Tempus Global Business External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shenzhen Tempus Global Business are -
Stagnating economy with rate increase
– Shenzhen Tempus Global Business 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 Recreational Activities industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business prominent markets.
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. Shenzhen Tempus Global Business 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.
Shortening product life cycle
– it is one of the major threat that Shenzhen Tempus Global Business is facing in Recreational Activities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Shenzhen Tempus Global Business
– 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 Shenzhen Tempus Global Business.
Regulatory challenges
– Shenzhen Tempus Global Business 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 Recreational Activities industry regulations.
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 Shenzhen Tempus Global Business in the Recreational Activities sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Shenzhen Tempus Global Business 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.
Technology acceleration in Forth Industrial Revolution
– Shenzhen Tempus Global Business has witnessed rapid integration of technology during Covid-19 in the Recreational Activities industry. As one of the leading players in the industry, Shenzhen Tempus Global Business needs to keep up with the evolution of technology in the Recreational Activities 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 Shenzhen Tempus Global Business 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 Recreational Activities industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shenzhen Tempus Global Business in Recreational Activities industry. The Recreational Activities industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Shenzhen Tempus Global Business needs to understand the core reasons impacting the Recreational Activities industry. This will help it in building a better workplace.
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 Shenzhen Tempus Global Business business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Shenzhen Tempus Global Business Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business 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 Shenzhen Tempus Global Business needs to make to build a sustainable competitive advantage.