Qinghai Huzhu Barley Wine A (2646) SWOT Analysis / TOWS Matrix / MBA Resources
Beverages (Alcoholic)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Qinghai Huzhu Barley Wine A (China)
Based on various researches at Oak Spring University , Qinghai Huzhu Barley Wine A is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, technology disruption, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, geopolitical disruptions,
cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Qinghai Huzhu Barley Wine A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Qinghai Huzhu Barley Wine A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Qinghai Huzhu Barley Wine A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A can be done for the following purposes –
1. Strategic planning of Qinghai Huzhu Barley Wine A
2. Improving business portfolio management of Qinghai Huzhu Barley Wine A
3. Assessing feasibility of the new initiative in China
4. Making a Beverages (Alcoholic) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Qinghai Huzhu Barley Wine A
Strengths of Qinghai Huzhu Barley Wine A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Qinghai Huzhu Barley Wine A are -
Strong track record of project management in the Beverages (Alcoholic) industry
– Qinghai Huzhu Barley Wine A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Beverages (Alcoholic) industry
– Qinghai Huzhu Barley Wine A has clearly differentiated products in the market place. This has enabled Qinghai Huzhu Barley Wine A to fetch slight price premium compare to the competitors in the Beverages (Alcoholic) industry. The sustainable margins have also helped Qinghai Huzhu Barley Wine A to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Qinghai Huzhu Barley Wine A 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.
Highly skilled collaborators
– Qinghai Huzhu Barley Wine A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Beverages (Alcoholic) industry. Secondly the value chain collaborators of Qinghai Huzhu Barley Wine A have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Qinghai Huzhu Barley Wine A 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 Beverages (Alcoholic) 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.
Superior customer experience
– The customer experience strategy of Qinghai Huzhu Barley Wine A in Beverages (Alcoholic) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Qinghai Huzhu Barley Wine A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Qinghai Huzhu Barley Wine A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Qinghai Huzhu Barley Wine A emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Qinghai Huzhu Barley Wine A are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Qinghai Huzhu Barley Wine A has one of the best training and development program in Consumer/Non-Cyclical 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 Qinghai Huzhu Barley Wine A in the Consumer/Non-Cyclical sector have low bargaining power. Qinghai Huzhu Barley Wine A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Qinghai Huzhu Barley Wine A to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Beverages (Alcoholic) industry
- digital transformation varies from industry to industry. For Qinghai Huzhu Barley Wine A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qinghai Huzhu Barley Wine A are -
Low market penetration in new markets
– Outside its home market of China, Qinghai Huzhu Barley Wine A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Qinghai Huzhu Barley Wine A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Beverages (Alcoholic) industry have deep experience in developing customer relationships. Marketing department at Qinghai Huzhu Barley Wine A can leverage the sales team experience to cultivate customer relationships as Qinghai Huzhu Barley Wine A is planning to shift buying processes online.
Products dominated business model
– Even though Qinghai Huzhu Barley Wine A has some of the most successful models in the Beverages (Alcoholic) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Qinghai Huzhu Barley Wine A should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Qinghai Huzhu Barley Wine A is dominated by functional specialists. It is not different from other players in the Beverages (Alcoholic) industry, but Qinghai Huzhu Barley Wine A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Qinghai Huzhu Barley Wine A to focus more on services in the Beverages (Alcoholic) industry rather than just following the product oriented approach.
Lack of clear differentiation of Qinghai Huzhu Barley Wine A products
– To increase the profitability and margins on the products, Qinghai Huzhu Barley Wine A needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Qinghai Huzhu Barley Wine A has a high cash cycle compare to other players in the Beverages (Alcoholic) industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the Beverages (Alcoholic) industry, Qinghai Huzhu Barley Wine A 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Qinghai Huzhu Barley Wine A is slow explore the new channels of communication. These new channels of communication can help Qinghai Huzhu Barley Wine A to provide better information regarding Beverages (Alcoholic) products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners in Beverages (Alcoholic) industry
– because of the regulatory requirements in China, Qinghai Huzhu Barley Wine A 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 Beverages (Alcoholic) industry.
Slow to strategic competitive environment developments
– As Qinghai Huzhu Barley Wine A is one of the leading players in the Beverages (Alcoholic) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Beverages (Alcoholic) industry in last five years.
No frontier risks strategy
– From the 10K / annual statement of Qinghai Huzhu Barley Wine A, it seems that company is thinking out the frontier risks that can impact Beverages (Alcoholic) 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.
Qinghai Huzhu Barley Wine A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Qinghai Huzhu Barley Wine A are -
Creating value in data economy
– The success of analytics program of Qinghai Huzhu Barley Wine A has opened avenues for new revenue streams for the organization in Beverages (Alcoholic) industry. This can help Qinghai Huzhu Barley Wine A to build a more holistic ecosystem for Qinghai Huzhu Barley Wine A products in the Beverages (Alcoholic) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Qinghai Huzhu Barley Wine A can use these opportunities to build new business models that can help the communities that Qinghai Huzhu Barley Wine A operates in. Secondly it can use opportunities from government spending in Beverages (Alcoholic) sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Beverages (Alcoholic) industry, but it has also influenced the consumer preferences. Qinghai Huzhu Barley Wine A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Qinghai Huzhu Barley Wine A 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 Beverages (Alcoholic) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Qinghai Huzhu Barley Wine A in the Beverages (Alcoholic) industry. Now Qinghai Huzhu Barley Wine A can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Qinghai Huzhu Barley Wine A 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.
Leveraging digital technologies
– Qinghai Huzhu Barley Wine A 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Qinghai Huzhu Barley Wine A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Beverages (Alcoholic) industry, and it will provide faster access to the consumers.
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. Qinghai Huzhu Barley Wine A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Qinghai Huzhu Barley Wine A can develop new processes and procedures in Beverages (Alcoholic) 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
– Qinghai Huzhu Barley Wine A can improve the customer journey of consumers in the Beverages (Alcoholic) 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.
Using analytics as competitive advantage
– Qinghai Huzhu Barley Wine A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Beverages (Alcoholic) sector. This continuous investment in analytics has enabled Qinghai Huzhu Barley Wine A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Qinghai Huzhu Barley Wine A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Qinghai Huzhu Barley Wine A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Qinghai Huzhu Barley Wine A are -
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 Qinghai Huzhu Barley Wine A in the Beverages (Alcoholic) sector and impact the bottomline of the organization.
Regulatory challenges
– Qinghai Huzhu Barley Wine A 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 Beverages (Alcoholic) industry regulations.
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 Qinghai Huzhu Barley Wine A.
Environmental challenges
– Qinghai Huzhu Barley Wine A 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. Qinghai Huzhu Barley Wine A can take advantage of this fund but it will also bring new competitors in the Beverages (Alcoholic) industry.
Consumer confidence and its impact on Qinghai Huzhu Barley Wine A 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 Beverages (Alcoholic) industry and other sectors.
Easy access to finance
– Easy access to finance in Beverages (Alcoholic) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Qinghai Huzhu Barley Wine A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Qinghai Huzhu Barley Wine A needs to understand the core reasons impacting the Beverages (Alcoholic) industry. This will help it in building a better workplace.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A prominent markets.
Technology acceleration in Forth Industrial Revolution
– Qinghai Huzhu Barley Wine A has witnessed rapid integration of technology during Covid-19 in the Beverages (Alcoholic) industry. As one of the leading players in the industry, Qinghai Huzhu Barley Wine A needs to keep up with the evolution of technology in the Beverages (Alcoholic) 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Beverages (Alcoholic) industry are lowering. It can presents Qinghai Huzhu Barley Wine A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Beverages (Alcoholic) sector.
High dependence on third party suppliers
– Qinghai Huzhu Barley Wine A 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Qinghai Huzhu Barley Wine A in Beverages (Alcoholic) industry. The Beverages (Alcoholic) 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 Qinghai Huzhu Barley Wine A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A 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 Qinghai Huzhu Barley Wine A needs to make to build a sustainable competitive advantage.
