ShenZhen Yitoa Intelligent Control (300131) SWOT Analysis / TOWS Matrix / MBA Resources
Scientific & Technical Instr.
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for ShenZhen Yitoa Intelligent Control (China)
Based on various researches at Oak Spring University , ShenZhen Yitoa Intelligent Control is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, etc
Introduction to SWOT Analysis of ShenZhen Yitoa Intelligent Control
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ShenZhen Yitoa Intelligent Control can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ShenZhen Yitoa Intelligent Control, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ShenZhen Yitoa Intelligent Control 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 Yitoa Intelligent Control can be done for the following purposes –
1. Strategic planning of ShenZhen Yitoa Intelligent Control
2. Improving business portfolio management of ShenZhen Yitoa Intelligent Control
3. Assessing feasibility of the new initiative in China
4. Making a Scientific & Technical Instr. sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of ShenZhen Yitoa Intelligent Control
Strengths of ShenZhen Yitoa Intelligent Control | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of ShenZhen Yitoa Intelligent Control are -
Learning organization
- ShenZhen Yitoa Intelligent Control 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 Yitoa Intelligent Control is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at ShenZhen Yitoa Intelligent Control emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy of ShenZhen Yitoa Intelligent Control comprises – understanding the underlying the factors in the Scientific & Technical Instr. 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.
Ability to recruit top talent
– ShenZhen Yitoa Intelligent Control is one of the leading players in the Scientific & Technical Instr. 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.
Innovation driven organization
– ShenZhen Yitoa Intelligent Control is one of the most innovative firm in Scientific & Technical Instr. sector.
Cross disciplinary teams
– Horizontal connected teams at the ShenZhen Yitoa Intelligent Control 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.
Effective Research and Development (R&D)
– ShenZhen Yitoa Intelligent Control has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – ShenZhen Yitoa Intelligent Control staying ahead in the Scientific & Technical Instr. industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Scientific & Technical Instr. industry
- digital transformation varies from industry to industry. For ShenZhen Yitoa Intelligent Control digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. ShenZhen Yitoa Intelligent Control 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.
Sustainable margins compare to other players in Scientific & Technical Instr. industry
– ShenZhen Yitoa Intelligent Control has clearly differentiated products in the market place. This has enabled ShenZhen Yitoa Intelligent Control to fetch slight price premium compare to the competitors in the Scientific & Technical Instr. industry. The sustainable margins have also helped ShenZhen Yitoa Intelligent Control to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of ShenZhen Yitoa Intelligent Control in Scientific & Technical Instr. industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of ShenZhen Yitoa Intelligent Control
– The covid-19 pandemic has put organizational resilience at the centre of everthing ShenZhen Yitoa Intelligent Control does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– ShenZhen Yitoa Intelligent Control has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Scientific & Technical Instr. industry. Secondly the value chain collaborators of ShenZhen Yitoa Intelligent Control have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Scientific & Technical Instr.
– ShenZhen Yitoa Intelligent Control is one of the leading players in the Scientific & Technical Instr. industry in China. Over the years it has not only transformed the business landscape in the Scientific & Technical Instr. industry in China but also across the existing markets. The ability to lead change has enabled ShenZhen Yitoa Intelligent Control in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of ShenZhen Yitoa Intelligent Control | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ShenZhen Yitoa Intelligent Control are -
Slow to strategic competitive environment developments
– As ShenZhen Yitoa Intelligent Control is one of the leading players in the Scientific & Technical Instr. industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Scientific & Technical Instr. industry in last five years.
No frontier risks strategy
– From the 10K / annual statement of ShenZhen Yitoa Intelligent Control, it seems that company is thinking out the frontier risks that can impact Scientific & Technical Instr. 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.
Lack of clear differentiation of ShenZhen Yitoa Intelligent Control products
– To increase the profitability and margins on the products, ShenZhen Yitoa Intelligent Control needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– ShenZhen Yitoa Intelligent Control has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on ShenZhen Yitoa Intelligent Control ‘s star products
– The top 2 products and services of ShenZhen Yitoa Intelligent Control still accounts for major business revenue. This dependence on star products in Scientific & Technical Instr. industry has resulted into insufficient focus on developing new products, even though ShenZhen Yitoa Intelligent Control has relatively successful track record of launching new products.
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 Yitoa Intelligent Control supply chain. Even after few cautionary changes, ShenZhen Yitoa Intelligent Control is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left ShenZhen Yitoa Intelligent Control vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Scientific & Technical Instr. industry, ShenZhen Yitoa Intelligent Control 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.
Products dominated business model
– Even though ShenZhen Yitoa Intelligent Control has some of the most successful models in the Scientific & Technical Instr. industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. ShenZhen Yitoa Intelligent Control should strive to include more intangible value offerings along with its core products and services.
Employees’ less understanding of ShenZhen Yitoa Intelligent Control strategy
– From the outside it seems that the employees of ShenZhen Yitoa Intelligent Control 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.
High cash cycle compare to competitors
ShenZhen Yitoa Intelligent Control has a high cash cycle compare to other players in the Scientific & Technical Instr. 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 ShenZhen Yitoa Intelligent Control is dominated by functional specialists. It is not different from other players in the Scientific & Technical Instr. industry, but ShenZhen Yitoa Intelligent Control needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help ShenZhen Yitoa Intelligent Control to focus more on services in the Scientific & Technical Instr. industry rather than just following the product oriented approach.
ShenZhen Yitoa Intelligent Control Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of ShenZhen Yitoa Intelligent Control are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, ShenZhen Yitoa Intelligent Control 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 ShenZhen Yitoa Intelligent Control to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Scientific & Technical Instr. industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. ShenZhen Yitoa Intelligent Control 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. ShenZhen Yitoa Intelligent Control can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– ShenZhen Yitoa Intelligent Control 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.
Leveraging digital technologies
– ShenZhen Yitoa Intelligent Control 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.
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 Yitoa Intelligent Control can use these opportunities to build new business models that can help the communities that ShenZhen Yitoa Intelligent Control operates in. Secondly it can use opportunities from government spending in Scientific & Technical Instr. sector.
Building a culture of innovation
– managers at ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. industry.
Redefining models of collaboration and team work
– As explained in the weaknesses section, ShenZhen Yitoa Intelligent Control is facing challenges because of the dominance of functional experts in the organization. ShenZhen Yitoa Intelligent Control can utilize new technology in the field of Scientific & Technical Instr. industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help ShenZhen Yitoa Intelligent Control to increase its market reach. ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. industry, but it has also influenced the consumer preferences. ShenZhen Yitoa Intelligent Control can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Scientific & Technical Instr. industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for ShenZhen Yitoa Intelligent Control in the Scientific & Technical Instr. industry. Now ShenZhen Yitoa Intelligent Control can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– ShenZhen Yitoa Intelligent Control can improve the customer journey of consumers in the Scientific & Technical Instr. 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.
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 ShenZhen Yitoa Intelligent Control 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.
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 Yitoa Intelligent Control can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats ShenZhen Yitoa Intelligent Control External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of ShenZhen Yitoa Intelligent Control are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, ShenZhen Yitoa Intelligent Control may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Scientific & Technical Instr. sector.
Stagnating economy with rate increase
– ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. industry.
Easy access to finance
– Easy access to finance in Scientific & Technical Instr. industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. ShenZhen Yitoa Intelligent Control can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Yitoa Intelligent Control 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 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 Yitoa Intelligent Control needs to understand the core reasons impacting the Scientific & Technical Instr. industry. This will help it in building a better workplace.
Consumer confidence and its impact on ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. industry and other sectors.
Regulatory challenges
– ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for ShenZhen Yitoa Intelligent Control in Scientific & Technical Instr. industry. The Scientific & Technical Instr. 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.
Increasing wage structure of ShenZhen Yitoa Intelligent Control
– 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 Yitoa Intelligent Control.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Yitoa Intelligent Control business can come under increasing regulations regarding data privacy, data security, etc.
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 ShenZhen Yitoa Intelligent Control.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Scientific & Technical Instr. industry are lowering. It can presents ShenZhen Yitoa Intelligent Control with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Scientific & Technical Instr. sector.
Weighted SWOT Analysis of ShenZhen Yitoa Intelligent Control Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ShenZhen Yitoa Intelligent Control 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 Yitoa Intelligent Control 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 Yitoa Intelligent Control 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 Yitoa Intelligent Control 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 Yitoa Intelligent Control needs to make to build a sustainable competitive advantage.
