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 – increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing transportation and logistics costs, increasing energy prices,
there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
Innovation driven organization
– ShenZhen Yitoa Intelligent Control is one of the most innovative firm in Scientific & Technical Instr. sector.
Analytics focus
– ShenZhen Yitoa Intelligent Control 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 Scientific & Technical Instr. 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.
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.
Training and development
– ShenZhen Yitoa Intelligent Control has one of the best training and development program in Technology 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.
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.
Strong track record of project management in the Scientific & Technical Instr. industry
– ShenZhen Yitoa Intelligent Control is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
High brand equity
– ShenZhen Yitoa Intelligent Control has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled ShenZhen Yitoa Intelligent Control to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, ShenZhen Yitoa Intelligent Control is slow explore the new channels of communication. These new channels of communication can help ShenZhen Yitoa Intelligent Control to provide better information regarding Scientific & Technical Instr. products and services. It can also build an online community to further reach out to potential customers.
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.
Compensation and incentives
– The revenue per employee of ShenZhen Yitoa Intelligent Control is just above the Scientific & Technical Instr. 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.
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.
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.
Low market penetration in new markets
– Outside its home market of China, ShenZhen Yitoa Intelligent Control needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative at ShenZhen Yitoa Intelligent Control, in the dynamic environment of Scientific & Technical Instr. industry it has struggled to respond to the nimble upstart competition. ShenZhen Yitoa Intelligent Control has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Skills based hiring in Scientific & Technical Instr. industry
– The stress on hiring functional specialists at ShenZhen Yitoa Intelligent Control 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.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for ShenZhen Yitoa Intelligent Control in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Scientific & Technical Instr. industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for ShenZhen Yitoa Intelligent Control 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 Yitoa Intelligent Control to hire the very best people irrespective of their geographical location.
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.
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.
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.
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.
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.
Manufacturing automation
– ShenZhen Yitoa Intelligent Control can use the latest technology developments to improve its manufacturing and designing process in Scientific & Technical Instr. 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.
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.
Developing new processes and practices
– ShenZhen Yitoa Intelligent Control can develop new processes and procedures in Scientific & Technical Instr. 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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects ShenZhen Yitoa Intelligent Control can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for ShenZhen Yitoa Intelligent Control 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.
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 -
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.
High dependence on third party suppliers
– ShenZhen Yitoa Intelligent Control 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.
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.
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.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, ShenZhen Yitoa Intelligent Control 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 Yitoa Intelligent Control prominent markets.
Environmental challenges
– ShenZhen Yitoa Intelligent Control 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. ShenZhen Yitoa Intelligent Control can take advantage of this fund but it will also bring new competitors in the Scientific & Technical Instr. industry.
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.
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.
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.