Der International Home Furnish A (2631) SWOT Analysis / TOWS Matrix / MBA Resources
Forestry & Wood Products
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Der International Home Furnish A (China)
Based on various researches at Oak Spring University , Der International Home Furnish A is operating in a macro-environment that has been destablized by – increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, geopolitical disruptions, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing energy prices,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Der International Home Furnish A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Der International Home Furnish A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Der International Home Furnish A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Der International Home Furnish 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 Der International Home Furnish A can be done for the following purposes –
1. Strategic planning of Der International Home Furnish A
2. Improving business portfolio management of Der International Home Furnish A
3. Assessing feasibility of the new initiative in China
4. Making a Forestry & Wood Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Der International Home Furnish A
Strengths of Der International Home Furnish A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Der International Home Furnish A are -
Operational resilience
– The operational resilience strategy of Der International Home Furnish A comprises – understanding the underlying the factors in the Forestry & Wood Products 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.
Organizational Resilience of Der International Home Furnish A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Der International Home Furnish A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Der International Home Furnish A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Der International Home Furnish A 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.
Low bargaining power of suppliers
– Suppliers of Der International Home Furnish A in the Basic Materials sector have low bargaining power. Der International Home Furnish A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Der International Home Furnish A to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Der International Home Furnish A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Der International Home Furnish A staying ahead in the Forestry & Wood Products industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Der International Home Furnish A is one of the leading players in the Forestry & Wood Products 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.
Strong track record of project management in the Forestry & Wood Products industry
– Der International Home Furnish 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.
High switching costs
– The high switching costs that Der International Home Furnish 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.
Ability to lead change in Forestry & Wood Products
– Der International Home Furnish A is one of the leading players in the Forestry & Wood Products industry in China. Over the years it has not only transformed the business landscape in the Forestry & Wood Products industry in China but also across the existing markets. The ability to lead change has enabled Der International Home Furnish A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Der International Home Furnish A in Forestry & Wood Products industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Forestry & Wood Products industry
- digital transformation varies from industry to industry. For Der International Home Furnish A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Der International Home Furnish 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.
Sustainable margins compare to other players in Forestry & Wood Products industry
– Der International Home Furnish A has clearly differentiated products in the market place. This has enabled Der International Home Furnish A to fetch slight price premium compare to the competitors in the Forestry & Wood Products industry. The sustainable margins have also helped Der International Home Furnish A to invest into research and development (R&D) and innovation.
Weaknesses of Der International Home Furnish A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Der International Home Furnish A are -
Aligning sales with marketing
– From the outside it seems that Der International Home Furnish A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Forestry & Wood Products industry have deep experience in developing customer relationships. Marketing department at Der International Home Furnish A can leverage the sales team experience to cultivate customer relationships as Der International Home Furnish A is planning to shift buying processes online.
Employees’ less understanding of Der International Home Furnish A strategy
– From the outside it seems that the employees of Der International Home Furnish A 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.
Need for greater diversity
– Der International Home Furnish A 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.
Compensation and incentives
– The revenue per employee of Der International Home Furnish A is just above the Forestry & Wood Products 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.
High operating costs
– Compare to the competitors, Der International Home Furnish A has high operating costs in the Forestry & Wood Products industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Der International Home Furnish A lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Der International Home Furnish A is slow explore the new channels of communication. These new channels of communication can help Der International Home Furnish A to provide better information regarding Forestry & Wood Products products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Der International Home Furnish A products
– To increase the profitability and margins on the products, Der International Home Furnish A needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on Der International Home Furnish A ‘s star products
– The top 2 products and services of Der International Home Furnish A still accounts for major business revenue. This dependence on star products in Forestry & Wood Products industry has resulted into insufficient focus on developing new products, even though Der International Home Furnish A 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 Der International Home Furnish A supply chain. Even after few cautionary changes, Der International Home Furnish A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Der International Home Furnish A vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Der International Home Furnish A, it seems that company is thinking out the frontier risks that can impact Forestry & Wood Products industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of China, Der International Home Furnish A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Der International Home Furnish A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Der International Home Furnish A are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Der International Home Furnish 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.
Developing new processes and practices
– Der International Home Furnish A can develop new processes and procedures in Forestry & Wood Products 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.
Loyalty marketing
– Der International Home Furnish A 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Der International Home Furnish A 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 Der International Home Furnish A to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Der International Home Furnish 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Der International Home Furnish A can use these opportunities to build new business models that can help the communities that Der International Home Furnish A operates in. Secondly it can use opportunities from government spending in Forestry & Wood Products sector.
Use of Bitcoin and other crypto currencies for transactions in Forestry & Wood Products industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Der International Home Furnish A in the Forestry & Wood Products industry. Now Der International Home Furnish A can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Der International Home Furnish A 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Der International Home Furnish A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Der International Home Furnish 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.
Better consumer reach
– The expansion of the 5G network will help Der International Home Furnish A to increase its market reach. Der International Home Furnish A 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.
Creating value in data economy
– The success of analytics program of Der International Home Furnish A has opened avenues for new revenue streams for the organization in Forestry & Wood Products industry. This can help Der International Home Furnish A to build a more holistic ecosystem for Der International Home Furnish A products in the Forestry & Wood Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Forestry & Wood Products industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Der International Home Furnish A 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. Der International Home Furnish A 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.
Threats Der International Home Furnish A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Der International Home Furnish A are -
High dependence on third party suppliers
– Der International Home Furnish 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.
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 Der International Home Furnish A in the Forestry & Wood Products sector and impact the bottomline of the organization.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Der International Home Furnish A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Forestry & Wood Products sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Forestry & Wood Products industry are lowering. It can presents Der International Home Furnish A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Forestry & Wood Products sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Der International Home Furnish 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 Der International Home Furnish A prominent markets.
Stagnating economy with rate increase
– Der International Home Furnish A 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 Forestry & Wood Products industry.
Easy access to finance
– Easy access to finance in Forestry & Wood Products industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Der International Home Furnish A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Der International Home Furnish 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 Forestry & Wood Products industry regulations.
Environmental challenges
– Der International Home Furnish 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. Der International Home Furnish A can take advantage of this fund but it will also bring new competitors in the Forestry & Wood Products industry.
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. Der International Home Furnish A needs to understand the core reasons impacting the Forestry & Wood Products industry. This will help it in building a better workplace.
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 Der International Home Furnish A.
Increasing wage structure of Der International Home Furnish A
– 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 Der International Home Furnish A.
Weighted SWOT Analysis of Der International Home Furnish A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Der International Home Furnish 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 Der International Home Furnish 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 Der International Home Furnish 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 Der International Home Furnish 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 Der International Home Furnish A needs to make to build a sustainable competitive advantage.