Based on various researches at Oak Spring University , Shenzhen Jiawei Photovoltaic Lighting is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, there is backlash against globalization, technology disruption, geopolitical disruptions, increasing household debt because of falling income levels,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Shenzhen Jiawei Photovoltaic Lighting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shenzhen Jiawei Photovoltaic Lighting can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shenzhen Jiawei Photovoltaic Lighting, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting can be done for the following purposes –
1. Strategic planning of Shenzhen Jiawei Photovoltaic Lighting
2. Improving business portfolio management of Shenzhen Jiawei Photovoltaic Lighting
3. Assessing feasibility of the new initiative in China
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shenzhen Jiawei Photovoltaic Lighting
Strengths of Shenzhen Jiawei Photovoltaic Lighting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shenzhen Jiawei Photovoltaic Lighting are -
Operational resilience
– The operational resilience strategy of Shenzhen Jiawei Photovoltaic Lighting comprises – understanding the underlying the factors in the Construction Services 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.
Highly skilled collaborators
– Shenzhen Jiawei Photovoltaic Lighting has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Construction Services industry. Secondly the value chain collaborators of Shenzhen Jiawei Photovoltaic Lighting have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Shenzhen Jiawei Photovoltaic Lighting has one of the best training and development program in Capital Goods 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.
Analytics focus
– Shenzhen Jiawei Photovoltaic Lighting 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 Construction Services 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.
Learning organization
- Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shenzhen Jiawei Photovoltaic Lighting emphasize – knowledge, initiative, and innovation.
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Shenzhen Jiawei Photovoltaic Lighting digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shenzhen Jiawei Photovoltaic Lighting 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.
Effective Research and Development (R&D)
– Shenzhen Jiawei Photovoltaic Lighting has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Shenzhen Jiawei Photovoltaic Lighting staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Construction Services industry
– Shenzhen Jiawei Photovoltaic Lighting has clearly differentiated products in the market place. This has enabled Shenzhen Jiawei Photovoltaic Lighting to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Shenzhen Jiawei Photovoltaic Lighting to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Shenzhen Jiawei Photovoltaic Lighting 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.
Innovation driven organization
– Shenzhen Jiawei Photovoltaic Lighting is one of the most innovative firm in Construction Services sector.
Strong track record of project management in the Construction Services industry
– Shenzhen Jiawei Photovoltaic Lighting is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Shenzhen Jiawei Photovoltaic Lighting in Construction Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Shenzhen Jiawei Photovoltaic Lighting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shenzhen Jiawei Photovoltaic Lighting are -
High dependence on Shenzhen Jiawei Photovoltaic Lighting ‘s star products
– The top 2 products and services of Shenzhen Jiawei Photovoltaic Lighting still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Shenzhen Jiawei Photovoltaic Lighting has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Shenzhen Jiawei Photovoltaic Lighting is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Shenzhen Jiawei Photovoltaic Lighting needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shenzhen Jiawei Photovoltaic Lighting to focus more on services in the Construction Services industry rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Shenzhen Jiawei Photovoltaic Lighting has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Shenzhen Jiawei Photovoltaic Lighting even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of China, Shenzhen Jiawei Photovoltaic Lighting needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, Shenzhen Jiawei Photovoltaic Lighting has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shenzhen Jiawei Photovoltaic Lighting lucrative customers.
High bargaining power of channel partners in Construction Services industry
– because of the regulatory requirements in China, Shenzhen Jiawei Photovoltaic Lighting 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 Construction Services industry.
Need for greater diversity
– Shenzhen Jiawei Photovoltaic Lighting 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 cash cycle compare to competitors
Shenzhen Jiawei Photovoltaic Lighting has a high cash cycle compare to other players in the Construction Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Shenzhen Jiawei Photovoltaic Lighting products
– To increase the profitability and margins on the products, Shenzhen Jiawei Photovoltaic Lighting needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative at Shenzhen Jiawei Photovoltaic Lighting, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Shenzhen Jiawei Photovoltaic Lighting has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Shenzhen Jiawei Photovoltaic Lighting needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Shenzhen Jiawei Photovoltaic Lighting can leverage the sales team experience to cultivate customer relationships as Shenzhen Jiawei Photovoltaic Lighting is planning to shift buying processes online.
Shenzhen Jiawei Photovoltaic Lighting Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shenzhen Jiawei Photovoltaic Lighting are -
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 Jiawei Photovoltaic Lighting can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Jiawei Photovoltaic Lighting can use these opportunities to build new business models that can help the communities that Shenzhen Jiawei Photovoltaic Lighting operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Manufacturing automation
– Shenzhen Jiawei Photovoltaic Lighting can use the latest technology developments to improve its manufacturing and designing process in Construction Services 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.
Building a culture of innovation
– managers at Shenzhen Jiawei Photovoltaic Lighting 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 Construction Services industry.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shenzhen Jiawei Photovoltaic Lighting 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.
Using analytics as competitive advantage
– Shenzhen Jiawei Photovoltaic Lighting has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Construction Services sector. This continuous investment in analytics has enabled Shenzhen Jiawei Photovoltaic Lighting to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shenzhen Jiawei Photovoltaic Lighting to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Construction Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Shenzhen Jiawei Photovoltaic Lighting in the Construction Services industry. Now Shenzhen Jiawei Photovoltaic Lighting 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 Shenzhen Jiawei Photovoltaic Lighting 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.
Developing new processes and practices
– Shenzhen Jiawei Photovoltaic Lighting can develop new processes and procedures in Construction Services 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shenzhen Jiawei Photovoltaic Lighting is facing challenges because of the dominance of functional experts in the organization. Shenzhen Jiawei Photovoltaic Lighting can utilize new technology in the field of Construction Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Shenzhen Jiawei Photovoltaic Lighting can improve the customer journey of consumers in the Construction Services 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.
Threats Shenzhen Jiawei Photovoltaic Lighting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shenzhen Jiawei Photovoltaic Lighting are -
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 Jiawei Photovoltaic Lighting 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.
Environmental challenges
– Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Increasing wage structure of Shenzhen Jiawei Photovoltaic Lighting
– 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 Jiawei Photovoltaic Lighting.
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 Jiawei Photovoltaic Lighting business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Shenzhen Jiawei Photovoltaic Lighting 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 Construction Services industry and other sectors.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Shenzhen Jiawei Photovoltaic Lighting with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting prominent markets.
Easy access to finance
– Easy access to finance in Construction Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shenzhen Jiawei Photovoltaic Lighting can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Shenzhen Jiawei Photovoltaic Lighting in the Construction Services sector and impact the bottomline of the organization.
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 Jiawei Photovoltaic Lighting.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shenzhen Jiawei Photovoltaic Lighting in Construction Services industry. The Construction Services 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.
Shortening product life cycle
– it is one of the major threat that Shenzhen Jiawei Photovoltaic Lighting is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Shenzhen Jiawei Photovoltaic Lighting Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shenzhen Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting 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 Jiawei Photovoltaic Lighting needs to make to build a sustainable competitive advantage.