Dongguan Kingsun Optoelectron A (2638) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Dongguan Kingsun Optoelectron A (China)

Based on various researches at Oak Spring University , Dongguan Kingsun Optoelectron A is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of Dongguan Kingsun Optoelectron A

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Dongguan Kingsun Optoelectron A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dongguan Kingsun Optoelectron A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dongguan Kingsun Optoelectron 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Dongguan Kingsun Optoelectron A can be done for the following purposes –
1. Strategic planning of Dongguan Kingsun Optoelectron A
2. Improving business portfolio management of Dongguan Kingsun Optoelectron A
3. Assessing feasibility of the new initiative in China
4. Making a Furniture & Fixtures sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dongguan Kingsun Optoelectron A

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Strengths of Dongguan Kingsun Optoelectron A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Dongguan Kingsun Optoelectron A are -

Digital Transformation in Furniture & Fixtures industry

- digital transformation varies from industry to industry. For Dongguan Kingsun Optoelectron A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dongguan Kingsun Optoelectron 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.

Learning organization

- Dongguan Kingsun Optoelectron A is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Dongguan Kingsun Optoelectron A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Dongguan Kingsun Optoelectron A emphasize – knowledge, initiative, and innovation.

Analytics focus

– Dongguan Kingsun Optoelectron A is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Furniture & Fixtures 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.

Organizational Resilience of Dongguan Kingsun Optoelectron A

– The covid-19 pandemic has put organizational resilience at the centre of everthing Dongguan Kingsun Optoelectron A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Diverse revenue streams

– Dongguan Kingsun Optoelectron A is present in almost all the verticals within the Furniture & Fixtures industry. This has provided Dongguan Kingsun Optoelectron A a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Highly skilled collaborators

– Dongguan Kingsun Optoelectron A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Furniture & Fixtures industry. Secondly the value chain collaborators of Dongguan Kingsun Optoelectron A have helped the firm to develop new products and bring them quickly to the marketplace.

High switching costs

– The high switching costs that Dongguan Kingsun Optoelectron 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.

Training and development

– Dongguan Kingsun Optoelectron A has one of the best training and development program in Consumer Cyclical industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Sustainable margins compare to other players in Furniture & Fixtures industry

– Dongguan Kingsun Optoelectron A has clearly differentiated products in the market place. This has enabled Dongguan Kingsun Optoelectron A to fetch slight price premium compare to the competitors in the Furniture & Fixtures industry. The sustainable margins have also helped Dongguan Kingsun Optoelectron A to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Dongguan Kingsun Optoelectron A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Dongguan Kingsun Optoelectron A staying ahead in the Furniture & Fixtures industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Superior customer experience

– The customer experience strategy of Dongguan Kingsun Optoelectron A in Furniture & Fixtures industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Innovation driven organization

– Dongguan Kingsun Optoelectron A is one of the most innovative firm in Furniture & Fixtures sector.

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Weaknesses of Dongguan Kingsun Optoelectron A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Dongguan Kingsun Optoelectron A are -

Aligning sales with marketing

– From the outside it seems that Dongguan Kingsun Optoelectron A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Furniture & Fixtures industry have deep experience in developing customer relationships. Marketing department at Dongguan Kingsun Optoelectron A can leverage the sales team experience to cultivate customer relationships as Dongguan Kingsun Optoelectron A is planning to shift buying processes online.

Ability to respond to the competition

– As the decision making is very deliberative at Dongguan Kingsun Optoelectron A, in the dynamic environment of Furniture & Fixtures industry it has struggled to respond to the nimble upstart competition. Dongguan Kingsun Optoelectron A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Lack of clear differentiation of Dongguan Kingsun Optoelectron A products

– To increase the profitability and margins on the products, Dongguan Kingsun Optoelectron A needs to provide more differentiated products than what it is currently offering in the marketplace.

No frontier risks strategy

– From the 10K / annual statement of Dongguan Kingsun Optoelectron A, it seems that company is thinking out the frontier risks that can impact Furniture & Fixtures 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 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 Dongguan Kingsun Optoelectron A supply chain. Even after few cautionary changes, Dongguan Kingsun Optoelectron A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dongguan Kingsun Optoelectron A vulnerable to further global disruptions in South East Asia.

Need for greater diversity

– Dongguan Kingsun Optoelectron 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.

High dependence on Dongguan Kingsun Optoelectron A ‘s star products

– The top 2 products and services of Dongguan Kingsun Optoelectron A still accounts for major business revenue. This dependence on star products in Furniture & Fixtures industry has resulted into insufficient focus on developing new products, even though Dongguan Kingsun Optoelectron A has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, Dongguan Kingsun Optoelectron A has high operating costs in the Furniture & Fixtures industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Dongguan Kingsun Optoelectron A lucrative customers.

Capital Spending Reduction

– Even during the low interest decade, Dongguan Kingsun Optoelectron A has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Furniture & Fixtures industry using digital technology.

High cash cycle compare to competitors

Dongguan Kingsun Optoelectron A has a high cash cycle compare to other players in the Furniture & Fixtures 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 Dongguan Kingsun Optoelectron A is dominated by functional specialists. It is not different from other players in the Furniture & Fixtures industry, but Dongguan Kingsun Optoelectron A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dongguan Kingsun Optoelectron A to focus more on services in the Furniture & Fixtures industry rather than just following the product oriented approach.

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Dongguan Kingsun Optoelectron A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Dongguan Kingsun Optoelectron A are -

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Furniture & Fixtures industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dongguan Kingsun Optoelectron 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. Dongguan Kingsun Optoelectron 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.

Creating value in data economy

– The success of analytics program of Dongguan Kingsun Optoelectron A has opened avenues for new revenue streams for the organization in Furniture & Fixtures industry. This can help Dongguan Kingsun Optoelectron A to build a more holistic ecosystem for Dongguan Kingsun Optoelectron A products in the Furniture & Fixtures industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Dongguan Kingsun Optoelectron A is facing challenges because of the dominance of functional experts in the organization. Dongguan Kingsun Optoelectron A can utilize new technology in the field of Furniture & Fixtures industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Furniture & Fixtures industry, but it has also influenced the consumer preferences. Dongguan Kingsun Optoelectron A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Loyalty marketing

– Dongguan Kingsun Optoelectron 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.

Use of Bitcoin and other crypto currencies for transactions in Furniture & Fixtures industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Dongguan Kingsun Optoelectron A in the Furniture & Fixtures industry. Now Dongguan Kingsun Optoelectron A can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Dongguan Kingsun Optoelectron A 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 Furniture & Fixtures industry.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dongguan Kingsun Optoelectron A can use these opportunities to build new business models that can help the communities that Dongguan Kingsun Optoelectron A operates in. Secondly it can use opportunities from government spending in Furniture & Fixtures sector.

Learning at scale

– Online learning technologies has now opened space for Dongguan Kingsun Optoelectron 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.

Better consumer reach

– The expansion of the 5G network will help Dongguan Kingsun Optoelectron A to increase its market reach. Dongguan Kingsun Optoelectron 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron A to hire the very best people irrespective of their geographical location.

Low interest rates

– Even though inflation is raising its head in most developed economies, Dongguan Kingsun Optoelectron 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.

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 Dongguan Kingsun Optoelectron 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.

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Threats Dongguan Kingsun Optoelectron A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Dongguan Kingsun Optoelectron A are -

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Dongguan Kingsun Optoelectron 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 Furniture & Fixtures sector.

Consumer confidence and its impact on Dongguan Kingsun Optoelectron A demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Furniture & Fixtures industry and other sectors.

Increasing wage structure of Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron A.

Regulatory challenges

– Dongguan Kingsun Optoelectron 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 Furniture & Fixtures industry regulations.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Dongguan Kingsun Optoelectron A in Furniture & Fixtures industry. The Furniture & Fixtures 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.

High dependence on third party suppliers

– Dongguan Kingsun Optoelectron 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.

Environmental challenges

– Dongguan Kingsun Optoelectron 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. Dongguan Kingsun Optoelectron A can take advantage of this fund but it will also bring new competitors in the Furniture & Fixtures industry.

Technology acceleration in Forth Industrial Revolution

– Dongguan Kingsun Optoelectron A has witnessed rapid integration of technology during Covid-19 in the Furniture & Fixtures industry. As one of the leading players in the industry, Dongguan Kingsun Optoelectron A needs to keep up with the evolution of technology in the Furniture & Fixtures sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Furniture & Fixtures industry are lowering. It can presents Dongguan Kingsun Optoelectron A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Furniture & Fixtures 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 Dongguan Kingsun Optoelectron A business can come under increasing regulations regarding data privacy, data security, etc.

Stagnating economy with rate increase

– Dongguan Kingsun Optoelectron 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 Furniture & Fixtures industry.

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 Dongguan Kingsun Optoelectron A in the Furniture & Fixtures sector and impact the bottomline of the organization.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

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Weighted SWOT Analysis of Dongguan Kingsun Optoelectron A Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron 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 Dongguan Kingsun Optoelectron A needs to make to build a sustainable competitive advantage.

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