Dong Yi Ri Sheng Home Decoration (2713) SWOT Analysis / TOWS Matrix / MBA Resources
Business Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Dong Yi Ri Sheng Home Decoration (China)
Based on various researches at Oak Spring University , Dong Yi Ri Sheng Home Decoration is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, there is backlash against globalization, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Dong Yi Ri Sheng Home Decoration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Dong Yi Ri Sheng Home Decoration can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dong Yi Ri Sheng Home Decoration, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration can be done for the following purposes –
1. Strategic planning of Dong Yi Ri Sheng Home Decoration
2. Improving business portfolio management of Dong Yi Ri Sheng Home Decoration
3. Assessing feasibility of the new initiative in China
4. Making a Business Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dong Yi Ri Sheng Home Decoration
Strengths of Dong Yi Ri Sheng Home Decoration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dong Yi Ri Sheng Home Decoration are -
Ability to recruit top talent
– Dong Yi Ri Sheng Home Decoration is one of the leading players in the Business Services 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.
Sustainable margins compare to other players in Business Services industry
– Dong Yi Ri Sheng Home Decoration has clearly differentiated products in the market place. This has enabled Dong Yi Ri Sheng Home Decoration to fetch slight price premium compare to the competitors in the Business Services industry. The sustainable margins have also helped Dong Yi Ri Sheng Home Decoration to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Dong Yi Ri Sheng Home Decoration 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.
Innovation driven organization
– Dong Yi Ri Sheng Home Decoration is one of the most innovative firm in Business Services sector.
Successful track record of launching new products
– Dong Yi Ri Sheng Home Decoration has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dong Yi Ri Sheng Home Decoration 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.
Organizational Resilience of Dong Yi Ri Sheng Home Decoration
– The covid-19 pandemic has put organizational resilience at the centre of everthing Dong Yi Ri Sheng Home Decoration does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Dong Yi Ri Sheng Home Decoration has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Business Services industry. Secondly the value chain collaborators of Dong Yi Ri Sheng Home Decoration have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Dong Yi Ri Sheng Home Decoration has one of the best training and development program in Services 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.
Superior customer experience
– The customer experience strategy of Dong Yi Ri Sheng Home Decoration in Business Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Business Services
– Dong Yi Ri Sheng Home Decoration is one of the leading players in the Business Services industry in China. Over the years it has not only transformed the business landscape in the Business Services industry in China but also across the existing markets. The ability to lead change has enabled Dong Yi Ri Sheng Home Decoration in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Business Services industry
- digital transformation varies from industry to industry. For Dong Yi Ri Sheng Home Decoration digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dong Yi Ri Sheng Home Decoration 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.
Operational resilience
– The operational resilience strategy of Dong Yi Ri Sheng Home Decoration comprises – understanding the underlying the factors in the Business 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.
Weaknesses of Dong Yi Ri Sheng Home Decoration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dong Yi Ri Sheng Home Decoration are -
Workers concerns about automation
– As automation is fast increasing in the Business Services industry, Dong Yi Ri Sheng Home Decoration needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Products dominated business model
– Even though Dong Yi Ri Sheng Home Decoration has some of the most successful models in the Business Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Dong Yi Ri Sheng Home Decoration should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative at Dong Yi Ri Sheng Home Decoration, in the dynamic environment of Business Services industry it has struggled to respond to the nimble upstart competition. Dong Yi Ri Sheng Home Decoration has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Dong Yi Ri Sheng Home Decoration is dominated by functional specialists. It is not different from other players in the Business Services industry, but Dong Yi Ri Sheng Home Decoration needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dong Yi Ri Sheng Home Decoration to focus more on services in the Business Services industry rather than just following the product oriented approach.
High cash cycle compare to competitors
Dong Yi Ri Sheng Home Decoration has a high cash cycle compare to other players in the Business 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.
No frontier risks strategy
– From the 10K / annual statement of Dong Yi Ri Sheng Home Decoration, it seems that company is thinking out the frontier risks that can impact Business Services 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.
Interest costs
– Compare to the competition, Dong Yi Ri Sheng Home Decoration has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– From the outside it seems that Dong Yi Ri Sheng Home Decoration needs to have more collaboration between its sales team and marketing team. Sales professionals in the Business Services industry have deep experience in developing customer relationships. Marketing department at Dong Yi Ri Sheng Home Decoration can leverage the sales team experience to cultivate customer relationships as Dong Yi Ri Sheng Home Decoration is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Dong Yi Ri Sheng Home Decoration has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Business Services industry over the last five years. Dong Yi Ri Sheng Home Decoration 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.
High bargaining power of channel partners in Business Services industry
– because of the regulatory requirements in China, Dong Yi Ri Sheng Home Decoration 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 Business Services industry.
Low market penetration in new markets
– Outside its home market of China, Dong Yi Ri Sheng Home Decoration needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Dong Yi Ri Sheng Home Decoration Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Dong Yi Ri Sheng Home Decoration are -
Learning at scale
– Online learning technologies has now opened space for Dong Yi Ri Sheng Home Decoration 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Dong Yi Ri Sheng Home Decoration can improve the customer journey of consumers in the Business 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.
Loyalty marketing
– Dong Yi Ri Sheng Home Decoration 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dong Yi Ri Sheng Home Decoration 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dong Yi Ri Sheng Home Decoration in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Business Services industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Dong Yi Ri Sheng Home Decoration to increase its market reach. Dong Yi Ri Sheng Home Decoration 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dong Yi Ri Sheng Home Decoration can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Dong Yi Ri Sheng Home Decoration has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Business Services sector. This continuous investment in analytics has enabled Dong Yi Ri Sheng Home Decoration to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dong Yi Ri Sheng Home Decoration to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Business Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Dong Yi Ri Sheng Home Decoration 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. Dong Yi Ri Sheng Home Decoration 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.
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. Dong Yi Ri Sheng Home Decoration can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Dong Yi Ri Sheng Home Decoration can use the latest technology developments to improve its manufacturing and designing process in Business 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Dong Yi Ri Sheng Home Decoration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Dong Yi Ri Sheng Home Decoration 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. Dong Yi Ri Sheng Home Decoration 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.
Consumer confidence and its impact on Dong Yi Ri Sheng Home Decoration 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 Business Services industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration prominent markets.
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 Dong Yi Ri Sheng Home Decoration.
High dependence on third party suppliers
– Dong Yi Ri Sheng Home Decoration 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Business Services industry are lowering. It can presents Dong Yi Ri Sheng Home Decoration with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Business Services 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 Dong Yi Ri Sheng Home Decoration business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Dong Yi Ri Sheng Home Decoration 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 Business Services industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Dong Yi Ri Sheng Home Decoration may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Business Services sector.
Stagnating economy with rate increase
– Dong Yi Ri Sheng Home Decoration 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 Business Services industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dong Yi Ri Sheng Home Decoration in Business Services industry. The Business 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.
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. Dong Yi Ri Sheng Home Decoration needs to understand the core reasons impacting the Business Services industry. This will help it in building a better workplace.
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.
Weighted SWOT Analysis of Dong Yi Ri Sheng Home Decoration Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration 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 Dong Yi Ri Sheng Home Decoration needs to make to build a sustainable competitive advantage.
