DELIXI XINJIANG Transport (603032) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for DELIXI XINJIANG Transport (China)

Based on various researches at Oak Spring University , DELIXI XINJIANG Transport is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, geopolitical disruptions, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of DELIXI XINJIANG Transport

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that DELIXI XINJIANG Transport can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the DELIXI XINJIANG Transport, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which DELIXI XINJIANG Transport 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 DELIXI XINJIANG Transport can be done for the following purposes –
1. Strategic planning of DELIXI XINJIANG Transport
2. Improving business portfolio management of DELIXI XINJIANG Transport
3. Assessing feasibility of the new initiative in China
4. Making a Misc. Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of DELIXI XINJIANG Transport

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Strengths of DELIXI XINJIANG Transport | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of DELIXI XINJIANG Transport are -

High brand equity

– DELIXI XINJIANG Transport has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled DELIXI XINJIANG Transport to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to recruit top talent

– DELIXI XINJIANG Transport is one of the leading players in the Misc. Transportation 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.

Effective Research and Development (R&D)

– DELIXI XINJIANG Transport has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – DELIXI XINJIANG Transport staying ahead in the Misc. Transportation industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High switching costs

– The high switching costs that DELIXI XINJIANG Transport 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.

Low bargaining power of suppliers

– Suppliers of DELIXI XINJIANG Transport in the Transportation sector have low bargaining power. DELIXI XINJIANG Transport has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps DELIXI XINJIANG Transport to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Misc. Transportation industry

– DELIXI XINJIANG Transport has clearly differentiated products in the market place. This has enabled DELIXI XINJIANG Transport to fetch slight price premium compare to the competitors in the Misc. Transportation industry. The sustainable margins have also helped DELIXI XINJIANG Transport to invest into research and development (R&D) and innovation.

Organizational Resilience of DELIXI XINJIANG Transport

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

Operational resilience

– The operational resilience strategy of DELIXI XINJIANG Transport comprises – understanding the underlying the factors in the Misc. Transportation 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.

Strong track record of project management in the Misc. Transportation industry

– DELIXI XINJIANG Transport is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Learning organization

- DELIXI XINJIANG Transport 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 DELIXI XINJIANG Transport is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at DELIXI XINJIANG Transport emphasize – knowledge, initiative, and innovation.

Cross disciplinary teams

– Horizontal connected teams at the DELIXI XINJIANG Transport 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.

Analytics focus

– DELIXI XINJIANG Transport 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 Misc. Transportation 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.

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Weaknesses of DELIXI XINJIANG Transport | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of DELIXI XINJIANG Transport are -

Ability to respond to the competition

– As the decision making is very deliberative at DELIXI XINJIANG Transport, in the dynamic environment of Misc. Transportation industry it has struggled to respond to the nimble upstart competition. DELIXI XINJIANG Transport has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High cash cycle compare to competitors

DELIXI XINJIANG Transport has a high cash cycle compare to other players in the Misc. Transportation industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High dependence on DELIXI XINJIANG Transport ‘s star products

– The top 2 products and services of DELIXI XINJIANG Transport still accounts for major business revenue. This dependence on star products in Misc. Transportation industry has resulted into insufficient focus on developing new products, even though DELIXI XINJIANG Transport has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, DELIXI XINJIANG Transport has high operating costs in the Misc. Transportation industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract DELIXI XINJIANG Transport lucrative customers.

Interest costs

– Compare to the competition, DELIXI XINJIANG Transport 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.

Increasing silos among functional specialists

– The organizational structure of DELIXI XINJIANG Transport is dominated by functional specialists. It is not different from other players in the Misc. Transportation industry, but DELIXI XINJIANG Transport needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help DELIXI XINJIANG Transport to focus more on services in the Misc. Transportation industry rather than just following the product oriented approach.

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 DELIXI XINJIANG Transport supply chain. Even after few cautionary changes, DELIXI XINJIANG Transport is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left DELIXI XINJIANG Transport vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– From the 10K / annual statement of DELIXI XINJIANG Transport, it seems that company is thinking out the frontier risks that can impact Misc. Transportation 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.

Products dominated business model

– Even though DELIXI XINJIANG Transport has some of the most successful models in the Misc. Transportation industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. DELIXI XINJIANG Transport should strive to include more intangible value offerings along with its core products and services.

Slow decision making process

– As mentioned earlier in the report, DELIXI XINJIANG Transport has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Transportation industry over the last five years. DELIXI XINJIANG Transport 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.

Skills based hiring in Misc. Transportation industry

– The stress on hiring functional specialists at DELIXI XINJIANG Transport has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

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DELIXI XINJIANG Transport Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of DELIXI XINJIANG Transport are -

Building a culture of innovation

– managers at DELIXI XINJIANG Transport 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 Misc. Transportation industry.

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. DELIXI XINJIANG Transport can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects DELIXI XINJIANG Transport can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Better consumer reach

– The expansion of the 5G network will help DELIXI XINJIANG Transport to increase its market reach. DELIXI XINJIANG Transport 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.

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 DELIXI XINJIANG Transport 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Misc. Transportation industry, but it has also influenced the consumer preferences. DELIXI XINJIANG Transport can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Developing new processes and practices

– DELIXI XINJIANG Transport can develop new processes and procedures in Misc. Transportation 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.

Buying journey improvements

– DELIXI XINJIANG Transport can improve the customer journey of consumers in the Misc. Transportation 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.

Learning at scale

– Online learning technologies has now opened space for DELIXI XINJIANG Transport 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Misc. Transportation industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. DELIXI XINJIANG Transport 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. DELIXI XINJIANG Transport 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 DELIXI XINJIANG Transport has opened avenues for new revenue streams for the organization in Misc. Transportation industry. This can help DELIXI XINJIANG Transport to build a more holistic ecosystem for DELIXI XINJIANG Transport products in the Misc. Transportation industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, DELIXI XINJIANG Transport 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 DELIXI XINJIANG Transport in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Transportation industry, and it will provide faster access to the consumers.

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Threats DELIXI XINJIANG Transport External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of DELIXI XINJIANG Transport are -

Environmental challenges

– DELIXI XINJIANG Transport 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. DELIXI XINJIANG Transport can take advantage of this fund but it will also bring new competitors in the Misc. Transportation industry.

Increasing wage structure of DELIXI XINJIANG Transport

– 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 DELIXI XINJIANG Transport.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, DELIXI XINJIANG Transport 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 DELIXI XINJIANG Transport prominent markets.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for DELIXI XINJIANG Transport in Misc. Transportation industry. The Misc. Transportation 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.

Consumer confidence and its impact on DELIXI XINJIANG Transport 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 Misc. Transportation industry and other sectors.

High dependence on third party suppliers

– DELIXI XINJIANG Transport 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.

Shortening product life cycle

– it is one of the major threat that DELIXI XINJIANG Transport is facing in Misc. Transportation sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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 DELIXI XINJIANG Transport business can come under increasing regulations regarding data privacy, data security, etc.

Easy access to finance

– Easy access to finance in Misc. Transportation industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. DELIXI XINJIANG Transport 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

– DELIXI XINJIANG Transport 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 Misc. Transportation industry regulations.

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 DELIXI XINJIANG Transport in the Misc. Transportation sector and impact the bottomline of the organization.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, DELIXI XINJIANG Transport may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Transportation sector.

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. DELIXI XINJIANG Transport needs to understand the core reasons impacting the Misc. Transportation industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of DELIXI XINJIANG Transport Template, Example

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

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