Ye Chiu Metal Recycling (601388) SWOT Analysis / TOWS Matrix / MBA Resources
Metal Mining
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Ye Chiu Metal Recycling (China)
Based on various researches at Oak Spring University , Ye Chiu Metal Recycling is operating in a macro-environment that has been destablized by – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing energy prices,
technology disruption, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Ye Chiu Metal Recycling
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Ye Chiu Metal Recycling can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ye Chiu Metal Recycling, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling can be done for the following purposes –
1. Strategic planning of Ye Chiu Metal Recycling
2. Improving business portfolio management of Ye Chiu Metal Recycling
3. Assessing feasibility of the new initiative in China
4. Making a Metal Mining sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ye Chiu Metal Recycling
Strengths of Ye Chiu Metal Recycling | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ye Chiu Metal Recycling are -
Ability to lead change in Metal Mining
– Ye Chiu Metal Recycling is one of the leading players in the Metal Mining industry in China. Over the years it has not only transformed the business landscape in the Metal Mining industry in China but also across the existing markets. The ability to lead change has enabled Ye Chiu Metal Recycling in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Ye Chiu Metal Recycling has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ye Chiu Metal Recycling 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.
Highly skilled collaborators
– Ye Chiu Metal Recycling has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Metal Mining industry. Secondly the value chain collaborators of Ye Chiu Metal Recycling have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Ye Chiu Metal Recycling
– The covid-19 pandemic has put organizational resilience at the centre of everthing Ye Chiu Metal Recycling does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Ye Chiu Metal Recycling 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.
Training and development
– Ye Chiu Metal Recycling has one of the best training and development program in Basic Materials 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.
Strong track record of project management in the Metal Mining industry
– Ye Chiu Metal Recycling 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
- Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Ye Chiu Metal Recycling emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Ye Chiu Metal Recycling has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Ye Chiu Metal Recycling staying ahead in the Metal Mining 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 Metal Mining industry
– Ye Chiu Metal Recycling has clearly differentiated products in the market place. This has enabled Ye Chiu Metal Recycling to fetch slight price premium compare to the competitors in the Metal Mining industry. The sustainable margins have also helped Ye Chiu Metal Recycling to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Ye Chiu Metal Recycling in the Basic Materials sector have low bargaining power. Ye Chiu Metal Recycling has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ye Chiu Metal Recycling to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Ye Chiu Metal Recycling 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 Metal Mining 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.
Weaknesses of Ye Chiu Metal Recycling | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ye Chiu Metal Recycling are -
High bargaining power of channel partners in Metal Mining industry
– because of the regulatory requirements in China, Ye Chiu Metal Recycling 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 Metal Mining industry.
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 Ye Chiu Metal Recycling supply chain. Even after few cautionary changes, Ye Chiu Metal Recycling is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ye Chiu Metal Recycling vulnerable to further global disruptions in South East Asia.
High dependence on Ye Chiu Metal Recycling ‘s star products
– The top 2 products and services of Ye Chiu Metal Recycling still accounts for major business revenue. This dependence on star products in Metal Mining industry has resulted into insufficient focus on developing new products, even though Ye Chiu Metal Recycling has relatively successful track record of launching new products.
Employees’ less understanding of Ye Chiu Metal Recycling strategy
– From the outside it seems that the employees of Ye Chiu Metal Recycling don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Ye Chiu Metal Recycling is dominated by functional specialists. It is not different from other players in the Metal Mining industry, but Ye Chiu Metal Recycling needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ye Chiu Metal Recycling to focus more on services in the Metal Mining industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Ye Chiu Metal Recycling 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.
Ability to respond to the competition
– As the decision making is very deliberative at Ye Chiu Metal Recycling, in the dynamic environment of Metal Mining industry it has struggled to respond to the nimble upstart competition. Ye Chiu Metal Recycling has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Ye Chiu Metal Recycling 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
Ye Chiu Metal Recycling has a high cash cycle compare to other players in the Metal Mining industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Metal Mining industry
– The stress on hiring functional specialists at Ye Chiu Metal Recycling 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.
Lack of clear differentiation of Ye Chiu Metal Recycling products
– To increase the profitability and margins on the products, Ye Chiu Metal Recycling needs to provide more differentiated products than what it is currently offering in the marketplace.
Ye Chiu Metal Recycling Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Ye Chiu Metal Recycling are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Ye Chiu Metal Recycling 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.
Creating value in data economy
– The success of analytics program of Ye Chiu Metal Recycling has opened avenues for new revenue streams for the organization in Metal Mining industry. This can help Ye Chiu Metal Recycling to build a more holistic ecosystem for Ye Chiu Metal Recycling products in the Metal Mining industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Metal Mining industry, but it has also influenced the consumer preferences. Ye Chiu Metal Recycling can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Ye Chiu Metal Recycling can improve the customer journey of consumers in the Metal Mining 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ye Chiu Metal Recycling can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ye Chiu Metal Recycling is facing challenges because of the dominance of functional experts in the organization. Ye Chiu Metal Recycling can utilize new technology in the field of Metal Mining industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ye Chiu Metal Recycling can use these opportunities to build new business models that can help the communities that Ye Chiu Metal Recycling operates in. Secondly it can use opportunities from government spending in Metal Mining sector.
Using analytics as competitive advantage
– Ye Chiu Metal Recycling has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Metal Mining sector. This continuous investment in analytics has enabled Ye Chiu Metal Recycling to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ye Chiu Metal Recycling to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Ye Chiu Metal Recycling can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Ye Chiu Metal Recycling can develop new processes and procedures in Metal Mining 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ye Chiu Metal Recycling in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Metal Mining industry, and it will provide faster access to the consumers.
Threats Ye Chiu Metal Recycling External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Ye Chiu Metal Recycling are -
High dependence on third party suppliers
– Ye Chiu Metal Recycling 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling prominent markets.
Technology acceleration in Forth Industrial Revolution
– Ye Chiu Metal Recycling has witnessed rapid integration of technology during Covid-19 in the Metal Mining industry. As one of the leading players in the industry, Ye Chiu Metal Recycling needs to keep up with the evolution of technology in the Metal Mining 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Ye Chiu Metal Recycling may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Metal Mining sector.
Easy access to finance
– Easy access to finance in Metal Mining industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ye Chiu Metal Recycling 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
– Ye Chiu Metal Recycling 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 Metal Mining industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Metal Mining industry are lowering. It can presents Ye Chiu Metal Recycling with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Metal Mining sector.
Consumer confidence and its impact on Ye Chiu Metal Recycling 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 Metal Mining industry and other sectors.
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. Ye Chiu Metal Recycling needs to understand the core reasons impacting the Metal Mining industry. This will help it in building a better workplace.
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 Ye Chiu Metal Recycling in the Metal Mining sector and impact the bottomline of the organization.
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. Ye Chiu Metal Recycling 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.
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 Ye Chiu Metal Recycling.
Stagnating economy with rate increase
– Ye Chiu Metal Recycling 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 Metal Mining industry.
Weighted SWOT Analysis of Ye Chiu Metal Recycling Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling 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 Ye Chiu Metal Recycling needs to make to build a sustainable competitive advantage.
