Based on various researches at Oak Spring University , Nanjing Kangni Mechanical & Electrical is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, technology disruption, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Nanjing Kangni Mechanical & Electrical
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Nanjing Kangni Mechanical & Electrical can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nanjing Kangni Mechanical & Electrical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical can be done for the following purposes –
1. Strategic planning of Nanjing Kangni Mechanical & Electrical
2. Improving business portfolio management of Nanjing Kangni Mechanical & Electrical
3. Assessing feasibility of the new initiative in China
4. Making a Railroads sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nanjing Kangni Mechanical & Electrical
Strengths of Nanjing Kangni Mechanical & Electrical | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nanjing Kangni Mechanical & Electrical are -
High switching costs
– The high switching costs that Nanjing Kangni Mechanical & Electrical 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.
Sustainable margins compare to other players in Railroads industry
– Nanjing Kangni Mechanical & Electrical has clearly differentiated products in the market place. This has enabled Nanjing Kangni Mechanical & Electrical to fetch slight price premium compare to the competitors in the Railroads industry. The sustainable margins have also helped Nanjing Kangni Mechanical & Electrical to invest into research and development (R&D) and innovation.
Training and development
– Nanjing Kangni Mechanical & Electrical has one of the best training and development program in Transportation 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.
Learning organization
- Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Nanjing Kangni Mechanical & Electrical emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Nanjing Kangni Mechanical & Electrical has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Nanjing Kangni Mechanical & Electrical staying ahead in the Railroads industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Nanjing Kangni Mechanical & Electrical is one of the most innovative firm in Railroads sector.
Operational resilience
– The operational resilience strategy of Nanjing Kangni Mechanical & Electrical comprises – understanding the underlying the factors in the Railroads 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.
High brand equity
– Nanjing Kangni Mechanical & Electrical has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nanjing Kangni Mechanical & Electrical to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Nanjing Kangni Mechanical & Electrical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nanjing Kangni Mechanical & Electrical 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.
Analytics focus
– Nanjing Kangni Mechanical & Electrical 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 Railroads 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 Nanjing Kangni Mechanical & Electrical
– The covid-19 pandemic has put organizational resilience at the centre of everthing Nanjing Kangni Mechanical & Electrical does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Nanjing Kangni Mechanical & Electrical is one of the leading players in the Railroads 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.
Weaknesses of Nanjing Kangni Mechanical & Electrical | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nanjing Kangni Mechanical & Electrical are -
Aligning sales with marketing
– From the outside it seems that Nanjing Kangni Mechanical & Electrical needs to have more collaboration between its sales team and marketing team. Sales professionals in the Railroads industry have deep experience in developing customer relationships. Marketing department at Nanjing Kangni Mechanical & Electrical can leverage the sales team experience to cultivate customer relationships as Nanjing Kangni Mechanical & Electrical is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Nanjing Kangni Mechanical & Electrical 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 Railroads industry using digital technology.
Employees’ less understanding of Nanjing Kangni Mechanical & Electrical strategy
– From the outside it seems that the employees of Nanjing Kangni Mechanical & Electrical 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.
High dependence on Nanjing Kangni Mechanical & Electrical ‘s star products
– The top 2 products and services of Nanjing Kangni Mechanical & Electrical still accounts for major business revenue. This dependence on star products in Railroads industry has resulted into insufficient focus on developing new products, even though Nanjing Kangni Mechanical & Electrical has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nanjing Kangni Mechanical & Electrical is slow explore the new channels of communication. These new channels of communication can help Nanjing Kangni Mechanical & Electrical to provide better information regarding Railroads products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of China, Nanjing Kangni Mechanical & Electrical needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Nanjing Kangni Mechanical & Electrical 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.
Lack of clear differentiation of Nanjing Kangni Mechanical & Electrical products
– To increase the profitability and margins on the products, Nanjing Kangni Mechanical & Electrical needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Nanjing Kangni Mechanical & Electrical supply chain. Even after few cautionary changes, Nanjing Kangni Mechanical & Electrical is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nanjing Kangni Mechanical & Electrical vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Nanjing Kangni Mechanical & Electrical, it seems that company is thinking out the frontier risks that can impact Railroads 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 bargaining power of channel partners in Railroads industry
– because of the regulatory requirements in China, Nanjing Kangni Mechanical & Electrical 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 Railroads industry.
Nanjing Kangni Mechanical & Electrical Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Nanjing Kangni Mechanical & Electrical are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Nanjing Kangni Mechanical & Electrical can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Nanjing Kangni Mechanical & Electrical 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.
Buying journey improvements
– Nanjing Kangni Mechanical & Electrical can improve the customer journey of consumers in the Railroads 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.
Developing new processes and practices
– Nanjing Kangni Mechanical & Electrical can develop new processes and procedures in Railroads industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nanjing Kangni Mechanical & Electrical is facing challenges because of the dominance of functional experts in the organization. Nanjing Kangni Mechanical & Electrical can utilize new technology in the field of Railroads industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Nanjing Kangni Mechanical & Electrical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Railroads industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Nanjing Kangni Mechanical & Electrical in the Railroads industry. Now Nanjing Kangni Mechanical & Electrical can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Nanjing Kangni Mechanical & Electrical 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 Railroads industry.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Railroads industry, but it has also influenced the consumer preferences. Nanjing Kangni Mechanical & Electrical can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Nanjing Kangni Mechanical & Electrical has opened avenues for new revenue streams for the organization in Railroads industry. This can help Nanjing Kangni Mechanical & Electrical to build a more holistic ecosystem for Nanjing Kangni Mechanical & Electrical products in the Railroads industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Nanjing Kangni Mechanical & Electrical can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Nanjing Kangni Mechanical & Electrical to increase its market reach. Nanjing Kangni Mechanical & Electrical 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.
Threats Nanjing Kangni Mechanical & Electrical External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Nanjing Kangni Mechanical & Electrical are -
Environmental challenges
– Nanjing Kangni Mechanical & Electrical 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. Nanjing Kangni Mechanical & Electrical can take advantage of this fund but it will also bring new competitors in the Railroads industry.
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 Nanjing Kangni Mechanical & Electrical business can come under increasing regulations regarding data privacy, data security, etc.
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. Nanjing Kangni Mechanical & Electrical needs to understand the core reasons impacting the Railroads industry. This will help it in building a better workplace.
Increasing wage structure of Nanjing Kangni Mechanical & Electrical
– 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 Nanjing Kangni Mechanical & Electrical.
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 Nanjing Kangni Mechanical & Electrical.
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. Nanjing Kangni Mechanical & Electrical 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.
High dependence on third party suppliers
– Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical is facing in Railroads sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Railroads industry are lowering. It can presents Nanjing Kangni Mechanical & Electrical with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Railroads sector.
Regulatory challenges
– Nanjing Kangni Mechanical & Electrical 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 Railroads industry regulations.
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.
Easy access to finance
– Easy access to finance in Railroads industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nanjing Kangni Mechanical & Electrical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Nanjing Kangni Mechanical & Electrical 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 Railroads industry and other sectors.
Weighted SWOT Analysis of Nanjing Kangni Mechanical & Electrical Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical needs to make to build a sustainable competitive advantage.