Based on various researches at Oak Spring University , Nanjing Kangni Mechanical & Electrical is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google,
cloud computing is disrupting traditional business models, 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 -
Highly skilled collaborators
– Nanjing Kangni Mechanical & Electrical has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Railroads industry. Secondly the value chain collaborators of Nanjing Kangni Mechanical & Electrical have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Railroads
– Nanjing Kangni Mechanical & Electrical is one of the leading players in the Railroads industry in China. Over the years it has not only transformed the business landscape in the Railroads industry in China but also across the existing markets. The ability to lead change has enabled Nanjing Kangni Mechanical & Electrical in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Nanjing Kangni Mechanical & Electrical is present in almost all the verticals within the Railroads industry. This has provided Nanjing Kangni Mechanical & Electrical a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Nanjing Kangni Mechanical & Electrical in the Transportation sector have low bargaining power. Nanjing Kangni Mechanical & Electrical has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nanjing Kangni Mechanical & Electrical to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Nanjing Kangni Mechanical & Electrical in Railroads industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Railroads industry
- digital transformation varies from industry to industry. For Nanjing Kangni Mechanical & Electrical digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nanjing Kangni Mechanical & Electrical 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.
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.
Innovation driven organization
– Nanjing Kangni Mechanical & Electrical is one of the most innovative firm in Railroads sector.
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 -
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.
Skills based hiring in Railroads industry
– The stress on hiring functional specialists at Nanjing Kangni Mechanical & Electrical 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.
Slow to strategic competitive environment developments
– As Nanjing Kangni Mechanical & Electrical is one of the leading players in the Railroads industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Railroads industry in last five years.
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.
Need for greater diversity
– Nanjing Kangni Mechanical & Electrical 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.
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.
Slow decision making process
– As mentioned earlier in the report, Nanjing Kangni Mechanical & Electrical has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Railroads industry over the last five years. Nanjing Kangni Mechanical & Electrical 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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the Railroads industry, Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical has some of the most successful models in the Railroads industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Nanjing Kangni Mechanical & Electrical should strive to include more intangible value offerings along with its core products and services.
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 -
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nanjing Kangni Mechanical & Electrical can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Nanjing Kangni Mechanical & Electrical 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.
Using analytics as competitive advantage
– Nanjing Kangni Mechanical & Electrical has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Railroads sector. This continuous investment in analytics has enabled Nanjing Kangni Mechanical & Electrical to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nanjing Kangni Mechanical & Electrical to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Nanjing Kangni Mechanical & Electrical 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 Nanjing Kangni Mechanical & Electrical to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nanjing Kangni Mechanical & Electrical can use these opportunities to build new business models that can help the communities that Nanjing Kangni Mechanical & Electrical operates in. Secondly it can use opportunities from government spending in Railroads sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nanjing Kangni Mechanical & Electrical in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Railroads industry, and it will provide faster access to the consumers.
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.
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 -
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nanjing Kangni Mechanical & Electrical in Railroads industry. The Railroads 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.
Technology acceleration in Forth Industrial Revolution
– Nanjing Kangni Mechanical & Electrical has witnessed rapid integration of technology during Covid-19 in the Railroads industry. As one of the leading players in the industry, Nanjing Kangni Mechanical & Electrical needs to keep up with the evolution of technology in the Railroads sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to 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.
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 Nanjing Kangni Mechanical & Electrical in the Railroads sector and impact the bottomline of the organization.
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.
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.
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.
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.
Stagnating economy with rate increase
– Nanjing Kangni Mechanical & Electrical 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 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 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.
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.
