Based on various researches at Oak Spring University , Beijing Sanlian Hope Shin-Gosen is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing energy prices, technology disruption, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy,
banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Beijing Sanlian Hope Shin-Gosen
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Beijing Sanlian Hope Shin-Gosen can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Sanlian Hope Shin-Gosen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen can be done for the following purposes –
1. Strategic planning of Beijing Sanlian Hope Shin-Gosen
2. Improving business portfolio management of Beijing Sanlian Hope Shin-Gosen
3. Assessing feasibility of the new initiative in China
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Beijing Sanlian Hope Shin-Gosen
Strengths of Beijing Sanlian Hope Shin-Gosen | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beijing Sanlian Hope Shin-Gosen are -
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Beijing Sanlian Hope Shin-Gosen digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beijing Sanlian Hope Shin-Gosen 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.
Highly skilled collaborators
– Beijing Sanlian Hope Shin-Gosen has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Construction Services industry. Secondly the value chain collaborators of Beijing Sanlian Hope Shin-Gosen have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Construction Services industry
– Beijing Sanlian Hope Shin-Gosen has clearly differentiated products in the market place. This has enabled Beijing Sanlian Hope Shin-Gosen to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Beijing Sanlian Hope Shin-Gosen to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Beijing Sanlian Hope Shin-Gosen in Construction Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Beijing Sanlian Hope Shin-Gosen is present in almost all the verticals within the Construction Services industry. This has provided Beijing Sanlian Hope Shin-Gosen 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.
Training and development
– Beijing Sanlian Hope Shin-Gosen has one of the best training and development program in Capital Goods 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 Construction Services industry
– Beijing Sanlian Hope Shin-Gosen is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Beijing Sanlian Hope Shin-Gosen comprises – understanding the underlying the factors in the Construction Services industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Beijing Sanlian Hope Shin-Gosen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beijing Sanlian Hope Shin-Gosen 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
– Beijing Sanlian Hope Shin-Gosen 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 Construction Services 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.
High brand equity
– Beijing Sanlian Hope Shin-Gosen has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Beijing Sanlian Hope Shin-Gosen to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Beijing Sanlian Hope Shin-Gosen 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.
Weaknesses of Beijing Sanlian Hope Shin-Gosen | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Beijing Sanlian Hope Shin-Gosen are -
Ability to respond to the competition
– As the decision making is very deliberative at Beijing Sanlian Hope Shin-Gosen, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Beijing Sanlian Hope Shin-Gosen has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Beijing Sanlian Hope Shin-Gosen 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 Construction Services industry using digital technology.
Aligning sales with marketing
– From the outside it seems that Beijing Sanlian Hope Shin-Gosen needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Beijing Sanlian Hope Shin-Gosen can leverage the sales team experience to cultivate customer relationships as Beijing Sanlian Hope Shin-Gosen is planning to shift buying processes online.
Interest costs
– Compare to the competition, Beijing Sanlian Hope Shin-Gosen 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.
Low market penetration in new markets
– Outside its home market of China, Beijing Sanlian Hope Shin-Gosen needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Construction Services industry
– because of the regulatory requirements in China, Beijing Sanlian Hope Shin-Gosen 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 Construction Services 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 Beijing Sanlian Hope Shin-Gosen supply chain. Even after few cautionary changes, Beijing Sanlian Hope Shin-Gosen is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beijing Sanlian Hope Shin-Gosen vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, Beijing Sanlian Hope Shin-Gosen has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Beijing Sanlian Hope Shin-Gosen lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Beijing Sanlian Hope Shin-Gosen has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Beijing Sanlian Hope Shin-Gosen 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Beijing Sanlian Hope Shin-Gosen is slow explore the new channels of communication. These new channels of communication can help Beijing Sanlian Hope Shin-Gosen to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of Beijing Sanlian Hope Shin-Gosen is just above the Construction Services industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Beijing Sanlian Hope Shin-Gosen Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Beijing Sanlian Hope Shin-Gosen 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. Beijing Sanlian Hope Shin-Gosen can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Beijing Sanlian Hope Shin-Gosen 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 Construction Services industry.
Using analytics as competitive advantage
– Beijing Sanlian Hope Shin-Gosen has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Construction Services sector. This continuous investment in analytics has enabled Beijing Sanlian Hope Shin-Gosen to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beijing Sanlian Hope Shin-Gosen to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Beijing Sanlian Hope Shin-Gosen to increase its market reach. Beijing Sanlian Hope Shin-Gosen 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Sanlian Hope Shin-Gosen can use these opportunities to build new business models that can help the communities that Beijing Sanlian Hope Shin-Gosen operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Loyalty marketing
– Beijing Sanlian Hope Shin-Gosen 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Beijing Sanlian Hope Shin-Gosen 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. Beijing Sanlian Hope Shin-Gosen 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.
Buying journey improvements
– Beijing Sanlian Hope Shin-Gosen can improve the customer journey of consumers in the Construction Services industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Construction Services industry, but it has also influenced the consumer preferences. Beijing Sanlian Hope Shin-Gosen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Beijing Sanlian Hope Shin-Gosen can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Beijing Sanlian Hope Shin-Gosen can develop new processes and procedures in Construction Services 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 Beijing Sanlian Hope Shin-Gosen in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.
Threats Beijing Sanlian Hope Shin-Gosen External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Beijing Sanlian Hope Shin-Gosen are -
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 Beijing Sanlian Hope Shin-Gosen business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Beijing Sanlian Hope Shin-Gosen
– 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 Beijing Sanlian Hope Shin-Gosen.
Shortening product life cycle
– it is one of the major threat that Beijing Sanlian Hope Shin-Gosen is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Beijing Sanlian Hope Shin-Gosen 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.
Consumer confidence and its impact on Beijing Sanlian Hope Shin-Gosen 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 Construction Services industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Beijing Sanlian Hope Shin-Gosen with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
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 Beijing Sanlian Hope Shin-Gosen.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen prominent markets.
Stagnating economy with rate increase
– Beijing Sanlian Hope Shin-Gosen 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 Construction Services industry.
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. Beijing Sanlian Hope Shin-Gosen needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Regulatory challenges
– Beijing Sanlian Hope Shin-Gosen 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 Construction Services industry regulations.
Environmental challenges
– Beijing Sanlian Hope Shin-Gosen 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. Beijing Sanlian Hope Shin-Gosen can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Weighted SWOT Analysis of Beijing Sanlian Hope Shin-Gosen Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen 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 Beijing Sanlian Hope Shin-Gosen needs to make to build a sustainable competitive advantage.