Jieshun Sci&Tech A (2609) SWOT Analysis / TOWS Matrix / MBA Resources
Security Systems & Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Jieshun Sci&Tech A (China)
Based on various researches at Oak Spring University , Jieshun Sci&Tech A is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, there is backlash against globalization, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, increasing commodity prices,
technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Jieshun Sci&Tech A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jieshun Sci&Tech A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jieshun Sci&Tech A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jieshun Sci&Tech A 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 Jieshun Sci&Tech A can be done for the following purposes –
1. Strategic planning of Jieshun Sci&Tech A
2. Improving business portfolio management of Jieshun Sci&Tech A
3. Assessing feasibility of the new initiative in China
4. Making a Security Systems & Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jieshun Sci&Tech A
Strengths of Jieshun Sci&Tech A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jieshun Sci&Tech A are -
Organizational Resilience of Jieshun Sci&Tech A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Jieshun Sci&Tech A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Jieshun Sci&Tech A has one of the best training and development program in Services 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
- Jieshun Sci&Tech A 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 Jieshun Sci&Tech A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jieshun Sci&Tech A emphasize – knowledge, initiative, and innovation.
Ability to lead change in Security Systems & Services
– Jieshun Sci&Tech A is one of the leading players in the Security Systems & Services industry in China. Over the years it has not only transformed the business landscape in the Security Systems & Services industry in China but also across the existing markets. The ability to lead change has enabled Jieshun Sci&Tech A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Jieshun Sci&Tech A 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 Security Systems & Services industry
– Jieshun Sci&Tech A has clearly differentiated products in the market place. This has enabled Jieshun Sci&Tech A to fetch slight price premium compare to the competitors in the Security Systems & Services industry. The sustainable margins have also helped Jieshun Sci&Tech A to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Jieshun Sci&Tech A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jieshun Sci&Tech A 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.
Innovation driven organization
– Jieshun Sci&Tech A is one of the most innovative firm in Security Systems & Services sector.
Ability to recruit top talent
– Jieshun Sci&Tech A is one of the leading players in the Security Systems & Services 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.
Operational resilience
– The operational resilience strategy of Jieshun Sci&Tech A comprises – understanding the underlying the factors in the Security Systems & 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.
Diverse revenue streams
– Jieshun Sci&Tech A is present in almost all the verticals within the Security Systems & Services industry. This has provided Jieshun Sci&Tech A 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.
Effective Research and Development (R&D)
– Jieshun Sci&Tech A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jieshun Sci&Tech A staying ahead in the Security Systems & Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Jieshun Sci&Tech A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jieshun Sci&Tech A are -
Skills based hiring in Security Systems & Services industry
– The stress on hiring functional specialists at Jieshun Sci&Tech A 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.
Need for greater diversity
– Jieshun Sci&Tech A 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.
Increasing silos among functional specialists
– The organizational structure of Jieshun Sci&Tech A is dominated by functional specialists. It is not different from other players in the Security Systems & Services industry, but Jieshun Sci&Tech A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jieshun Sci&Tech A to focus more on services in the Security Systems & Services industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Jieshun Sci&Tech A, in the dynamic environment of Security Systems & Services industry it has struggled to respond to the nimble upstart competition. Jieshun Sci&Tech A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jieshun Sci&Tech A is slow explore the new channels of communication. These new channels of communication can help Jieshun Sci&Tech A to provide better information regarding Security Systems & 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 Jieshun Sci&Tech A is just above the Security Systems & 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.
No frontier risks strategy
– From the 10K / annual statement of Jieshun Sci&Tech A, it seems that company is thinking out the frontier risks that can impact Security Systems & Services 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.
Slow to strategic competitive environment developments
– As Jieshun Sci&Tech A is one of the leading players in the Security Systems & Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Security Systems & Services industry in last five years.
High cash cycle compare to competitors
Jieshun Sci&Tech A has a high cash cycle compare to other players in the Security Systems & Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ less understanding of Jieshun Sci&Tech A strategy
– From the outside it seems that the employees of Jieshun Sci&Tech A 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 Jieshun Sci&Tech A ‘s star products
– The top 2 products and services of Jieshun Sci&Tech A still accounts for major business revenue. This dependence on star products in Security Systems & Services industry has resulted into insufficient focus on developing new products, even though Jieshun Sci&Tech A has relatively successful track record of launching new products.
Jieshun Sci&Tech A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jieshun Sci&Tech A are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jieshun Sci&Tech A is facing challenges because of the dominance of functional experts in the organization. Jieshun Sci&Tech A can utilize new technology in the field of Security Systems & Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Jieshun Sci&Tech A to increase its market reach. Jieshun Sci&Tech A 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jieshun Sci&Tech A 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jieshun Sci&Tech A 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 Jieshun Sci&Tech A to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Jieshun Sci&Tech A 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.
Loyalty marketing
– Jieshun Sci&Tech A 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.
Using analytics as competitive advantage
– Jieshun Sci&Tech A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Security Systems & Services sector. This continuous investment in analytics has enabled Jieshun Sci&Tech A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jieshun Sci&Tech A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jieshun Sci&Tech A 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 Jieshun Sci&Tech A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Jieshun Sci&Tech A can improve the customer journey of consumers in the Security Systems & 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.
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. Jieshun Sci&Tech A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jieshun Sci&Tech A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Security Systems & Services industry, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Jieshun Sci&Tech A to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jieshun Sci&Tech A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Jieshun Sci&Tech A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jieshun Sci&Tech A are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jieshun Sci&Tech A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Security Systems & Services sector.
Environmental challenges
– Jieshun Sci&Tech A 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. Jieshun Sci&Tech A can take advantage of this fund but it will also bring new competitors in the Security Systems & Services industry.
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 Jieshun Sci&Tech A.
Easy access to finance
– Easy access to finance in Security Systems & Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jieshun Sci&Tech A 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 Jieshun Sci&Tech A 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 Security Systems & Services industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Jieshun Sci&Tech A has witnessed rapid integration of technology during Covid-19 in the Security Systems & Services industry. As one of the leading players in the industry, Jieshun Sci&Tech A needs to keep up with the evolution of technology in the Security Systems & Services 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.
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 Jieshun Sci&Tech A business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Jieshun Sci&Tech A 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.
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.
Stagnating economy with rate increase
– Jieshun Sci&Tech A 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 Security Systems & Services industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jieshun Sci&Tech A 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 Jieshun Sci&Tech A prominent markets.
Shortening product life cycle
– it is one of the major threat that Jieshun Sci&Tech A is facing in Security Systems & Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Weighted SWOT Analysis of Jieshun Sci&Tech A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jieshun Sci&Tech A 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 Jieshun Sci&Tech A 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 Jieshun Sci&Tech A 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 Jieshun Sci&Tech A 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 Jieshun Sci&Tech A needs to make to build a sustainable competitive advantage.