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 inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, challanges to central banks by blockchain based private currencies,
increasing energy prices, there is backlash against globalization, 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 -
Analytics focus
– Jieshun Sci&Tech A 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 Security Systems & 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.
Low bargaining power of suppliers
– Suppliers of Jieshun Sci&Tech A in the Services sector have low bargaining power. Jieshun Sci&Tech A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jieshun Sci&Tech A to manage not only supply disruptions but also source products at highly competitive prices.
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.
Strong track record of project management in the Security Systems & Services industry
– Jieshun Sci&Tech A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
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.
Highly skilled collaborators
– Jieshun Sci&Tech A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Security Systems & Services industry. Secondly the value chain collaborators of Jieshun Sci&Tech A have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Jieshun Sci&Tech A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jieshun Sci&Tech A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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 -
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.
High operating costs
– Compare to the competitors, Jieshun Sci&Tech A has high operating costs in the Security Systems & Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jieshun Sci&Tech A lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the Security Systems & Services industry, Jieshun Sci&Tech A 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 Jieshun Sci&Tech A has some of the most successful models in the Security Systems & Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Jieshun Sci&Tech A should strive to include more intangible value offerings along with its core products and services.
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 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.
Lack of clear differentiation of Jieshun Sci&Tech A products
– To increase the profitability and margins on the products, Jieshun Sci&Tech A needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Aligning sales with marketing
– From the outside it seems that Jieshun Sci&Tech A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Security Systems & Services industry have deep experience in developing customer relationships. Marketing department at Jieshun Sci&Tech A can leverage the sales team experience to cultivate customer relationships as Jieshun Sci&Tech A is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Jieshun Sci&Tech A has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Security Systems & Services industry over the last five years. Jieshun Sci&Tech A 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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Security Systems & Services industry, but it has also influenced the consumer preferences. Jieshun Sci&Tech A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Security Systems & Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jieshun Sci&Tech A 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. Jieshun Sci&Tech A 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jieshun Sci&Tech A can use these opportunities to build new business models that can help the communities that Jieshun Sci&Tech A operates in. Secondly it can use opportunities from government spending in Security Systems & Services sector.
Creating value in data economy
– The success of analytics program of Jieshun Sci&Tech A has opened avenues for new revenue streams for the organization in Security Systems & Services industry. This can help Jieshun Sci&Tech A to build a more holistic ecosystem for Jieshun Sci&Tech A products in the Security Systems & Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
Building a culture of innovation
– managers at Jieshun Sci&Tech A 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 Security Systems & Services industry.
Developing new processes and practices
– Jieshun Sci&Tech A can develop new processes and procedures in Security Systems & 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.
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.
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.
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.
Increasing wage structure of Jieshun Sci&Tech A
– 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 Jieshun Sci&Tech A.
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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Security Systems & Services industry are lowering. It can presents Jieshun Sci&Tech A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the 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.
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.
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 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.
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. Jieshun Sci&Tech A 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jieshun Sci&Tech A in Security Systems & Services industry. The Security Systems & Services 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.
Regulatory challenges
– Jieshun Sci&Tech A 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 Security Systems & Services industry regulations.
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.