Fujian Jinsen Forestry A (2679) SWOT Analysis / TOWS Matrix / MBA Resources
Forestry & Wood Products
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Fujian Jinsen Forestry A (China)
Based on various researches at Oak Spring University , Fujian Jinsen Forestry A is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies,
technology disruption, increasing energy prices, etc
Introduction to SWOT Analysis of Fujian Jinsen Forestry A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fujian Jinsen Forestry A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fujian Jinsen Forestry A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A can be done for the following purposes –
1. Strategic planning of Fujian Jinsen Forestry A
2. Improving business portfolio management of Fujian Jinsen Forestry A
3. Assessing feasibility of the new initiative in China
4. Making a Forestry & Wood Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Fujian Jinsen Forestry A
Strengths of Fujian Jinsen Forestry A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fujian Jinsen Forestry A are -
High brand equity
– Fujian Jinsen Forestry A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fujian Jinsen Forestry A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Fujian Jinsen Forestry A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Fujian Jinsen Forestry A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Fujian Jinsen Forestry 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 Forestry & Wood Products 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.
Strong track record of project management in the Forestry & Wood Products industry
– Fujian Jinsen Forestry 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.
High switching costs
– The high switching costs that Fujian Jinsen Forestry 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.
Highly skilled collaborators
– Fujian Jinsen Forestry A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Forestry & Wood Products industry. Secondly the value chain collaborators of Fujian Jinsen Forestry A have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Fujian Jinsen Forestry A is present in almost all the verticals within the Forestry & Wood Products industry. This has provided Fujian Jinsen Forestry 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.
Sustainable margins compare to other players in Forestry & Wood Products industry
– Fujian Jinsen Forestry A has clearly differentiated products in the market place. This has enabled Fujian Jinsen Forestry A to fetch slight price premium compare to the competitors in the Forestry & Wood Products industry. The sustainable margins have also helped Fujian Jinsen Forestry A to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Fujian Jinsen Forestry A is one of the leading players in the Forestry & Wood Products 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 Fujian Jinsen Forestry A comprises – understanding the underlying the factors in the Forestry & Wood Products 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.
Training and development
– Fujian Jinsen Forestry A has one of the best training and development program in Basic Materials 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.
Low bargaining power of suppliers
– Suppliers of Fujian Jinsen Forestry A in the Basic Materials sector have low bargaining power. Fujian Jinsen Forestry A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fujian Jinsen Forestry A to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Fujian Jinsen Forestry A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fujian Jinsen Forestry A are -
High bargaining power of channel partners in Forestry & Wood Products industry
– because of the regulatory requirements in China, Fujian Jinsen Forestry A 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 Forestry & Wood Products industry.
Skills based hiring in Forestry & Wood Products industry
– The stress on hiring functional specialists at Fujian Jinsen Forestry 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.
Low market penetration in new markets
– Outside its home market of China, Fujian Jinsen Forestry A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at Fujian Jinsen Forestry A, in the dynamic environment of Forestry & Wood Products industry it has struggled to respond to the nimble upstart competition. Fujian Jinsen Forestry A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Fujian Jinsen Forestry A is dominated by functional specialists. It is not different from other players in the Forestry & Wood Products industry, but Fujian Jinsen Forestry A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fujian Jinsen Forestry A to focus more on services in the Forestry & Wood Products industry rather than just following the product oriented approach.
High dependence on Fujian Jinsen Forestry A ‘s star products
– The top 2 products and services of Fujian Jinsen Forestry A still accounts for major business revenue. This dependence on star products in Forestry & Wood Products industry has resulted into insufficient focus on developing new products, even though Fujian Jinsen Forestry A has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fujian Jinsen Forestry A is slow explore the new channels of communication. These new channels of communication can help Fujian Jinsen Forestry A to provide better information regarding Forestry & Wood Products products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Fujian Jinsen Forestry A is one of the leading players in the Forestry & Wood Products industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Forestry & Wood Products industry in last five years.
High operating costs
– Compare to the competitors, Fujian Jinsen Forestry A has high operating costs in the Forestry & Wood Products industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Fujian Jinsen Forestry A lucrative customers.
Interest costs
– Compare to the competition, Fujian Jinsen Forestry A 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.
Aligning sales with marketing
– From the outside it seems that Fujian Jinsen Forestry A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Forestry & Wood Products industry have deep experience in developing customer relationships. Marketing department at Fujian Jinsen Forestry A can leverage the sales team experience to cultivate customer relationships as Fujian Jinsen Forestry A is planning to shift buying processes online.
Fujian Jinsen Forestry A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Fujian Jinsen Forestry A are -
Manufacturing automation
– Fujian Jinsen Forestry A can use the latest technology developments to improve its manufacturing and designing process in Forestry & Wood Products sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Leveraging digital technologies
– Fujian Jinsen Forestry 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fujian Jinsen Forestry A is facing challenges because of the dominance of functional experts in the organization. Fujian Jinsen Forestry A can utilize new technology in the field of Forestry & Wood Products industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Fujian Jinsen Forestry A has opened avenues for new revenue streams for the organization in Forestry & Wood Products industry. This can help Fujian Jinsen Forestry A to build a more holistic ecosystem for Fujian Jinsen Forestry A products in the Forestry & Wood Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Forestry & Wood Products industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Fujian Jinsen Forestry A in the Forestry & Wood Products industry. Now Fujian Jinsen Forestry A can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fujian Jinsen Forestry A can use these opportunities to build new business models that can help the communities that Fujian Jinsen Forestry A operates in. Secondly it can use opportunities from government spending in Forestry & Wood Products sector.
Buying journey improvements
– Fujian Jinsen Forestry A can improve the customer journey of consumers in the Forestry & Wood Products industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Fujian Jinsen Forestry A can develop new processes and procedures in Forestry & Wood Products 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fujian Jinsen Forestry 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 Fujian Jinsen Forestry 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Forestry & Wood Products industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Fujian Jinsen Forestry 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. Fujian Jinsen Forestry 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.
Learning at scale
– Online learning technologies has now opened space for Fujian Jinsen Forestry 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.
Loyalty marketing
– Fujian Jinsen Forestry 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A to hire the very best people irrespective of their geographical location.
Threats Fujian Jinsen Forestry A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Fujian Jinsen Forestry A are -
Increasing wage structure of Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fujian Jinsen Forestry A in Forestry & Wood Products industry. The Forestry & Wood Products 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.
Easy access to finance
– Easy access to finance in Forestry & Wood Products industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Fujian Jinsen Forestry A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Fujian Jinsen Forestry 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. Fujian Jinsen Forestry A can take advantage of this fund but it will also bring new competitors in the Forestry & Wood Products industry.
High dependence on third party suppliers
– Fujian Jinsen Forestry 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Fujian Jinsen Forestry 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 Forestry & Wood Products sector.
Shortening product life cycle
– it is one of the major threat that Fujian Jinsen Forestry A is facing in Forestry & Wood Products sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Fujian Jinsen Forestry 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 Forestry & Wood Products industry regulations.
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 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. Fujian Jinsen Forestry A needs to understand the core reasons impacting the Forestry & Wood Products industry. This will help it in building a better workplace.
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 Fujian Jinsen Forestry A business can come under increasing regulations regarding data privacy, data security, etc.
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. Fujian Jinsen Forestry 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.
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 Fujian Jinsen Forestry A in the Forestry & Wood Products sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Fujian Jinsen Forestry A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Fujian Jinsen Forestry 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 Fujian Jinsen Forestry 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 Fujian Jinsen Forestry 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 Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A needs to make to build a sustainable competitive advantage.