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 – digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, geopolitical disruptions, wage bills are increasing, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, 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 -
Successful track record of launching new products
– Fujian Jinsen Forestry A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fujian Jinsen Forestry 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.
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.
Ability to lead change in Forestry & Wood Products
– Fujian Jinsen Forestry A is one of the leading players in the Forestry & Wood Products industry in China. Over the years it has not only transformed the business landscape in the Forestry & Wood Products industry in China but also across the existing markets. The ability to lead change has enabled Fujian Jinsen Forestry A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
Superior customer experience
– The customer experience strategy of Fujian Jinsen Forestry A in Forestry & Wood Products industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Digital Transformation in Forestry & Wood Products industry
- digital transformation varies from industry to industry. For Fujian Jinsen Forestry A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fujian Jinsen Forestry A 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.
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.
Learning organization
- Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fujian Jinsen Forestry A emphasize – knowledge, initiative, and innovation.
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 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.
Lack of clear differentiation of Fujian Jinsen Forestry A products
– To increase the profitability and margins on the products, Fujian Jinsen Forestry A needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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 Fujian Jinsen Forestry A supply chain. Even after few cautionary changes, Fujian Jinsen Forestry A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fujian Jinsen Forestry A vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Fujian Jinsen Forestry 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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Fujian Jinsen Forestry A 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 Forestry & Wood Products industry using digital technology.
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.
Employees’ less understanding of Fujian Jinsen Forestry A strategy
– From the outside it seems that the employees of Fujian Jinsen Forestry 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.
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.
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 -
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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fujian Jinsen Forestry 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 Forestry & Wood Products industry, and it will provide faster access to the consumers.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fujian Jinsen Forestry A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Fujian Jinsen Forestry A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Fujian Jinsen Forestry A to increase its market reach. Fujian Jinsen Forestry 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.
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.
Using analytics as competitive advantage
– Fujian Jinsen Forestry A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Forestry & Wood Products sector. This continuous investment in analytics has enabled Fujian Jinsen Forestry A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fujian Jinsen Forestry A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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 -
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.
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.
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.
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 Fujian Jinsen Forestry A.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Forestry & Wood Products industry are lowering. It can presents Fujian Jinsen Forestry A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Forestry & Wood Products sector.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Fujian Jinsen Forestry A has witnessed rapid integration of technology during Covid-19 in the Forestry & Wood Products industry. As one of the leading players in the industry, Fujian Jinsen Forestry A needs to keep up with the evolution of technology in the Forestry & Wood Products 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.
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.
Stagnating economy with rate increase
– Fujian Jinsen Forestry 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 Forestry & Wood Products industry.
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.
Consumer confidence and its impact on Fujian Jinsen Forestry 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 Forestry & Wood Products industry and other sectors.
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.
