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, there is increasing trade war between United States & China, technology disruption, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
Innovation driven organization
– Fujian Jinsen Forestry A is one of the most innovative firm in Forestry & Wood Products sector.
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.
Cross disciplinary teams
– Horizontal connected teams at the Fujian Jinsen Forestry A are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
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 -
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.
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.
Products dominated business model
– Even though Fujian Jinsen Forestry A has some of the most successful models in the Forestry & Wood Products industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A, it seems that company is thinking out the frontier risks that can impact Forestry & Wood Products 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.
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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Fujian Jinsen Forestry 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 Forestry & Wood Products industry over the last five years. Fujian Jinsen Forestry 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fujian Jinsen Forestry 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fujian Jinsen Forestry 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 Fujian Jinsen Forestry A prominent markets.
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.
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.
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.
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.
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.
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.
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.
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.