Based on various researches at Oak Spring University , Beijing Jiaxun Feihong Electrical is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, wage bills are increasing, increasing energy prices, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic ,
technology disruption, there is backlash against globalization, etc
Introduction to SWOT Analysis of Beijing Jiaxun Feihong Electrical
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Beijing Jiaxun Feihong Electrical can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Jiaxun Feihong Electrical, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical can be done for the following purposes –
1. Strategic planning of Beijing Jiaxun Feihong Electrical
2. Improving business portfolio management of Beijing Jiaxun Feihong Electrical
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 Beijing Jiaxun Feihong Electrical
Strengths of Beijing Jiaxun Feihong Electrical | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beijing Jiaxun Feihong Electrical are -
Cross disciplinary teams
– Horizontal connected teams at the Beijing Jiaxun Feihong Electrical 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.
Organizational Resilience of Beijing Jiaxun Feihong Electrical
– The covid-19 pandemic has put organizational resilience at the centre of everthing Beijing Jiaxun Feihong Electrical does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Beijing Jiaxun Feihong Electrical in the Services sector have low bargaining power. Beijing Jiaxun Feihong Electrical has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beijing Jiaxun Feihong Electrical to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Beijing Jiaxun Feihong Electrical 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.
Innovation driven organization
– Beijing Jiaxun Feihong Electrical is one of the most innovative firm in Security Systems & Services sector.
Diverse revenue streams
– Beijing Jiaxun Feihong Electrical is present in almost all the verticals within the Security Systems & Services industry. This has provided Beijing Jiaxun Feihong Electrical 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
– Beijing Jiaxun Feihong Electrical 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
– Beijing Jiaxun Feihong Electrical has clearly differentiated products in the market place. This has enabled Beijing Jiaxun Feihong Electrical to fetch slight price premium compare to the competitors in the Security Systems & Services industry. The sustainable margins have also helped Beijing Jiaxun Feihong Electrical to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Beijing Jiaxun Feihong Electrical has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beijing Jiaxun Feihong Electrical 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.
Operational resilience
– The operational resilience strategy of Beijing Jiaxun Feihong Electrical 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.
High switching costs
– The high switching costs that Beijing Jiaxun Feihong Electrical 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.
Training and development
– Beijing Jiaxun Feihong Electrical 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.
Weaknesses of Beijing Jiaxun Feihong Electrical | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Beijing Jiaxun Feihong Electrical are -
High dependence on Beijing Jiaxun Feihong Electrical ‘s star products
– The top 2 products and services of Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Beijing Jiaxun Feihong Electrical is dominated by functional specialists. It is not different from other players in the Security Systems & Services industry, but Beijing Jiaxun Feihong Electrical needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Beijing Jiaxun Feihong Electrical to focus more on services in the Security Systems & Services industry rather than just following the product oriented approach.
High bargaining power of channel partners in Security Systems & Services industry
– because of the regulatory requirements in China, Beijing Jiaxun Feihong Electrical 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 Security Systems & Services industry.
Low market penetration in new markets
– Outside its home market of China, Beijing Jiaxun Feihong Electrical needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical can leverage the sales team experience to cultivate customer relationships as Beijing Jiaxun Feihong Electrical is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Beijing Jiaxun Feihong Electrical is slow explore the new channels of communication. These new channels of communication can help Beijing Jiaxun Feihong Electrical 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.
Skills based hiring in Security Systems & Services industry
– The stress on hiring functional specialists at Beijing Jiaxun Feihong Electrical 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.
Products dominated business model
– Even though Beijing Jiaxun Feihong Electrical 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. Beijing Jiaxun Feihong Electrical should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Beijing Jiaxun Feihong Electrical 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 cash cycle compare to competitors
Beijing Jiaxun Feihong Electrical has a high cash cycle compare to other players in the Security Systems & Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 Beijing Jiaxun Feihong Electrical supply chain. Even after few cautionary changes, Beijing Jiaxun Feihong Electrical is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beijing Jiaxun Feihong Electrical vulnerable to further global disruptions in South East Asia.
Beijing Jiaxun Feihong Electrical Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Beijing Jiaxun Feihong Electrical are -
Buying journey improvements
– Beijing Jiaxun Feihong Electrical 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.
Creating value in data economy
– The success of analytics program of Beijing Jiaxun Feihong Electrical has opened avenues for new revenue streams for the organization in Security Systems & Services industry. This can help Beijing Jiaxun Feihong Electrical to build a more holistic ecosystem for Beijing Jiaxun Feihong Electrical products in the Security Systems & Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Security Systems & Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Beijing Jiaxun Feihong Electrical in the Security Systems & Services industry. Now Beijing Jiaxun Feihong Electrical can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Beijing Jiaxun Feihong Electrical 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Beijing Jiaxun Feihong Electrical in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Security Systems & Services industry, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Jiaxun Feihong Electrical can use these opportunities to build new business models that can help the communities that Beijing Jiaxun Feihong Electrical operates in. Secondly it can use opportunities from government spending in Security Systems & Services sector.
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. Beijing Jiaxun Feihong Electrical 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. Beijing Jiaxun Feihong Electrical 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Beijing Jiaxun Feihong Electrical is facing challenges because of the dominance of functional experts in the organization. Beijing Jiaxun Feihong Electrical 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.
Manufacturing automation
– Beijing Jiaxun Feihong Electrical can use the latest technology developments to improve its manufacturing and designing process in Security Systems & Services 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.
Learning at scale
– Online learning technologies has now opened space for Beijing Jiaxun Feihong Electrical 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.
Threats Beijing Jiaxun Feihong Electrical External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Beijing Jiaxun Feihong Electrical are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Security Systems & Services industry are lowering. It can presents Beijing Jiaxun Feihong Electrical 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Beijing Jiaxun Feihong Electrical 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.
Shortening product life cycle
– it is one of the major threat that Beijing Jiaxun Feihong Electrical is facing in Security Systems & Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Beijing Jiaxun Feihong Electrical business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Security Systems & Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Beijing Jiaxun Feihong Electrical can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Beijing Jiaxun Feihong Electrical has witnessed rapid integration of technology during Covid-19 in the Security Systems & Services industry. As one of the leading players in the industry, Beijing Jiaxun Feihong Electrical needs to keep up with the evolution of technology in the Security Systems & Services sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Beijing Jiaxun Feihong Electrical 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.
Regulatory challenges
– Beijing Jiaxun Feihong Electrical 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.
Consumer confidence and its impact on Beijing Jiaxun Feihong Electrical 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.
Environmental challenges
– Beijing Jiaxun Feihong Electrical 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. Beijing Jiaxun Feihong Electrical can take advantage of this fund but it will also bring new competitors in the Security Systems & Services industry.
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.
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 Beijing Jiaxun Feihong Electrical in the Security Systems & Services sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Beijing Jiaxun Feihong Electrical Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical 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 Beijing Jiaxun Feihong Electrical needs to make to build a sustainable competitive advantage.
