Duzhe Publishing & Media (603999) SWOT Analysis / TOWS Matrix / MBA Resources
Printing & Publishing
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Duzhe Publishing & Media (China)
Based on various researches at Oak Spring University , Duzhe Publishing & Media is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, technology disruption,
central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Duzhe Publishing & Media
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Duzhe Publishing & Media can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Duzhe Publishing & Media, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Duzhe Publishing & Media 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 Duzhe Publishing & Media can be done for the following purposes –
1. Strategic planning of Duzhe Publishing & Media
2. Improving business portfolio management of Duzhe Publishing & Media
3. Assessing feasibility of the new initiative in China
4. Making a Printing & Publishing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Duzhe Publishing & Media
Strengths of Duzhe Publishing & Media | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Duzhe Publishing & Media are -
Successful track record of launching new products
– Duzhe Publishing & Media has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Duzhe Publishing & Media 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.
Digital Transformation in Printing & Publishing industry
- digital transformation varies from industry to industry. For Duzhe Publishing & Media digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Duzhe Publishing & Media 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.
High switching costs
– The high switching costs that Duzhe Publishing & Media 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.
Superior customer experience
– The customer experience strategy of Duzhe Publishing & Media in Printing & Publishing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Duzhe Publishing & Media is one of the leading players in the Printing & Publishing 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.
Organizational Resilience of Duzhe Publishing & Media
– The covid-19 pandemic has put organizational resilience at the centre of everthing Duzhe Publishing & Media does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of Duzhe Publishing & Media comprises – understanding the underlying the factors in the Printing & Publishing 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.
Effective Research and Development (R&D)
– Duzhe Publishing & Media has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Duzhe Publishing & Media staying ahead in the Printing & Publishing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Duzhe Publishing & Media has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Duzhe Publishing & Media to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Printing & Publishing
– Duzhe Publishing & Media is one of the leading players in the Printing & Publishing industry in China. Over the years it has not only transformed the business landscape in the Printing & Publishing industry in China but also across the existing markets. The ability to lead change has enabled Duzhe Publishing & Media in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management in the Printing & Publishing industry
– Duzhe Publishing & Media is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Duzhe Publishing & Media in the Services sector have low bargaining power. Duzhe Publishing & Media has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Duzhe Publishing & Media to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Duzhe Publishing & Media | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Duzhe Publishing & Media are -
High dependence on Duzhe Publishing & Media ‘s star products
– The top 2 products and services of Duzhe Publishing & Media still accounts for major business revenue. This dependence on star products in Printing & Publishing industry has resulted into insufficient focus on developing new products, even though Duzhe Publishing & Media has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Duzhe Publishing & Media is one of the leading players in the Printing & Publishing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Printing & Publishing industry in last five years.
Low market penetration in new markets
– Outside its home market of China, Duzhe Publishing & Media needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Duzhe Publishing & Media has some of the most successful models in the Printing & Publishing industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Duzhe Publishing & Media should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners in Printing & Publishing industry
– because of the regulatory requirements in China, Duzhe Publishing & Media 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 Printing & Publishing industry.
Slow decision making process
– As mentioned earlier in the report, Duzhe Publishing & Media has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Printing & Publishing industry over the last five years. Duzhe Publishing & Media 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.
No frontier risks strategy
– From the 10K / annual statement of Duzhe Publishing & Media, it seems that company is thinking out the frontier risks that can impact Printing & Publishing 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.
Ability to respond to the competition
– As the decision making is very deliberative at Duzhe Publishing & Media, in the dynamic environment of Printing & Publishing industry it has struggled to respond to the nimble upstart competition. Duzhe Publishing & Media has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Duzhe Publishing & Media 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.
Lack of clear differentiation of Duzhe Publishing & Media products
– To increase the profitability and margins on the products, Duzhe Publishing & Media needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring in Printing & Publishing industry
– The stress on hiring functional specialists at Duzhe Publishing & Media 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.
Duzhe Publishing & Media Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Duzhe Publishing & Media are -
Learning at scale
– Online learning technologies has now opened space for Duzhe Publishing & Media 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.
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. Duzhe Publishing & Media 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 Duzhe Publishing & Media has opened avenues for new revenue streams for the organization in Printing & Publishing industry. This can help Duzhe Publishing & Media to build a more holistic ecosystem for Duzhe Publishing & Media products in the Printing & Publishing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Duzhe Publishing & Media 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Printing & Publishing industry, but it has also influenced the consumer preferences. Duzhe Publishing & Media can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Duzhe Publishing & Media can develop new processes and procedures in Printing & Publishing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Duzhe Publishing & Media can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Duzhe Publishing & Media can use the latest technology developments to improve its manufacturing and designing process in Printing & Publishing 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Duzhe Publishing & Media 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 Duzhe Publishing & Media to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Duzhe Publishing & Media is facing challenges because of the dominance of functional experts in the organization. Duzhe Publishing & Media can utilize new technology in the field of Printing & Publishing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Duzhe Publishing & Media can use these opportunities to build new business models that can help the communities that Duzhe Publishing & Media operates in. Secondly it can use opportunities from government spending in Printing & Publishing sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Duzhe Publishing & Media 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.
Better consumer reach
– The expansion of the 5G network will help Duzhe Publishing & Media to increase its market reach. Duzhe Publishing & Media 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.
Threats Duzhe Publishing & Media External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Duzhe Publishing & Media are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Duzhe Publishing & Media in Printing & Publishing industry. The Printing & Publishing 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.
Consumer confidence and its impact on Duzhe Publishing & Media 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 Printing & Publishing industry and other sectors.
Stagnating economy with rate increase
– Duzhe Publishing & Media 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 Printing & Publishing industry.
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 Duzhe Publishing & Media.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Printing & Publishing industry are lowering. It can presents Duzhe Publishing & Media with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing & Publishing sector.
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 Duzhe Publishing & Media in the Printing & Publishing sector and impact the bottomline of the organization.
Regulatory challenges
– Duzhe Publishing & Media 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 Printing & Publishing industry regulations.
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. Duzhe Publishing & Media 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.
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. Duzhe Publishing & Media needs to understand the core reasons impacting the Printing & Publishing 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, Duzhe Publishing & Media 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 Duzhe Publishing & Media prominent markets.
Shortening product life cycle
– it is one of the major threat that Duzhe Publishing & Media is facing in Printing & Publishing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Duzhe Publishing & Media
– 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 Duzhe Publishing & Media.
Weighted SWOT Analysis of Duzhe Publishing & Media Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Duzhe Publishing & Media 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 Duzhe Publishing & Media 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 Duzhe Publishing & Media 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 Duzhe Publishing & Media 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 Duzhe Publishing & Media needs to make to build a sustainable competitive advantage.