Based on various researches at Oak Spring University , Anhui Shengyun Environment Protect is operating in a macro-environment that has been destablized by – wage bills are increasing, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation, technology disruption, supply chains are disrupted by pandemic , increasing energy prices,
challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Anhui Shengyun Environment Protect
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Anhui Shengyun Environment Protect can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anhui Shengyun Environment Protect, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect can be done for the following purposes –
1. Strategic planning of Anhui Shengyun Environment Protect
2. Improving business portfolio management of Anhui Shengyun Environment Protect
3. Assessing feasibility of the new initiative in China
4. Making a Waste Management Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anhui Shengyun Environment Protect
Strengths of Anhui Shengyun Environment Protect | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anhui Shengyun Environment Protect are -
Highly skilled collaborators
– Anhui Shengyun Environment Protect has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Waste Management Services industry. Secondly the value chain collaborators of Anhui Shengyun Environment Protect have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management in the Waste Management Services industry
– Anhui Shengyun Environment Protect is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Anhui Shengyun Environment Protect
– The covid-19 pandemic has put organizational resilience at the centre of everthing Anhui Shengyun Environment Protect does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Anhui Shengyun Environment Protect is one of the most innovative firm in Waste Management Services sector.
Training and development
– Anhui Shengyun Environment Protect 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.
Ability to lead change in Waste Management Services
– Anhui Shengyun Environment Protect is one of the leading players in the Waste Management Services industry in China. Over the years it has not only transformed the business landscape in the Waste Management Services industry in China but also across the existing markets. The ability to lead change has enabled Anhui Shengyun Environment Protect in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Waste Management Services industry
– Anhui Shengyun Environment Protect has clearly differentiated products in the market place. This has enabled Anhui Shengyun Environment Protect to fetch slight price premium compare to the competitors in the Waste Management Services industry. The sustainable margins have also helped Anhui Shengyun Environment Protect to invest into research and development (R&D) and innovation.
Digital Transformation in Waste Management Services industry
- digital transformation varies from industry to industry. For Anhui Shengyun Environment Protect digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Anhui Shengyun Environment Protect 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.
Analytics focus
– Anhui Shengyun Environment Protect 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 Waste Management 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.
Effective Research and Development (R&D)
– Anhui Shengyun Environment Protect has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Anhui Shengyun Environment Protect staying ahead in the Waste Management Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Anhui Shengyun Environment Protect 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
- Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Anhui Shengyun Environment Protect emphasize – knowledge, initiative, and innovation.
Weaknesses of Anhui Shengyun Environment Protect | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Anhui Shengyun Environment Protect are -
High cash cycle compare to competitors
Anhui Shengyun Environment Protect has a high cash cycle compare to other players in the Waste Management 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.
Workers concerns about automation
– As automation is fast increasing in the Waste Management Services industry, Anhui Shengyun Environment Protect needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Anhui Shengyun Environment Protect 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 Waste Management Services industry using digital technology.
Aligning sales with marketing
– From the outside it seems that Anhui Shengyun Environment Protect needs to have more collaboration between its sales team and marketing team. Sales professionals in the Waste Management Services industry have deep experience in developing customer relationships. Marketing department at Anhui Shengyun Environment Protect can leverage the sales team experience to cultivate customer relationships as Anhui Shengyun Environment Protect is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Anhui Shengyun Environment Protect is one of the leading players in the Waste Management Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Waste Management Services industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Anhui Shengyun Environment Protect is dominated by functional specialists. It is not different from other players in the Waste Management Services industry, but Anhui Shengyun Environment Protect needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Anhui Shengyun Environment Protect to focus more on services in the Waste Management Services industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Anhui Shengyun Environment Protect is just above the Waste Management Services industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative at Anhui Shengyun Environment Protect, in the dynamic environment of Waste Management Services industry it has struggled to respond to the nimble upstart competition. Anhui Shengyun Environment Protect has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of China, Anhui Shengyun Environment Protect needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Anhui Shengyun Environment Protect 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Anhui Shengyun Environment Protect is slow explore the new channels of communication. These new channels of communication can help Anhui Shengyun Environment Protect to provide better information regarding Waste Management Services products and services. It can also build an online community to further reach out to potential customers.
Anhui Shengyun Environment Protect Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Anhui Shengyun Environment Protect are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Waste Management Services industry, but it has also influenced the consumer preferences. Anhui Shengyun Environment Protect can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Anhui Shengyun Environment Protect has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Waste Management Services sector. This continuous investment in analytics has enabled Anhui Shengyun Environment Protect to build a competitive advantage using analytics. The analytics driven competitive advantage can help Anhui Shengyun Environment Protect to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Anhui Shengyun Environment Protect can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anhui Shengyun Environment Protect in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Waste Management Services industry, and it will provide faster access to the consumers.
Buying journey improvements
– Anhui Shengyun Environment Protect can improve the customer journey of consumers in the Waste Management 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.
Better consumer reach
– The expansion of the 5G network will help Anhui Shengyun Environment Protect to increase its market reach. Anhui Shengyun Environment Protect 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 Waste Management Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Anhui Shengyun Environment Protect in the Waste Management Services industry. Now Anhui Shengyun Environment Protect can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Anhui Shengyun Environment Protect can use the latest technology developments to improve its manufacturing and designing process in Waste Management 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Anhui Shengyun Environment Protect can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Anhui Shengyun Environment Protect 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anhui Shengyun Environment Protect can use these opportunities to build new business models that can help the communities that Anhui Shengyun Environment Protect operates in. Secondly it can use opportunities from government spending in Waste Management Services sector.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Waste Management Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Anhui Shengyun Environment Protect 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. Anhui Shengyun Environment Protect 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Anhui Shengyun Environment Protect are -
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 Anhui Shengyun Environment Protect.
Environmental challenges
– Anhui Shengyun Environment Protect 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. Anhui Shengyun Environment Protect can take advantage of this fund but it will also bring new competitors in the Waste Management Services industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect prominent markets.
Consumer confidence and its impact on Anhui Shengyun Environment Protect 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 Waste Management Services industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Anhui Shengyun Environment Protect has witnessed rapid integration of technology during Covid-19 in the Waste Management Services industry. As one of the leading players in the industry, Anhui Shengyun Environment Protect needs to keep up with the evolution of technology in the Waste Management 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.
Increasing wage structure of Anhui Shengyun Environment Protect
– 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 Anhui Shengyun Environment Protect.
High dependence on third party suppliers
– Anhui Shengyun Environment Protect 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
– Anhui Shengyun Environment Protect 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 Waste Management Services industry regulations.
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. Anhui Shengyun Environment Protect needs to understand the core reasons impacting the Waste Management Services industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Waste Management Services industry are lowering. It can presents Anhui Shengyun Environment Protect with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Waste Management Services sector.
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. Anhui Shengyun Environment Protect 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Anhui Shengyun Environment Protect in Waste Management Services industry. The Waste Management Services 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.
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.
Weighted SWOT Analysis of Anhui Shengyun Environment Protect Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect needs to make to build a sustainable competitive advantage.
