Based on various researches at Oak Spring University , Anhui Shengyun Environment Protect is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing energy prices, technology disruption,
talent flight as more people leaving formal jobs, increasing commodity prices, 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 -
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.
Innovation driven organization
– Anhui Shengyun Environment Protect is one of the most innovative firm in Waste Management Services sector.
Diverse revenue streams
– Anhui Shengyun Environment Protect is present in almost all the verticals within the Waste Management Services industry. This has provided Anhui Shengyun Environment Protect 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.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Anhui Shengyun Environment Protect in the Services sector have low bargaining power. Anhui Shengyun Environment Protect has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anhui Shengyun Environment Protect to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Anhui Shengyun Environment Protect in Waste Management Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Operational resilience
– The operational resilience strategy of Anhui Shengyun Environment Protect comprises – understanding the underlying the factors in the Waste Management 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.
Successful track record of launching new products
– Anhui Shengyun Environment Protect has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anhui Shengyun Environment Protect 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.
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 operating costs
– Compare to the competitors, Anhui Shengyun Environment Protect has high operating costs in the Waste Management Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Anhui Shengyun Environment Protect lucrative customers.
Products dominated business model
– Even though Anhui Shengyun Environment Protect has some of the most successful models in the Waste Management Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Anhui Shengyun Environment Protect should strive to include more intangible value offerings along with its core products and services.
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.
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.
High bargaining power of channel partners in Waste Management Services industry
– because of the regulatory requirements in China, Anhui Shengyun Environment Protect 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 Waste Management Services industry.
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.
Lack of clear differentiation of Anhui Shengyun Environment Protect products
– To increase the profitability and margins on the products, Anhui Shengyun Environment Protect needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on Anhui Shengyun Environment Protect ‘s star products
– The top 2 products and services of Anhui Shengyun Environment Protect still accounts for major business revenue. This dependence on star products in Waste Management Services industry has resulted into insufficient focus on developing new products, even though Anhui Shengyun Environment Protect has relatively successful track record of launching new products.
Skills based hiring in Waste Management Services industry
– The stress on hiring functional specialists at Anhui Shengyun Environment Protect 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.
Slow decision making process
– As mentioned earlier in the report, Anhui Shengyun Environment Protect has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Waste Management Services industry over the last five years. Anhui Shengyun Environment Protect 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, Anhui Shengyun Environment Protect needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
Learning at scale
– Online learning technologies has now opened space for Anhui Shengyun Environment Protect 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.
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.
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.
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.
Leveraging digital technologies
– Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect 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 Anhui Shengyun Environment Protect to hire the very best people irrespective of their geographical location.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anhui Shengyun Environment Protect is facing challenges because of the dominance of functional experts in the organization. Anhui Shengyun Environment Protect can utilize new technology in the field of Waste Management Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Anhui Shengyun Environment Protect to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Anhui Shengyun Environment Protect has opened avenues for new revenue streams for the organization in Waste Management Services industry. This can help Anhui Shengyun Environment Protect to build a more holistic ecosystem for Anhui Shengyun Environment Protect products in the Waste Management Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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 -
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 Anhui Shengyun Environment Protect business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.
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.
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.
Shortening product life cycle
– it is one of the major threat that Anhui Shengyun Environment Protect is facing in Waste Management Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Anhui Shengyun Environment Protect 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 Waste Management Services industry.
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.
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.
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 Anhui Shengyun Environment Protect in the Waste Management Services sector and impact the bottomline of the organization.
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.
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.
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.