Pingzhuang Ener A (780) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Pingzhuang Ener A (China)

Based on various researches at Oak Spring University , Pingzhuang Ener A is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of Pingzhuang Ener A

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Pingzhuang Ener A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pingzhuang Ener A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pingzhuang Ener A operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Pingzhuang Ener A can be done for the following purposes –
1. Strategic planning of Pingzhuang Ener A
2. Improving business portfolio management of Pingzhuang Ener A
3. Assessing feasibility of the new initiative in China
4. Making a Coal sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pingzhuang Ener A

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Strengths of Pingzhuang Ener A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Pingzhuang Ener A are -

Low bargaining power of suppliers

– Suppliers of Pingzhuang Ener A in the Energy sector have low bargaining power. Pingzhuang Ener A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pingzhuang Ener A to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy of Pingzhuang Ener A comprises – understanding the underlying the factors in the Coal 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.

Diverse revenue streams

– Pingzhuang Ener A is present in almost all the verticals within the Coal industry. This has provided Pingzhuang Ener A 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.

Training and development

– Pingzhuang Ener A has one of the best training and development program in Energy 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.

Highly skilled collaborators

– Pingzhuang Ener A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Coal industry. Secondly the value chain collaborators of Pingzhuang Ener A have helped the firm to develop new products and bring them quickly to the marketplace.

Innovation driven organization

– Pingzhuang Ener A is one of the most innovative firm in Coal sector.

Organizational Resilience of Pingzhuang Ener A

– The covid-19 pandemic has put organizational resilience at the centre of everthing Pingzhuang Ener A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Learning organization

- Pingzhuang Ener A 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 Pingzhuang Ener A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Pingzhuang Ener A emphasize – knowledge, initiative, and innovation.

Superior customer experience

– The customer experience strategy of Pingzhuang Ener A in Coal industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to recruit top talent

– Pingzhuang Ener A is one of the leading players in the Coal 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.

Sustainable margins compare to other players in Coal industry

– Pingzhuang Ener A has clearly differentiated products in the market place. This has enabled Pingzhuang Ener A to fetch slight price premium compare to the competitors in the Coal industry. The sustainable margins have also helped Pingzhuang Ener A to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Pingzhuang Ener A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pingzhuang Ener A has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

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Weaknesses of Pingzhuang Ener A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Pingzhuang Ener A are -

Skills based hiring in Coal industry

– The stress on hiring functional specialists at Pingzhuang Ener A 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 Pingzhuang Ener A has some of the most successful models in the Coal industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Pingzhuang Ener A should strive to include more intangible value offerings along with its core products and services.

Employees’ less understanding of Pingzhuang Ener A strategy

– From the outside it seems that the employees of Pingzhuang Ener A don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

No frontier risks strategy

– From the 10K / annual statement of Pingzhuang Ener A, it seems that company is thinking out the frontier risks that can impact Coal industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High dependence on Pingzhuang Ener A ‘s star products

– The top 2 products and services of Pingzhuang Ener A still accounts for major business revenue. This dependence on star products in Coal industry has resulted into insufficient focus on developing new products, even though Pingzhuang Ener A has relatively successful track record of launching new products.

Increasing silos among functional specialists

– The organizational structure of Pingzhuang Ener A is dominated by functional specialists. It is not different from other players in the Coal industry, but Pingzhuang Ener A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pingzhuang Ener A to focus more on services in the Coal industry rather than just following the product oriented approach.

Slow to strategic competitive environment developments

– As Pingzhuang Ener A is one of the leading players in the Coal industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Coal industry in last five years.

High bargaining power of channel partners in Coal industry

– because of the regulatory requirements in China, Pingzhuang Ener A is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Coal industry.

Capital Spending Reduction

– Even during the low interest decade, Pingzhuang Ener A has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Coal industry using digital technology.

Need for greater diversity

– Pingzhuang Ener A has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Slow decision making process

– As mentioned earlier in the report, Pingzhuang Ener A has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Coal industry over the last five years. Pingzhuang Ener A even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

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Pingzhuang Ener A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Pingzhuang Ener A are -

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pingzhuang Ener A can use these opportunities to build new business models that can help the communities that Pingzhuang Ener A operates in. Secondly it can use opportunities from government spending in Coal sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Pingzhuang Ener A can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Pingzhuang Ener A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Building a culture of innovation

– managers at Pingzhuang Ener A can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Coal industry.

Using analytics as competitive advantage

– Pingzhuang Ener A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Coal sector. This continuous investment in analytics has enabled Pingzhuang Ener A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pingzhuang Ener A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Buying journey improvements

– Pingzhuang Ener A can improve the customer journey of consumers in the Coal 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Pingzhuang Ener A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Coal industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pingzhuang Ener A 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. Pingzhuang Ener A 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.

Manufacturing automation

– Pingzhuang Ener A can use the latest technology developments to improve its manufacturing and designing process in Coal 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.

Creating value in data economy

– The success of analytics program of Pingzhuang Ener A has opened avenues for new revenue streams for the organization in Coal industry. This can help Pingzhuang Ener A to build a more holistic ecosystem for Pingzhuang Ener A products in the Coal industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Pingzhuang Ener A can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Use of Bitcoin and other crypto currencies for transactions in Coal industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pingzhuang Ener A in the Coal industry. Now Pingzhuang Ener A can target international markets with far fewer capital restrictions requirements than the existing system.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Coal industry, but it has also influenced the consumer preferences. Pingzhuang Ener A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pingzhuang Ener A to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Pingzhuang Ener A to hire the very best people irrespective of their geographical location.

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Threats Pingzhuang Ener A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Pingzhuang Ener A are -

Easy access to finance

– Easy access to finance in Coal industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Pingzhuang Ener A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

High dependence on third party suppliers

– Pingzhuang Ener A high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Pingzhuang Ener A in Coal industry. The Coal 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.

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. Pingzhuang Ener A needs to understand the core reasons impacting the Coal industry. This will help it in building a better workplace.

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.

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 Pingzhuang Ener A.

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 Pingzhuang Ener A business can come under increasing regulations regarding data privacy, data security, etc.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Coal industry are lowering. It can presents Pingzhuang Ener A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Coal sector.

Environmental challenges

– Pingzhuang Ener A 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. Pingzhuang Ener A can take advantage of this fund but it will also bring new competitors in the Coal industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Pingzhuang Ener A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Coal sector.

Shortening product life cycle

– it is one of the major threat that Pingzhuang Ener A is facing in Coal sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Consumer confidence and its impact on Pingzhuang Ener A demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Coal industry and other sectors.

Regulatory challenges

– Pingzhuang Ener A 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 Coal industry regulations.

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Weighted SWOT Analysis of Pingzhuang Ener A Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Pingzhuang Ener A needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of Pingzhuang Ener A is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of Pingzhuang Ener A is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Pingzhuang Ener A to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pingzhuang Ener A needs to make to build a sustainable competitive advantage.

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