Suzhou Kelida Building & Decoration (603828) SWOT Analysis / TOWS Matrix / MBA Resources
Construction Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Suzhou Kelida Building & Decoration (China)
Based on various researches at Oak Spring University , Suzhou Kelida Building & Decoration is operating in a macro-environment that has been destablized by – there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, increasing energy prices,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Suzhou Kelida Building & Decoration
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Suzhou Kelida Building & Decoration can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Suzhou Kelida Building & Decoration, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration can be done for the following purposes –
1. Strategic planning of Suzhou Kelida Building & Decoration
2. Improving business portfolio management of Suzhou Kelida Building & Decoration
3. Assessing feasibility of the new initiative in China
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Suzhou Kelida Building & Decoration
Strengths of Suzhou Kelida Building & Decoration | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Suzhou Kelida Building & Decoration are -
Strong track record of project management in the Construction Services industry
– Suzhou Kelida Building & Decoration is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Suzhou Kelida Building & Decoration has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Suzhou Kelida Building & Decoration to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Suzhou Kelida Building & Decoration has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Suzhou Kelida Building & Decoration 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.
Cross disciplinary teams
– Horizontal connected teams at the Suzhou Kelida Building & Decoration are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– Suzhou Kelida Building & Decoration is one of the most innovative firm in Construction Services sector.
Sustainable margins compare to other players in Construction Services industry
– Suzhou Kelida Building & Decoration has clearly differentiated products in the market place. This has enabled Suzhou Kelida Building & Decoration to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Suzhou Kelida Building & Decoration to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Suzhou Kelida Building & Decoration is present in almost all the verticals within the Construction Services industry. This has provided Suzhou Kelida Building & Decoration 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 recruit top talent
– Suzhou Kelida Building & Decoration is one of the leading players in the Construction Services 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.
Learning organization
- Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Suzhou Kelida Building & Decoration emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Suzhou Kelida Building & Decoration
– The covid-19 pandemic has put organizational resilience at the centre of everthing Suzhou Kelida Building & Decoration does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Suzhou Kelida Building & Decoration has one of the best training and development program in Capital Goods 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.
Superior customer experience
– The customer experience strategy of Suzhou Kelida Building & Decoration in Construction Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Suzhou Kelida Building & Decoration | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Suzhou Kelida Building & Decoration are -
Skills based hiring in Construction Services industry
– The stress on hiring functional specialists at Suzhou Kelida Building & Decoration 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.
Low market penetration in new markets
– Outside its home market of China, Suzhou Kelida Building & Decoration needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ less understanding of Suzhou Kelida Building & Decoration strategy
– From the outside it seems that the employees of Suzhou Kelida Building & Decoration 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.
Lack of clear differentiation of Suzhou Kelida Building & Decoration products
– To increase the profitability and margins on the products, Suzhou Kelida Building & Decoration needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Suzhou Kelida Building & Decoration is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Suzhou Kelida Building & Decoration needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Suzhou Kelida Building & Decoration to focus more on services in the Construction Services industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Suzhou Kelida Building & Decoration is slow explore the new channels of communication. These new channels of communication can help Suzhou Kelida Building & Decoration to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
High dependence on Suzhou Kelida Building & Decoration ‘s star products
– The top 2 products and services of Suzhou Kelida Building & Decoration still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Suzhou Kelida Building & Decoration has relatively successful track record of launching new products.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Suzhou Kelida Building & Decoration supply chain. Even after few cautionary changes, Suzhou Kelida Building & Decoration is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Suzhou Kelida Building & Decoration vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Suzhou Kelida Building & Decoration has some of the most successful models in the Construction Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Suzhou Kelida Building & Decoration should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that Suzhou Kelida Building & Decoration needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Suzhou Kelida Building & Decoration can leverage the sales team experience to cultivate customer relationships as Suzhou Kelida Building & Decoration is planning to shift buying processes online.
High cash cycle compare to competitors
Suzhou Kelida Building & Decoration has a high cash cycle compare to other players in the Construction 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.
Suzhou Kelida Building & Decoration Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Suzhou Kelida Building & Decoration are -
Use of Bitcoin and other crypto currencies for transactions in Construction Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Suzhou Kelida Building & Decoration in the Construction Services industry. Now Suzhou Kelida Building & Decoration can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Suzhou Kelida Building & Decoration 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. Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration to increase its market reach. Suzhou Kelida Building & Decoration 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Suzhou Kelida Building & Decoration can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Suzhou Kelida Building & Decoration 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Suzhou Kelida Building & Decoration 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. Suzhou Kelida Building & Decoration 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Suzhou Kelida Building & Decoration is facing challenges because of the dominance of functional experts in the organization. Suzhou Kelida Building & Decoration can utilize new technology in the field of Construction Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Suzhou Kelida Building & Decoration in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.
Developing new processes and practices
– Suzhou Kelida Building & Decoration can develop new processes and procedures in Construction Services industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Construction Services industry, but it has also influenced the consumer preferences. Suzhou Kelida Building & Decoration can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Suzhou Kelida Building & Decoration External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Suzhou Kelida Building & Decoration are -
High dependence on third party suppliers
– Suzhou Kelida Building & Decoration 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.
Consumer confidence and its impact on Suzhou Kelida Building & Decoration 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 Construction Services industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Suzhou Kelida Building & Decoration with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration prominent markets.
Shortening product life cycle
– it is one of the major threat that Suzhou Kelida Building & Decoration is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Suzhou Kelida Building & Decoration 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. Suzhou Kelida Building & Decoration can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Technology acceleration in Forth Industrial Revolution
– Suzhou Kelida Building & Decoration has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Suzhou Kelida Building & Decoration needs to keep up with the evolution of technology in the Construction 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.
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 Suzhou Kelida Building & Decoration in the Construction Services sector and impact the bottomline of the organization.
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 Suzhou Kelida Building & Decoration.
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. Suzhou Kelida Building & Decoration 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Suzhou Kelida Building & Decoration may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Construction Services sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Suzhou Kelida Building & Decoration in Construction Services industry. The Construction 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.
Increasing wage structure of Suzhou Kelida Building & Decoration
– 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 Suzhou Kelida Building & Decoration.
Weighted SWOT Analysis of Suzhou Kelida Building & Decoration Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration 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 Suzhou Kelida Building & Decoration needs to make to build a sustainable competitive advantage.