Based on various researches at Oak Spring University , Shenzhen Prolto Supply Chain Manage is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing energy prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Shenzhen Prolto Supply Chain Manage
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shenzhen Prolto Supply Chain Manage can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shenzhen Prolto Supply Chain Manage, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage can be done for the following purposes –
1. Strategic planning of Shenzhen Prolto Supply Chain Manage
2. Improving business portfolio management of Shenzhen Prolto Supply Chain Manage
3. Assessing feasibility of the new initiative in China
4. Making a Business Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shenzhen Prolto Supply Chain Manage
Strengths of Shenzhen Prolto Supply Chain Manage | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shenzhen Prolto Supply Chain Manage are -
Diverse revenue streams
– Shenzhen Prolto Supply Chain Manage is present in almost all the verticals within the Business Services industry. This has provided Shenzhen Prolto Supply Chain Manage 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.
High switching costs
– The high switching costs that Shenzhen Prolto Supply Chain Manage 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.
Innovation driven organization
– Shenzhen Prolto Supply Chain Manage is one of the most innovative firm in Business Services sector.
Highly skilled collaborators
– Shenzhen Prolto Supply Chain Manage has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Business Services industry. Secondly the value chain collaborators of Shenzhen Prolto Supply Chain Manage have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Shenzhen Prolto Supply Chain Manage 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.
Analytics focus
– Shenzhen Prolto Supply Chain Manage 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 Business 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.
Ability to lead change in Business Services
– Shenzhen Prolto Supply Chain Manage is one of the leading players in the Business Services industry in China. Over the years it has not only transformed the business landscape in the Business Services industry in China but also across the existing markets. The ability to lead change has enabled Shenzhen Prolto Supply Chain Manage in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Shenzhen Prolto Supply Chain Manage in Business Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Shenzhen Prolto Supply Chain Manage in the Services sector have low bargaining power. Shenzhen Prolto Supply Chain Manage has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shenzhen Prolto Supply Chain Manage to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Business Services industry
- digital transformation varies from industry to industry. For Shenzhen Prolto Supply Chain Manage digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shenzhen Prolto Supply Chain Manage 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.
Organizational Resilience of Shenzhen Prolto Supply Chain Manage
– The covid-19 pandemic has put organizational resilience at the centre of everthing Shenzhen Prolto Supply Chain Manage does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Shenzhen Prolto Supply Chain Manage has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Shenzhen Prolto Supply Chain Manage staying ahead in the Business Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Shenzhen Prolto Supply Chain Manage | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shenzhen Prolto Supply Chain Manage are -
High bargaining power of channel partners in Business Services industry
– because of the regulatory requirements in China, Shenzhen Prolto Supply Chain Manage 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 Business Services industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Shenzhen Prolto Supply Chain Manage is slow explore the new channels of communication. These new channels of communication can help Shenzhen Prolto Supply Chain Manage to provide better information regarding Business Services products and services. It can also build an online community to further reach out to potential customers.
High dependence on Shenzhen Prolto Supply Chain Manage ‘s star products
– The top 2 products and services of Shenzhen Prolto Supply Chain Manage still accounts for major business revenue. This dependence on star products in Business Services industry has resulted into insufficient focus on developing new products, even though Shenzhen Prolto Supply Chain Manage has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Shenzhen Prolto Supply Chain Manage 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 Business Services industry using digital technology.
Products dominated business model
– Even though Shenzhen Prolto Supply Chain Manage has some of the most successful models in the Business Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Shenzhen Prolto Supply Chain Manage should strive to include more intangible value offerings along with its core products and services.
Skills based hiring in Business Services industry
– The stress on hiring functional specialists at Shenzhen Prolto Supply Chain Manage 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.
Increasing silos among functional specialists
– The organizational structure of Shenzhen Prolto Supply Chain Manage is dominated by functional specialists. It is not different from other players in the Business Services industry, but Shenzhen Prolto Supply Chain Manage needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shenzhen Prolto Supply Chain Manage to focus more on services in the Business Services industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Shenzhen Prolto Supply Chain Manage has high operating costs in the Business Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shenzhen Prolto Supply Chain Manage lucrative customers.
Compensation and incentives
– The revenue per employee of Shenzhen Prolto Supply Chain Manage is just above the Business 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.
Need for greater diversity
– Shenzhen Prolto Supply Chain Manage 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 to strategic competitive environment developments
– As Shenzhen Prolto Supply Chain Manage is one of the leading players in the Business Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Business Services industry in last five years.
Shenzhen Prolto Supply Chain Manage Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shenzhen Prolto Supply Chain Manage are -
Loyalty marketing
– Shenzhen Prolto Supply Chain Manage 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.
Learning at scale
– Online learning technologies has now opened space for Shenzhen Prolto Supply Chain Manage 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.
Building a culture of innovation
– managers at Shenzhen Prolto Supply Chain Manage 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 Business Services industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Business Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Shenzhen Prolto Supply Chain Manage 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. Shenzhen Prolto Supply Chain Manage 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.
Creating value in data economy
– The success of analytics program of Shenzhen Prolto Supply Chain Manage has opened avenues for new revenue streams for the organization in Business Services industry. This can help Shenzhen Prolto Supply Chain Manage to build a more holistic ecosystem for Shenzhen Prolto Supply Chain Manage products in the Business Services 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, Shenzhen Prolto Supply Chain Manage 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.
Buying journey improvements
– Shenzhen Prolto Supply Chain Manage can improve the customer journey of consumers in the Business 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Business Services industry, but it has also influenced the consumer preferences. Shenzhen Prolto Supply Chain Manage can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shenzhen Prolto Supply Chain Manage is facing challenges because of the dominance of functional experts in the organization. Shenzhen Prolto Supply Chain Manage can utilize new technology in the field of Business Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Shenzhen Prolto Supply Chain Manage can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Shenzhen Prolto Supply Chain Manage 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shenzhen Prolto Supply Chain Manage can use these opportunities to build new business models that can help the communities that Shenzhen Prolto Supply Chain Manage operates in. Secondly it can use opportunities from government spending in Business Services sector.
Threats Shenzhen Prolto Supply Chain Manage External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shenzhen Prolto Supply Chain Manage are -
Increasing wage structure of Shenzhen Prolto Supply Chain Manage
– 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 Shenzhen Prolto Supply Chain Manage.
Technology acceleration in Forth Industrial Revolution
– Shenzhen Prolto Supply Chain Manage has witnessed rapid integration of technology during Covid-19 in the Business Services industry. As one of the leading players in the industry, Shenzhen Prolto Supply Chain Manage needs to keep up with the evolution of technology in the Business 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Business Services industry are lowering. It can presents Shenzhen Prolto Supply Chain Manage with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Business Services sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage prominent markets.
Environmental challenges
– Shenzhen Prolto Supply Chain Manage 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. Shenzhen Prolto Supply Chain Manage can take advantage of this fund but it will also bring new competitors in the Business Services industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Shenzhen Prolto Supply Chain Manage may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Business Services sector.
Regulatory challenges
– Shenzhen Prolto Supply Chain Manage 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 Business Services industry regulations.
Easy access to finance
– Easy access to finance in Business Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shenzhen Prolto Supply Chain Manage can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Shenzhen Prolto Supply Chain Manage needs to understand the core reasons impacting the Business Services industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Shenzhen Prolto Supply Chain Manage is facing in Business Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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 Shenzhen Prolto Supply Chain Manage in the Business Services sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Shenzhen Prolto Supply Chain Manage 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 Business Services industry.
Weighted SWOT Analysis of Shenzhen Prolto Supply Chain Manage Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage 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 Shenzhen Prolto Supply Chain Manage needs to make to build a sustainable competitive advantage.