ZhongTongGuoMai Communication (603559) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for ZhongTongGuoMai Communication (China)

Based on various researches at Oak Spring University , ZhongTongGuoMai Communication is operating in a macro-environment that has been destablized by – geopolitical disruptions, increasing commodity prices, talent flight as more people leaving formal jobs, wage bills are increasing, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, increasing energy prices, cloud computing is disrupting traditional business models, etc

---

---

---

---

Introduction to SWOT Analysis of ZhongTongGuoMai Communication

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ZhongTongGuoMai Communication can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ZhongTongGuoMai Communication, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication can be done for the following purposes –
1. Strategic planning of ZhongTongGuoMai Communication
2. Improving business portfolio management of ZhongTongGuoMai Communication
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 ZhongTongGuoMai Communication

---

Strengths of ZhongTongGuoMai Communication | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of ZhongTongGuoMai Communication are -

Training and development

– ZhongTongGuoMai Communication 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.

Highly skilled collaborators

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

Strong track record of project management in the Construction Services industry

– ZhongTongGuoMai Communication is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Sustainable margins compare to other players in Construction Services industry

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

Organizational Resilience of ZhongTongGuoMai Communication

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

Cross disciplinary teams

– Horizontal connected teams at the ZhongTongGuoMai Communication 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.

Ability to lead change in Construction Services

– ZhongTongGuoMai Communication is one of the leading players in the Construction Services industry in China. Over the years it has not only transformed the business landscape in the Construction Services industry in China but also across the existing markets. The ability to lead change has enabled ZhongTongGuoMai Communication in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Innovation driven organization

– ZhongTongGuoMai Communication is one of the most innovative firm in Construction Services sector.

Effective Research and Development (R&D)

– ZhongTongGuoMai Communication has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – ZhongTongGuoMai Communication staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to recruit top talent

– ZhongTongGuoMai Communication 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.

Diverse revenue streams

– ZhongTongGuoMai Communication is present in almost all the verticals within the Construction Services industry. This has provided ZhongTongGuoMai Communication 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 brand equity

– ZhongTongGuoMai Communication has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled ZhongTongGuoMai Communication to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

---

---

Weaknesses of ZhongTongGuoMai Communication | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of ZhongTongGuoMai Communication are -

Increasing silos among functional specialists

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

High bargaining power of channel partners in Construction Services industry

– because of the regulatory requirements in China, ZhongTongGuoMai Communication 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 Construction Services industry.

High dependence on ZhongTongGuoMai Communication ‘s star products

– The top 2 products and services of ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication has relatively successful track record of launching new products.

Interest costs

– Compare to the competition, ZhongTongGuoMai Communication has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Slow to strategic competitive environment developments

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

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 ZhongTongGuoMai Communication supply chain. Even after few cautionary changes, ZhongTongGuoMai Communication is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left ZhongTongGuoMai Communication vulnerable to further global disruptions in South East Asia.

Capital Spending Reduction

– Even during the low interest decade, ZhongTongGuoMai Communication 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 Construction Services industry using digital technology.

Need for greater diversity

– ZhongTongGuoMai Communication 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.

Employees’ less understanding of ZhongTongGuoMai Communication strategy

– From the outside it seems that the employees of ZhongTongGuoMai Communication 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.

Low market penetration in new markets

– Outside its home market of China, ZhongTongGuoMai Communication needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Products dominated business model

– Even though ZhongTongGuoMai Communication 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. ZhongTongGuoMai Communication should strive to include more intangible value offerings along with its core products and services.

---

ZhongTongGuoMai Communication Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of ZhongTongGuoMai Communication are -

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. ZhongTongGuoMai Communication can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for ZhongTongGuoMai Communication 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.

Using analytics as competitive advantage

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

Building a culture of innovation

– managers at ZhongTongGuoMai Communication 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 Construction Services industry.

Reforming the budgeting process

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

Low interest rates

– Even though inflation is raising its head in most developed economies, ZhongTongGuoMai Communication 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.

Creating value in data economy

– The success of analytics program of ZhongTongGuoMai Communication has opened avenues for new revenue streams for the organization in Construction Services industry. This can help ZhongTongGuoMai Communication to build a more holistic ecosystem for ZhongTongGuoMai Communication products in the Construction Services industry by providing – data insight services, data privacy related products, data based consulting services, 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, ZhongTongGuoMai Communication can use these opportunities to build new business models that can help the communities that ZhongTongGuoMai Communication operates in. Secondly it can use opportunities from government spending in Construction Services sector.

Leveraging digital technologies

– ZhongTongGuoMai Communication 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.

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. ZhongTongGuoMai Communication 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, ZhongTongGuoMai Communication is facing challenges because of the dominance of functional experts in the organization. ZhongTongGuoMai Communication 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.

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. ZhongTongGuoMai Communication 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. ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication to hire the very best people irrespective of their geographical location.

---

Threats ZhongTongGuoMai Communication External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of ZhongTongGuoMai Communication are -

Regulatory challenges

– ZhongTongGuoMai Communication 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 Construction Services industry regulations.

Shortening product life cycle

– it is one of the major threat that ZhongTongGuoMai Communication is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, ZhongTongGuoMai Communication 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.

High dependence on third party suppliers

– ZhongTongGuoMai Communication 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.

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 ZhongTongGuoMai Communication business can come under increasing regulations regarding data privacy, data security, etc.

Technology acceleration in Forth Industrial Revolution

– ZhongTongGuoMai Communication has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, ZhongTongGuoMai Communication 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.

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. ZhongTongGuoMai Communication needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.

Increasing wage structure of ZhongTongGuoMai Communication

– 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 ZhongTongGuoMai Communication.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

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. ZhongTongGuoMai Communication 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.

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 ZhongTongGuoMai Communication in the Construction Services sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for ZhongTongGuoMai Communication 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.

Consumer confidence and its impact on ZhongTongGuoMai Communication 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.

---

Weighted SWOT Analysis of ZhongTongGuoMai Communication Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication 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 ZhongTongGuoMai Communication needs to make to build a sustainable competitive advantage.

--- ---