Based on various researches at Oak Spring University , Nanjing CEC Environmental Protect is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, talent flight as more people leaving formal jobs, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google,
there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Nanjing CEC Environmental Protect
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Nanjing CEC Environmental Protect can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nanjing CEC Environmental Protect, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nanjing CEC Environmental Protect operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Nanjing CEC Environmental Protect can be done for the following purposes –
1. Strategic planning of Nanjing CEC Environmental Protect
2. Improving business portfolio management of Nanjing CEC Environmental Protect
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 Nanjing CEC Environmental Protect
Strengths of Nanjing CEC Environmental Protect | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nanjing CEC Environmental Protect are -
Low bargaining power of suppliers
– Suppliers of Nanjing CEC Environmental Protect in the Capital Goods sector have low bargaining power. Nanjing CEC Environmental Protect has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nanjing CEC Environmental Protect to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Nanjing CEC Environmental Protect is present in almost all the verticals within the Construction Services industry. This has provided Nanjing CEC Environmental Protect a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Nanjing CEC Environmental Protect has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Nanjing CEC Environmental Protect has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Effective Research and Development (R&D)
– Nanjing CEC Environmental Protect has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Nanjing CEC Environmental Protect 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 lead change in Construction Services
– Nanjing CEC Environmental Protect 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 Nanjing CEC Environmental Protect in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Nanjing CEC Environmental Protect 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.
Training and development
– Nanjing CEC Environmental Protect 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.
Innovation driven organization
– Nanjing CEC Environmental Protect is one of the most innovative firm in Construction Services sector.
Ability to recruit top talent
– Nanjing CEC Environmental Protect 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.
Strong track record of project management in the Construction Services industry
– Nanjing CEC Environmental Protect is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Construction Services industry
– Nanjing CEC Environmental Protect has clearly differentiated products in the market place. This has enabled Nanjing CEC Environmental Protect to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Nanjing CEC Environmental Protect to invest into research and development (R&D) and innovation.
Learning organization
- Nanjing CEC Environmental Protect is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Nanjing CEC Environmental Protect is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Nanjing CEC Environmental Protect emphasize – knowledge, initiative, and innovation.
Weaknesses of Nanjing CEC Environmental Protect | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nanjing CEC Environmental Protect are -
High cash cycle compare to competitors
Nanjing CEC Environmental Protect 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.
Compensation and incentives
– The revenue per employee of Nanjing CEC Environmental Protect is just above the Construction 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.
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 Nanjing CEC Environmental Protect supply chain. Even after few cautionary changes, Nanjing CEC Environmental Protect is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nanjing CEC Environmental Protect vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nanjing CEC Environmental Protect is slow explore the new channels of communication. These new channels of communication can help Nanjing CEC Environmental Protect to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the Construction Services industry, Nanjing CEC Environmental Protect needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Interest costs
– Compare to the competition, Nanjing CEC Environmental Protect has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Nanjing CEC Environmental Protect 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. Nanjing CEC Environmental Protect should strive to include more intangible value offerings along with its core products and services.
High dependence on Nanjing CEC Environmental Protect ‘s star products
– The top 2 products and services of Nanjing CEC Environmental Protect 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 Nanjing CEC Environmental Protect has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, Nanjing CEC Environmental Protect has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Nanjing CEC Environmental Protect lucrative customers.
Lack of clear differentiation of Nanjing CEC Environmental Protect products
– To increase the profitability and margins on the products, Nanjing CEC Environmental Protect needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of China, Nanjing CEC Environmental Protect needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Nanjing CEC Environmental Protect Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Nanjing CEC Environmental Protect 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 Nanjing CEC Environmental Protect in the Construction Services industry. Now Nanjing CEC Environmental Protect can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Nanjing CEC Environmental Protect can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Nanjing CEC Environmental Protect in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nanjing CEC Environmental Protect 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.
Building a culture of innovation
– managers at Nanjing CEC Environmental Protect 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nanjing CEC Environmental Protect can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Nanjing CEC Environmental Protect to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Nanjing CEC Environmental Protect is facing challenges because of the dominance of functional experts in the organization. Nanjing CEC Environmental Protect 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.
Better consumer reach
– The expansion of the 5G network will help Nanjing CEC Environmental Protect to increase its market reach. Nanjing CEC Environmental Protect will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Nanjing CEC Environmental Protect can use the latest technology developments to improve its manufacturing and designing process in Construction Services 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.
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. Nanjing CEC Environmental Protect can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nanjing CEC Environmental Protect can use these opportunities to build new business models that can help the communities that Nanjing CEC Environmental Protect operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Creating value in data economy
– The success of analytics program of Nanjing CEC Environmental Protect has opened avenues for new revenue streams for the organization in Construction Services industry. This can help Nanjing CEC Environmental Protect to build a more holistic ecosystem for Nanjing CEC Environmental Protect products in the Construction Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Nanjing CEC Environmental Protect 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.
Threats Nanjing CEC Environmental Protect External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Nanjing CEC Environmental Protect are -
Easy access to finance
– Easy access to finance in Construction Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nanjing CEC Environmental Protect can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Nanjing CEC Environmental Protect has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Nanjing CEC Environmental Protect 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.
Increasing wage structure of Nanjing CEC Environmental Protect
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Nanjing CEC Environmental Protect.
Shortening product life cycle
– it is one of the major threat that Nanjing CEC Environmental Protect is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Nanjing CEC Environmental Protect needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Nanjing CEC Environmental Protect can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
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.
Regulatory challenges
– Nanjing CEC Environmental Protect needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Construction Services industry regulations.
Stagnating economy with rate increase
– Nanjing CEC Environmental Protect can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Construction Services industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Nanjing CEC Environmental Protect 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.
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 Nanjing CEC Environmental Protect.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Nanjing CEC Environmental Protect can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Nanjing CEC Environmental Protect prominent markets.
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 Nanjing CEC Environmental Protect business can come under increasing regulations regarding data privacy, data security, 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.
Weighted SWOT Analysis of Nanjing CEC Environmental Protect Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Nanjing CEC Environmental Protect needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Nanjing CEC Environmental Protect is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Nanjing CEC Environmental Protect is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Nanjing CEC Environmental Protect to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Nanjing CEC Environmental Protect needs to make to build a sustainable competitive advantage.