XiAn Qiyuan Mech Electric Equipment (300140) SWOT Analysis / TOWS Matrix / MBA Resources
Electronic Instr. & Controls
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for XiAn Qiyuan Mech Electric Equipment (China)
Based on various researches at Oak Spring University , XiAn Qiyuan Mech Electric Equipment is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of XiAn Qiyuan Mech Electric Equipment
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that XiAn Qiyuan Mech Electric Equipment can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the XiAn Qiyuan Mech Electric Equipment, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment can be done for the following purposes –
1. Strategic planning of XiAn Qiyuan Mech Electric Equipment
2. Improving business portfolio management of XiAn Qiyuan Mech Electric Equipment
3. Assessing feasibility of the new initiative in China
4. Making a Electronic Instr. & Controls sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of XiAn Qiyuan Mech Electric Equipment
Strengths of XiAn Qiyuan Mech Electric Equipment | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of XiAn Qiyuan Mech Electric Equipment are -
Digital Transformation in Electronic Instr. & Controls industry
- digital transformation varies from industry to industry. For XiAn Qiyuan Mech Electric Equipment digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. XiAn Qiyuan Mech Electric Equipment 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.
Training and development
– XiAn Qiyuan Mech Electric Equipment has one of the best training and development program in Technology 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 XiAn Qiyuan Mech Electric Equipment in Electronic Instr. & Controls industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– XiAn Qiyuan Mech Electric Equipment has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – XiAn Qiyuan Mech Electric Equipment staying ahead in the Electronic Instr. & Controls industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Electronic Instr. & Controls industry
– XiAn Qiyuan Mech Electric Equipment has clearly differentiated products in the market place. This has enabled XiAn Qiyuan Mech Electric Equipment to fetch slight price premium compare to the competitors in the Electronic Instr. & Controls industry. The sustainable margins have also helped XiAn Qiyuan Mech Electric Equipment to invest into research and development (R&D) and innovation.
Strong track record of project management in the Electronic Instr. & Controls industry
– XiAn Qiyuan Mech Electric Equipment is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– XiAn Qiyuan Mech Electric Equipment has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Electronic Instr. & Controls industry. Secondly the value chain collaborators of XiAn Qiyuan Mech Electric Equipment have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Electronic Instr. & Controls
– XiAn Qiyuan Mech Electric Equipment is one of the leading players in the Electronic Instr. & Controls industry in China. Over the years it has not only transformed the business landscape in the Electronic Instr. & Controls industry in China but also across the existing markets. The ability to lead change has enabled XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment 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.
Ability to recruit top talent
– XiAn Qiyuan Mech Electric Equipment is one of the leading players in the Electronic Instr. & Controls 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.
Analytics focus
– XiAn Qiyuan Mech Electric Equipment 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 Electronic Instr. & Controls 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.
Low bargaining power of suppliers
– Suppliers of XiAn Qiyuan Mech Electric Equipment in the Technology sector have low bargaining power. XiAn Qiyuan Mech Electric Equipment has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps XiAn Qiyuan Mech Electric Equipment to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of XiAn Qiyuan Mech Electric Equipment | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of XiAn Qiyuan Mech Electric Equipment are -
Aligning sales with marketing
– From the outside it seems that XiAn Qiyuan Mech Electric Equipment needs to have more collaboration between its sales team and marketing team. Sales professionals in the Electronic Instr. & Controls industry have deep experience in developing customer relationships. Marketing department at XiAn Qiyuan Mech Electric Equipment can leverage the sales team experience to cultivate customer relationships as XiAn Qiyuan Mech Electric Equipment is planning to shift buying processes online.
High dependence on XiAn Qiyuan Mech Electric Equipment ‘s star products
– The top 2 products and services of XiAn Qiyuan Mech Electric Equipment still accounts for major business revenue. This dependence on star products in Electronic Instr. & Controls industry has resulted into insufficient focus on developing new products, even though XiAn Qiyuan Mech Electric Equipment has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of China, XiAn Qiyuan Mech Electric Equipment needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at XiAn Qiyuan Mech Electric Equipment, in the dynamic environment of Electronic Instr. & Controls industry it has struggled to respond to the nimble upstart competition. XiAn Qiyuan Mech Electric Equipment has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of XiAn Qiyuan Mech Electric Equipment is dominated by functional specialists. It is not different from other players in the Electronic Instr. & Controls industry, but XiAn Qiyuan Mech Electric Equipment needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help XiAn Qiyuan Mech Electric Equipment to focus more on services in the Electronic Instr. & Controls industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment has some of the most successful models in the Electronic Instr. & Controls industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. XiAn Qiyuan Mech Electric Equipment should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
XiAn Qiyuan Mech Electric Equipment has a high cash cycle compare to other players in the Electronic Instr. & Controls industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 XiAn Qiyuan Mech Electric Equipment supply chain. Even after few cautionary changes, XiAn Qiyuan Mech Electric Equipment is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left XiAn Qiyuan Mech Electric Equipment vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of XiAn Qiyuan Mech Electric Equipment products
– To increase the profitability and margins on the products, XiAn Qiyuan Mech Electric Equipment needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners in Electronic Instr. & Controls industry
– because of the regulatory requirements in China, XiAn Qiyuan Mech Electric Equipment 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 Electronic Instr. & Controls industry.
XiAn Qiyuan Mech Electric Equipment Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of XiAn Qiyuan Mech Electric Equipment are -
Use of Bitcoin and other crypto currencies for transactions in Electronic Instr. & Controls industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for XiAn Qiyuan Mech Electric Equipment in the Electronic Instr. & Controls industry. Now XiAn Qiyuan Mech Electric Equipment can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects XiAn Qiyuan Mech Electric Equipment can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– XiAn Qiyuan Mech Electric Equipment has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Electronic Instr. & Controls sector. This continuous investment in analytics has enabled XiAn Qiyuan Mech Electric Equipment to build a competitive advantage using analytics. The analytics driven competitive advantage can help XiAn Qiyuan Mech Electric Equipment to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment 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 Electronic Instr. & Controls industry.
Better consumer reach
– The expansion of the 5G network will help XiAn Qiyuan Mech Electric Equipment to increase its market reach. XiAn Qiyuan Mech Electric Equipment 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
– XiAn Qiyuan Mech Electric Equipment can use the latest technology developments to improve its manufacturing and designing process in Electronic Instr. & Controls 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.
Loyalty marketing
– XiAn Qiyuan Mech Electric Equipment 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for XiAn Qiyuan Mech Electric Equipment in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Electronic Instr. & Controls industry, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of XiAn Qiyuan Mech Electric Equipment has opened avenues for new revenue streams for the organization in Electronic Instr. & Controls industry. This can help XiAn Qiyuan Mech Electric Equipment to build a more holistic ecosystem for XiAn Qiyuan Mech Electric Equipment products in the Electronic Instr. & Controls industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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. XiAn Qiyuan Mech Electric Equipment can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, XiAn Qiyuan Mech Electric Equipment 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, XiAn Qiyuan Mech Electric Equipment is facing challenges because of the dominance of functional experts in the organization. XiAn Qiyuan Mech Electric Equipment can utilize new technology in the field of Electronic Instr. & Controls industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats XiAn Qiyuan Mech Electric Equipment External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of XiAn Qiyuan Mech Electric Equipment are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment prominent markets.
Stagnating economy with rate increase
– XiAn Qiyuan Mech Electric Equipment 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 Electronic Instr. & Controls industry.
Regulatory challenges
– XiAn Qiyuan Mech Electric Equipment 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 Electronic Instr. & Controls industry regulations.
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 XiAn Qiyuan Mech Electric Equipment in the Electronic Instr. & Controls sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Electronic Instr. & Controls industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. XiAn Qiyuan Mech Electric Equipment can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, XiAn Qiyuan Mech Electric Equipment may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Electronic Instr. & Controls sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for XiAn Qiyuan Mech Electric Equipment in Electronic Instr. & Controls industry. The Electronic Instr. & Controls industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. XiAn Qiyuan Mech Electric Equipment needs to understand the core reasons impacting the Electronic Instr. & Controls industry. This will help it in building a better workplace.
Environmental challenges
– XiAn Qiyuan Mech Electric Equipment 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. XiAn Qiyuan Mech Electric Equipment can take advantage of this fund but it will also bring new competitors in the Electronic Instr. & Controls industry.
Technology acceleration in Forth Industrial Revolution
– XiAn Qiyuan Mech Electric Equipment has witnessed rapid integration of technology during Covid-19 in the Electronic Instr. & Controls industry. As one of the leading players in the industry, XiAn Qiyuan Mech Electric Equipment needs to keep up with the evolution of technology in the Electronic Instr. & Controls 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.
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.
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.
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 XiAn Qiyuan Mech Electric Equipment.
Weighted SWOT Analysis of XiAn Qiyuan Mech Electric Equipment Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment 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 XiAn Qiyuan Mech Electric Equipment needs to make to build a sustainable competitive advantage.
