Beijing Tensyn Digital Marketing (300392) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Beijing Tensyn Digital Marketing (China)

Based on various researches at Oak Spring University , Beijing Tensyn Digital Marketing is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, geopolitical disruptions, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, etc

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Introduction to SWOT Analysis of Beijing Tensyn Digital Marketing

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Beijing Tensyn Digital Marketing can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Tensyn Digital Marketing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Tensyn Digital Marketing 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Beijing Tensyn Digital Marketing can be done for the following purposes –
1. Strategic planning of Beijing Tensyn Digital Marketing
2. Improving business portfolio management of Beijing Tensyn Digital Marketing
3. Assessing feasibility of the new initiative in China
4. Making a Advertising sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Beijing Tensyn Digital Marketing

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Strengths of Beijing Tensyn Digital Marketing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Beijing Tensyn Digital Marketing are -

Learning organization

- Beijing Tensyn Digital Marketing 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 Beijing Tensyn Digital Marketing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Beijing Tensyn Digital Marketing emphasize – knowledge, initiative, and innovation.

High switching costs

– The high switching costs that Beijing Tensyn Digital Marketing 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.

Low bargaining power of suppliers

– Suppliers of Beijing Tensyn Digital Marketing in the Services sector have low bargaining power. Beijing Tensyn Digital Marketing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beijing Tensyn Digital Marketing to manage not only supply disruptions but also source products at highly competitive prices.

Ability to recruit top talent

– Beijing Tensyn Digital Marketing is one of the leading players in the Advertising 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.

Highly skilled collaborators

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

Successful track record of launching new products

– Beijing Tensyn Digital Marketing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beijing Tensyn Digital Marketing 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.

Sustainable margins compare to other players in Advertising industry

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

Effective Research and Development (R&D)

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

Strong track record of project management in the Advertising industry

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

Diverse revenue streams

– Beijing Tensyn Digital Marketing is present in almost all the verticals within the Advertising industry. This has provided Beijing Tensyn Digital Marketing a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Ability to lead change in Advertising

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

Organizational Resilience of Beijing Tensyn Digital Marketing

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

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Weaknesses of Beijing Tensyn Digital Marketing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Beijing Tensyn Digital Marketing are -

Slow to strategic competitive environment developments

– As Beijing Tensyn Digital Marketing is one of the leading players in the Advertising industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Advertising industry in last five years.

Lack of clear differentiation of Beijing Tensyn Digital Marketing products

– To increase the profitability and margins on the products, Beijing Tensyn Digital Marketing needs to provide more differentiated products than what it is currently offering in the marketplace.

Slow decision making process

– As mentioned earlier in the report, Beijing Tensyn Digital Marketing has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Advertising industry over the last five years. Beijing Tensyn Digital Marketing even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Ability to respond to the competition

– As the decision making is very deliberative at Beijing Tensyn Digital Marketing, in the dynamic environment of Advertising industry it has struggled to respond to the nimble upstart competition. Beijing Tensyn Digital Marketing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High cash cycle compare to competitors

Beijing Tensyn Digital Marketing has a high cash cycle compare to other players in the Advertising 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 Beijing Tensyn Digital Marketing ‘s star products

– The top 2 products and services of Beijing Tensyn Digital Marketing still accounts for major business revenue. This dependence on star products in Advertising industry has resulted into insufficient focus on developing new products, even though Beijing Tensyn Digital Marketing has relatively successful track record of launching new products.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Beijing Tensyn Digital Marketing is slow explore the new channels of communication. These new channels of communication can help Beijing Tensyn Digital Marketing to provide better information regarding Advertising products and services. It can also build an online community to further reach out to potential customers.

Skills based hiring in Advertising industry

– The stress on hiring functional specialists at Beijing Tensyn Digital Marketing 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.

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

Low market penetration in new markets

– Outside its home market of China, Beijing Tensyn Digital Marketing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Products dominated business model

– Even though Beijing Tensyn Digital Marketing has some of the most successful models in the Advertising industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Beijing Tensyn Digital Marketing should strive to include more intangible value offerings along with its core products and services.

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Beijing Tensyn Digital Marketing Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Beijing Tensyn Digital Marketing 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. Beijing Tensyn Digital Marketing 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 Beijing Tensyn Digital Marketing in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Advertising industry, and it will provide faster access to the consumers.

Leveraging digital technologies

– Beijing Tensyn Digital Marketing 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.

Manufacturing automation

– Beijing Tensyn Digital Marketing can use the latest technology developments to improve its manufacturing and designing process in Advertising 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Tensyn Digital Marketing can use these opportunities to build new business models that can help the communities that Beijing Tensyn Digital Marketing operates in. Secondly it can use opportunities from government spending in Advertising sector.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Beijing Tensyn Digital Marketing to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Building a culture of innovation

– managers at Beijing Tensyn Digital Marketing 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 Advertising industry.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Beijing Tensyn Digital Marketing is facing challenges because of the dominance of functional experts in the organization. Beijing Tensyn Digital Marketing can utilize new technology in the field of Advertising industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Creating value in data economy

– The success of analytics program of Beijing Tensyn Digital Marketing has opened avenues for new revenue streams for the organization in Advertising industry. This can help Beijing Tensyn Digital Marketing to build a more holistic ecosystem for Beijing Tensyn Digital Marketing products in the Advertising industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Beijing Tensyn Digital Marketing can improve the customer journey of consumers in the Advertising 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beijing Tensyn Digital Marketing 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 Beijing Tensyn Digital Marketing to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

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

Use of Bitcoin and other crypto currencies for transactions in Advertising industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Beijing Tensyn Digital Marketing in the Advertising industry. Now Beijing Tensyn Digital Marketing can target international markets with far fewer capital restrictions requirements than the existing system.

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Threats Beijing Tensyn Digital Marketing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Beijing Tensyn Digital Marketing are -

Increasing wage structure of Beijing Tensyn Digital Marketing

– 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 Beijing Tensyn Digital Marketing.

Shortening product life cycle

– it is one of the major threat that Beijing Tensyn Digital Marketing is facing in Advertising sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Easy access to finance

– Easy access to finance in Advertising industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Beijing Tensyn Digital Marketing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

High dependence on third party suppliers

– Beijing Tensyn Digital Marketing 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.

Environmental challenges

– Beijing Tensyn Digital Marketing 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. Beijing Tensyn Digital Marketing can take advantage of this fund but it will also bring new competitors in the Advertising industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Beijing Tensyn Digital Marketing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Advertising sector.

Consumer confidence and its impact on Beijing Tensyn Digital Marketing 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 Advertising industry and other sectors.

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 Beijing Tensyn Digital Marketing in the Advertising sector and impact the bottomline of the organization.

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.

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 Beijing Tensyn Digital Marketing.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Beijing Tensyn Digital Marketing in Advertising industry. The Advertising industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Beijing Tensyn Digital Marketing 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 Beijing Tensyn Digital Marketing prominent markets.

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. Beijing Tensyn Digital Marketing needs to understand the core reasons impacting the Advertising industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Beijing Tensyn Digital Marketing Template, Example

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

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