SWOT Analysis / TOWS Matrix for Tianshui Zhongxing Bio-tech (China)
Based on various researches at Oak Spring University , Tianshui Zhongxing Bio-tech is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing commodity prices, talent flight as more people leaving formal jobs,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Tianshui Zhongxing Bio-tech
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Tianshui Zhongxing Bio-tech can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tianshui Zhongxing Bio-tech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech can be done for the following purposes –
1. Strategic planning of Tianshui Zhongxing Bio-tech
2. Improving business portfolio management of Tianshui Zhongxing Bio-tech
3. Assessing feasibility of the new initiative in China
4. Making a Crops sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tianshui Zhongxing Bio-tech
Strengths of Tianshui Zhongxing Bio-tech | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tianshui Zhongxing Bio-tech are -
Organizational Resilience of Tianshui Zhongxing Bio-tech
– The covid-19 pandemic has put organizational resilience at the centre of everthing Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech 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.
Successful track record of launching new products
– Tianshui Zhongxing Bio-tech has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tianshui Zhongxing Bio-tech 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.
High brand equity
– Tianshui Zhongxing Bio-tech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tianshui Zhongxing Bio-tech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Tianshui Zhongxing Bio-tech is present in almost all the verticals within the Crops industry. This has provided Tianshui Zhongxing Bio-tech 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.
Training and development
– Tianshui Zhongxing Bio-tech has one of the best training and development program in Consumer/Non-Cyclical 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.
High switching costs
– The high switching costs that Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech in the Consumer/Non-Cyclical sector have low bargaining power. Tianshui Zhongxing Bio-tech has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tianshui Zhongxing Bio-tech to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Tianshui Zhongxing Bio-tech is one of the most innovative firm in Crops sector.
Analytics focus
– Tianshui Zhongxing Bio-tech 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 Crops industry. The technology infrastructure of China is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Crops
– Tianshui Zhongxing Bio-tech is one of the leading players in the Crops industry in China. Over the years it has not only transformed the business landscape in the Crops industry in China but also across the existing markets. The ability to lead change has enabled Tianshui Zhongxing Bio-tech in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Crops industry
– Tianshui Zhongxing Bio-tech has clearly differentiated products in the market place. This has enabled Tianshui Zhongxing Bio-tech to fetch slight price premium compare to the competitors in the Crops industry. The sustainable margins have also helped Tianshui Zhongxing Bio-tech to invest into research and development (R&D) and innovation.
Weaknesses of Tianshui Zhongxing Bio-tech | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tianshui Zhongxing Bio-tech are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tianshui Zhongxing Bio-tech is slow explore the new channels of communication. These new channels of communication can help Tianshui Zhongxing Bio-tech to provide better information regarding Crops products and services. It can also build an online community to further reach out to potential customers.
High dependence on Tianshui Zhongxing Bio-tech ‘s star products
– The top 2 products and services of Tianshui Zhongxing Bio-tech still accounts for major business revenue. This dependence on star products in Crops industry has resulted into insufficient focus on developing new products, even though Tianshui Zhongxing Bio-tech has relatively successful track record of launching new products.
No frontier risks strategy
– From the 10K / annual statement of Tianshui Zhongxing Bio-tech, it seems that company is thinking out the frontier risks that can impact Crops industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space 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 Tianshui Zhongxing Bio-tech supply chain. Even after few cautionary changes, Tianshui Zhongxing Bio-tech is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tianshui Zhongxing Bio-tech vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of China, Tianshui Zhongxing Bio-tech needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Tianshui Zhongxing Bio-tech 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 Crops industry using digital technology.
Skills based hiring in Crops industry
– The stress on hiring functional specialists at Tianshui Zhongxing Bio-tech 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.
Employees’ less understanding of Tianshui Zhongxing Bio-tech strategy
– From the outside it seems that the employees of Tianshui Zhongxing Bio-tech 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.
Slow to strategic competitive environment developments
– As Tianshui Zhongxing Bio-tech is one of the leading players in the Crops industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Crops industry in last five years.
High operating costs
– Compare to the competitors, Tianshui Zhongxing Bio-tech has high operating costs in the Crops industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Tianshui Zhongxing Bio-tech lucrative customers.
Interest costs
– Compare to the competition, Tianshui Zhongxing Bio-tech 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.
Tianshui Zhongxing Bio-tech Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Tianshui Zhongxing Bio-tech are -
Developing new processes and practices
– Tianshui Zhongxing Bio-tech can develop new processes and procedures in Crops 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tianshui Zhongxing Bio-tech can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech 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, Tianshui Zhongxing Bio-tech is facing challenges because of the dominance of functional experts in the organization. Tianshui Zhongxing Bio-tech can utilize new technology in the field of Crops industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Tianshui Zhongxing Bio-tech has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Crops sector. This continuous investment in analytics has enabled Tianshui Zhongxing Bio-tech to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tianshui Zhongxing Bio-tech to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Tianshui Zhongxing Bio-tech 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech to hire the very best people irrespective of their geographical location.
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. Tianshui Zhongxing Bio-tech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Tianshui Zhongxing Bio-tech 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tianshui Zhongxing Bio-tech can use these opportunities to build new business models that can help the communities that Tianshui Zhongxing Bio-tech operates in. Secondly it can use opportunities from government spending in Crops sector.
Better consumer reach
– The expansion of the 5G network will help Tianshui Zhongxing Bio-tech to increase its market reach. Tianshui Zhongxing Bio-tech 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.
Use of Bitcoin and other crypto currencies for transactions in Crops industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Tianshui Zhongxing Bio-tech in the Crops industry. Now Tianshui Zhongxing Bio-tech can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Tianshui Zhongxing Bio-tech can use the latest technology developments to improve its manufacturing and designing process in Crops 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.
Threats Tianshui Zhongxing Bio-tech External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Tianshui Zhongxing Bio-tech are -
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. Tianshui Zhongxing Bio-tech 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Crops industry are lowering. It can presents Tianshui Zhongxing Bio-tech with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Crops sector.
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.
Easy access to finance
– Easy access to finance in Crops industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tianshui Zhongxing Bio-tech can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Tianshui Zhongxing Bio-tech 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. Tianshui Zhongxing Bio-tech can take advantage of this fund but it will also bring new competitors in the Crops industry.
Technology acceleration in Forth Industrial Revolution
– Tianshui Zhongxing Bio-tech has witnessed rapid integration of technology during Covid-19 in the Crops industry. As one of the leading players in the industry, Tianshui Zhongxing Bio-tech needs to keep up with the evolution of technology in the Crops 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.
Shortening product life cycle
– it is one of the major threat that Tianshui Zhongxing Bio-tech is facing in Crops sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Tianshui Zhongxing Bio-tech 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 Crops industry.
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 Tianshui Zhongxing Bio-tech in the Crops sector and impact the bottomline 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 Tianshui Zhongxing Bio-tech.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tianshui Zhongxing Bio-tech in Crops industry. The Crops 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Tianshui Zhongxing Bio-tech may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Crops sector.
Weighted SWOT Analysis of Tianshui Zhongxing Bio-tech Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech 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 Tianshui Zhongxing Bio-tech needs to make to build a sustainable competitive advantage.