SWOT Analysis / TOWS Matrix for ChongQing Zhengchuan Pharma (China)
Based on various researches at Oak Spring University , ChongQing Zhengchuan Pharma is operating in a macro-environment that has been destablized by – there is backlash against globalization, technology disruption, supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies,
geopolitical disruptions, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of ChongQing Zhengchuan Pharma
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that ChongQing Zhengchuan Pharma can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the ChongQing Zhengchuan Pharma, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma can be done for the following purposes –
1. Strategic planning of ChongQing Zhengchuan Pharma
2. Improving business portfolio management of ChongQing Zhengchuan Pharma
3. Assessing feasibility of the new initiative in China
4. Making a Containers & Packaging sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of ChongQing Zhengchuan Pharma
Strengths of ChongQing Zhengchuan Pharma | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of ChongQing Zhengchuan Pharma are -
Digital Transformation in Containers & Packaging industry
- digital transformation varies from industry to industry. For ChongQing Zhengchuan Pharma digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. ChongQing Zhengchuan Pharma 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.
Ability to recruit top talent
– ChongQing Zhengchuan Pharma is one of the leading players in the Containers & Packaging 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.
Organizational Resilience of ChongQing Zhengchuan Pharma
– The covid-19 pandemic has put organizational resilience at the centre of everthing ChongQing Zhengchuan Pharma does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Containers & Packaging industry
– ChongQing Zhengchuan Pharma has clearly differentiated products in the market place. This has enabled ChongQing Zhengchuan Pharma to fetch slight price premium compare to the competitors in the Containers & Packaging industry. The sustainable margins have also helped ChongQing Zhengchuan Pharma to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of ChongQing Zhengchuan Pharma in Containers & Packaging industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– ChongQing Zhengchuan Pharma has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Containers & Packaging industry. Secondly the value chain collaborators of ChongQing Zhengchuan Pharma have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at ChongQing Zhengchuan Pharma emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– ChongQing Zhengchuan Pharma is present in almost all the verticals within the Containers & Packaging industry. This has provided ChongQing Zhengchuan Pharma a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– ChongQing Zhengchuan Pharma has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled ChongQing Zhengchuan Pharma to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– ChongQing Zhengchuan Pharma is one of the most innovative firm in Containers & Packaging sector.
Low bargaining power of suppliers
– Suppliers of ChongQing Zhengchuan Pharma in the Basic Materials sector have low bargaining power. ChongQing Zhengchuan Pharma has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps ChongQing Zhengchuan Pharma to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– ChongQing Zhengchuan Pharma 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 Containers & Packaging 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.
Weaknesses of ChongQing Zhengchuan Pharma | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ChongQing Zhengchuan Pharma are -
High dependence on ChongQing Zhengchuan Pharma ‘s star products
– The top 2 products and services of ChongQing Zhengchuan Pharma still accounts for major business revenue. This dependence on star products in Containers & Packaging industry has resulted into insufficient focus on developing new products, even though ChongQing Zhengchuan Pharma has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of China, ChongQing Zhengchuan Pharma needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ less understanding of ChongQing Zhengchuan Pharma strategy
– From the outside it seems that the employees of ChongQing Zhengchuan Pharma 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.
Products dominated business model
– Even though ChongQing Zhengchuan Pharma has some of the most successful models in the Containers & Packaging industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. ChongQing Zhengchuan Pharma should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
ChongQing Zhengchuan Pharma has a high cash cycle compare to other players in the Containers & Packaging industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, ChongQing Zhengchuan Pharma has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Containers & Packaging industry over the last five years. ChongQing Zhengchuan Pharma 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, ChongQing Zhengchuan Pharma is slow explore the new channels of communication. These new channels of communication can help ChongQing Zhengchuan Pharma to provide better information regarding Containers & Packaging products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– From the 10K / annual statement of ChongQing Zhengchuan Pharma, it seems that company is thinking out the frontier risks that can impact Containers & Packaging 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.
Increasing silos among functional specialists
– The organizational structure of ChongQing Zhengchuan Pharma is dominated by functional specialists. It is not different from other players in the Containers & Packaging industry, but ChongQing Zhengchuan Pharma needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help ChongQing Zhengchuan Pharma to focus more on services in the Containers & Packaging industry rather than just following the product oriented approach.
Skills based hiring in Containers & Packaging industry
– The stress on hiring functional specialists at ChongQing Zhengchuan Pharma 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 bargaining power of channel partners in Containers & Packaging industry
– because of the regulatory requirements in China, ChongQing Zhengchuan Pharma 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 Containers & Packaging industry.
ChongQing Zhengchuan Pharma Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of ChongQing Zhengchuan Pharma are -
Buying journey improvements
– ChongQing Zhengchuan Pharma can improve the customer journey of consumers in the Containers & Packaging 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.
Creating value in data economy
– The success of analytics program of ChongQing Zhengchuan Pharma has opened avenues for new revenue streams for the organization in Containers & Packaging industry. This can help ChongQing Zhengchuan Pharma to build a more holistic ecosystem for ChongQing Zhengchuan Pharma products in the Containers & Packaging industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for ChongQing Zhengchuan Pharma 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.
Developing new processes and practices
– ChongQing Zhengchuan Pharma can develop new processes and procedures in Containers & Packaging 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 ChongQing Zhengchuan Pharma can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– ChongQing Zhengchuan Pharma can use the latest technology developments to improve its manufacturing and designing process in Containers & Packaging 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
– ChongQing Zhengchuan Pharma 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, ChongQing Zhengchuan Pharma 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.
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 ChongQing Zhengchuan Pharma 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, ChongQing Zhengchuan Pharma is facing challenges because of the dominance of functional experts in the organization. ChongQing Zhengchuan Pharma can utilize new technology in the field of Containers & Packaging industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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. ChongQing Zhengchuan Pharma can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions in Containers & Packaging industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for ChongQing Zhengchuan Pharma in the Containers & Packaging industry. Now ChongQing Zhengchuan Pharma can target international markets with far fewer capital restrictions requirements than the existing system.
Threats ChongQing Zhengchuan Pharma External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of ChongQing Zhengchuan Pharma are -
Shortening product life cycle
– it is one of the major threat that ChongQing Zhengchuan Pharma is facing in Containers & Packaging sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
Environmental challenges
– ChongQing Zhengchuan Pharma 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. ChongQing Zhengchuan Pharma can take advantage of this fund but it will also bring new competitors in the Containers & Packaging industry.
Stagnating economy with rate increase
– ChongQing Zhengchuan Pharma 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 Containers & Packaging industry.
Regulatory challenges
– ChongQing Zhengchuan Pharma 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 Containers & Packaging industry regulations.
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. ChongQing Zhengchuan Pharma 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.
Increasing wage structure of ChongQing Zhengchuan Pharma
– 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 ChongQing Zhengchuan Pharma.
High dependence on third party suppliers
– ChongQing Zhengchuan Pharma 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.
Technology acceleration in Forth Industrial Revolution
– ChongQing Zhengchuan Pharma has witnessed rapid integration of technology during Covid-19 in the Containers & Packaging industry. As one of the leading players in the industry, ChongQing Zhengchuan Pharma needs to keep up with the evolution of technology in the Containers & Packaging 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.
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 ChongQing Zhengchuan Pharma business can come under increasing regulations regarding data privacy, data security, etc.
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 ChongQing Zhengchuan Pharma.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, ChongQing Zhengchuan Pharma may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Containers & Packaging sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for ChongQing Zhengchuan Pharma in Containers & Packaging industry. The Containers & Packaging 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.
Weighted SWOT Analysis of ChongQing Zhengchuan Pharma Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma 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 ChongQing Zhengchuan Pharma needs to make to build a sustainable competitive advantage.
