Hainan Dadonghai Tourism B (200613) SWOT Analysis / TOWS Matrix / MBA Resources
Hotels & Motels
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Hainan Dadonghai Tourism B (China)
Based on various researches at Oak Spring University , Hainan Dadonghai Tourism B is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, increasing energy prices, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, there is backlash against globalization, geopolitical disruptions, wage bills are increasing,
increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Hainan Dadonghai Tourism B
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hainan Dadonghai Tourism B can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hainan Dadonghai Tourism B, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B can be done for the following purposes –
1. Strategic planning of Hainan Dadonghai Tourism B
2. Improving business portfolio management of Hainan Dadonghai Tourism B
3. Assessing feasibility of the new initiative in China
4. Making a Hotels & Motels sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hainan Dadonghai Tourism B
Strengths of Hainan Dadonghai Tourism B | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hainan Dadonghai Tourism B are -
Superior customer experience
– The customer experience strategy of Hainan Dadonghai Tourism B in Hotels & Motels industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Hainan Dadonghai Tourism B has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hainan Dadonghai Tourism B to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Hotels & Motels industry
– Hainan Dadonghai Tourism B has clearly differentiated products in the market place. This has enabled Hainan Dadonghai Tourism B to fetch slight price premium compare to the competitors in the Hotels & Motels industry. The sustainable margins have also helped Hainan Dadonghai Tourism B to invest into research and development (R&D) and innovation.
Strong track record of project management in the Hotels & Motels industry
– Hainan Dadonghai Tourism B 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
– Hainan Dadonghai Tourism B has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Hotels & Motels industry. Secondly the value chain collaborators of Hainan Dadonghai Tourism B have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Hainan Dadonghai Tourism B has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hainan Dadonghai Tourism B 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.
Training and development
– Hainan Dadonghai Tourism B has one of the best training and development program in Services 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.
Low bargaining power of suppliers
– Suppliers of Hainan Dadonghai Tourism B in the Services sector have low bargaining power. Hainan Dadonghai Tourism B has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hainan Dadonghai Tourism B to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Hainan Dadonghai Tourism B 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.
Effective Research and Development (R&D)
– Hainan Dadonghai Tourism B has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hainan Dadonghai Tourism B staying ahead in the Hotels & Motels industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Hainan Dadonghai Tourism B is present in almost all the verticals within the Hotels & Motels industry. This has provided Hainan Dadonghai Tourism B 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.
Innovation driven organization
– Hainan Dadonghai Tourism B is one of the most innovative firm in Hotels & Motels sector.
Weaknesses of Hainan Dadonghai Tourism B | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hainan Dadonghai Tourism B are -
Workers concerns about automation
– As automation is fast increasing in the Hotels & Motels industry, Hainan Dadonghai Tourism B needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative at Hainan Dadonghai Tourism B, in the dynamic environment of Hotels & Motels industry it has struggled to respond to the nimble upstart competition. Hainan Dadonghai Tourism B has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Hainan Dadonghai Tourism B products
– To increase the profitability and margins on the products, Hainan Dadonghai Tourism B needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Hainan Dadonghai Tourism B has high operating costs in the Hotels & Motels industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hainan Dadonghai Tourism B lucrative customers.
Compensation and incentives
– The revenue per employee of Hainan Dadonghai Tourism B is just above the Hotels & Motels industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hainan Dadonghai Tourism B supply chain. Even after few cautionary changes, Hainan Dadonghai Tourism B is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hainan Dadonghai Tourism B vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that Hainan Dadonghai Tourism B needs to have more collaboration between its sales team and marketing team. Sales professionals in the Hotels & Motels industry have deep experience in developing customer relationships. Marketing department at Hainan Dadonghai Tourism B can leverage the sales team experience to cultivate customer relationships as Hainan Dadonghai Tourism B is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Hainan Dadonghai Tourism B 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 Hotels & Motels industry using digital technology.
High bargaining power of channel partners in Hotels & Motels industry
– because of the regulatory requirements in China, Hainan Dadonghai Tourism B 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 Hotels & Motels industry.
Slow decision making process
– As mentioned earlier in the report, Hainan Dadonghai Tourism B has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Hotels & Motels industry over the last five years. Hainan Dadonghai Tourism B 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.
Need for greater diversity
– Hainan Dadonghai Tourism B has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Hainan Dadonghai Tourism B Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Hainan Dadonghai Tourism B are -
Creating value in data economy
– The success of analytics program of Hainan Dadonghai Tourism B has opened avenues for new revenue streams for the organization in Hotels & Motels industry. This can help Hainan Dadonghai Tourism B to build a more holistic ecosystem for Hainan Dadonghai Tourism B products in the Hotels & Motels industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hainan Dadonghai Tourism B in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Hotels & Motels industry, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Hainan Dadonghai Tourism B 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.
Use of Bitcoin and other crypto currencies for transactions in Hotels & Motels industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hainan Dadonghai Tourism B in the Hotels & Motels industry. Now Hainan Dadonghai Tourism B can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Hainan Dadonghai Tourism B can develop new processes and procedures in Hotels & Motels 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Hainan Dadonghai Tourism B 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.
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 Hainan Dadonghai Tourism B 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, Hainan Dadonghai Tourism B is facing challenges because of the dominance of functional experts in the organization. Hainan Dadonghai Tourism B can utilize new technology in the field of Hotels & Motels industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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, Hainan Dadonghai Tourism B can use these opportunities to build new business models that can help the communities that Hainan Dadonghai Tourism B operates in. Secondly it can use opportunities from government spending in Hotels & Motels sector.
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. Hainan Dadonghai Tourism B can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Hainan Dadonghai Tourism B to increase its market reach. Hainan Dadonghai Tourism B 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.
Threats Hainan Dadonghai Tourism B External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Hainan Dadonghai Tourism B are -
Increasing wage structure of Hainan Dadonghai Tourism B
– 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 Hainan Dadonghai Tourism B.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B prominent markets.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Hainan Dadonghai Tourism B business can come under increasing regulations regarding data privacy, data security, etc.
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. Hainan Dadonghai Tourism B 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Hainan Dadonghai Tourism B may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Hotels & Motels sector.
Regulatory challenges
– Hainan Dadonghai Tourism B 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 Hotels & Motels industry regulations.
Technology acceleration in Forth Industrial Revolution
– Hainan Dadonghai Tourism B has witnessed rapid integration of technology during Covid-19 in the Hotels & Motels industry. As one of the leading players in the industry, Hainan Dadonghai Tourism B needs to keep up with the evolution of technology in the Hotels & Motels 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.
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 Hainan Dadonghai Tourism B.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hainan Dadonghai Tourism B in Hotels & Motels industry. The Hotels & Motels 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.
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 Hainan Dadonghai Tourism B is facing in Hotels & Motels sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Hainan Dadonghai Tourism B needs to understand the core reasons impacting the Hotels & Motels industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Hainan Dadonghai Tourism B Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B 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 Hainan Dadonghai Tourism B needs to make to build a sustainable competitive advantage.