Hainan Dadonghai Tourism A (613) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Hainan Dadonghai Tourism A (China)

Based on various researches at Oak Spring University , Hainan Dadonghai Tourism A is operating in a macro-environment that has been destablized by – technology disruption, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, wage bills are increasing, cloud computing is disrupting traditional business models, etc

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Introduction to SWOT Analysis of Hainan Dadonghai Tourism A

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hainan Dadonghai Tourism A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hainan Dadonghai Tourism A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hainan Dadonghai Tourism A 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 Hainan Dadonghai Tourism A can be done for the following purposes –
1. Strategic planning of Hainan Dadonghai Tourism A
2. Improving business portfolio management of Hainan Dadonghai Tourism A
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 A

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Strengths of Hainan Dadonghai Tourism A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hainan Dadonghai Tourism A are -

High brand equity

– Hainan Dadonghai Tourism A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hainan Dadonghai Tourism A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Organizational Resilience of Hainan Dadonghai Tourism A

– The covid-19 pandemic has put organizational resilience at the centre of everthing Hainan Dadonghai Tourism A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Low bargaining power of suppliers

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

Learning organization

- Hainan Dadonghai Tourism A 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 Hainan Dadonghai Tourism A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Hainan Dadonghai Tourism A emphasize – knowledge, initiative, and innovation.

Operational resilience

– The operational resilience strategy of Hainan Dadonghai Tourism A comprises – understanding the underlying the factors in the Hotels & Motels industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Strong track record of project management in the Hotels & Motels industry

– Hainan Dadonghai Tourism A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Hainan Dadonghai Tourism A 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 A 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.

Ability to lead change in Hotels & Motels

– Hainan Dadonghai Tourism A is one of the leading players in the Hotels & Motels industry in China. Over the years it has not only transformed the business landscape in the Hotels & Motels industry in China but also across the existing markets. The ability to lead change has enabled Hainan Dadonghai Tourism A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Ability to recruit top talent

– Hainan Dadonghai Tourism A is one of the leading players in the Hotels & Motels 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.

Cross disciplinary teams

– Horizontal connected teams at the Hainan Dadonghai Tourism A 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.

Diverse revenue streams

– Hainan Dadonghai Tourism A is present in almost all the verticals within the Hotels & Motels industry. This has provided Hainan Dadonghai Tourism A 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.

Analytics focus

– Hainan Dadonghai Tourism A 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 Hotels & Motels 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.

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Weaknesses of Hainan Dadonghai Tourism A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hainan Dadonghai Tourism A are -

Skills based hiring in Hotels & Motels industry

– The stress on hiring functional specialists at Hainan Dadonghai Tourism A 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.

Workers concerns about automation

– As automation is fast increasing in the Hotels & Motels industry, Hainan Dadonghai Tourism A 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.

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 A supply chain. Even after few cautionary changes, Hainan Dadonghai Tourism A 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 A vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hainan Dadonghai Tourism A is slow explore the new channels of communication. These new channels of communication can help Hainan Dadonghai Tourism A to provide better information regarding Hotels & Motels products and services. It can also build an online community to further reach out to potential customers.

High dependence on Hainan Dadonghai Tourism A ‘s star products

– The top 2 products and services of Hainan Dadonghai Tourism A still accounts for major business revenue. This dependence on star products in Hotels & Motels industry has resulted into insufficient focus on developing new products, even though Hainan Dadonghai Tourism A has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Hainan Dadonghai Tourism A is one of the leading players in the Hotels & Motels industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Hotels & Motels industry in last five years.

High cash cycle compare to competitors

Hainan Dadonghai Tourism A has a high cash cycle compare to other players in the Hotels & Motels industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Interest costs

– Compare to the competition, Hainan Dadonghai Tourism A 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.

Low market penetration in new markets

– Outside its home market of China, Hainan Dadonghai Tourism A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Need for greater diversity

– Hainan Dadonghai Tourism A 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.

Products dominated business model

– Even though Hainan Dadonghai Tourism A has some of the most successful models in the Hotels & Motels industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Hainan Dadonghai Tourism A should strive to include more intangible value offerings along with its core products and services.

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Hainan Dadonghai Tourism A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Hainan Dadonghai Tourism A are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hainan Dadonghai Tourism A 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 A to hire the very best people irrespective of their geographical location.

Creating value in data economy

– The success of analytics program of Hainan Dadonghai Tourism A has opened avenues for new revenue streams for the organization in Hotels & Motels industry. This can help Hainan Dadonghai Tourism A to build a more holistic ecosystem for Hainan Dadonghai Tourism A products in the Hotels & Motels industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Using analytics as competitive advantage

– Hainan Dadonghai Tourism A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Hotels & Motels sector. This continuous investment in analytics has enabled Hainan Dadonghai Tourism A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hainan Dadonghai Tourism A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Leveraging digital technologies

– Hainan Dadonghai Tourism A 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.

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 A can use these opportunities to build new business models that can help the communities that Hainan Dadonghai Tourism A operates in. Secondly it can use opportunities from government spending in Hotels & Motels sector.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hainan Dadonghai Tourism A 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Hotels & Motels industry, but it has also influenced the consumer preferences. Hainan Dadonghai Tourism A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hainan Dadonghai Tourism A 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Hotels & Motels industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hainan Dadonghai Tourism A can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hainan Dadonghai Tourism A can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Building a culture of innovation

– managers at Hainan Dadonghai Tourism A 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 Hotels & Motels industry.

Better consumer reach

– The expansion of the 5G network will help Hainan Dadonghai Tourism A to increase its market reach. Hainan Dadonghai Tourism A 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.

Buying journey improvements

– Hainan Dadonghai Tourism A can improve the customer journey of consumers in the Hotels & Motels 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.

Reforming the budgeting process

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

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Threats Hainan Dadonghai Tourism A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Hainan Dadonghai Tourism A are -

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 A 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 A 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.

Consumer confidence and its impact on Hainan Dadonghai Tourism A 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 Hotels & Motels industry and other sectors.

Stagnating economy with rate increase

– Hainan Dadonghai Tourism A 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 Hotels & Motels industry.

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.

Increasing wage structure of Hainan Dadonghai Tourism A

– 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 A.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Hainan Dadonghai Tourism A 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 A prominent markets.

High dependence on third party suppliers

– Hainan Dadonghai Tourism A 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

– Hainan Dadonghai Tourism A 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. Hainan Dadonghai Tourism A can take advantage of this fund but it will also bring new competitors in the Hotels & Motels 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 Hainan Dadonghai Tourism A in the Hotels & Motels sector and impact the bottomline of the organization.

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 A needs to understand the core reasons impacting the Hotels & Motels industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Hainan Dadonghai Tourism A 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.

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 A.

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Weighted SWOT Analysis of Hainan Dadonghai Tourism A 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 A 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 A 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 A 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 A 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 A needs to make to build a sustainable competitive advantage.

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