Jiang Su Wujin Stainless Steel Pipe (603878) SWOT Analysis / TOWS Matrix / MBA Resources
Constr. - Supplies & Fixtures
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Jiang Su Wujin Stainless Steel Pipe (China)
Based on various researches at Oak Spring University , Jiang Su Wujin Stainless Steel Pipe is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, increasing commodity prices,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Jiang Su Wujin Stainless Steel Pipe
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jiang Su Wujin Stainless Steel Pipe can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jiang Su Wujin Stainless Steel Pipe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe can be done for the following purposes –
1. Strategic planning of Jiang Su Wujin Stainless Steel Pipe
2. Improving business portfolio management of Jiang Su Wujin Stainless Steel Pipe
3. Assessing feasibility of the new initiative in China
4. Making a Constr. - Supplies & Fixtures sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jiang Su Wujin Stainless Steel Pipe
Strengths of Jiang Su Wujin Stainless Steel Pipe | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jiang Su Wujin Stainless Steel Pipe are -
Highly skilled collaborators
– Jiang Su Wujin Stainless Steel Pipe has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Constr. - Supplies & Fixtures industry. Secondly the value chain collaborators of Jiang Su Wujin Stainless Steel Pipe have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Constr. - Supplies & Fixtures industry
– Jiang Su Wujin Stainless Steel Pipe has clearly differentiated products in the market place. This has enabled Jiang Su Wujin Stainless Steel Pipe to fetch slight price premium compare to the competitors in the Constr. - Supplies & Fixtures industry. The sustainable margins have also helped Jiang Su Wujin Stainless Steel Pipe to invest into research and development (R&D) and innovation.
Learning organization
- Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jiang Su Wujin Stainless Steel Pipe emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Jiang Su Wujin Stainless Steel Pipe 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.
Cross disciplinary teams
– Horizontal connected teams at the Jiang Su Wujin Stainless Steel Pipe 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.
Training and development
– Jiang Su Wujin Stainless Steel Pipe has one of the best training and development program in Capital Goods 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.
Innovation driven organization
– Jiang Su Wujin Stainless Steel Pipe is one of the most innovative firm in Constr. - Supplies & Fixtures sector.
Diverse revenue streams
– Jiang Su Wujin Stainless Steel Pipe is present in almost all the verticals within the Constr. - Supplies & Fixtures industry. This has provided Jiang Su Wujin Stainless Steel Pipe a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Constr. - Supplies & Fixtures
– Jiang Su Wujin Stainless Steel Pipe is one of the leading players in the Constr. - Supplies & Fixtures industry in China. Over the years it has not only transformed the business landscape in the Constr. - Supplies & Fixtures industry in China but also across the existing markets. The ability to lead change has enabled Jiang Su Wujin Stainless Steel Pipe in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Jiang Su Wujin Stainless Steel Pipe 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 Constr. - Supplies & Fixtures 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.
Low bargaining power of suppliers
– Suppliers of Jiang Su Wujin Stainless Steel Pipe in the Capital Goods sector have low bargaining power. Jiang Su Wujin Stainless Steel Pipe has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jiang Su Wujin Stainless Steel Pipe to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Jiang Su Wujin Stainless Steel Pipe in Constr. - Supplies & Fixtures industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Jiang Su Wujin Stainless Steel Pipe | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jiang Su Wujin Stainless Steel Pipe are -
High dependence on Jiang Su Wujin Stainless Steel Pipe ‘s star products
– The top 2 products and services of Jiang Su Wujin Stainless Steel Pipe still accounts for major business revenue. This dependence on star products in Constr. - Supplies & Fixtures industry has resulted into insufficient focus on developing new products, even though Jiang Su Wujin Stainless Steel Pipe has relatively successful track record of launching new products.
No frontier risks strategy
– From the 10K / annual statement of Jiang Su Wujin Stainless Steel Pipe, it seems that company is thinking out the frontier risks that can impact Constr. - Supplies & Fixtures 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.
Products dominated business model
– Even though Jiang Su Wujin Stainless Steel Pipe has some of the most successful models in the Constr. - Supplies & Fixtures industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Jiang Su Wujin Stainless Steel Pipe should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Jiang Su Wujin Stainless Steel Pipe 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.
Low market penetration in new markets
– Outside its home market of China, Jiang Su Wujin Stainless Steel Pipe needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee of Jiang Su Wujin Stainless Steel Pipe is just above the Constr. - Supplies & Fixtures 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.
Aligning sales with marketing
– From the outside it seems that Jiang Su Wujin Stainless Steel Pipe needs to have more collaboration between its sales team and marketing team. Sales professionals in the Constr. - Supplies & Fixtures industry have deep experience in developing customer relationships. Marketing department at Jiang Su Wujin Stainless Steel Pipe can leverage the sales team experience to cultivate customer relationships as Jiang Su Wujin Stainless Steel Pipe is planning to shift buying processes online.
Lack of clear differentiation of Jiang Su Wujin Stainless Steel Pipe products
– To increase the profitability and margins on the products, Jiang Su Wujin Stainless Steel Pipe needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Jiang Su Wujin Stainless Steel Pipe is dominated by functional specialists. It is not different from other players in the Constr. - Supplies & Fixtures industry, but Jiang Su Wujin Stainless Steel Pipe needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jiang Su Wujin Stainless Steel Pipe to focus more on services in the Constr. - Supplies & Fixtures industry rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Jiang Su Wujin Stainless Steel Pipe 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jiang Su Wujin Stainless Steel Pipe is slow explore the new channels of communication. These new channels of communication can help Jiang Su Wujin Stainless Steel Pipe to provide better information regarding Constr. - Supplies & Fixtures products and services. It can also build an online community to further reach out to potential customers.
Jiang Su Wujin Stainless Steel Pipe Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jiang Su Wujin Stainless Steel Pipe are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Constr. - Supplies & Fixtures industry, but it has also influenced the consumer preferences. Jiang Su Wujin Stainless Steel Pipe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jiang Su Wujin Stainless Steel Pipe in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Constr. - Supplies & Fixtures industry, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jiang Su Wujin Stainless Steel Pipe can use these opportunities to build new business models that can help the communities that Jiang Su Wujin Stainless Steel Pipe operates in. Secondly it can use opportunities from government spending in Constr. - Supplies & Fixtures sector.
Use of Bitcoin and other crypto currencies for transactions in Constr. - Supplies & Fixtures industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jiang Su Wujin Stainless Steel Pipe in the Constr. - Supplies & Fixtures industry. Now Jiang Su Wujin Stainless Steel Pipe can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Constr. - Supplies & Fixtures industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jiang Su Wujin Stainless Steel Pipe 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. Jiang Su Wujin Stainless Steel Pipe 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.
Loyalty marketing
– Jiang Su Wujin Stainless Steel Pipe 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe 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, Jiang Su Wujin Stainless Steel Pipe is facing challenges because of the dominance of functional experts in the organization. Jiang Su Wujin Stainless Steel Pipe can utilize new technology in the field of Constr. - Supplies & Fixtures industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Jiang Su Wujin Stainless Steel Pipe 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jiang Su Wujin Stainless Steel Pipe 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jiang Su Wujin Stainless Steel Pipe can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Jiang Su Wujin Stainless Steel Pipe has opened avenues for new revenue streams for the organization in Constr. - Supplies & Fixtures industry. This can help Jiang Su Wujin Stainless Steel Pipe to build a more holistic ecosystem for Jiang Su Wujin Stainless Steel Pipe products in the Constr. - Supplies & Fixtures industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Jiang Su Wujin Stainless Steel Pipe External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jiang Su Wujin Stainless Steel Pipe are -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jiang Su Wujin Stainless Steel Pipe may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Constr. - Supplies & Fixtures sector.
High dependence on third party suppliers
– Jiang Su Wujin Stainless Steel Pipe 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.
Stagnating economy with rate increase
– Jiang Su Wujin Stainless Steel Pipe 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 Constr. - Supplies & Fixtures industry.
Environmental challenges
– Jiang Su Wujin Stainless Steel Pipe 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. Jiang Su Wujin Stainless Steel Pipe can take advantage of this fund but it will also bring new competitors in the Constr. - Supplies & Fixtures industry.
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 Jiang Su Wujin Stainless Steel Pipe business can come under increasing regulations regarding data privacy, data security, etc.
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.
Regulatory challenges
– Jiang Su Wujin Stainless Steel Pipe 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 Constr. - Supplies & Fixtures 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. Jiang Su Wujin Stainless Steel Pipe 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.
Easy access to finance
– Easy access to finance in Constr. - Supplies & Fixtures industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jiang Su Wujin Stainless Steel Pipe can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Constr. - Supplies & Fixtures industry are lowering. It can presents Jiang Su Wujin Stainless Steel Pipe with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Constr. - Supplies & Fixtures sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jiang Su Wujin Stainless Steel Pipe in Constr. - Supplies & Fixtures industry. The Constr. - Supplies & Fixtures 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 Jiang Su Wujin Stainless Steel Pipe Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe 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 Jiang Su Wujin Stainless Steel Pipe needs to make to build a sustainable competitive advantage.
