Shandong Laiwu Jinlei Wind Power (300443) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Capital Goods
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Shandong Laiwu Jinlei Wind Power (China)
Based on various researches at Oak Spring University , Shandong Laiwu Jinlei Wind Power is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, there is backlash against globalization, there is increasing trade war between United States & China, increasing energy prices, cloud computing is disrupting traditional business models,
wage bills are increasing, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Shandong Laiwu Jinlei Wind Power
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shandong Laiwu Jinlei Wind Power can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shandong Laiwu Jinlei Wind Power, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power can be done for the following purposes –
1. Strategic planning of Shandong Laiwu Jinlei Wind Power
2. Improving business portfolio management of Shandong Laiwu Jinlei Wind Power
3. Assessing feasibility of the new initiative in China
4. Making a Misc. Capital Goods sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shandong Laiwu Jinlei Wind Power
Strengths of Shandong Laiwu Jinlei Wind Power | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shandong Laiwu Jinlei Wind Power are -
Learning organization
- Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shandong Laiwu Jinlei Wind Power emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Shandong Laiwu Jinlei Wind Power has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shandong Laiwu Jinlei Wind Power 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.
Innovation driven organization
– Shandong Laiwu Jinlei Wind Power is one of the most innovative firm in Misc. Capital Goods sector.
Superior customer experience
– The customer experience strategy of Shandong Laiwu Jinlei Wind Power in Misc. Capital Goods industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Shandong Laiwu Jinlei Wind Power is one of the leading players in the Misc. Capital Goods 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.
Strong track record of project management in the Misc. Capital Goods industry
– Shandong Laiwu Jinlei Wind Power is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Shandong Laiwu Jinlei Wind Power 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
– Shandong Laiwu Jinlei Wind Power is present in almost all the verticals within the Misc. Capital Goods industry. This has provided Shandong Laiwu Jinlei Wind Power 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.
Low bargaining power of suppliers
– Suppliers of Shandong Laiwu Jinlei Wind Power in the Capital Goods sector have low bargaining power. Shandong Laiwu Jinlei Wind Power has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shandong Laiwu Jinlei Wind Power to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of Shandong Laiwu Jinlei Wind Power comprises – understanding the underlying the factors in the Misc. Capital Goods 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.
High switching costs
– The high switching costs that Shandong Laiwu Jinlei Wind Power 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.
Organizational Resilience of Shandong Laiwu Jinlei Wind Power
– The covid-19 pandemic has put organizational resilience at the centre of everthing Shandong Laiwu Jinlei Wind Power does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of Shandong Laiwu Jinlei Wind Power | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shandong Laiwu Jinlei Wind Power are -
High dependence on Shandong Laiwu Jinlei Wind Power ‘s star products
– The top 2 products and services of Shandong Laiwu Jinlei Wind Power still accounts for major business revenue. This dependence on star products in Misc. Capital Goods industry has resulted into insufficient focus on developing new products, even though Shandong Laiwu Jinlei Wind Power has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Shandong Laiwu Jinlei Wind Power is one of the leading players in the Misc. Capital Goods industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Capital Goods industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Shandong Laiwu Jinlei Wind Power 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 Misc. Capital Goods industry using digital technology.
Skills based hiring in Misc. Capital Goods industry
– The stress on hiring functional specialists at Shandong Laiwu Jinlei Wind Power 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.
Interest costs
– Compare to the competition, Shandong Laiwu Jinlei Wind Power 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.
Workers concerns about automation
– As automation is fast increasing in the Misc. Capital Goods industry, Shandong Laiwu Jinlei Wind Power 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.
Need for greater diversity
– Shandong Laiwu Jinlei Wind Power 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.
Aligning sales with marketing
– From the outside it seems that Shandong Laiwu Jinlei Wind Power needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Capital Goods industry have deep experience in developing customer relationships. Marketing department at Shandong Laiwu Jinlei Wind Power can leverage the sales team experience to cultivate customer relationships as Shandong Laiwu Jinlei Wind Power is planning to shift buying processes online.
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 Shandong Laiwu Jinlei Wind Power supply chain. Even after few cautionary changes, Shandong Laiwu Jinlei Wind Power is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shandong Laiwu Jinlei Wind Power vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, Shandong Laiwu Jinlei Wind Power has high operating costs in the Misc. Capital Goods industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shandong Laiwu Jinlei Wind Power lucrative customers.
Employees’ less understanding of Shandong Laiwu Jinlei Wind Power strategy
– From the outside it seems that the employees of Shandong Laiwu Jinlei Wind Power 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.
Shandong Laiwu Jinlei Wind Power Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shandong Laiwu Jinlei Wind Power are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Shandong Laiwu Jinlei Wind Power is facing challenges because of the dominance of functional experts in the organization. Shandong Laiwu Jinlei Wind Power can utilize new technology in the field of Misc. Capital Goods industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Shandong Laiwu Jinlei Wind Power to increase its market reach. Shandong Laiwu Jinlei Wind Power 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.
Leveraging digital technologies
– Shandong Laiwu Jinlei Wind Power 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.
Building a culture of innovation
– managers at Shandong Laiwu Jinlei Wind Power 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 Misc. Capital Goods industry.
Using analytics as competitive advantage
– Shandong Laiwu Jinlei Wind Power has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Capital Goods sector. This continuous investment in analytics has enabled Shandong Laiwu Jinlei Wind Power to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shandong Laiwu Jinlei Wind Power to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Shandong Laiwu Jinlei Wind Power has opened avenues for new revenue streams for the organization in Misc. Capital Goods industry. This can help Shandong Laiwu Jinlei Wind Power to build a more holistic ecosystem for Shandong Laiwu Jinlei Wind Power products in the Misc. Capital Goods industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Shandong Laiwu Jinlei Wind Power 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Capital Goods industry, but it has also influenced the consumer preferences. Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Capital Goods 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, Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Shandong Laiwu Jinlei Wind Power can develop new processes and procedures in Misc. Capital Goods 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 Shandong Laiwu Jinlei Wind Power can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Shandong Laiwu Jinlei Wind Power External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shandong Laiwu Jinlei Wind Power are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shandong Laiwu Jinlei Wind Power in Misc. Capital Goods industry. The Misc. Capital Goods 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.
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. Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power
– 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 Shandong Laiwu Jinlei Wind Power.
Technology acceleration in Forth Industrial Revolution
– Shandong Laiwu Jinlei Wind Power has witnessed rapid integration of technology during Covid-19 in the Misc. Capital Goods industry. As one of the leading players in the industry, Shandong Laiwu Jinlei Wind Power needs to keep up with the evolution of technology in the Misc. Capital Goods sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power prominent markets.
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.
Shortening product life cycle
– it is one of the major threat that Shandong Laiwu Jinlei Wind Power is facing in Misc. Capital Goods sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Misc. Capital Goods industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shandong Laiwu Jinlei Wind Power can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Shandong Laiwu Jinlei Wind Power 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 Misc. Capital Goods industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Shandong Laiwu Jinlei Wind Power may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Capital Goods sector.
Regulatory challenges
– Shandong Laiwu Jinlei Wind Power 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 Misc. Capital Goods industry regulations.
Environmental challenges
– Shandong Laiwu Jinlei Wind Power 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. Shandong Laiwu Jinlei Wind Power can take advantage of this fund but it will also bring new competitors in the Misc. Capital Goods industry.
Weighted SWOT Analysis of Shandong Laiwu Jinlei Wind Power Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power 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 Shandong Laiwu Jinlei Wind Power needs to make to build a sustainable competitive advantage.