Y.U.D. Yangtze River Inv (600119) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Y.U.D. Yangtze River Inv (China)

Based on various researches at Oak Spring University , Y.U.D. Yangtze River Inv is operating in a macro-environment that has been destablized by – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc

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Introduction to SWOT Analysis of Y.U.D. Yangtze River Inv

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Y.U.D. Yangtze River Inv can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Y.U.D. Yangtze River Inv, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv can be done for the following purposes –
1. Strategic planning of Y.U.D. Yangtze River Inv
2. Improving business portfolio management of Y.U.D. Yangtze River Inv
3. Assessing feasibility of the new initiative in China
4. Making a Business Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Y.U.D. Yangtze River Inv

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Strengths of Y.U.D. Yangtze River Inv | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Y.U.D. Yangtze River Inv are -

Innovation driven organization

– Y.U.D. Yangtze River Inv is one of the most innovative firm in Business Services sector.

Diverse revenue streams

– Y.U.D. Yangtze River Inv is present in almost all the verticals within the Business Services industry. This has provided Y.U.D. Yangtze River Inv 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.

Superior customer experience

– The customer experience strategy of Y.U.D. Yangtze River Inv in Business Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Successful track record of launching new products

– Y.U.D. Yangtze River Inv has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Y.U.D. Yangtze River Inv 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.

High brand equity

– Y.U.D. Yangtze River Inv has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Y.U.D. Yangtze River Inv to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Learning organization

- Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Y.U.D. Yangtze River Inv emphasize – knowledge, initiative, and innovation.

Ability to lead change in Business Services

– Y.U.D. Yangtze River Inv is one of the leading players in the Business Services industry in China. Over the years it has not only transformed the business landscape in the Business Services industry in China but also across the existing markets. The ability to lead change has enabled Y.U.D. Yangtze River Inv in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Low bargaining power of suppliers

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

Operational resilience

– The operational resilience strategy of Y.U.D. Yangtze River Inv comprises – understanding the underlying the factors in the Business Services 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 Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv 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.

Digital Transformation in Business Services industry

- digital transformation varies from industry to industry. For Y.U.D. Yangtze River Inv digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Y.U.D. Yangtze River Inv has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

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Weaknesses of Y.U.D. Yangtze River Inv | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Y.U.D. Yangtze River Inv are -

High cash cycle compare to competitors

Y.U.D. Yangtze River Inv has a high cash cycle compare to other players in the Business Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Products dominated business model

– Even though Y.U.D. Yangtze River Inv has some of the most successful models in the Business Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Y.U.D. Yangtze River Inv should strive to include more intangible value offerings along with its core products and services.

Skills based hiring in Business Services industry

– The stress on hiring functional specialists at Y.U.D. Yangtze River Inv has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

High 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 Y.U.D. Yangtze River Inv supply chain. Even after few cautionary changes, Y.U.D. Yangtze River Inv is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Y.U.D. Yangtze River Inv vulnerable to further global disruptions in South East Asia.

Increasing silos among functional specialists

– The organizational structure of Y.U.D. Yangtze River Inv is dominated by functional specialists. It is not different from other players in the Business Services industry, but Y.U.D. Yangtze River Inv needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Y.U.D. Yangtze River Inv to focus more on services in the Business Services industry rather than just following the product oriented approach.

Aligning sales with marketing

– From the outside it seems that Y.U.D. Yangtze River Inv needs to have more collaboration between its sales team and marketing team. Sales professionals in the Business Services industry have deep experience in developing customer relationships. Marketing department at Y.U.D. Yangtze River Inv can leverage the sales team experience to cultivate customer relationships as Y.U.D. Yangtze River Inv is planning to shift buying processes online.

Lack of clear differentiation of Y.U.D. Yangtze River Inv products

– To increase the profitability and margins on the products, Y.U.D. Yangtze River Inv needs to provide more differentiated products than what it is currently offering in the marketplace.

High dependence on Y.U.D. Yangtze River Inv ‘s star products

– The top 2 products and services of Y.U.D. Yangtze River Inv still accounts for major business revenue. This dependence on star products in Business Services industry has resulted into insufficient focus on developing new products, even though Y.U.D. Yangtze River Inv has relatively successful track record of launching new products.

High bargaining power of channel partners in Business Services industry

– because of the regulatory requirements in China, Y.U.D. Yangtze River Inv 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 Business Services industry.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Y.U.D. Yangtze River Inv is slow explore the new channels of communication. These new channels of communication can help Y.U.D. Yangtze River Inv to provide better information regarding Business Services products and services. It can also build an online community to further reach out to potential customers.

Interest costs

– Compare to the competition, Y.U.D. Yangtze River Inv 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.

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Y.U.D. Yangtze River Inv Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Y.U.D. Yangtze River Inv are -

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Business Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Y.U.D. Yangtze River Inv 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. Y.U.D. Yangtze River Inv 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Y.U.D. Yangtze River Inv can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Building a culture of innovation

– managers at Y.U.D. Yangtze River Inv 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 Business Services industry.

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 Y.U.D. Yangtze River Inv 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Y.U.D. Yangtze River Inv 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Y.U.D. Yangtze River Inv in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Business Services industry, and it will provide faster access to the consumers.

Use of Bitcoin and other crypto currencies for transactions in Business Services industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Y.U.D. Yangtze River Inv in the Business Services industry. Now Y.U.D. Yangtze River Inv can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Y.U.D. Yangtze River Inv has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Business Services sector. This continuous investment in analytics has enabled Y.U.D. Yangtze River Inv to build a competitive advantage using analytics. The analytics driven competitive advantage can help Y.U.D. Yangtze River Inv to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Y.U.D. Yangtze River Inv can use these opportunities to build new business models that can help the communities that Y.U.D. Yangtze River Inv operates in. Secondly it can use opportunities from government spending in Business Services sector.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv to hire the very best people irrespective of their geographical location.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Business Services industry, but it has also influenced the consumer preferences. Y.U.D. Yangtze River Inv can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Leveraging digital technologies

– Y.U.D. Yangtze River Inv 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats Y.U.D. Yangtze River Inv External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Y.U.D. Yangtze River Inv are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Y.U.D. Yangtze River Inv in Business Services industry. The Business Services 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Y.U.D. Yangtze River Inv may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Business Services sector.

Environmental challenges

– Y.U.D. Yangtze River Inv 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. Y.U.D. Yangtze River Inv can take advantage of this fund but it will also bring new competitors in the Business Services industry.

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 Y.U.D. Yangtze River Inv.

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 Y.U.D. Yangtze River Inv in the Business Services sector and impact the bottomline of the organization.

Stagnating economy with rate increase

– Y.U.D. Yangtze River Inv 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 Business Services industry.

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. Y.U.D. Yangtze River Inv 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.

Increasing wage structure of Y.U.D. Yangtze River Inv

– 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 Y.U.D. Yangtze River Inv.

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. Y.U.D. Yangtze River Inv needs to understand the core reasons impacting the Business Services industry. This will help it in building a better workplace.

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.

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 Y.U.D. Yangtze River Inv business can come under increasing regulations regarding data privacy, data security, etc.

Easy access to finance

– Easy access to finance in Business Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Y.U.D. Yangtze River Inv can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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Weighted SWOT Analysis of Y.U.D. Yangtze River Inv Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv 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 Y.U.D. Yangtze River Inv needs to make to build a sustainable competitive advantage.

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