SWOT Analysis / TOWS Matrix for JIANGSU LOPAL TECH (China)
Based on various researches at Oak Spring University , JIANGSU LOPAL TECH is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, technology disruption,
there is backlash against globalization, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of JIANGSU LOPAL TECH
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JIANGSU LOPAL TECH can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JIANGSU LOPAL TECH, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH can be done for the following purposes –
1. Strategic planning of JIANGSU LOPAL TECH
2. Improving business portfolio management of JIANGSU LOPAL TECH
3. Assessing feasibility of the new initiative in China
4. Making a Oil & Gas Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of JIANGSU LOPAL TECH
Strengths of JIANGSU LOPAL TECH | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of JIANGSU LOPAL TECH are -
Organizational Resilience of JIANGSU LOPAL TECH
– The covid-19 pandemic has put organizational resilience at the centre of everthing JIANGSU LOPAL TECH does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– JIANGSU LOPAL TECH is one of the most innovative firm in Oil & Gas Operations sector.
High brand equity
– JIANGSU LOPAL TECH has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled JIANGSU LOPAL TECH to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of JIANGSU LOPAL TECH in Oil & Gas Operations industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy of JIANGSU LOPAL TECH comprises – understanding the underlying the factors in the Oil & Gas Operations 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.
Sustainable margins compare to other players in Oil & Gas Operations industry
– JIANGSU LOPAL TECH has clearly differentiated products in the market place. This has enabled JIANGSU LOPAL TECH to fetch slight price premium compare to the competitors in the Oil & Gas Operations industry. The sustainable margins have also helped JIANGSU LOPAL TECH to invest into research and development (R&D) and innovation.
Training and development
– JIANGSU LOPAL TECH has one of the best training and development program in Energy 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.
Ability to recruit top talent
– JIANGSU LOPAL TECH is one of the leading players in the Oil & Gas Operations 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 Oil & Gas Operations industry
– JIANGSU LOPAL TECH is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of JIANGSU LOPAL TECH in the Energy sector have low bargaining power. JIANGSU LOPAL TECH has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps JIANGSU LOPAL TECH to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the JIANGSU LOPAL TECH 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
– JIANGSU LOPAL TECH is present in almost all the verticals within the Oil & Gas Operations industry. This has provided JIANGSU LOPAL TECH 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.
Weaknesses of JIANGSU LOPAL TECH | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JIANGSU LOPAL TECH are -
Low market penetration in new markets
– Outside its home market of China, JIANGSU LOPAL TECH needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at JIANGSU LOPAL TECH, in the dynamic environment of Oil & Gas Operations industry it has struggled to respond to the nimble upstart competition. JIANGSU LOPAL TECH has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though JIANGSU LOPAL TECH has some of the most successful models in the Oil & Gas Operations industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. JIANGSU LOPAL TECH should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that JIANGSU LOPAL TECH needs to have more collaboration between its sales team and marketing team. Sales professionals in the Oil & Gas Operations industry have deep experience in developing customer relationships. Marketing department at JIANGSU LOPAL TECH can leverage the sales team experience to cultivate customer relationships as JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH supply chain. Even after few cautionary changes, JIANGSU LOPAL TECH is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left JIANGSU LOPAL TECH vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Oil & Gas Operations industry, JIANGSU LOPAL TECH 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 operating costs
– Compare to the competitors, JIANGSU LOPAL TECH has high operating costs in the Oil & Gas Operations industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract JIANGSU LOPAL TECH lucrative customers.
High bargaining power of channel partners in Oil & Gas Operations industry
– because of the regulatory requirements in China, JIANGSU LOPAL TECH 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 Oil & Gas Operations industry.
Increasing silos among functional specialists
– The organizational structure of JIANGSU LOPAL TECH is dominated by functional specialists. It is not different from other players in the Oil & Gas Operations industry, but JIANGSU LOPAL TECH needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JIANGSU LOPAL TECH to focus more on services in the Oil & Gas Operations industry rather than just following the product oriented approach.
High dependence on JIANGSU LOPAL TECH ‘s star products
– The top 2 products and services of JIANGSU LOPAL TECH still accounts for major business revenue. This dependence on star products in Oil & Gas Operations industry has resulted into insufficient focus on developing new products, even though JIANGSU LOPAL TECH has relatively successful track record of launching new products.
Need for greater diversity
– JIANGSU LOPAL TECH 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.
JIANGSU LOPAL TECH Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of JIANGSU LOPAL TECH are -
Better consumer reach
– The expansion of the 5G network will help JIANGSU LOPAL TECH to increase its market reach. JIANGSU LOPAL TECH 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
– JIANGSU LOPAL TECH 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH 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 Oil & Gas Operations industry.
Use of Bitcoin and other crypto currencies for transactions in Oil & Gas Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for JIANGSU LOPAL TECH in the Oil & Gas Operations industry. Now JIANGSU LOPAL TECH can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, JIANGSU LOPAL TECH can use these opportunities to build new business models that can help the communities that JIANGSU LOPAL TECH operates in. Secondly it can use opportunities from government spending in Oil & Gas Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, JIANGSU LOPAL TECH is facing challenges because of the dominance of functional experts in the organization. JIANGSU LOPAL TECH can utilize new technology in the field of Oil & Gas Operations industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help JIANGSU LOPAL TECH 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.
Creating value in data economy
– The success of analytics program of JIANGSU LOPAL TECH has opened avenues for new revenue streams for the organization in Oil & Gas Operations industry. This can help JIANGSU LOPAL TECH to build a more holistic ecosystem for JIANGSU LOPAL TECH products in the Oil & Gas Operations industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– JIANGSU LOPAL TECH can improve the customer journey of consumers in the Oil & Gas Operations 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.
Developing new processes and practices
– JIANGSU LOPAL TECH can develop new processes and procedures in Oil & Gas Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for JIANGSU LOPAL TECH 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.
Threats JIANGSU LOPAL TECH External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of JIANGSU LOPAL TECH are -
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 JIANGSU LOPAL TECH.
Environmental challenges
– JIANGSU LOPAL TECH 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. JIANGSU LOPAL TECH can take advantage of this fund but it will also bring new competitors in the Oil & Gas Operations industry.
Technology acceleration in Forth Industrial Revolution
– JIANGSU LOPAL TECH has witnessed rapid integration of technology during Covid-19 in the Oil & Gas Operations industry. As one of the leading players in the industry, JIANGSU LOPAL TECH needs to keep up with the evolution of technology in the Oil & Gas Operations 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.
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. JIANGSU LOPAL TECH needs to understand the core reasons impacting the Oil & Gas Operations industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for JIANGSU LOPAL TECH in Oil & Gas Operations industry. The Oil & Gas Operations 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.
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.
Consumer confidence and its impact on JIANGSU LOPAL TECH 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 Oil & Gas Operations industry and other sectors.
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 JIANGSU LOPAL TECH in the Oil & Gas Operations sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, JIANGSU LOPAL TECH may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Oil & Gas Operations sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Oil & Gas Operations industry are lowering. It can presents JIANGSU LOPAL TECH with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Oil & Gas Operations sector.
High dependence on third party suppliers
– JIANGSU LOPAL TECH 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.
Increasing wage structure of JIANGSU LOPAL TECH
– 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 JIANGSU LOPAL TECH.
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.
Weighted SWOT Analysis of JIANGSU LOPAL TECH Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH 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 JIANGSU LOPAL TECH needs to make to build a sustainable competitive advantage.
