Guangdong Sunwill Pre Plastic A (2676) SWOT Analysis / TOWS Matrix / MBA Resources
Appliance & Tool
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Guangdong Sunwill Pre Plastic A (China)
Based on various researches at Oak Spring University , Guangdong Sunwill Pre Plastic A is operating in a macro-environment that has been destablized by – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, wage bills are increasing, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Guangdong Sunwill Pre Plastic A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Guangdong Sunwill Pre Plastic A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guangdong Sunwill Pre Plastic A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guangdong Sunwill Pre Plastic A operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Guangdong Sunwill Pre Plastic A can be done for the following purposes –
1. Strategic planning of Guangdong Sunwill Pre Plastic A
2. Improving business portfolio management of Guangdong Sunwill Pre Plastic A
3. Assessing feasibility of the new initiative in China
4. Making a Appliance & Tool sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Guangdong Sunwill Pre Plastic A
Strengths of Guangdong Sunwill Pre Plastic A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Guangdong Sunwill Pre Plastic A are -
Organizational Resilience of Guangdong Sunwill Pre Plastic A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Guangdong Sunwill Pre Plastic A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Guangdong Sunwill Pre Plastic A is present in almost all the verticals within the Appliance & Tool industry. This has provided Guangdong Sunwill Pre Plastic A a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Innovation driven organization
– Guangdong Sunwill Pre Plastic A is one of the most innovative firm in Appliance & Tool sector.
High switching costs
– The high switching costs that Guangdong Sunwill Pre Plastic A 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.
Highly skilled collaborators
– Guangdong Sunwill Pre Plastic A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Appliance & Tool industry. Secondly the value chain collaborators of Guangdong Sunwill Pre Plastic A have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Guangdong Sunwill Pre Plastic A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Guangdong Sunwill Pre Plastic A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Guangdong Sunwill Pre Plastic A in Appliance & Tool industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Appliance & Tool industry
- digital transformation varies from industry to industry. For Guangdong Sunwill Pre Plastic A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Guangdong Sunwill Pre Plastic A 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.
Ability to lead change in Appliance & Tool
– Guangdong Sunwill Pre Plastic A is one of the leading players in the Appliance & Tool industry in China. Over the years it has not only transformed the business landscape in the Appliance & Tool industry in China but also across the existing markets. The ability to lead change has enabled Guangdong Sunwill Pre Plastic A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Guangdong Sunwill Pre Plastic A is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Guangdong Sunwill Pre Plastic A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Guangdong Sunwill Pre Plastic A emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Guangdong Sunwill Pre Plastic A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Guangdong Sunwill Pre Plastic A 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.
Low bargaining power of suppliers
– Suppliers of Guangdong Sunwill Pre Plastic A in the Consumer Cyclical sector have low bargaining power. Guangdong Sunwill Pre Plastic A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Guangdong Sunwill Pre Plastic A to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Guangdong Sunwill Pre Plastic A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Guangdong Sunwill Pre Plastic A are -
Aligning sales with marketing
– From the outside it seems that Guangdong Sunwill Pre Plastic A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Appliance & Tool industry have deep experience in developing customer relationships. Marketing department at Guangdong Sunwill Pre Plastic A can leverage the sales team experience to cultivate customer relationships as Guangdong Sunwill Pre Plastic A is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Guangdong Sunwill Pre Plastic A is one of the leading players in the Appliance & Tool industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Appliance & Tool industry in last five years.
Compensation and incentives
– The revenue per employee of Guangdong Sunwill Pre Plastic A is just above the Appliance & Tool 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.
High cash cycle compare to competitors
Guangdong Sunwill Pre Plastic A has a high cash cycle compare to other players in the Appliance & Tool industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Ability to respond to the competition
– As the decision making is very deliberative at Guangdong Sunwill Pre Plastic A, in the dynamic environment of Appliance & Tool industry it has struggled to respond to the nimble upstart competition. Guangdong Sunwill Pre Plastic A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on Guangdong Sunwill Pre Plastic A ‘s star products
– The top 2 products and services of Guangdong Sunwill Pre Plastic A still accounts for major business revenue. This dependence on star products in Appliance & Tool industry has resulted into insufficient focus on developing new products, even though Guangdong Sunwill Pre Plastic A has relatively successful track record of launching new products.
Products dominated business model
– Even though Guangdong Sunwill Pre Plastic A has some of the most successful models in the Appliance & Tool industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Guangdong Sunwill Pre Plastic A should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners in Appliance & Tool industry
– because of the regulatory requirements in China, Guangdong Sunwill Pre Plastic A 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 Appliance & Tool industry.
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 Guangdong Sunwill Pre Plastic A supply chain. Even after few cautionary changes, Guangdong Sunwill Pre Plastic A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guangdong Sunwill Pre Plastic A vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Guangdong Sunwill Pre Plastic A, it seems that company is thinking out the frontier risks that can impact Appliance & Tool 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.
Lack of clear differentiation of Guangdong Sunwill Pre Plastic A products
– To increase the profitability and margins on the products, Guangdong Sunwill Pre Plastic A needs to provide more differentiated products than what it is currently offering in the marketplace.
Guangdong Sunwill Pre Plastic A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Guangdong Sunwill Pre Plastic A are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Guangdong Sunwill Pre Plastic A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Guangdong Sunwill Pre Plastic A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Appliance & Tool 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, Guangdong Sunwill Pre Plastic A can use these opportunities to build new business models that can help the communities that Guangdong Sunwill Pre Plastic A operates in. Secondly it can use opportunities from government spending in Appliance & Tool sector.
Loyalty marketing
– Guangdong Sunwill Pre Plastic A 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, Guangdong Sunwill Pre Plastic A 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 Guangdong Sunwill Pre Plastic A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Guangdong Sunwill Pre Plastic A 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 Guangdong Sunwill Pre Plastic A has opened avenues for new revenue streams for the organization in Appliance & Tool industry. This can help Guangdong Sunwill Pre Plastic A to build a more holistic ecosystem for Guangdong Sunwill Pre Plastic A products in the Appliance & Tool industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Appliance & Tool industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Guangdong Sunwill Pre Plastic A in the Appliance & Tool industry. Now Guangdong Sunwill Pre Plastic A 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 Appliance & Tool industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Guangdong Sunwill Pre Plastic A can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Guangdong Sunwill Pre Plastic A can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Guangdong Sunwill Pre Plastic A can develop new processes and procedures in Appliance & Tool 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.
Building a culture of innovation
– managers at Guangdong Sunwill Pre Plastic A can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Appliance & Tool industry.
Buying journey improvements
– Guangdong Sunwill Pre Plastic A can improve the customer journey of consumers in the Appliance & Tool 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.
Better consumer reach
– The expansion of the 5G network will help Guangdong Sunwill Pre Plastic A to increase its market reach. Guangdong Sunwill Pre Plastic A will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Guangdong Sunwill Pre Plastic A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Guangdong Sunwill Pre Plastic A are -
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.
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 Guangdong Sunwill Pre Plastic A.
Shortening product life cycle
– it is one of the major threat that Guangdong Sunwill Pre Plastic A is facing in Appliance & Tool sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Guangdong Sunwill Pre Plastic A can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Guangdong Sunwill Pre Plastic A prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Appliance & Tool industry are lowering. It can presents Guangdong Sunwill Pre Plastic A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Appliance & Tool sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Guangdong Sunwill Pre Plastic A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Appliance & Tool sector.
Regulatory challenges
– Guangdong Sunwill Pre Plastic A 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 Appliance & Tool industry regulations.
High dependence on third party suppliers
– Guangdong Sunwill Pre Plastic A high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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. Guangdong Sunwill Pre Plastic A will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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. Guangdong Sunwill Pre Plastic A needs to understand the core reasons impacting the Appliance & Tool industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Appliance & Tool industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Guangdong Sunwill Pre Plastic A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Guangdong Sunwill Pre Plastic A needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Guangdong Sunwill Pre Plastic A can take advantage of this fund but it will also bring new competitors in the Appliance & Tool industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Guangdong Sunwill Pre Plastic A in the Appliance & Tool sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Guangdong Sunwill Pre Plastic A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Guangdong Sunwill Pre Plastic A needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Guangdong Sunwill Pre Plastic A is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Guangdong Sunwill Pre Plastic A is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Guangdong Sunwill Pre Plastic A to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Guangdong Sunwill Pre Plastic A needs to make to build a sustainable competitive advantage.