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 – banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, there is backlash against globalization, challanges to central banks by blockchain based private currencies, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing household debt because of falling income levels, central banks are concerned over increasing inflation, 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 -
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.
Operational resilience
– The operational resilience strategy of Guangdong Sunwill Pre Plastic A comprises – understanding the underlying the factors in the Appliance & Tool 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.
Effective Research and Development (R&D)
– Guangdong Sunwill Pre Plastic A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Guangdong Sunwill Pre Plastic A staying ahead in the Appliance & Tool industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
Training and development
– Guangdong Sunwill Pre Plastic A has one of the best training and development program in Consumer Cyclical 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.
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.
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.
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.
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.
Strong track record of project management in the Appliance & Tool industry
– Guangdong Sunwill Pre Plastic A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the Appliance & Tool industry, Guangdong Sunwill Pre Plastic A 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 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.
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.
High operating costs
– Compare to the competitors, Guangdong Sunwill Pre Plastic A has high operating costs in the Appliance & Tool industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Guangdong Sunwill Pre Plastic A lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Guangdong Sunwill Pre Plastic A is slow explore the new channels of communication. These new channels of communication can help Guangdong Sunwill Pre Plastic A to provide better information regarding Appliance & Tool products and services. It can also build an online community to further reach out to potential customers.
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.
Skills based hiring in Appliance & Tool industry
– The stress on hiring functional specialists at Guangdong Sunwill Pre Plastic A 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.
Need for greater diversity
– Guangdong Sunwill Pre Plastic A 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.
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.
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 -
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.
Learning at scale
– Online learning technologies has now opened space for Guangdong Sunwill Pre Plastic A 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Guangdong Sunwill Pre Plastic A is facing challenges because of the dominance of functional experts in the organization. Guangdong Sunwill Pre Plastic A can utilize new technology in the field of Appliance & Tool industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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.
Leveraging digital technologies
– Guangdong Sunwill Pre Plastic A 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.
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.
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.
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.
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.
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.
Using analytics as competitive advantage
– Guangdong Sunwill Pre Plastic A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Appliance & Tool sector. This continuous investment in analytics has enabled Guangdong Sunwill Pre Plastic A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Guangdong Sunwill Pre Plastic A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Guangdong Sunwill Pre Plastic A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 -
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.
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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Guangdong Sunwill Pre Plastic A in Appliance & Tool industry. The Appliance & Tool 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.
Increasing wage structure of Guangdong Sunwill Pre Plastic A
– 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 Guangdong Sunwill Pre Plastic A.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Guangdong Sunwill Pre Plastic A has witnessed rapid integration of technology during Covid-19 in the Appliance & Tool industry. As one of the leading players in the industry, Guangdong Sunwill Pre Plastic A needs to keep up with the evolution of technology in the Appliance & Tool 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.
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.
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.
Consumer confidence and its impact on Guangdong Sunwill Pre Plastic A 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 Appliance & Tool industry and other sectors.
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 Guangdong Sunwill Pre Plastic A business can come under increasing regulations regarding data privacy, data security, etc.
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.
