Guangdong New Grand Long Packing (2836) SWOT Analysis / TOWS Matrix / MBA Resources
Printing Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Guangdong New Grand Long Packing (China)
Based on various researches at Oak Spring University , Guangdong New Grand Long Packing is operating in a macro-environment that has been destablized by – there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, there is backlash against globalization, geopolitical disruptions,
wage bills are increasing, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Guangdong New Grand Long Packing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Guangdong New Grand Long Packing can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guangdong New Grand Long Packing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guangdong New Grand Long Packing 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 New Grand Long Packing can be done for the following purposes –
1. Strategic planning of Guangdong New Grand Long Packing
2. Improving business portfolio management of Guangdong New Grand Long Packing
3. Assessing feasibility of the new initiative in China
4. Making a Printing Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Guangdong New Grand Long Packing
Strengths of Guangdong New Grand Long Packing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Guangdong New Grand Long Packing are -
Highly skilled collaborators
– Guangdong New Grand Long Packing has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Printing Services industry. Secondly the value chain collaborators of Guangdong New Grand Long Packing have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Guangdong New Grand Long Packing has one of the best training and development program in Services 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.
Digital Transformation in Printing Services industry
- digital transformation varies from industry to industry. For Guangdong New Grand Long Packing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Guangdong New Grand Long Packing 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.
Operational resilience
– The operational resilience strategy of Guangdong New Grand Long Packing comprises – understanding the underlying the factors in the Printing 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.
Strong track record of project management in the Printing Services industry
– Guangdong New Grand Long Packing 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 Guangdong New Grand Long Packing in the Services sector have low bargaining power. Guangdong New Grand Long Packing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Guangdong New Grand Long Packing to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Guangdong New Grand Long Packing 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 New Grand Long Packing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Guangdong New Grand Long Packing emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Guangdong New Grand Long Packing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Guangdong New Grand Long Packing 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.
Ability to recruit top talent
– Guangdong New Grand Long Packing is one of the leading players in the Printing Services 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.
Organizational Resilience of Guangdong New Grand Long Packing
– The covid-19 pandemic has put organizational resilience at the centre of everthing Guangdong New Grand Long Packing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Guangdong New Grand Long Packing 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.
Innovation driven organization
– Guangdong New Grand Long Packing is one of the most innovative firm in Printing Services sector.
Weaknesses of Guangdong New Grand Long Packing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Guangdong New Grand Long Packing are -
High bargaining power of channel partners in Printing Services industry
– because of the regulatory requirements in China, Guangdong New Grand Long Packing 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 Printing Services 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 New Grand Long Packing supply chain. Even after few cautionary changes, Guangdong New Grand Long Packing is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guangdong New Grand Long Packing vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Guangdong New Grand Long Packing 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.
Employees’ less understanding of Guangdong New Grand Long Packing strategy
– From the outside it seems that the employees of Guangdong New Grand Long Packing don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Guangdong New Grand Long Packing has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Printing Services industry using digital technology.
Need for greater diversity
– Guangdong New Grand Long Packing 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.
Skills based hiring in Printing Services industry
– The stress on hiring functional specialists at Guangdong New Grand Long Packing 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 cash cycle compare to competitors
Guangdong New Grand Long Packing has a high cash cycle compare to other players in the Printing 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.
Low market penetration in new markets
– Outside its home market of China, Guangdong New Grand Long Packing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Guangdong New Grand Long Packing is dominated by functional specialists. It is not different from other players in the Printing Services industry, but Guangdong New Grand Long Packing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Guangdong New Grand Long Packing to focus more on services in the Printing Services industry rather than just following the product oriented approach.
High dependence on Guangdong New Grand Long Packing ‘s star products
– The top 2 products and services of Guangdong New Grand Long Packing still accounts for major business revenue. This dependence on star products in Printing Services industry has resulted into insufficient focus on developing new products, even though Guangdong New Grand Long Packing has relatively successful track record of launching new products.
Guangdong New Grand Long Packing Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Guangdong New Grand Long Packing are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Guangdong New Grand Long Packing 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Printing Services industry, but it has also influenced the consumer preferences. Guangdong New Grand Long Packing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Printing Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Guangdong New Grand Long Packing in the Printing Services industry. Now Guangdong New Grand Long Packing can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Guangdong New Grand Long Packing has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Printing Services sector. This continuous investment in analytics has enabled Guangdong New Grand Long Packing to build a competitive advantage using analytics. The analytics driven competitive advantage can help Guangdong New Grand Long Packing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Guangdong New Grand Long Packing can develop new processes and procedures in Printing Services 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.
Loyalty marketing
– Guangdong New Grand Long Packing 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Guangdong New Grand Long Packing is facing challenges because of the dominance of functional experts in the organization. Guangdong New Grand Long Packing can utilize new technology in the field of Printing Services 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 New Grand Long Packing 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 New Grand Long Packing to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Guangdong New Grand Long Packing can improve the customer journey of consumers in the Printing Services 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.
Leveraging digital technologies
– Guangdong New Grand Long Packing 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.
Creating value in data economy
– The success of analytics program of Guangdong New Grand Long Packing has opened avenues for new revenue streams for the organization in Printing Services industry. This can help Guangdong New Grand Long Packing to build a more holistic ecosystem for Guangdong New Grand Long Packing products in the Printing Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Guangdong New Grand Long Packing 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 New Grand Long Packing 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 Printing Services industry.
Threats Guangdong New Grand Long Packing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Guangdong New Grand Long Packing are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Guangdong New Grand Long Packing 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 New Grand Long Packing prominent markets.
Easy access to finance
– Easy access to finance in Printing Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Guangdong New Grand Long Packing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Guangdong New Grand Long Packing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Printing Services sector.
Shortening product life cycle
– it is one of the major threat that Guangdong New Grand Long Packing is facing in Printing Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Printing Services industry are lowering. It can presents Guangdong New Grand Long Packing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing Services sector.
Regulatory challenges
– Guangdong New Grand Long Packing 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 Printing Services industry regulations.
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 New Grand Long Packing needs to understand the core reasons impacting the Printing Services industry. This will help it in building a better workplace.
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 New Grand Long Packing 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 acceleration in Forth Industrial Revolution
– Guangdong New Grand Long Packing has witnessed rapid integration of technology during Covid-19 in the Printing Services industry. As one of the leading players in the industry, Guangdong New Grand Long Packing needs to keep up with the evolution of technology in the Printing Services 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.
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 New Grand Long Packing.
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 Guangdong New Grand Long Packing
– 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 New Grand Long Packing.
Weighted SWOT Analysis of Guangdong New Grand Long Packing Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Guangdong New Grand Long Packing 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 New Grand Long Packing 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 New Grand Long Packing 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 New Grand Long Packing 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 New Grand Long Packing needs to make to build a sustainable competitive advantage.