The Inner Mongolia Chilechuan Tech (611) SWOT Analysis / TOWS Matrix / MBA Resources
Textiles - Non Apparel
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for The Inner Mongolia Chilechuan Tech (China)
Based on various researches at Oak Spring University , The Inner Mongolia Chilechuan Tech is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion,
increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of The Inner Mongolia Chilechuan Tech
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that The Inner Mongolia Chilechuan Tech can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the The Inner Mongolia Chilechuan Tech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan Tech can be done for the following purposes –
1. Strategic planning of The Inner Mongolia Chilechuan Tech
2. Improving business portfolio management of The Inner Mongolia Chilechuan Tech
3. Assessing feasibility of the new initiative in China
4. Making a Textiles - Non Apparel sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of The Inner Mongolia Chilechuan Tech
Strengths of The Inner Mongolia Chilechuan Tech | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of The Inner Mongolia Chilechuan Tech are -
Training and development
– The Inner Mongolia Chilechuan Tech 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.
Analytics focus
– The Inner Mongolia Chilechuan Tech is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Textiles - Non Apparel industry. The technology infrastructure of China is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Textiles - Non Apparel industry
– The Inner Mongolia Chilechuan Tech has clearly differentiated products in the market place. This has enabled The Inner Mongolia Chilechuan Tech to fetch slight price premium compare to the competitors in the Textiles - Non Apparel industry. The sustainable margins have also helped The Inner Mongolia Chilechuan Tech to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– The Inner Mongolia Chilechuan Tech has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Textiles - Non Apparel industry. Secondly the value chain collaborators of The Inner Mongolia Chilechuan Tech have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the The Inner Mongolia Chilechuan 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.
High switching costs
– The high switching costs that The Inner Mongolia Chilechuan Tech 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.
Superior customer experience
– The customer experience strategy of The Inner Mongolia Chilechuan Tech in Textiles - Non Apparel industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– The Inner Mongolia Chilechuan Tech is one of the leading players in the Textiles - Non Apparel 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.
Diverse revenue streams
– The Inner Mongolia Chilechuan Tech is present in almost all the verticals within the Textiles - Non Apparel industry. This has provided The Inner Mongolia Chilechuan 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.
Low bargaining power of suppliers
– Suppliers of The Inner Mongolia Chilechuan Tech in the Consumer Cyclical sector have low bargaining power. The Inner Mongolia Chilechuan Tech has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps The Inner Mongolia Chilechuan Tech to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management in the Textiles - Non Apparel industry
– The Inner Mongolia Chilechuan 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.
High brand equity
– The Inner Mongolia Chilechuan Tech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled The Inner Mongolia Chilechuan Tech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of The Inner Mongolia Chilechuan Tech | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Inner Mongolia Chilechuan Tech are -
Increasing silos among functional specialists
– The organizational structure of The Inner Mongolia Chilechuan Tech is dominated by functional specialists. It is not different from other players in the Textiles - Non Apparel industry, but The Inner Mongolia Chilechuan Tech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help The Inner Mongolia Chilechuan Tech to focus more on services in the Textiles - Non Apparel industry rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, The Inner Mongolia Chilechuan Tech 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 Textiles - Non Apparel industry using digital technology.
No frontier risks strategy
– From the 10K / annual statement of The Inner Mongolia Chilechuan Tech, it seems that company is thinking out the frontier risks that can impact Textiles - Non Apparel 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.
High operating costs
– Compare to the competitors, The Inner Mongolia Chilechuan Tech has high operating costs in the Textiles - Non Apparel industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract The Inner Mongolia Chilechuan Tech lucrative customers.
High cash cycle compare to competitors
The Inner Mongolia Chilechuan Tech has a high cash cycle compare to other players in the Textiles - Non Apparel industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of The Inner Mongolia Chilechuan Tech products
– To increase the profitability and margins on the products, The Inner Mongolia Chilechuan Tech needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, The Inner Mongolia Chilechuan Tech 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.
Compensation and incentives
– The revenue per employee of The Inner Mongolia Chilechuan Tech is just above the Textiles - Non Apparel 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.
Products dominated business model
– Even though The Inner Mongolia Chilechuan Tech has some of the most successful models in the Textiles - Non Apparel industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan Tech needs to have more collaboration between its sales team and marketing team. Sales professionals in the Textiles - Non Apparel industry have deep experience in developing customer relationships. Marketing department at The Inner Mongolia Chilechuan Tech can leverage the sales team experience to cultivate customer relationships as The Inner Mongolia Chilechuan Tech is planning to shift buying processes online.
High dependence on The Inner Mongolia Chilechuan Tech ‘s star products
– The top 2 products and services of The Inner Mongolia Chilechuan Tech still accounts for major business revenue. This dependence on star products in Textiles - Non Apparel industry has resulted into insufficient focus on developing new products, even though The Inner Mongolia Chilechuan Tech has relatively successful track record of launching new products.
The Inner Mongolia Chilechuan Tech Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of The Inner Mongolia Chilechuan Tech are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, The Inner Mongolia Chilechuan Tech 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 The Inner Mongolia Chilechuan Tech to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Textiles - Non Apparel industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for The Inner Mongolia Chilechuan Tech in the Textiles - Non Apparel industry. Now The Inner Mongolia Chilechuan Tech can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– The Inner Mongolia Chilechuan Tech 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.
Buying journey improvements
– The Inner Mongolia Chilechuan Tech can improve the customer journey of consumers in the Textiles - Non Apparel 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.
Using analytics as competitive advantage
– The Inner Mongolia Chilechuan Tech has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Textiles - Non Apparel sector. This continuous investment in analytics has enabled The Inner Mongolia Chilechuan Tech to build a competitive advantage using analytics. The analytics driven competitive advantage can help The Inner Mongolia Chilechuan Tech 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
– The Inner Mongolia Chilechuan Tech can develop new processes and procedures in Textiles - Non Apparel 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for The Inner Mongolia Chilechuan Tech in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Textiles - Non Apparel industry, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at The Inner Mongolia Chilechuan 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 Textiles - Non Apparel industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Textiles - Non Apparel industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. The Inner Mongolia Chilechuan Tech 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. The Inner Mongolia Chilechuan Tech 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.
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. The Inner Mongolia Chilechuan Tech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– The Inner Mongolia Chilechuan Tech can use the latest technology developments to improve its manufacturing and designing process in Textiles - Non Apparel sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, The Inner Mongolia Chilechuan Tech can use these opportunities to build new business models that can help the communities that The Inner Mongolia Chilechuan Tech operates in. Secondly it can use opportunities from government spending in Textiles - Non Apparel sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan Tech to hire the very best people irrespective of their geographical location.
Threats The Inner Mongolia Chilechuan Tech External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of The Inner Mongolia Chilechuan Tech are -
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. The Inner Mongolia Chilechuan Tech needs to understand the core reasons impacting the Textiles - Non Apparel industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– The Inner Mongolia Chilechuan Tech can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Textiles - Non Apparel industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. The Inner Mongolia Chilechuan Tech 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 dependence on third party suppliers
– The Inner Mongolia Chilechuan 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.
Shortening product life cycle
– it is one of the major threat that The Inner Mongolia Chilechuan Tech is facing in Textiles - Non Apparel sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on The Inner Mongolia Chilechuan 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 Textiles - Non Apparel industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Textiles - Non Apparel industry are lowering. It can presents The Inner Mongolia Chilechuan Tech with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Textiles - Non Apparel sector.
Technology acceleration in Forth Industrial Revolution
– The Inner Mongolia Chilechuan Tech has witnessed rapid integration of technology during Covid-19 in the Textiles - Non Apparel industry. As one of the leading players in the industry, The Inner Mongolia Chilechuan Tech needs to keep up with the evolution of technology in the Textiles - Non Apparel 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.
Increasing wage structure of The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan Tech.
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 The Inner Mongolia Chilechuan Tech business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– The Inner Mongolia Chilechuan Tech 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 Textiles - Non Apparel industry regulations.
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.
Easy access to finance
– Easy access to finance in Textiles - Non Apparel industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. The Inner Mongolia Chilechuan Tech can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of The Inner Mongolia Chilechuan Tech Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan 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 The Inner Mongolia Chilechuan Tech needs to make to build a sustainable competitive advantage.