Based on various researches at Oak Spring University , Beijing Fuxing Xiaocheng Electronic is operating in a macro-environment that has been destablized by – technology disruption, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Beijing Fuxing Xiaocheng Electronic
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Beijing Fuxing Xiaocheng Electronic can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Fuxing Xiaocheng Electronic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic can be done for the following purposes –
1. Strategic planning of Beijing Fuxing Xiaocheng Electronic
2. Improving business portfolio management of Beijing Fuxing Xiaocheng Electronic
3. Assessing feasibility of the new initiative in China
4. Making a Electronic Instr. & Controls sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Beijing Fuxing Xiaocheng Electronic
Strengths of Beijing Fuxing Xiaocheng Electronic | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beijing Fuxing Xiaocheng Electronic are -
Low bargaining power of suppliers
– Suppliers of Beijing Fuxing Xiaocheng Electronic in the Technology sector have low bargaining power. Beijing Fuxing Xiaocheng Electronic has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beijing Fuxing Xiaocheng Electronic to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management in the Electronic Instr. & Controls industry
– Beijing Fuxing Xiaocheng Electronic is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Beijing Fuxing Xiaocheng Electronic 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 Electronic Instr. & Controls 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.
Learning organization
- Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Beijing Fuxing Xiaocheng Electronic emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Beijing Fuxing Xiaocheng Electronic is one of the most innovative firm in Electronic Instr. & Controls sector.
High switching costs
– The high switching costs that Beijing Fuxing Xiaocheng Electronic 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.
High brand equity
– Beijing Fuxing Xiaocheng Electronic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Beijing Fuxing Xiaocheng Electronic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Beijing Fuxing Xiaocheng Electronic has one of the best training and development program in Technology 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 Electronic Instr. & Controls industry
- digital transformation varies from industry to industry. For Beijing Fuxing Xiaocheng Electronic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beijing Fuxing Xiaocheng Electronic 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.
Highly skilled collaborators
– Beijing Fuxing Xiaocheng Electronic has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Electronic Instr. & Controls industry. Secondly the value chain collaborators of Beijing Fuxing Xiaocheng Electronic have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Beijing Fuxing Xiaocheng Electronic is present in almost all the verticals within the Electronic Instr. & Controls industry. This has provided Beijing Fuxing Xiaocheng Electronic 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.
Cross disciplinary teams
– Horizontal connected teams at the Beijing Fuxing Xiaocheng Electronic 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.
Weaknesses of Beijing Fuxing Xiaocheng Electronic | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Beijing Fuxing Xiaocheng Electronic are -
High dependence on Beijing Fuxing Xiaocheng Electronic ‘s star products
– The top 2 products and services of Beijing Fuxing Xiaocheng Electronic still accounts for major business revenue. This dependence on star products in Electronic Instr. & Controls industry has resulted into insufficient focus on developing new products, even though Beijing Fuxing Xiaocheng Electronic has relatively successful track record of launching new products.
Need for greater diversity
– Beijing Fuxing Xiaocheng Electronic 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.
Slow to strategic competitive environment developments
– As Beijing Fuxing Xiaocheng Electronic is one of the leading players in the Electronic Instr. & Controls industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Electronic Instr. & Controls industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative at Beijing Fuxing Xiaocheng Electronic, in the dynamic environment of Electronic Instr. & Controls industry it has struggled to respond to the nimble upstart competition. Beijing Fuxing Xiaocheng Electronic has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Beijing Fuxing Xiaocheng Electronic has some of the most successful models in the Electronic Instr. & Controls industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Beijing Fuxing Xiaocheng Electronic should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Beijing Fuxing Xiaocheng Electronic has high operating costs in the Electronic Instr. & Controls industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Beijing Fuxing Xiaocheng Electronic lucrative customers.
Lack of clear differentiation of Beijing Fuxing Xiaocheng Electronic products
– To increase the profitability and margins on the products, Beijing Fuxing Xiaocheng Electronic needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Beijing Fuxing Xiaocheng Electronic supply chain. Even after few cautionary changes, Beijing Fuxing Xiaocheng Electronic is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beijing Fuxing Xiaocheng Electronic vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Beijing Fuxing Xiaocheng Electronic 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.
Increasing silos among functional specialists
– The organizational structure of Beijing Fuxing Xiaocheng Electronic is dominated by functional specialists. It is not different from other players in the Electronic Instr. & Controls industry, but Beijing Fuxing Xiaocheng Electronic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Beijing Fuxing Xiaocheng Electronic to focus more on services in the Electronic Instr. & Controls industry rather than just following the product oriented approach.
Aligning sales with marketing
– From the outside it seems that Beijing Fuxing Xiaocheng Electronic needs to have more collaboration between its sales team and marketing team. Sales professionals in the Electronic Instr. & Controls industry have deep experience in developing customer relationships. Marketing department at Beijing Fuxing Xiaocheng Electronic can leverage the sales team experience to cultivate customer relationships as Beijing Fuxing Xiaocheng Electronic is planning to shift buying processes online.
Beijing Fuxing Xiaocheng Electronic Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Beijing Fuxing Xiaocheng Electronic are -
Using analytics as competitive advantage
– Beijing Fuxing Xiaocheng Electronic has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Electronic Instr. & Controls sector. This continuous investment in analytics has enabled Beijing Fuxing Xiaocheng Electronic to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beijing Fuxing Xiaocheng Electronic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Beijing Fuxing Xiaocheng Electronic in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Electronic Instr. & Controls industry, and it will provide faster access to the consumers.
Loyalty marketing
– Beijing Fuxing Xiaocheng Electronic 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.
Manufacturing automation
– Beijing Fuxing Xiaocheng Electronic can use the latest technology developments to improve its manufacturing and designing process in Electronic Instr. & Controls 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.
Learning at scale
– Online learning technologies has now opened space for Beijing Fuxing Xiaocheng Electronic 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Electronic Instr. & Controls industry, but it has also influenced the consumer preferences. Beijing Fuxing Xiaocheng Electronic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Beijing Fuxing Xiaocheng Electronic has opened avenues for new revenue streams for the organization in Electronic Instr. & Controls industry. This can help Beijing Fuxing Xiaocheng Electronic to build a more holistic ecosystem for Beijing Fuxing Xiaocheng Electronic products in the Electronic Instr. & Controls industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Electronic Instr. & Controls industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Beijing Fuxing Xiaocheng Electronic 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. Beijing Fuxing Xiaocheng Electronic 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic 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 Electronic Instr. & Controls industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Beijing Fuxing Xiaocheng Electronic in the Electronic Instr. & Controls industry. Now Beijing Fuxing Xiaocheng Electronic can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Beijing Fuxing Xiaocheng Electronic to increase its market reach. Beijing Fuxing Xiaocheng Electronic will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Beijing Fuxing Xiaocheng Electronic 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Fuxing Xiaocheng Electronic can use these opportunities to build new business models that can help the communities that Beijing Fuxing Xiaocheng Electronic operates in. Secondly it can use opportunities from government spending in Electronic Instr. & Controls sector.
Threats Beijing Fuxing Xiaocheng Electronic External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Beijing Fuxing Xiaocheng Electronic are -
Shortening product life cycle
– it is one of the major threat that Beijing Fuxing Xiaocheng Electronic is facing in Electronic Instr. & Controls sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Beijing Fuxing Xiaocheng Electronic 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 Electronic Instr. & Controls industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Beijing Fuxing Xiaocheng Electronic in Electronic Instr. & Controls industry. The Electronic Instr. & Controls 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.
Stagnating economy with rate increase
– Beijing Fuxing Xiaocheng Electronic 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 Electronic Instr. & Controls 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 Beijing Fuxing Xiaocheng Electronic in the Electronic Instr. & Controls sector and impact the bottomline of the organization.
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. Beijing Fuxing Xiaocheng Electronic needs to understand the core reasons impacting the Electronic Instr. & Controls industry. This will help it in building a better workplace.
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 Beijing Fuxing Xiaocheng Electronic.
Regulatory challenges
– Beijing Fuxing Xiaocheng Electronic 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 Electronic Instr. & Controls industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Beijing Fuxing Xiaocheng Electronic may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Electronic Instr. & Controls sector.
Increasing wage structure of Beijing Fuxing Xiaocheng Electronic
– 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 Beijing Fuxing Xiaocheng Electronic.
Easy access to finance
– Easy access to finance in Electronic Instr. & Controls industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Beijing Fuxing Xiaocheng Electronic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Beijing Fuxing Xiaocheng Electronic business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Beijing Fuxing Xiaocheng Electronic Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic 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 Beijing Fuxing Xiaocheng Electronic needs to make to build a sustainable competitive advantage.