SWOT Analysis / TOWS Matrix for Gansu Dunhuang Seed (China)
Based on various researches at Oak Spring University , Gansu Dunhuang Seed is operating in a macro-environment that has been destablized by – technology disruption, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization,
talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Gansu Dunhuang Seed
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Gansu Dunhuang Seed can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gansu Dunhuang Seed, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gansu Dunhuang Seed 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 Gansu Dunhuang Seed can be done for the following purposes –
1. Strategic planning of Gansu Dunhuang Seed
2. Improving business portfolio management of Gansu Dunhuang Seed
3. Assessing feasibility of the new initiative in China
4. Making a Crops sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gansu Dunhuang Seed
Strengths of Gansu Dunhuang Seed | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gansu Dunhuang Seed are -
Cross disciplinary teams
– Horizontal connected teams at the Gansu Dunhuang Seed 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.
Innovation driven organization
– Gansu Dunhuang Seed is one of the most innovative firm in Crops sector.
Effective Research and Development (R&D)
– Gansu Dunhuang Seed has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Gansu Dunhuang Seed staying ahead in the Crops industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Gansu Dunhuang Seed 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 Gansu Dunhuang Seed is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Gansu Dunhuang Seed emphasize – knowledge, initiative, and innovation.
Digital Transformation in Crops industry
- digital transformation varies from industry to industry. For Gansu Dunhuang Seed digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gansu Dunhuang Seed 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 Gansu Dunhuang Seed comprises – understanding the underlying the factors in the Crops 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.
Superior customer experience
– The customer experience strategy of Gansu Dunhuang Seed in Crops industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Gansu Dunhuang Seed
– The covid-19 pandemic has put organizational resilience at the centre of everthing Gansu Dunhuang Seed does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Gansu Dunhuang Seed has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gansu Dunhuang Seed to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Gansu Dunhuang Seed has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gansu Dunhuang Seed 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.
Training and development
– Gansu Dunhuang Seed has one of the best training and development program in Consumer/Non-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.
Low bargaining power of suppliers
– Suppliers of Gansu Dunhuang Seed in the Consumer/Non-Cyclical sector have low bargaining power. Gansu Dunhuang Seed has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Gansu Dunhuang Seed to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Gansu Dunhuang Seed | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gansu Dunhuang Seed are -
Employees’ less understanding of Gansu Dunhuang Seed strategy
– From the outside it seems that the employees of Gansu Dunhuang Seed 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.
High bargaining power of channel partners in Crops industry
– because of the regulatory requirements in China, Gansu Dunhuang Seed 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 Crops industry.
Slow to strategic competitive environment developments
– As Gansu Dunhuang Seed is one of the leading players in the Crops industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Crops industry in last five years.
Lack of clear differentiation of Gansu Dunhuang Seed products
– To increase the profitability and margins on the products, Gansu Dunhuang Seed needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Gansu Dunhuang Seed is dominated by functional specialists. It is not different from other players in the Crops industry, but Gansu Dunhuang Seed needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gansu Dunhuang Seed to focus more on services in the Crops industry rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Gansu Dunhuang Seed 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 Crops industry using digital technology.
High dependence on Gansu Dunhuang Seed ‘s star products
– The top 2 products and services of Gansu Dunhuang Seed still accounts for major business revenue. This dependence on star products in Crops industry has resulted into insufficient focus on developing new products, even though Gansu Dunhuang Seed has relatively successful track record of launching new products.
Skills based hiring in Crops industry
– The stress on hiring functional specialists at Gansu Dunhuang Seed 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.
Ability to respond to the competition
– As the decision making is very deliberative at Gansu Dunhuang Seed, in the dynamic environment of Crops industry it has struggled to respond to the nimble upstart competition. Gansu Dunhuang Seed has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gansu Dunhuang Seed is slow explore the new channels of communication. These new channels of communication can help Gansu Dunhuang Seed to provide better information regarding Crops products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, Gansu Dunhuang Seed has high operating costs in the Crops industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Gansu Dunhuang Seed lucrative customers.
Gansu Dunhuang Seed Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Gansu Dunhuang Seed are -
Better consumer reach
– The expansion of the 5G network will help Gansu Dunhuang Seed to increase its market reach. Gansu Dunhuang Seed 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gansu Dunhuang Seed is facing challenges because of the dominance of functional experts in the organization. Gansu Dunhuang Seed can utilize new technology in the field of Crops industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Gansu Dunhuang Seed can improve the customer journey of consumers in the Crops 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.
Developing new processes and practices
– Gansu Dunhuang Seed can develop new processes and procedures in Crops 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Gansu Dunhuang Seed can use these opportunities to build new business models that can help the communities that Gansu Dunhuang Seed operates in. Secondly it can use opportunities from government spending in Crops sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gansu Dunhuang Seed 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 Gansu Dunhuang Seed to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Gansu Dunhuang Seed 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.
Building a culture of innovation
– managers at Gansu Dunhuang Seed 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 Crops industry.
Using analytics as competitive advantage
– Gansu Dunhuang Seed has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Crops sector. This continuous investment in analytics has enabled Gansu Dunhuang Seed to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gansu Dunhuang Seed to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Crops industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Gansu Dunhuang Seed in the Crops industry. Now Gansu Dunhuang Seed can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Gansu Dunhuang Seed 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 Gansu Dunhuang Seed to hire the very best people irrespective of their geographical location.
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 Gansu Dunhuang Seed 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.
Learning at scale
– Online learning technologies has now opened space for Gansu Dunhuang Seed 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.
Threats Gansu Dunhuang Seed External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Gansu Dunhuang Seed are -
Regulatory challenges
– Gansu Dunhuang Seed 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 Crops industry regulations.
Easy access to finance
– Easy access to finance in Crops industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Gansu Dunhuang Seed 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.
High dependence on third party suppliers
– Gansu Dunhuang Seed 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Crops industry are lowering. It can presents Gansu Dunhuang Seed with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Crops sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gansu Dunhuang Seed 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 Gansu Dunhuang Seed prominent markets.
Stagnating economy with rate increase
– Gansu Dunhuang Seed 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 Crops industry.
Consumer confidence and its impact on Gansu Dunhuang Seed 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 Crops 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 Gansu Dunhuang Seed business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Gansu Dunhuang Seed
– 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 Gansu Dunhuang Seed.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Gansu Dunhuang Seed may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Crops sector.
Shortening product life cycle
– it is one of the major threat that Gansu Dunhuang Seed is facing in Crops sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Gansu Dunhuang Seed Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Gansu Dunhuang Seed 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 Gansu Dunhuang Seed 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 Gansu Dunhuang Seed 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 Gansu Dunhuang Seed 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 Gansu Dunhuang Seed needs to make to build a sustainable competitive advantage.