SWOT Analysis / TOWS Matrix for HangZhou Nbond Nonwovens (China)
Based on various researches at Oak Spring University , HangZhou Nbond Nonwovens is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing commodity prices, increasing household debt because of falling income levels, increasing energy prices,
there is increasing trade war between United States & China, technology disruption, etc
Introduction to SWOT Analysis of HangZhou Nbond Nonwovens
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that HangZhou Nbond Nonwovens can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the HangZhou Nbond Nonwovens, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens can be done for the following purposes –
1. Strategic planning of HangZhou Nbond Nonwovens
2. Improving business portfolio management of HangZhou Nbond Nonwovens
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 HangZhou Nbond Nonwovens
Strengths of HangZhou Nbond Nonwovens | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of HangZhou Nbond Nonwovens are -
High switching costs
– The high switching costs that HangZhou Nbond Nonwovens 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
– HangZhou Nbond Nonwovens is one of the most innovative firm in Textiles - Non Apparel sector.
Learning organization
- HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at HangZhou Nbond Nonwovens emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the HangZhou Nbond Nonwovens 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.
Superior customer experience
– The customer experience strategy of HangZhou Nbond Nonwovens in Textiles - Non Apparel industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of HangZhou Nbond Nonwovens in the Consumer Cyclical sector have low bargaining power. HangZhou Nbond Nonwovens has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps HangZhou Nbond Nonwovens 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
– HangZhou Nbond Nonwovens is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– HangZhou Nbond Nonwovens has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. HangZhou Nbond Nonwovens 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.
Diverse revenue streams
– HangZhou Nbond Nonwovens is present in almost all the verticals within the Textiles - Non Apparel industry. This has provided HangZhou Nbond Nonwovens 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.
Effective Research and Development (R&D)
– HangZhou Nbond Nonwovens has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – HangZhou Nbond Nonwovens staying ahead in the Textiles - Non Apparel industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– HangZhou Nbond Nonwovens 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.
Sustainable margins compare to other players in Textiles - Non Apparel industry
– HangZhou Nbond Nonwovens has clearly differentiated products in the market place. This has enabled HangZhou Nbond Nonwovens to fetch slight price premium compare to the competitors in the Textiles - Non Apparel industry. The sustainable margins have also helped HangZhou Nbond Nonwovens to invest into research and development (R&D) and innovation.
Weaknesses of HangZhou Nbond Nonwovens | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HangZhou Nbond Nonwovens are -
Workers concerns about automation
– As automation is fast increasing in the Textiles - Non Apparel industry, HangZhou Nbond Nonwovens needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, HangZhou Nbond Nonwovens has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Textiles - Non Apparel industry over the last five years. HangZhou Nbond Nonwovens even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, HangZhou Nbond Nonwovens 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, HangZhou Nbond Nonwovens is slow explore the new channels of communication. These new channels of communication can help HangZhou Nbond Nonwovens to provide better information regarding Textiles - Non Apparel products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring in Textiles - Non Apparel industry
– The stress on hiring functional specialists at HangZhou Nbond Nonwovens 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.
Employees’ less understanding of HangZhou Nbond Nonwovens strategy
– From the outside it seems that the employees of HangZhou Nbond Nonwovens 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.
Products dominated business model
– Even though HangZhou Nbond Nonwovens 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. HangZhou Nbond Nonwovens should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens lucrative customers.
No frontier risks strategy
– From the 10K / annual statement of HangZhou Nbond Nonwovens, 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.
Increasing silos among functional specialists
– The organizational structure of HangZhou Nbond Nonwovens is dominated by functional specialists. It is not different from other players in the Textiles - Non Apparel industry, but HangZhou Nbond Nonwovens needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help HangZhou Nbond Nonwovens to focus more on services in the Textiles - Non Apparel industry rather than just following the product oriented approach.
Lack of clear differentiation of HangZhou Nbond Nonwovens products
– To increase the profitability and margins on the products, HangZhou Nbond Nonwovens needs to provide more differentiated products than what it is currently offering in the marketplace.
HangZhou Nbond Nonwovens Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of HangZhou Nbond Nonwovens are -
Learning at scale
– Online learning technologies has now opened space for HangZhou Nbond Nonwovens 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 HangZhou Nbond Nonwovens 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.
Manufacturing automation
– HangZhou Nbond Nonwovens 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, HangZhou Nbond Nonwovens 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.
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. HangZhou Nbond Nonwovens 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. HangZhou Nbond Nonwovens 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.
Developing new processes and practices
– HangZhou Nbond Nonwovens 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.
Leveraging digital technologies
– HangZhou Nbond Nonwovens 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, HangZhou Nbond Nonwovens is facing challenges because of the dominance of functional experts in the organization. HangZhou Nbond Nonwovens can utilize new technology in the field of Textiles - Non Apparel industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects HangZhou Nbond Nonwovens can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. HangZhou Nbond Nonwovens can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 HangZhou Nbond Nonwovens in the Textiles - Non Apparel industry. Now HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens to hire the very best people irrespective of their geographical location.
Threats HangZhou Nbond Nonwovens External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of HangZhou Nbond Nonwovens are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, HangZhou Nbond Nonwovens may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Textiles - Non Apparel sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for HangZhou Nbond Nonwovens in Textiles - Non Apparel industry. The Textiles - Non Apparel 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.
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 HangZhou Nbond Nonwovens.
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. HangZhou Nbond Nonwovens can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. HangZhou Nbond Nonwovens needs to understand the core reasons impacting the Textiles - Non Apparel industry. This will help it in building a better workplace.
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 HangZhou Nbond Nonwovens business can come under increasing regulations regarding data privacy, data security, etc.
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
– HangZhou Nbond Nonwovens 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.
Environmental challenges
– HangZhou Nbond Nonwovens needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. HangZhou Nbond Nonwovens can take advantage of this fund but it will also bring new competitors in the Textiles - Non Apparel industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Textiles - Non Apparel industry are lowering. It can presents HangZhou Nbond Nonwovens 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.
Stagnating economy with rate increase
– HangZhou Nbond Nonwovens 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.
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 HangZhou Nbond Nonwovens 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.
Weighted SWOT Analysis of HangZhou Nbond Nonwovens Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens needs to make to build a sustainable competitive advantage.
