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 – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing transportation and logistics costs, there is increasing trade war between United States & China, increasing energy prices, increasing government debt because of Covid-19 spendings,
digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, 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 -
Training and development
– HangZhou Nbond Nonwovens 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.
Highly skilled collaborators
– HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Analytics focus
– HangZhou Nbond Nonwovens 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.
High brand equity
– HangZhou Nbond Nonwovens has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled HangZhou Nbond Nonwovens to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– HangZhou Nbond Nonwovens is one of the most innovative firm in Textiles - Non Apparel sector.
Organizational Resilience of HangZhou Nbond Nonwovens
– The covid-19 pandemic has put organizational resilience at the centre of everthing HangZhou Nbond Nonwovens does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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 -
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.
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 HangZhou Nbond Nonwovens supply chain. Even after few cautionary changes, HangZhou Nbond Nonwovens is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left HangZhou Nbond Nonwovens vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
HangZhou Nbond Nonwovens 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.
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.
High bargaining power of channel partners in Textiles - Non Apparel industry
– because of the regulatory requirements in China, HangZhou Nbond Nonwovens 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 Textiles - Non Apparel industry.
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.
Interest costs
– Compare to the competition, HangZhou Nbond Nonwovens 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.
Aligning sales with marketing
– From the outside it seems that HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens can leverage the sales team experience to cultivate customer relationships as HangZhou Nbond Nonwovens is planning to shift buying processes online.
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.
Compensation and incentives
– The revenue per employee of HangZhou Nbond Nonwovens 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.
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.
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 -
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Textiles - Non Apparel industry, but it has also influenced the consumer preferences. HangZhou Nbond Nonwovens can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens to build a competitive advantage using analytics. The analytics driven competitive advantage can help HangZhou Nbond Nonwovens to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, HangZhou Nbond Nonwovens can use these opportunities to build new business models that can help the communities that HangZhou Nbond Nonwovens operates in. Secondly it can use opportunities from government spending in Textiles - Non Apparel sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for HangZhou Nbond Nonwovens 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.
Better consumer reach
– The expansion of the 5G network will help HangZhou Nbond Nonwovens to increase its market reach. HangZhou Nbond Nonwovens 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.
Creating value in data economy
– The success of analytics program of HangZhou Nbond Nonwovens has opened avenues for new revenue streams for the organization in Textiles - Non Apparel industry. This can help HangZhou Nbond Nonwovens to build a more holistic ecosystem for HangZhou Nbond Nonwovens products in the Textiles - Non Apparel industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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 -
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.
Technology acceleration in Forth Industrial Revolution
– HangZhou Nbond Nonwovens has witnessed rapid integration of technology during Covid-19 in the Textiles - Non Apparel industry. As one of the leading players in the industry, HangZhou Nbond Nonwovens 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.
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.
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 HangZhou Nbond Nonwovens in the Textiles - Non Apparel sector and impact the bottomline 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.
Increasing wage structure of HangZhou Nbond Nonwovens
– 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 HangZhou Nbond Nonwovens.
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.
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.
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.
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.
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.
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.
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.
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.