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 – increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, geopolitical disruptions,
there is backlash against globalization, there is increasing trade war between United States & China, 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 -
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.
Digital Transformation in Textiles - Non Apparel industry
- digital transformation varies from industry to industry. For HangZhou Nbond Nonwovens digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. HangZhou Nbond Nonwovens 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.
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.
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.
Operational resilience
– The operational resilience strategy of HangZhou Nbond Nonwovens comprises – understanding the underlying the factors in the Textiles - Non Apparel 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 HangZhou Nbond Nonwovens in Textiles - Non Apparel industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
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.
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.
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 -
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 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.
Slow to strategic competitive environment developments
– As HangZhou Nbond Nonwovens is one of the leading players in the Textiles - Non Apparel industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Textiles - Non Apparel industry in last five years.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
Building a culture of innovation
– managers at HangZhou Nbond Nonwovens can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Textiles - Non Apparel industry.
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.
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.
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.
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.
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.
Buying journey improvements
– HangZhou Nbond Nonwovens can improve the customer journey of consumers in the Textiles - Non Apparel industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
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 -
Shortening product life cycle
– it is one of the major threat that HangZhou Nbond Nonwovens is facing in Textiles - Non Apparel sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. HangZhou Nbond Nonwovens will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High 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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, HangZhou Nbond Nonwovens 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 HangZhou Nbond Nonwovens prominent markets.
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.
Regulatory challenges
– HangZhou Nbond Nonwovens needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Textiles - Non Apparel industry regulations.
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.