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 – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing energy prices,
increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Ability to lead change in Textiles - Non Apparel
– HangZhou Nbond Nonwovens is one of the leading players in the Textiles - Non Apparel industry in China. Over the years it has not only transformed the business landscape in the Textiles - Non Apparel industry in China but also across the existing markets. The ability to lead change has enabled HangZhou Nbond Nonwovens in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
Low market penetration in new markets
– Outside its home market of China, HangZhou Nbond Nonwovens needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
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.
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.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative at HangZhou Nbond Nonwovens, in the dynamic environment of Textiles - Non Apparel industry it has struggled to respond to the nimble upstart competition. HangZhou Nbond Nonwovens has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
High dependence on HangZhou Nbond Nonwovens ‘s star products
– The top 2 products and services of HangZhou Nbond Nonwovens still accounts for major business revenue. This dependence on star products in Textiles - Non Apparel industry has resulted into insufficient focus on developing new products, even though HangZhou Nbond Nonwovens has relatively successful track record of launching new products.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.