Jiangyin Hengrun Heavy (603985) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Jiangyin Hengrun Heavy (China)

Based on various researches at Oak Spring University , Jiangyin Hengrun Heavy is operating in a macro-environment that has been destablized by – increasing energy prices, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, etc

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Introduction to SWOT Analysis of Jiangyin Hengrun Heavy

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jiangyin Hengrun Heavy can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jiangyin Hengrun Heavy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jiangyin Hengrun Heavy 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Jiangyin Hengrun Heavy can be done for the following purposes –
1. Strategic planning of Jiangyin Hengrun Heavy
2. Improving business portfolio management of Jiangyin Hengrun Heavy
3. Assessing feasibility of the new initiative in China
4. Making a Misc. Fabricated Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jiangyin Hengrun Heavy

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Strengths of Jiangyin Hengrun Heavy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Jiangyin Hengrun Heavy are -

Digital Transformation in Misc. Fabricated Products industry

- digital transformation varies from industry to industry. For Jiangyin Hengrun Heavy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jiangyin Hengrun Heavy 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.

Effective Research and Development (R&D)

– Jiangyin Hengrun Heavy has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jiangyin Hengrun Heavy staying ahead in the Misc. Fabricated Products industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Organizational Resilience of Jiangyin Hengrun Heavy

– The covid-19 pandemic has put organizational resilience at the centre of everthing Jiangyin Hengrun Heavy does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Strong track record of project management in the Misc. Fabricated Products industry

– Jiangyin Hengrun Heavy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High brand equity

– Jiangyin Hengrun Heavy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jiangyin Hengrun Heavy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Operational resilience

– The operational resilience strategy of Jiangyin Hengrun Heavy comprises – understanding the underlying the factors in the Misc. Fabricated Products 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.

Learning organization

- Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jiangyin Hengrun Heavy emphasize – knowledge, initiative, and innovation.

Sustainable margins compare to other players in Misc. Fabricated Products industry

– Jiangyin Hengrun Heavy has clearly differentiated products in the market place. This has enabled Jiangyin Hengrun Heavy to fetch slight price premium compare to the competitors in the Misc. Fabricated Products industry. The sustainable margins have also helped Jiangyin Hengrun Heavy to invest into research and development (R&D) and innovation.

Innovation driven organization

– Jiangyin Hengrun Heavy is one of the most innovative firm in Misc. Fabricated Products sector.

High switching costs

– The high switching costs that Jiangyin Hengrun Heavy 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.

Diverse revenue streams

– Jiangyin Hengrun Heavy is present in almost all the verticals within the Misc. Fabricated Products industry. This has provided Jiangyin Hengrun Heavy 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.

Highly skilled collaborators

– Jiangyin Hengrun Heavy has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Fabricated Products industry. Secondly the value chain collaborators of Jiangyin Hengrun Heavy have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses of Jiangyin Hengrun Heavy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Jiangyin Hengrun Heavy are -

Employees’ less understanding of Jiangyin Hengrun Heavy strategy

– From the outside it seems that the employees of Jiangyin Hengrun Heavy don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High cash cycle compare to competitors

Jiangyin Hengrun Heavy has a high cash cycle compare to other players in the Misc. Fabricated Products industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Increasing silos among functional specialists

– The organizational structure of Jiangyin Hengrun Heavy is dominated by functional specialists. It is not different from other players in the Misc. Fabricated Products industry, but Jiangyin Hengrun Heavy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jiangyin Hengrun Heavy to focus more on services in the Misc. Fabricated Products industry rather than just following the product oriented approach.

Ability to respond to the competition

– As the decision making is very deliberative at Jiangyin Hengrun Heavy, in the dynamic environment of Misc. Fabricated Products industry it has struggled to respond to the nimble upstart competition. Jiangyin Hengrun Heavy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Low market penetration in new markets

– Outside its home market of China, Jiangyin Hengrun Heavy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Products dominated business model

– Even though Jiangyin Hengrun Heavy has some of the most successful models in the Misc. Fabricated Products industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Jiangyin Hengrun Heavy should strive to include more intangible value offerings along with its core products and services.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jiangyin Hengrun Heavy is slow explore the new channels of communication. These new channels of communication can help Jiangyin Hengrun Heavy to provide better information regarding Misc. Fabricated Products products and services. It can also build an online community to further reach out to potential customers.

Workers concerns about automation

– As automation is fast increasing in the Misc. Fabricated Products industry, Jiangyin Hengrun Heavy 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.

Skills based hiring in Misc. Fabricated Products industry

– The stress on hiring functional specialists at Jiangyin Hengrun Heavy 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.

High bargaining power of channel partners in Misc. Fabricated Products industry

– because of the regulatory requirements in China, Jiangyin Hengrun Heavy 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 Misc. Fabricated Products industry.

Lack of clear differentiation of Jiangyin Hengrun Heavy products

– To increase the profitability and margins on the products, Jiangyin Hengrun Heavy needs to provide more differentiated products than what it is currently offering in the marketplace.

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Jiangyin Hengrun Heavy Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Jiangyin Hengrun Heavy are -

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Misc. Fabricated Products industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jiangyin Hengrun Heavy 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. Jiangyin Hengrun Heavy 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Jiangyin Hengrun Heavy is facing challenges because of the dominance of functional experts in the organization. Jiangyin Hengrun Heavy can utilize new technology in the field of Misc. Fabricated Products industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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 Jiangyin Hengrun Heavy 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Jiangyin Hengrun Heavy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy to hire the very best people irrespective of their geographical location.

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. Jiangyin Hengrun Heavy can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Low interest rates

– Even though inflation is raising its head in most developed economies, Jiangyin Hengrun Heavy 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.

Using analytics as competitive advantage

– Jiangyin Hengrun Heavy has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Fabricated Products sector. This continuous investment in analytics has enabled Jiangyin Hengrun Heavy to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jiangyin Hengrun Heavy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Jiangyin Hengrun Heavy has opened avenues for new revenue streams for the organization in Misc. Fabricated Products industry. This can help Jiangyin Hengrun Heavy to build a more holistic ecosystem for Jiangyin Hengrun Heavy products in the Misc. Fabricated Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Misc. Fabricated Products industry, but it has also influenced the consumer preferences. Jiangyin Hengrun Heavy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jiangyin Hengrun Heavy can use these opportunities to build new business models that can help the communities that Jiangyin Hengrun Heavy operates in. Secondly it can use opportunities from government spending in Misc. Fabricated Products sector.

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Threats Jiangyin Hengrun Heavy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Jiangyin Hengrun Heavy are -

Technology acceleration in Forth Industrial Revolution

– Jiangyin Hengrun Heavy has witnessed rapid integration of technology during Covid-19 in the Misc. Fabricated Products industry. As one of the leading players in the industry, Jiangyin Hengrun Heavy needs to keep up with the evolution of technology in the Misc. Fabricated Products 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.

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 Jiangyin Hengrun Heavy in the Misc. Fabricated Products sector and impact the bottomline of the organization.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Jiangyin Hengrun Heavy may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Fabricated Products sector.

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 Jiangyin Hengrun Heavy.

Increasing wage structure of Jiangyin Hengrun Heavy

– 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 Jiangyin Hengrun Heavy.

Shortening product life cycle

– it is one of the major threat that Jiangyin Hengrun Heavy is facing in Misc. Fabricated Products sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy prominent markets.

Environmental challenges

– Jiangyin Hengrun Heavy 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. Jiangyin Hengrun Heavy can take advantage of this fund but it will also bring new competitors in the Misc. Fabricated Products industry.

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. Jiangyin Hengrun Heavy needs to understand the core reasons impacting the Misc. Fabricated Products industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Jiangyin Hengrun Heavy 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Misc. Fabricated Products industry are lowering. It can presents Jiangyin Hengrun Heavy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Fabricated Products sector.

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 Jiangyin Hengrun Heavy business can come under increasing regulations regarding data privacy, data security, etc.

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. Jiangyin Hengrun Heavy 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.

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Weighted SWOT Analysis of Jiangyin Hengrun Heavy Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy 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 Jiangyin Hengrun Heavy needs to make to build a sustainable competitive advantage.

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