Jinfa Labi Maternity & Baby (2762) SWOT Analysis / TOWS Matrix / MBA Resources
Retail (Apparel)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Jinfa Labi Maternity & Baby (China)
Based on various researches at Oak Spring University , Jinfa Labi Maternity & Baby is operating in a macro-environment that has been destablized by – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Jinfa Labi Maternity & Baby
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jinfa Labi Maternity & Baby can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jinfa Labi Maternity & Baby, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby can be done for the following purposes –
1. Strategic planning of Jinfa Labi Maternity & Baby
2. Improving business portfolio management of Jinfa Labi Maternity & Baby
3. Assessing feasibility of the new initiative in China
4. Making a Retail (Apparel) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jinfa Labi Maternity & Baby
Strengths of Jinfa Labi Maternity & Baby | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jinfa Labi Maternity & Baby are -
Ability to lead change in Retail (Apparel)
– Jinfa Labi Maternity & Baby is one of the leading players in the Retail (Apparel) industry in China. Over the years it has not only transformed the business landscape in the Retail (Apparel) industry in China but also across the existing markets. The ability to lead change has enabled Jinfa Labi Maternity & Baby in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Jinfa Labi Maternity & Baby is one of the leading players in the Retail (Apparel) industry in China. It is in a position to attract the best talent available in China. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Retail (Apparel) industry
– Jinfa Labi Maternity & Baby has clearly differentiated products in the market place. This has enabled Jinfa Labi Maternity & Baby to fetch slight price premium compare to the competitors in the Retail (Apparel) industry. The sustainable margins have also helped Jinfa Labi Maternity & Baby to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Jinfa Labi Maternity & Baby in the Services sector have low bargaining power. Jinfa Labi Maternity & Baby has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jinfa Labi Maternity & Baby to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Jinfa Labi Maternity & Baby is one of the most innovative firm in Retail (Apparel) sector.
Analytics focus
– Jinfa Labi Maternity & Baby 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 Retail (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.
Operational resilience
– The operational resilience strategy of Jinfa Labi Maternity & Baby comprises – understanding the underlying the factors in the Retail (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.
Cross disciplinary teams
– Horizontal connected teams at the Jinfa Labi Maternity & Baby 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.
Effective Research and Development (R&D)
– Jinfa Labi Maternity & Baby has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jinfa Labi Maternity & Baby staying ahead in the Retail (Apparel) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Jinfa Labi Maternity & Baby
– The covid-19 pandemic has put organizational resilience at the centre of everthing Jinfa Labi Maternity & Baby does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Jinfa Labi Maternity & Baby in Retail (Apparel) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Jinfa Labi Maternity & Baby has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Retail (Apparel) industry. Secondly the value chain collaborators of Jinfa Labi Maternity & Baby have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Jinfa Labi Maternity & Baby | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jinfa Labi Maternity & Baby are -
Slow to strategic competitive environment developments
– As Jinfa Labi Maternity & Baby is one of the leading players in the Retail (Apparel) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Retail (Apparel) industry in last five years.
Need for greater diversity
– Jinfa Labi Maternity & Baby has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
No frontier risks strategy
– From the 10K / annual statement of Jinfa Labi Maternity & Baby, it seems that company is thinking out the frontier risks that can impact Retail (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 bargaining power of channel partners in Retail (Apparel) industry
– because of the regulatory requirements in China, Jinfa Labi Maternity & Baby 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 Retail (Apparel) industry.
Slow decision making process
– As mentioned earlier in the report, Jinfa Labi Maternity & Baby has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Retail (Apparel) industry over the last five years. Jinfa Labi Maternity & Baby 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.
Ability to respond to the competition
– As the decision making is very deliberative at Jinfa Labi Maternity & Baby, in the dynamic environment of Retail (Apparel) industry it has struggled to respond to the nimble upstart competition. Jinfa Labi Maternity & Baby has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Jinfa Labi Maternity & Baby needs to have more collaboration between its sales team and marketing team. Sales professionals in the Retail (Apparel) industry have deep experience in developing customer relationships. Marketing department at Jinfa Labi Maternity & Baby can leverage the sales team experience to cultivate customer relationships as Jinfa Labi Maternity & Baby is planning to shift buying processes online.
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 Jinfa Labi Maternity & Baby supply chain. Even after few cautionary changes, Jinfa Labi Maternity & Baby is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jinfa Labi Maternity & Baby vulnerable to further global disruptions in South East Asia.
High dependence on Jinfa Labi Maternity & Baby ‘s star products
– The top 2 products and services of Jinfa Labi Maternity & Baby still accounts for major business revenue. This dependence on star products in Retail (Apparel) industry has resulted into insufficient focus on developing new products, even though Jinfa Labi Maternity & Baby has relatively successful track record of launching new products.
Skills based hiring in Retail (Apparel) industry
– The stress on hiring functional specialists at Jinfa Labi Maternity & Baby 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.
Increasing silos among functional specialists
– The organizational structure of Jinfa Labi Maternity & Baby is dominated by functional specialists. It is not different from other players in the Retail (Apparel) industry, but Jinfa Labi Maternity & Baby needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jinfa Labi Maternity & Baby to focus more on services in the Retail (Apparel) industry rather than just following the product oriented approach.
Jinfa Labi Maternity & Baby Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jinfa Labi Maternity & Baby are -
Manufacturing automation
– Jinfa Labi Maternity & Baby can use the latest technology developments to improve its manufacturing and designing process in Retail (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.
Better consumer reach
– The expansion of the 5G network will help Jinfa Labi Maternity & Baby to increase its market reach. Jinfa Labi Maternity & Baby 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Jinfa Labi Maternity & Baby has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Retail (Apparel) sector. This continuous investment in analytics has enabled Jinfa Labi Maternity & Baby to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jinfa Labi Maternity & Baby to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Jinfa Labi Maternity & Baby can develop new processes and procedures in Retail (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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jinfa Labi Maternity & Baby is facing challenges because of the dominance of functional experts in the organization. Jinfa Labi Maternity & Baby can utilize new technology in the field of Retail (Apparel) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Jinfa Labi Maternity & Baby 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 Retail (Apparel) industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Retail (Apparel) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jinfa Labi Maternity & Baby 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. Jinfa Labi Maternity & Baby 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jinfa Labi Maternity & Baby can use these opportunities to build new business models that can help the communities that Jinfa Labi Maternity & Baby operates in. Secondly it can use opportunities from government spending in Retail (Apparel) sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jinfa Labi Maternity & Baby 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 Retail (Apparel) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jinfa Labi Maternity & Baby in the Retail (Apparel) industry. Now Jinfa Labi Maternity & Baby can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Jinfa Labi Maternity & Baby can improve the customer journey of consumers in the Retail (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.
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. Jinfa Labi Maternity & Baby can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Jinfa Labi Maternity & Baby External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jinfa Labi Maternity & Baby are -
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 Jinfa Labi Maternity & Baby business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
Easy access to finance
– Easy access to finance in Retail (Apparel) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jinfa Labi Maternity & Baby can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Jinfa Labi Maternity & Baby 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.
Technology acceleration in Forth Industrial Revolution
– Jinfa Labi Maternity & Baby has witnessed rapid integration of technology during Covid-19 in the Retail (Apparel) industry. As one of the leading players in the industry, Jinfa Labi Maternity & Baby needs to keep up with the evolution of technology in the Retail (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.
Stagnating economy with rate increase
– Jinfa Labi Maternity & Baby 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 Retail (Apparel) industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jinfa Labi Maternity & Baby may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Retail (Apparel) sector.
Environmental challenges
– Jinfa Labi Maternity & Baby 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. Jinfa Labi Maternity & Baby can take advantage of this fund but it will also bring new competitors in the Retail (Apparel) industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby prominent markets.
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 Jinfa Labi Maternity & Baby in the Retail (Apparel) sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Jinfa Labi Maternity & Baby is facing in Retail (Apparel) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Jinfa Labi Maternity & Baby 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 Retail (Apparel) industry and other sectors.
Weighted SWOT Analysis of Jinfa Labi Maternity & Baby Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby 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 Jinfa Labi Maternity & Baby needs to make to build a sustainable competitive advantage.