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Fujian Haiyuan Auto Equipments (2529) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Fujian Haiyuan Auto Equipments (China)


Based on various researches at Oak Spring University , Fujian Haiyuan Auto Equipments is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing commodity prices, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, etc



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Introduction to SWOT Analysis of Fujian Haiyuan Auto Equipments


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Fujian Haiyuan Auto Equipments can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fujian Haiyuan Auto Equipments, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fujian Haiyuan Auto Equipments 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 Fujian Haiyuan Auto Equipments can be done for the following purposes –
1. Strategic planning of Fujian Haiyuan Auto Equipments
2. Improving business portfolio management of Fujian Haiyuan Auto Equipments
3. Assessing feasibility of the new initiative in China
4. Making a Auto & Truck Manufacturers sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Fujian Haiyuan Auto Equipments




Strengths of Fujian Haiyuan Auto Equipments | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Fujian Haiyuan Auto Equipments are -

Operational resilience

– The operational resilience strategy of Fujian Haiyuan Auto Equipments comprises – understanding the underlying the factors in the Auto & Truck Manufacturers 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.

High switching costs

– The high switching costs that Fujian Haiyuan Auto Equipments 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.

Effective Research and Development (R&D)

– Fujian Haiyuan Auto Equipments has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Fujian Haiyuan Auto Equipments staying ahead in the Auto & Truck Manufacturers industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Cross disciplinary teams

– Horizontal connected teams at the Fujian Haiyuan Auto Equipments 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.

Ability to recruit top talent

– Fujian Haiyuan Auto Equipments is one of the leading players in the Auto & Truck Manufacturers 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.

Innovation driven organization

– Fujian Haiyuan Auto Equipments is one of the most innovative firm in Auto & Truck Manufacturers sector.

Low bargaining power of suppliers

– Suppliers of Fujian Haiyuan Auto Equipments in the Consumer Cyclical sector have low bargaining power. Fujian Haiyuan Auto Equipments has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fujian Haiyuan Auto Equipments to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- Fujian Haiyuan Auto Equipments 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 Fujian Haiyuan Auto Equipments is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Fujian Haiyuan Auto Equipments emphasize – knowledge, initiative, and innovation.

Ability to lead change in Auto & Truck Manufacturers

– Fujian Haiyuan Auto Equipments is one of the leading players in the Auto & Truck Manufacturers industry in China. Over the years it has not only transformed the business landscape in the Auto & Truck Manufacturers industry in China but also across the existing markets. The ability to lead change has enabled Fujian Haiyuan Auto Equipments in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– Fujian Haiyuan Auto Equipments has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fujian Haiyuan Auto Equipments 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.

High brand equity

– Fujian Haiyuan Auto Equipments has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fujian Haiyuan Auto Equipments to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Diverse revenue streams

– Fujian Haiyuan Auto Equipments is present in almost all the verticals within the Auto & Truck Manufacturers industry. This has provided Fujian Haiyuan Auto Equipments 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.






Weaknesses of Fujian Haiyuan Auto Equipments | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Fujian Haiyuan Auto Equipments are -

Compensation and incentives

– The revenue per employee of Fujian Haiyuan Auto Equipments is just above the Auto & Truck Manufacturers 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.

High operating costs

– Compare to the competitors, Fujian Haiyuan Auto Equipments has high operating costs in the Auto & Truck Manufacturers industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Fujian Haiyuan Auto Equipments lucrative customers.

High cash cycle compare to competitors

Fujian Haiyuan Auto Equipments has a high cash cycle compare to other players in the Auto & Truck Manufacturers industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Capital Spending Reduction

– Even during the low interest decade, Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry using digital technology.

High dependence on Fujian Haiyuan Auto Equipments ‘s star products

– The top 2 products and services of Fujian Haiyuan Auto Equipments still accounts for major business revenue. This dependence on star products in Auto & Truck Manufacturers industry has resulted into insufficient focus on developing new products, even though Fujian Haiyuan Auto Equipments has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Fujian Haiyuan Auto Equipments is one of the leading players in the Auto & Truck Manufacturers industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Auto & Truck Manufacturers industry in last five years.

Employees’ less understanding of Fujian Haiyuan Auto Equipments strategy

– From the outside it seems that the employees of Fujian Haiyuan Auto Equipments 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.

Ability to respond to the competition

– As the decision making is very deliberative at Fujian Haiyuan Auto Equipments, in the dynamic environment of Auto & Truck Manufacturers industry it has struggled to respond to the nimble upstart competition. Fujian Haiyuan Auto Equipments has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners in Auto & Truck Manufacturers industry

– because of the regulatory requirements in China, Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fujian Haiyuan Auto Equipments is slow explore the new channels of communication. These new channels of communication can help Fujian Haiyuan Auto Equipments to provide better information regarding Auto & Truck Manufacturers products and services. It can also build an online community to further reach out to potential customers.

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 Fujian Haiyuan Auto Equipments supply chain. Even after few cautionary changes, Fujian Haiyuan Auto Equipments is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fujian Haiyuan Auto Equipments vulnerable to further global disruptions in South East Asia.




Fujian Haiyuan Auto Equipments Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Fujian Haiyuan Auto Equipments are -

Use of Bitcoin and other crypto currencies for transactions in Auto & Truck Manufacturers industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Fujian Haiyuan Auto Equipments in the Auto & Truck Manufacturers industry. Now Fujian Haiyuan Auto Equipments can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Fujian Haiyuan Auto Equipments can use the latest technology developments to improve its manufacturing and designing process in Auto & Truck Manufacturers 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.

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 Fujian Haiyuan Auto Equipments 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.

Creating value in data economy

– The success of analytics program of Fujian Haiyuan Auto Equipments has opened avenues for new revenue streams for the organization in Auto & Truck Manufacturers industry. This can help Fujian Haiyuan Auto Equipments to build a more holistic ecosystem for Fujian Haiyuan Auto Equipments products in the Auto & Truck Manufacturers industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Building a culture of innovation

– managers at Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Auto & Truck Manufacturers industry, but it has also influenced the consumer preferences. Fujian Haiyuan Auto Equipments can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reforming the budgeting process

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

Using analytics as competitive advantage

– Fujian Haiyuan Auto Equipments has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Auto & Truck Manufacturers sector. This continuous investment in analytics has enabled Fujian Haiyuan Auto Equipments to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fujian Haiyuan Auto Equipments to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Fujian Haiyuan Auto Equipments can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Leveraging digital technologies

– Fujian Haiyuan Auto Equipments 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.

Buying journey improvements

– Fujian Haiyuan Auto Equipments can improve the customer journey of consumers in the Auto & Truck Manufacturers 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fujian Haiyuan Auto Equipments can use these opportunities to build new business models that can help the communities that Fujian Haiyuan Auto Equipments operates in. Secondly it can use opportunities from government spending in Auto & Truck Manufacturers sector.

Low interest rates

– Even though inflation is raising its head in most developed economies, Fujian Haiyuan Auto Equipments 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.




Threats Fujian Haiyuan Auto Equipments External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Fujian Haiyuan Auto Equipments are -

Stagnating economy with rate increase

– Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry.

Consumer confidence and its impact on Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry and other sectors.

Environmental challenges

– Fujian Haiyuan Auto Equipments 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. Fujian Haiyuan Auto Equipments can take advantage of this fund but it will also bring new competitors in the Auto & Truck Manufacturers industry.

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 Fujian Haiyuan Auto Equipments in the Auto & Truck Manufacturers sector and impact the bottomline of the organization.

Increasing wage structure of Fujian Haiyuan Auto Equipments

– 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 Fujian Haiyuan Auto Equipments.

High dependence on third party suppliers

– Fujian Haiyuan Auto Equipments 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.

Regulatory challenges

– Fujian Haiyuan Auto Equipments 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 Auto & Truck Manufacturers industry regulations.

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Fujian Haiyuan Auto Equipments may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Auto & Truck Manufacturers sector.

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. Fujian Haiyuan Auto Equipments needs to understand the core reasons impacting the Auto & Truck Manufacturers industry. This will help it in building a better workplace.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Fujian Haiyuan Auto Equipments in Auto & Truck Manufacturers industry. The Auto & Truck Manufacturers 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Auto & Truck Manufacturers industry are lowering. It can presents Fujian Haiyuan Auto Equipments with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Auto & Truck Manufacturers 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 Fujian Haiyuan Auto Equipments.




Weighted SWOT Analysis of Fujian Haiyuan Auto Equipments Template, Example


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



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