Zhejiang Chenfeng Science A (603685) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Zhejiang Chenfeng Science A (China)

Based on various researches at Oak Spring University , Zhejiang Chenfeng Science A is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, there is backlash against globalization, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, technology disruption, increasing household debt because of falling income levels, increasing energy prices, etc

---

---

---

---

Introduction to SWOT Analysis of Zhejiang Chenfeng Science A

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

---

Strengths of Zhejiang Chenfeng Science A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Zhejiang Chenfeng Science A are -

Digital Transformation in Furniture & Fixtures industry

- digital transformation varies from industry to industry. For Zhejiang Chenfeng Science A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Zhejiang Chenfeng Science A 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.

Innovation driven organization

– Zhejiang Chenfeng Science A is one of the most innovative firm in Furniture & Fixtures sector.

Organizational Resilience of Zhejiang Chenfeng Science A

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

Ability to recruit top talent

– Zhejiang Chenfeng Science A is one of the leading players in the Furniture & Fixtures 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 Furniture & Fixtures industry

– Zhejiang Chenfeng Science A has clearly differentiated products in the market place. This has enabled Zhejiang Chenfeng Science A to fetch slight price premium compare to the competitors in the Furniture & Fixtures industry. The sustainable margins have also helped Zhejiang Chenfeng Science A to invest into research and development (R&D) and innovation.

Analytics focus

– Zhejiang Chenfeng Science A 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 Furniture & Fixtures 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.

Superior customer experience

– The customer experience strategy of Zhejiang Chenfeng Science A in Furniture & Fixtures industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Zhejiang Chenfeng Science A 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.

Learning organization

- Zhejiang Chenfeng Science A 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 Zhejiang Chenfeng Science A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Zhejiang Chenfeng Science A emphasize – knowledge, initiative, and innovation.

Successful track record of launching new products

– Zhejiang Chenfeng Science A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Zhejiang Chenfeng Science A 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.

Low bargaining power of suppliers

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

Cross disciplinary teams

– Horizontal connected teams at the Zhejiang Chenfeng Science A 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.

---

---

Weaknesses of Zhejiang Chenfeng Science A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Zhejiang Chenfeng Science A are -

High dependence on Zhejiang Chenfeng Science A ‘s star products

– The top 2 products and services of Zhejiang Chenfeng Science A still accounts for major business revenue. This dependence on star products in Furniture & Fixtures industry has resulted into insufficient focus on developing new products, even though Zhejiang Chenfeng Science A has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, Zhejiang Chenfeng Science A has high operating costs in the Furniture & Fixtures industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Zhejiang Chenfeng Science A lucrative customers.

Lack of clear differentiation of Zhejiang Chenfeng Science A products

– To increase the profitability and margins on the products, Zhejiang Chenfeng Science A needs to provide more differentiated products than what it is currently offering in the marketplace.

Workers concerns about automation

– As automation is fast increasing in the Furniture & Fixtures industry, Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry

– The stress on hiring functional specialists at Zhejiang Chenfeng Science A 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 Zhejiang Chenfeng Science A is dominated by functional specialists. It is not different from other players in the Furniture & Fixtures industry, but Zhejiang Chenfeng Science A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Zhejiang Chenfeng Science A to focus more on services in the Furniture & Fixtures industry rather than just following the product oriented approach.

Interest costs

– Compare to the competition, Zhejiang Chenfeng Science A has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Compensation and incentives

– The revenue per employee of Zhejiang Chenfeng Science A is just above the Furniture & Fixtures 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.

Capital Spending Reduction

– Even during the low interest decade, Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry using digital technology.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Zhejiang Chenfeng Science A is slow explore the new channels of communication. These new channels of communication can help Zhejiang Chenfeng Science A to provide better information regarding Furniture & Fixtures products and services. It can also build an online community to further reach out to potential customers.

Slow to strategic competitive environment developments

– As Zhejiang Chenfeng Science A is one of the leading players in the Furniture & Fixtures industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Furniture & Fixtures industry in last five years.

---

Zhejiang Chenfeng Science A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Zhejiang Chenfeng Science A are -

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. Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Zhejiang Chenfeng Science A in the Furniture & Fixtures industry. Now Zhejiang Chenfeng Science A can target international markets with far fewer capital restrictions requirements than the existing system.

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 Zhejiang Chenfeng Science A 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Zhejiang Chenfeng Science A 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.

Creating value in data economy

– The success of analytics program of Zhejiang Chenfeng Science A has opened avenues for new revenue streams for the organization in Furniture & Fixtures industry. This can help Zhejiang Chenfeng Science A to build a more holistic ecosystem for Zhejiang Chenfeng Science A products in the Furniture & Fixtures 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 Furniture & Fixtures industry, but it has also influenced the consumer preferences. Zhejiang Chenfeng Science A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Zhejiang Chenfeng Science A 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 Zhejiang Chenfeng Science A to hire the very best people irrespective of their geographical location.

Leveraging digital technologies

– Zhejiang Chenfeng Science A 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.

Using analytics as competitive advantage

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

Reforming the budgeting process

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

Loyalty marketing

– Zhejiang Chenfeng Science A has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Building a culture of innovation

– managers at Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Zhejiang Chenfeng Science A 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 Zhejiang Chenfeng Science A to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

---

Threats Zhejiang Chenfeng Science A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Zhejiang Chenfeng Science A are -

Environmental challenges

– Zhejiang Chenfeng Science A 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. Zhejiang Chenfeng Science A can take advantage of this fund but it will also bring new competitors in the Furniture & Fixtures 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 Zhejiang Chenfeng Science A in the Furniture & Fixtures sector and impact the bottomline of the organization.

Technology acceleration in Forth Industrial Revolution

– Zhejiang Chenfeng Science A has witnessed rapid integration of technology during Covid-19 in the Furniture & Fixtures industry. As one of the leading players in the industry, Zhejiang Chenfeng Science A needs to keep up with the evolution of technology in the Furniture & Fixtures 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Zhejiang Chenfeng Science A 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 Zhejiang Chenfeng Science A prominent markets.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Zhejiang Chenfeng Science A in Furniture & Fixtures industry. The Furniture & Fixtures 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.

Stagnating economy with rate increase

– Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry.

Easy access to finance

– Easy access to finance in Furniture & Fixtures industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Zhejiang Chenfeng Science A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Zhejiang Chenfeng Science A business can come under increasing regulations regarding data privacy, data security, etc.

Shortening product life cycle

– it is one of the major threat that Zhejiang Chenfeng Science A is facing in Furniture & Fixtures sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Zhejiang Chenfeng Science A 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 Furniture & Fixtures industry regulations.

High dependence on third party suppliers

– Zhejiang Chenfeng Science A 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.

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. Zhejiang Chenfeng Science A needs to understand the core reasons impacting the Furniture & Fixtures industry. This will help it in building a better workplace.

Increasing wage structure of Zhejiang Chenfeng Science A

– 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 Zhejiang Chenfeng Science A.

---

Weighted SWOT Analysis of Zhejiang Chenfeng Science A Template, Example

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

--- ---