Xiamen Insight Investment A (526) SWOT Analysis / TOWS Matrix / MBA Resources
Schools
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Xiamen Insight Investment A (China)
Based on various researches at Oak Spring University , Xiamen Insight Investment A is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, technology disruption, increasing energy prices, geopolitical disruptions, there is increasing trade war between United States & China, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Xiamen Insight Investment A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Xiamen Insight Investment A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Xiamen Insight Investment A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Xiamen Insight Investment 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 Xiamen Insight Investment A can be done for the following purposes –
1. Strategic planning of Xiamen Insight Investment A
2. Improving business portfolio management of Xiamen Insight Investment A
3. Assessing feasibility of the new initiative in China
4. Making a Schools sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Xiamen Insight Investment A
Strengths of Xiamen Insight Investment A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Xiamen Insight Investment A are -
Ability to lead change in Schools
– Xiamen Insight Investment A is one of the leading players in the Schools industry in China. Over the years it has not only transformed the business landscape in the Schools industry in China but also across the existing markets. The ability to lead change has enabled Xiamen Insight Investment A in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Xiamen Insight Investment A has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Xiamen Insight Investment 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 Xiamen Insight Investment A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Xiamen Insight Investment A emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Schools industry
– Xiamen Insight Investment A has clearly differentiated products in the market place. This has enabled Xiamen Insight Investment A to fetch slight price premium compare to the competitors in the Schools industry. The sustainable margins have also helped Xiamen Insight Investment A to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Xiamen Insight Investment A in the Services sector have low bargaining power. Xiamen Insight Investment A has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Xiamen Insight Investment A to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Xiamen Insight Investment A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Xiamen Insight Investment A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Schools industry
- digital transformation varies from industry to industry. For Xiamen Insight Investment A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Xiamen Insight Investment 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.
Analytics focus
– Xiamen Insight Investment 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 Schools 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 Xiamen Insight Investment A in Schools industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Xiamen Insight Investment A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Xiamen Insight Investment A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the Schools industry
– Xiamen Insight Investment A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Xiamen Insight Investment A is one of the most innovative firm in Schools sector.
Weaknesses of Xiamen Insight Investment A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Xiamen Insight Investment A are -
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 Xiamen Insight Investment A supply chain. Even after few cautionary changes, Xiamen Insight Investment A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Xiamen Insight Investment A vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Xiamen Insight Investment A products
– To increase the profitability and margins on the products, Xiamen Insight Investment A needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Xiamen Insight Investment 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 Schools industry using digital technology.
Slow to strategic competitive environment developments
– As Xiamen Insight Investment A is one of the leading players in the Schools industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Schools industry in last five years.
High operating costs
– Compare to the competitors, Xiamen Insight Investment A has high operating costs in the Schools industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Xiamen Insight Investment A lucrative customers.
Products dominated business model
– Even though Xiamen Insight Investment A has some of the most successful models in the Schools industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Xiamen Insight Investment A should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of China, Xiamen Insight Investment A needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee of Xiamen Insight Investment A is just above the Schools 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Xiamen Insight Investment A is slow explore the new channels of communication. These new channels of communication can help Xiamen Insight Investment A to provide better information regarding Schools products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Xiamen Insight Investment 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.
Need for greater diversity
– Xiamen Insight Investment A 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.
Xiamen Insight Investment A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Xiamen Insight Investment 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. Xiamen Insight Investment A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Xiamen Insight Investment A has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Schools sector. This continuous investment in analytics has enabled Xiamen Insight Investment A to build a competitive advantage using analytics. The analytics driven competitive advantage can help Xiamen Insight Investment A to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Xiamen Insight Investment A to increase its market reach. Xiamen Insight Investment A will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Xiamen Insight Investment A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Schools industry, and it will provide faster access to the consumers.
Developing new processes and practices
– Xiamen Insight Investment A can develop new processes and procedures in Schools industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Xiamen Insight Investment A can use the latest technology developments to improve its manufacturing and designing process in Schools 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.
Creating value in data economy
– The success of analytics program of Xiamen Insight Investment A has opened avenues for new revenue streams for the organization in Schools industry. This can help Xiamen Insight Investment A to build a more holistic ecosystem for Xiamen Insight Investment A products in the Schools industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Xiamen Insight Investment 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 Xiamen Insight Investment 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.
Buying journey improvements
– Xiamen Insight Investment A can improve the customer journey of consumers in the Schools 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Xiamen Insight Investment 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 Xiamen Insight Investment A to hire the very best people irrespective of their geographical location.
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 Xiamen Insight Investment 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, Xiamen Insight Investment 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Xiamen Insight Investment A can use these opportunities to build new business models that can help the communities that Xiamen Insight Investment A operates in. Secondly it can use opportunities from government spending in Schools sector.
Threats Xiamen Insight Investment A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Xiamen Insight Investment A are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Xiamen Insight Investment A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Schools sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Xiamen Insight Investment 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 Xiamen Insight Investment A prominent markets.
Regulatory challenges
– Xiamen Insight Investment 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 Schools industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Xiamen Insight Investment A in Schools industry. The Schools 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 Schools industry are lowering. It can presents Xiamen Insight Investment A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Schools sector.
Technology acceleration in Forth Industrial Revolution
– Xiamen Insight Investment A has witnessed rapid integration of technology during Covid-19 in the Schools industry. As one of the leading players in the industry, Xiamen Insight Investment A needs to keep up with the evolution of technology in the Schools 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.
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.
Stagnating economy with rate increase
– Xiamen Insight Investment 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 Schools 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. Xiamen Insight Investment A needs to understand the core reasons impacting the Schools industry. This will help it in building a better workplace.
Environmental challenges
– Xiamen Insight Investment 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. Xiamen Insight Investment A can take advantage of this fund but it will also bring new competitors in the Schools industry.
Shortening product life cycle
– it is one of the major threat that Xiamen Insight Investment A is facing in Schools sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Xiamen Insight Investment A will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Xiamen Insight Investment 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.
Weighted SWOT Analysis of Xiamen Insight Investment A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Xiamen Insight Investment 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 Xiamen Insight Investment 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 Xiamen Insight Investment 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 Xiamen Insight Investment 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 Xiamen Insight Investment A needs to make to build a sustainable competitive advantage.