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 energy prices, increasing household debt because of falling income levels, there is increasing trade war between United States & China, increasing commodity prices, technology disruption, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
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.
Diverse revenue streams
– Xiamen Insight Investment A is present in almost all the verticals within the Schools industry. This has provided Xiamen Insight Investment A 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.
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.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Xiamen Insight Investment A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Xiamen Insight Investment A staying ahead in the Schools industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
Successful track record of launching new products
– Xiamen Insight Investment A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Xiamen Insight Investment 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.
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.
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 -
Workers concerns about automation
– As automation is fast increasing in the Schools industry, Xiamen Insight Investment 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative at Xiamen Insight Investment A, in the dynamic environment of Schools industry it has struggled to respond to the nimble upstart competition. Xiamen Insight Investment A has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
High dependence on Xiamen Insight Investment A ‘s star products
– The top 2 products and services of Xiamen Insight Investment A still accounts for major business revenue. This dependence on star products in Schools industry has resulted into insufficient focus on developing new products, even though Xiamen Insight Investment A has relatively successful track record of launching new products.
High cash cycle compare to competitors
Xiamen Insight Investment A has a high cash cycle compare to other players in the Schools industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners in Schools industry
– because of the regulatory requirements in China, Xiamen Insight Investment A 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 Schools industry.
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.
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.
Increasing silos among functional specialists
– The organizational structure of Xiamen Insight Investment A is dominated by functional specialists. It is not different from other players in the Schools industry, but Xiamen Insight Investment A needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Xiamen Insight Investment A to focus more on services in the Schools industry rather than just following the product oriented approach.
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 -
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.
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.
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.
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.
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.
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Schools industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Xiamen Insight Investment A 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. Xiamen Insight Investment A 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.
Loyalty marketing
– Xiamen Insight Investment 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.
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.
Leveraging digital technologies
– Xiamen Insight Investment 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Schools industry, but it has also influenced the consumer preferences. Xiamen Insight Investment A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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 -
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.
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.
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.
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.
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.
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 Xiamen Insight Investment A.
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.
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.
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.
Easy access to finance
– Easy access to finance in Schools industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Xiamen Insight Investment 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 Xiamen Insight Investment A business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Xiamen Insight Investment 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 Xiamen Insight Investment A.
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.
