SWOT Analysis / TOWS Matrix for Hainan Shuangcheng Pharmaceut (China)
Based on various researches at Oak Spring University , Hainan Shuangcheng Pharmaceut is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, technology disruption, cloud computing is disrupting traditional business models,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Hainan Shuangcheng Pharmaceut
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hainan Shuangcheng Pharmaceut can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hainan Shuangcheng Pharmaceut, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut can be done for the following purposes –
1. Strategic planning of Hainan Shuangcheng Pharmaceut
2. Improving business portfolio management of Hainan Shuangcheng Pharmaceut
3. Assessing feasibility of the new initiative in China
4. Making a Major Drugs sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hainan Shuangcheng Pharmaceut
Strengths of Hainan Shuangcheng Pharmaceut | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hainan Shuangcheng Pharmaceut are -
Successful track record of launching new products
– Hainan Shuangcheng Pharmaceut has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hainan Shuangcheng Pharmaceut 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.
Operational resilience
– The operational resilience strategy of Hainan Shuangcheng Pharmaceut comprises – understanding the underlying the factors in the Major Drugs 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.
Strong track record of project management in the Major Drugs industry
– Hainan Shuangcheng Pharmaceut is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Hainan Shuangcheng Pharmaceut 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.
Learning organization
- Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Hainan Shuangcheng Pharmaceut emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Hainan Shuangcheng Pharmaceut 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.
Organizational Resilience of Hainan Shuangcheng Pharmaceut
– The covid-19 pandemic has put organizational resilience at the centre of everthing Hainan Shuangcheng Pharmaceut does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Hainan Shuangcheng Pharmaceut has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Major Drugs industry. Secondly the value chain collaborators of Hainan Shuangcheng Pharmaceut have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Major Drugs industry
– Hainan Shuangcheng Pharmaceut has clearly differentiated products in the market place. This has enabled Hainan Shuangcheng Pharmaceut to fetch slight price premium compare to the competitors in the Major Drugs industry. The sustainable margins have also helped Hainan Shuangcheng Pharmaceut to invest into research and development (R&D) and innovation.
Ability to lead change in Major Drugs
– Hainan Shuangcheng Pharmaceut is one of the leading players in the Major Drugs industry in China. Over the years it has not only transformed the business landscape in the Major Drugs industry in China but also across the existing markets. The ability to lead change has enabled Hainan Shuangcheng Pharmaceut in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Hainan Shuangcheng Pharmaceut 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 Major Drugs 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.
Digital Transformation in Major Drugs industry
- digital transformation varies from industry to industry. For Hainan Shuangcheng Pharmaceut digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hainan Shuangcheng Pharmaceut 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.
Weaknesses of Hainan Shuangcheng Pharmaceut | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut supply chain. Even after few cautionary changes, Hainan Shuangcheng Pharmaceut is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hainan Shuangcheng Pharmaceut vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Hainan Shuangcheng Pharmaceut has a high cash cycle compare to other players in the Major Drugs industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Hainan Shuangcheng Pharmaceut is one of the leading players in the Major Drugs industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Major Drugs industry in last five years.
High bargaining power of channel partners in Major Drugs industry
– because of the regulatory requirements in China, Hainan Shuangcheng Pharmaceut 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 Major Drugs industry.
High operating costs
– Compare to the competitors, Hainan Shuangcheng Pharmaceut has high operating costs in the Major Drugs industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hainan Shuangcheng Pharmaceut lucrative customers.
Lack of clear differentiation of Hainan Shuangcheng Pharmaceut products
– To increase the profitability and margins on the products, Hainan Shuangcheng Pharmaceut needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– From the outside it seems that Hainan Shuangcheng Pharmaceut needs to have more collaboration between its sales team and marketing team. Sales professionals in the Major Drugs industry have deep experience in developing customer relationships. Marketing department at Hainan Shuangcheng Pharmaceut can leverage the sales team experience to cultivate customer relationships as Hainan Shuangcheng Pharmaceut is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of China, Hainan Shuangcheng Pharmaceut needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Hainan Shuangcheng Pharmaceut 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.
Increasing silos among functional specialists
– The organizational structure of Hainan Shuangcheng Pharmaceut is dominated by functional specialists. It is not different from other players in the Major Drugs industry, but Hainan Shuangcheng Pharmaceut needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hainan Shuangcheng Pharmaceut to focus more on services in the Major Drugs industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hainan Shuangcheng Pharmaceut is slow explore the new channels of communication. These new channels of communication can help Hainan Shuangcheng Pharmaceut to provide better information regarding Major Drugs products and services. It can also build an online community to further reach out to potential customers.
Hainan Shuangcheng Pharmaceut Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Hainan Shuangcheng Pharmaceut are -
Buying journey improvements
– Hainan Shuangcheng Pharmaceut can improve the customer journey of consumers in the Major Drugs 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.
Using analytics as competitive advantage
– Hainan Shuangcheng Pharmaceut has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Major Drugs sector. This continuous investment in analytics has enabled Hainan Shuangcheng Pharmaceut to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hainan Shuangcheng Pharmaceut 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. Hainan Shuangcheng Pharmaceut can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Hainan Shuangcheng Pharmaceut 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hainan Shuangcheng Pharmaceut in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Major Drugs industry, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hainan Shuangcheng Pharmaceut is facing challenges because of the dominance of functional experts in the organization. Hainan Shuangcheng Pharmaceut can utilize new technology in the field of Major Drugs industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Hainan Shuangcheng Pharmaceut can use the latest technology developments to improve its manufacturing and designing process in Major Drugs 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hainan Shuangcheng Pharmaceut can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Hainan Shuangcheng Pharmaceut to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Leveraging digital technologies
– Hainan Shuangcheng Pharmaceut 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.
Better consumer reach
– The expansion of the 5G network will help Hainan Shuangcheng Pharmaceut to increase its market reach. Hainan Shuangcheng Pharmaceut will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut to hire the very best people irrespective of their geographical location.
Threats Hainan Shuangcheng Pharmaceut External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Hainan Shuangcheng Pharmaceut are -
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 Hainan Shuangcheng Pharmaceut in the Major Drugs sector and impact the bottomline of the organization.
Environmental challenges
– Hainan Shuangcheng Pharmaceut 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. Hainan Shuangcheng Pharmaceut can take advantage of this fund but it will also bring new competitors in the Major Drugs industry.
Easy access to finance
– Easy access to finance in Major Drugs industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hainan Shuangcheng Pharmaceut can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Hainan Shuangcheng Pharmaceut 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 Major Drugs industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hainan Shuangcheng Pharmaceut in Major Drugs industry. The Major Drugs 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.
Regulatory challenges
– Hainan Shuangcheng Pharmaceut 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 Major Drugs industry regulations.
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 Hainan Shuangcheng Pharmaceut.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Hainan Shuangcheng Pharmaceut may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Major Drugs 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. Hainan Shuangcheng Pharmaceut needs to understand the core reasons impacting the Major Drugs industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Hainan Shuangcheng Pharmaceut 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 Major Drugs industry.
Increasing wage structure of Hainan Shuangcheng Pharmaceut
– 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 Hainan Shuangcheng Pharmaceut.
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. Hainan Shuangcheng Pharmaceut 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Major Drugs industry are lowering. It can presents Hainan Shuangcheng Pharmaceut with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Major Drugs sector.
Weighted SWOT Analysis of Hainan Shuangcheng Pharmaceut Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut needs to make to build a sustainable competitive advantage.