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 – wage bills are increasing, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, 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 -
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.
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.
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.
Innovation driven organization
– Hainan Shuangcheng Pharmaceut is one of the most innovative firm in Major Drugs sector.
Training and development
– Hainan Shuangcheng Pharmaceut has one of the best training and development program in Healthcare 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.
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.
Ability to recruit top talent
– Hainan Shuangcheng Pharmaceut is one of the leading players in the Major Drugs 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.
Diverse revenue streams
– Hainan Shuangcheng Pharmaceut is present in almost all the verticals within the Major Drugs industry. This has provided Hainan Shuangcheng Pharmaceut 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.
High brand equity
– Hainan Shuangcheng Pharmaceut has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hainan Shuangcheng Pharmaceut to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
Low bargaining power of suppliers
– Suppliers of Hainan Shuangcheng Pharmaceut in the Healthcare sector have low bargaining power. Hainan Shuangcheng Pharmaceut has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hainan Shuangcheng Pharmaceut to manage not only supply disruptions but also source products at highly competitive prices.
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 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.
Compensation and incentives
– The revenue per employee of Hainan Shuangcheng Pharmaceut is just above the Major Drugs 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 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.
Employees’ less understanding of Hainan Shuangcheng Pharmaceut strategy
– From the outside it seems that the employees of Hainan Shuangcheng Pharmaceut don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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 dependence on Hainan Shuangcheng Pharmaceut ‘s star products
– The top 2 products and services of Hainan Shuangcheng Pharmaceut still accounts for major business revenue. This dependence on star products in Major Drugs industry has resulted into insufficient focus on developing new products, even though Hainan Shuangcheng Pharmaceut has relatively successful track record of launching new products.
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.
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.
No frontier risks strategy
– From the 10K / annual statement of Hainan Shuangcheng Pharmaceut, it seems that company is thinking out the frontier risks that can impact Major Drugs industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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 -
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.
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.
Creating value in data economy
– The success of analytics program of Hainan Shuangcheng Pharmaceut has opened avenues for new revenue streams for the organization in Major Drugs industry. This can help Hainan Shuangcheng Pharmaceut to build a more holistic ecosystem for Hainan Shuangcheng Pharmaceut products in the Major Drugs 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 Major Drugs industry, but it has also influenced the consumer preferences. Hainan Shuangcheng Pharmaceut can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Major Drugs industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hainan Shuangcheng Pharmaceut 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. Hainan Shuangcheng Pharmaceut 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.
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hainan Shuangcheng Pharmaceut 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.
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.
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 Hainan Shuangcheng Pharmaceut 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.
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.
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 -
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.
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.
Shortening product life cycle
– it is one of the major threat that Hainan Shuangcheng Pharmaceut is facing in Major Drugs sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng Pharmaceut 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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Hainan Shuangcheng Pharmaceut has witnessed rapid integration of technology during Covid-19 in the Major Drugs industry. As one of the leading players in the industry, Hainan Shuangcheng Pharmaceut needs to keep up with the evolution of technology in the Major Drugs 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.
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.
