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 – competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, technology disruption, there is backlash against globalization, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings,
increasing household debt because of falling income levels, 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.
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.
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.
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.
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.
Innovation driven organization
– Hainan Shuangcheng Pharmaceut is one of the most innovative firm in Major Drugs sector.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
Ability to respond to the competition
– As the decision making is very deliberative at Hainan Shuangcheng Pharmaceut, in the dynamic environment of Major Drugs industry it has struggled to respond to the nimble upstart competition. Hainan Shuangcheng Pharmaceut has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the Major Drugs industry, Hainan Shuangcheng Pharmaceut 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.
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.
Skills based hiring in Major Drugs industry
– The stress on hiring functional specialists at Hainan Shuangcheng Pharmaceut has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Hainan Shuangcheng Pharmaceut has some of the most successful models in the Major Drugs industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Hainan Shuangcheng Pharmaceut should strive to include more intangible value offerings along with its core products and services.
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.
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 -
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.
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.
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.
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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hainan Shuangcheng Pharmaceut can use these opportunities to build new business models that can help the communities that Hainan Shuangcheng Pharmaceut operates in. Secondly it can use opportunities from government spending in Major Drugs sector.
Use of Bitcoin and other crypto currencies for transactions in Major Drugs industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hainan Shuangcheng Pharmaceut in the Major Drugs industry. Now Hainan Shuangcheng Pharmaceut can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
Developing new processes and practices
– Hainan Shuangcheng Pharmaceut can develop new processes and procedures in Major Drugs 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 Hainan Shuangcheng Pharmaceut business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Hainan Shuangcheng Pharmaceut 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.
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.
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.
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.
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.