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 – cloud computing is disrupting traditional business models, technology disruption, wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, there is backlash against globalization, 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.
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.
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.
Effective Research and Development (R&D)
– Hainan Shuangcheng Pharmaceut has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hainan Shuangcheng Pharmaceut staying ahead in the Major Drugs industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
Building a culture of innovation
– managers at Hainan Shuangcheng Pharmaceut can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Major Drugs industry.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.