Guangzhou Boji Medical & Biotech (300404) SWOT Analysis / TOWS Matrix / MBA Resources
Healthcare Facilities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Guangzhou Boji Medical & Biotech (China)
Based on various researches at Oak Spring University , Guangzhou Boji Medical & Biotech is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, there is backlash against globalization, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google,
increasing commodity prices, increasing energy prices, etc
Introduction to SWOT Analysis of Guangzhou Boji Medical & Biotech
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Guangzhou Boji Medical & Biotech can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Guangzhou Boji Medical & Biotech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech can be done for the following purposes –
1. Strategic planning of Guangzhou Boji Medical & Biotech
2. Improving business portfolio management of Guangzhou Boji Medical & Biotech
3. Assessing feasibility of the new initiative in China
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Guangzhou Boji Medical & Biotech
Strengths of Guangzhou Boji Medical & Biotech | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Guangzhou Boji Medical & Biotech are -
Highly skilled collaborators
– Guangzhou Boji Medical & Biotech has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Healthcare Facilities industry. Secondly the value chain collaborators of Guangzhou Boji Medical & Biotech have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Guangzhou Boji Medical & Biotech emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Guangzhou Boji Medical & Biotech is present in almost all the verticals within the Healthcare Facilities industry. This has provided Guangzhou Boji Medical & Biotech 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.
Superior customer experience
– The customer experience strategy of Guangzhou Boji Medical & Biotech in Healthcare Facilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Guangzhou Boji Medical & Biotech 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 Healthcare Facilities industry
– Guangzhou Boji Medical & Biotech is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Guangzhou Boji Medical & Biotech
– The covid-19 pandemic has put organizational resilience at the centre of everthing Guangzhou Boji Medical & Biotech does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Healthcare Facilities industry
- digital transformation varies from industry to industry. For Guangzhou Boji Medical & Biotech digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Guangzhou Boji Medical & Biotech 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.
Training and development
– Guangzhou Boji Medical & Biotech 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.
Ability to lead change in Healthcare Facilities
– Guangzhou Boji Medical & Biotech is one of the leading players in the Healthcare Facilities industry in China. Over the years it has not only transformed the business landscape in the Healthcare Facilities industry in China but also across the existing markets. The ability to lead change has enabled Guangzhou Boji Medical & Biotech in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Guangzhou Boji Medical & Biotech is one of the leading players in the Healthcare Facilities 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.
Successful track record of launching new products
– Guangzhou Boji Medical & Biotech has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Guangzhou Boji Medical & Biotech 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.
Weaknesses of Guangzhou Boji Medical & Biotech | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Guangzhou Boji Medical & Biotech are -
Lack of clear differentiation of Guangzhou Boji Medical & Biotech products
– To increase the profitability and margins on the products, Guangzhou Boji Medical & Biotech needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Guangzhou Boji Medical & Biotech has some of the most successful models in the Healthcare Facilities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Guangzhou Boji Medical & Biotech should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Guangzhou Boji Medical & Biotech has high operating costs in the Healthcare Facilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Guangzhou Boji Medical & Biotech lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at Guangzhou Boji Medical & Biotech, in the dynamic environment of Healthcare Facilities industry it has struggled to respond to the nimble upstart competition. Guangzhou Boji Medical & Biotech has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Guangzhou Boji Medical & Biotech supply chain. Even after few cautionary changes, Guangzhou Boji Medical & Biotech is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Guangzhou Boji Medical & Biotech vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that Guangzhou Boji Medical & Biotech needs to have more collaboration between its sales team and marketing team. Sales professionals in the Healthcare Facilities industry have deep experience in developing customer relationships. Marketing department at Guangzhou Boji Medical & Biotech can leverage the sales team experience to cultivate customer relationships as Guangzhou Boji Medical & Biotech is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Guangzhou Boji Medical & Biotech is one of the leading players in the Healthcare Facilities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Healthcare Facilities industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Guangzhou Boji Medical & Biotech is dominated by functional specialists. It is not different from other players in the Healthcare Facilities industry, but Guangzhou Boji Medical & Biotech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Guangzhou Boji Medical & Biotech to focus more on services in the Healthcare Facilities industry rather than just following the product oriented approach.
High cash cycle compare to competitors
Guangzhou Boji Medical & Biotech has a high cash cycle compare to other players in the Healthcare Facilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Guangzhou Boji Medical & Biotech has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Healthcare Facilities industry using digital technology.
Compensation and incentives
– The revenue per employee of Guangzhou Boji Medical & Biotech is just above the Healthcare Facilities 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.
Guangzhou Boji Medical & Biotech Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Guangzhou Boji Medical & Biotech are -
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. Guangzhou Boji Medical & Biotech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Guangzhou Boji Medical & Biotech can improve the customer journey of consumers in the Healthcare Facilities 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Healthcare Facilities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Guangzhou Boji Medical & Biotech 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. Guangzhou Boji Medical & Biotech 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Guangzhou Boji Medical & Biotech is facing challenges because of the dominance of functional experts in the organization. Guangzhou Boji Medical & Biotech can utilize new technology in the field of Healthcare Facilities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Healthcare Facilities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Guangzhou Boji Medical & Biotech in the Healthcare Facilities industry. Now Guangzhou Boji Medical & Biotech can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Guangzhou Boji Medical & Biotech 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.
Loyalty marketing
– Guangzhou Boji Medical & Biotech 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.
Better consumer reach
– The expansion of the 5G network will help Guangzhou Boji Medical & Biotech to increase its market reach. Guangzhou Boji Medical & Biotech 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.
Developing new processes and practices
– Guangzhou Boji Medical & Biotech can develop new processes and procedures in Healthcare Facilities 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Guangzhou Boji Medical & Biotech can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Guangzhou Boji Medical & Biotech can use these opportunities to build new business models that can help the communities that Guangzhou Boji Medical & Biotech operates in. Secondly it can use opportunities from government spending in Healthcare Facilities sector.
Using analytics as competitive advantage
– Guangzhou Boji Medical & Biotech has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Healthcare Facilities sector. This continuous investment in analytics has enabled Guangzhou Boji Medical & Biotech to build a competitive advantage using analytics. The analytics driven competitive advantage can help Guangzhou Boji Medical & Biotech to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Guangzhou Boji Medical & Biotech External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Guangzhou Boji Medical & Biotech are -
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. Guangzhou Boji Medical & Biotech needs to understand the core reasons impacting the Healthcare Facilities industry. This will help it in building a better workplace.
Consumer confidence and its impact on Guangzhou Boji Medical & Biotech 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 Healthcare Facilities 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 Guangzhou Boji Medical & Biotech in Healthcare Facilities industry. The Healthcare Facilities 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.
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 Guangzhou Boji Medical & Biotech.
Easy access to finance
– Easy access to finance in Healthcare Facilities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Guangzhou Boji Medical & Biotech can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Guangzhou Boji Medical & Biotech 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 Healthcare Facilities industry.
Regulatory challenges
– Guangzhou Boji Medical & Biotech 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 Healthcare Facilities industry regulations.
Technology acceleration in Forth Industrial Revolution
– Guangzhou Boji Medical & Biotech has witnessed rapid integration of technology during Covid-19 in the Healthcare Facilities industry. As one of the leading players in the industry, Guangzhou Boji Medical & Biotech needs to keep up with the evolution of technology in the Healthcare Facilities 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.
Shortening product life cycle
– it is one of the major threat that Guangzhou Boji Medical & Biotech is facing in Healthcare Facilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Guangzhou Boji Medical & Biotech business can come under increasing regulations regarding data privacy, data security, etc.
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 Guangzhou Boji Medical & Biotech in the Healthcare Facilities sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Healthcare Facilities industry are lowering. It can presents Guangzhou Boji Medical & Biotech with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Healthcare Facilities sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech prominent markets.
Weighted SWOT Analysis of Guangzhou Boji Medical & Biotech Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech 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 Guangzhou Boji Medical & Biotech needs to make to build a sustainable competitive advantage.