Anshan Heavy Duty Mining Mach A (2667) SWOT Analysis / TOWS Matrix / MBA Resources
Constr. & Agric. Machinery
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Anshan Heavy Duty Mining Mach A (China)
Based on various researches at Oak Spring University , Anshan Heavy Duty Mining Mach A is operating in a macro-environment that has been destablized by – wage bills are increasing, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, technology disruption, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, etc
Introduction to SWOT Analysis of Anshan Heavy Duty Mining Mach A
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Anshan Heavy Duty Mining Mach A can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anshan Heavy Duty Mining Mach A, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A can be done for the following purposes –
1. Strategic planning of Anshan Heavy Duty Mining Mach A
2. Improving business portfolio management of Anshan Heavy Duty Mining Mach A
3. Assessing feasibility of the new initiative in China
4. Making a Constr. & Agric. Machinery sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anshan Heavy Duty Mining Mach A
Strengths of Anshan Heavy Duty Mining Mach A | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anshan Heavy Duty Mining Mach A are -
Digital Transformation in Constr. & Agric. Machinery industry
- digital transformation varies from industry to industry. For Anshan Heavy Duty Mining Mach A digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Anshan Heavy Duty Mining Mach A 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.
Superior customer experience
– The customer experience strategy of Anshan Heavy Duty Mining Mach A in Constr. & Agric. Machinery industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Constr. & Agric. Machinery industry
– Anshan Heavy Duty Mining Mach A has clearly differentiated products in the market place. This has enabled Anshan Heavy Duty Mining Mach A to fetch slight price premium compare to the competitors in the Constr. & Agric. Machinery industry. The sustainable margins have also helped Anshan Heavy Duty Mining Mach A to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Anshan Heavy Duty Mining Mach A has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anshan Heavy Duty Mining Mach A 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.
Strong track record of project management in the Constr. & Agric. Machinery industry
– Anshan Heavy Duty Mining Mach A is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Anshan Heavy Duty Mining Mach A emphasize – knowledge, initiative, and innovation.
High brand equity
– Anshan Heavy Duty Mining Mach A has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Anshan Heavy Duty Mining Mach A to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Anshan Heavy Duty Mining Mach A
– The covid-19 pandemic has put organizational resilience at the centre of everthing Anshan Heavy Duty Mining Mach A does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of Anshan Heavy Duty Mining Mach A comprises – understanding the underlying the factors in the Constr. & Agric. Machinery 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.
Diverse revenue streams
– Anshan Heavy Duty Mining Mach A is present in almost all the verticals within the Constr. & Agric. Machinery industry. This has provided Anshan Heavy Duty Mining Mach A 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.
Effective Research and Development (R&D)
– Anshan Heavy Duty Mining Mach A has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Anshan Heavy Duty Mining Mach A staying ahead in the Constr. & Agric. Machinery industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Anshan Heavy Duty Mining Mach A has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Constr. & Agric. Machinery industry. Secondly the value chain collaborators of Anshan Heavy Duty Mining Mach A have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses of Anshan Heavy Duty Mining Mach A | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Anshan Heavy Duty Mining Mach A are -
Aligning sales with marketing
– From the outside it seems that Anshan Heavy Duty Mining Mach A needs to have more collaboration between its sales team and marketing team. Sales professionals in the Constr. & Agric. Machinery industry have deep experience in developing customer relationships. Marketing department at Anshan Heavy Duty Mining Mach A can leverage the sales team experience to cultivate customer relationships as Anshan Heavy Duty Mining Mach A is planning to shift buying processes online.
High operating costs
– Compare to the competitors, Anshan Heavy Duty Mining Mach A has high operating costs in the Constr. & Agric. Machinery industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Anshan Heavy Duty Mining Mach A lucrative customers.
Products dominated business model
– Even though Anshan Heavy Duty Mining Mach A has some of the most successful models in the Constr. & Agric. Machinery industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Anshan Heavy Duty Mining Mach A should strive to include more intangible value offerings along with its core products and services.
High dependence on Anshan Heavy Duty Mining Mach A ‘s star products
– The top 2 products and services of Anshan Heavy Duty Mining Mach A still accounts for major business revenue. This dependence on star products in Constr. & Agric. Machinery industry has resulted into insufficient focus on developing new products, even though Anshan Heavy Duty Mining Mach A has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Anshan Heavy Duty Mining Mach A 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 Constr. & Agric. Machinery industry using digital technology.
Interest costs
– Compare to the competition, Anshan Heavy Duty Mining Mach A has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ less understanding of Anshan Heavy Duty Mining Mach A strategy
– From the outside it seems that the employees of Anshan Heavy Duty Mining Mach A 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 bargaining power of channel partners in Constr. & Agric. Machinery industry
– because of the regulatory requirements in China, Anshan Heavy Duty Mining Mach A is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Constr. & Agric. Machinery industry.
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 Anshan Heavy Duty Mining Mach A supply chain. Even after few cautionary changes, Anshan Heavy Duty Mining Mach A is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Anshan Heavy Duty Mining Mach A vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Anshan Heavy Duty Mining Mach A is one of the leading players in the Constr. & Agric. Machinery industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Constr. & Agric. Machinery industry in last five years.
Lack of clear differentiation of Anshan Heavy Duty Mining Mach A products
– To increase the profitability and margins on the products, Anshan Heavy Duty Mining Mach A needs to provide more differentiated products than what it is currently offering in the marketplace.
Anshan Heavy Duty Mining Mach A Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Anshan Heavy Duty Mining Mach A are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A to hire the very best people irrespective of their geographical location.
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 Anshan Heavy Duty Mining Mach A 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anshan Heavy Duty Mining Mach A in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Constr. & Agric. Machinery industry, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Constr. & Agric. Machinery industry, but it has also influenced the consumer preferences. Anshan Heavy Duty Mining Mach A can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Anshan Heavy Duty Mining Mach A 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anshan Heavy Duty Mining Mach A is facing challenges because of the dominance of functional experts in the organization. Anshan Heavy Duty Mining Mach A can utilize new technology in the field of Constr. & Agric. Machinery industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Anshan Heavy Duty Mining Mach A can use the latest technology developments to improve its manufacturing and designing process in Constr. & Agric. Machinery 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.
Building a culture of innovation
– managers at Anshan Heavy Duty Mining Mach A 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 Constr. & Agric. Machinery industry.
Better consumer reach
– The expansion of the 5G network will help Anshan Heavy Duty Mining Mach A to increase its market reach. Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Anshan Heavy Duty Mining Mach A can improve the customer journey of consumers in the Constr. & Agric. Machinery 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.
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. Anshan Heavy Duty Mining Mach A can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anshan Heavy Duty Mining Mach A can use these opportunities to build new business models that can help the communities that Anshan Heavy Duty Mining Mach A operates in. Secondly it can use opportunities from government spending in Constr. & Agric. Machinery sector.
Threats Anshan Heavy Duty Mining Mach A External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Anshan Heavy Duty Mining Mach A are -
Easy access to finance
– Easy access to finance in Constr. & Agric. Machinery industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Anshan Heavy Duty Mining Mach A can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Anshan Heavy Duty Mining Mach A 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Constr. & Agric. Machinery industry are lowering. It can presents Anshan Heavy Duty Mining Mach A with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Constr. & Agric. Machinery sector.
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 Anshan Heavy Duty Mining Mach A in the Constr. & Agric. Machinery sector and impact the bottomline of the organization.
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 Anshan Heavy Duty Mining Mach A.
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.
Increasing wage structure of Anshan Heavy Duty Mining Mach A
– 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 Anshan Heavy Duty Mining Mach A.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Anshan Heavy Duty Mining Mach A may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Constr. & Agric. Machinery sector.
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. Anshan Heavy Duty Mining Mach A 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.
Consumer confidence and its impact on Anshan Heavy Duty Mining Mach A 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 Constr. & Agric. Machinery industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A prominent markets.
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 Anshan Heavy Duty Mining Mach A business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Anshan Heavy Duty Mining Mach A Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A 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 Anshan Heavy Duty Mining Mach A needs to make to build a sustainable competitive advantage.