Based on various researches at Oak Spring University , Lootom Telcovideo Network Wuxi is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, technology disruption, increasing government debt because of Covid-19 spendings, geopolitical disruptions, there is increasing trade war between United States & China, wage bills are increasing, increasing household debt because of falling income levels,
central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Lootom Telcovideo Network Wuxi
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Lootom Telcovideo Network Wuxi can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lootom Telcovideo Network Wuxi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi can be done for the following purposes –
1. Strategic planning of Lootom Telcovideo Network Wuxi
2. Improving business portfolio management of Lootom Telcovideo Network Wuxi
3. Assessing feasibility of the new initiative in China
4. Making a Communications Equipment sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lootom Telcovideo Network Wuxi
Strengths of Lootom Telcovideo Network Wuxi | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lootom Telcovideo Network Wuxi are -
Cross disciplinary teams
– Horizontal connected teams at the Lootom Telcovideo Network Wuxi 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.
Ability to recruit top talent
– Lootom Telcovideo Network Wuxi is one of the leading players in the Communications Equipment 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.
Operational resilience
– The operational resilience strategy of Lootom Telcovideo Network Wuxi comprises – understanding the underlying the factors in the Communications Equipment 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.
Innovation driven organization
– Lootom Telcovideo Network Wuxi is one of the most innovative firm in Communications Equipment sector.
Learning organization
- Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Lootom Telcovideo Network Wuxi emphasize – knowledge, initiative, and innovation.
Ability to lead change in Communications Equipment
– Lootom Telcovideo Network Wuxi is one of the leading players in the Communications Equipment industry in China. Over the years it has not only transformed the business landscape in the Communications Equipment industry in China but also across the existing markets. The ability to lead change has enabled Lootom Telcovideo Network Wuxi in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Lootom Telcovideo Network Wuxi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lootom Telcovideo Network Wuxi 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 Communications Equipment industry
– Lootom Telcovideo Network Wuxi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Lootom Telcovideo Network Wuxi in the Technology sector have low bargaining power. Lootom Telcovideo Network Wuxi has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lootom Telcovideo Network Wuxi to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Lootom Telcovideo Network Wuxi
– The covid-19 pandemic has put organizational resilience at the centre of everthing Lootom Telcovideo Network Wuxi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Lootom Telcovideo Network Wuxi has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Lootom Telcovideo Network Wuxi staying ahead in the Communications Equipment industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Lootom Telcovideo Network Wuxi in Communications Equipment industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Lootom Telcovideo Network Wuxi | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lootom Telcovideo Network Wuxi are -
High bargaining power of channel partners in Communications Equipment industry
– because of the regulatory requirements in China, Lootom Telcovideo Network Wuxi 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 Communications Equipment industry.
Aligning sales with marketing
– From the outside it seems that Lootom Telcovideo Network Wuxi needs to have more collaboration between its sales team and marketing team. Sales professionals in the Communications Equipment industry have deep experience in developing customer relationships. Marketing department at Lootom Telcovideo Network Wuxi can leverage the sales team experience to cultivate customer relationships as Lootom Telcovideo Network Wuxi is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lootom Telcovideo Network Wuxi is slow explore the new channels of communication. These new channels of communication can help Lootom Telcovideo Network Wuxi to provide better information regarding Communications Equipment products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Lootom Telcovideo Network Wuxi products
– To increase the profitability and margins on the products, Lootom Telcovideo Network Wuxi needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Lootom Telcovideo Network Wuxi has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Communications Equipment industry over the last five years. Lootom Telcovideo Network Wuxi even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Compensation and incentives
– The revenue per employee of Lootom Telcovideo Network Wuxi is just above the Communications Equipment 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.
Increasing silos among functional specialists
– The organizational structure of Lootom Telcovideo Network Wuxi is dominated by functional specialists. It is not different from other players in the Communications Equipment industry, but Lootom Telcovideo Network Wuxi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lootom Telcovideo Network Wuxi to focus more on services in the Communications Equipment industry rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, Lootom Telcovideo Network Wuxi has high operating costs in the Communications Equipment industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Lootom Telcovideo Network Wuxi lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative at Lootom Telcovideo Network Wuxi, in the dynamic environment of Communications Equipment industry it has struggled to respond to the nimble upstart competition. Lootom Telcovideo Network Wuxi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Lootom Telcovideo Network Wuxi 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.
No frontier risks strategy
– From the 10K / annual statement of Lootom Telcovideo Network Wuxi, it seems that company is thinking out the frontier risks that can impact Communications Equipment 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.
Lootom Telcovideo Network Wuxi Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Lootom Telcovideo Network Wuxi are -
Building a culture of innovation
– managers at Lootom Telcovideo Network Wuxi 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 Communications Equipment industry.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lootom Telcovideo Network Wuxi in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communications Equipment industry, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Lootom Telcovideo Network Wuxi has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Communications Equipment sector. This continuous investment in analytics has enabled Lootom Telcovideo Network Wuxi to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lootom Telcovideo Network Wuxi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Lootom Telcovideo Network Wuxi can develop new processes and procedures in Communications Equipment 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.
Manufacturing automation
– Lootom Telcovideo Network Wuxi can use the latest technology developments to improve its manufacturing and designing process in Communications Equipment 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lootom Telcovideo Network Wuxi 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, Lootom Telcovideo Network Wuxi can use these opportunities to build new business models that can help the communities that Lootom Telcovideo Network Wuxi operates in. Secondly it can use opportunities from government spending in Communications Equipment sector.
Learning at scale
– Online learning technologies has now opened space for Lootom Telcovideo Network Wuxi 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Lootom Telcovideo Network Wuxi to increase its market reach. Lootom Telcovideo Network Wuxi 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.
Buying journey improvements
– Lootom Telcovideo Network Wuxi can improve the customer journey of consumers in the Communications Equipment 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Lootom Telcovideo Network Wuxi is facing challenges because of the dominance of functional experts in the organization. Lootom Telcovideo Network Wuxi can utilize new technology in the field of Communications Equipment industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Lootom Telcovideo Network Wuxi has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Lootom Telcovideo Network Wuxi External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Lootom Telcovideo Network Wuxi 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. Lootom Telcovideo Network Wuxi needs to understand the core reasons impacting the Communications Equipment industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Lootom Telcovideo Network Wuxi may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communications Equipment sector.
Environmental challenges
– Lootom Telcovideo Network Wuxi needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Lootom Telcovideo Network Wuxi can take advantage of this fund but it will also bring new competitors in the Communications Equipment industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Communications Equipment industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Lootom Telcovideo Network Wuxi 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
– Lootom Telcovideo Network Wuxi 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.
Consumer confidence and its impact on Lootom Telcovideo Network Wuxi 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 Communications Equipment industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Communications Equipment industry are lowering. It can presents Lootom Telcovideo Network Wuxi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Communications Equipment sector.
Stagnating economy with rate increase
– Lootom Telcovideo Network Wuxi 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 Communications Equipment industry.
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 Lootom Telcovideo Network Wuxi in the Communications Equipment sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Lootom Telcovideo Network Wuxi is facing in Communications Equipment sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Lootom Telcovideo Network Wuxi
– 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 Lootom Telcovideo Network Wuxi.
Weighted SWOT Analysis of Lootom Telcovideo Network Wuxi Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi 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 Lootom Telcovideo Network Wuxi needs to make to build a sustainable competitive advantage.
