Based on various researches at Oak Spring University , JDM JingDa Machine Ningbo is operating in a macro-environment that has been destablized by – geopolitical disruptions, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of JDM JingDa Machine Ningbo
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that JDM JingDa Machine Ningbo can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the JDM JingDa Machine Ningbo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo can be done for the following purposes –
1. Strategic planning of JDM JingDa Machine Ningbo
2. Improving business portfolio management of JDM JingDa Machine Ningbo
3. Assessing feasibility of the new initiative in China
4. Making a Misc. Capital Goods sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of JDM JingDa Machine Ningbo
Strengths of JDM JingDa Machine Ningbo | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of JDM JingDa Machine Ningbo are -
Training and development
– JDM JingDa Machine Ningbo has one of the best training and development program in Capital Goods 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.
Strong track record of project management in the Misc. Capital Goods industry
– JDM JingDa Machine Ningbo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– JDM JingDa Machine Ningbo is present in almost all the verticals within the Misc. Capital Goods industry. This has provided JDM JingDa Machine Ningbo 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.
Sustainable margins compare to other players in Misc. Capital Goods industry
– JDM JingDa Machine Ningbo has clearly differentiated products in the market place. This has enabled JDM JingDa Machine Ningbo to fetch slight price premium compare to the competitors in the Misc. Capital Goods industry. The sustainable margins have also helped JDM JingDa Machine Ningbo to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of JDM JingDa Machine Ningbo in the Capital Goods sector have low bargaining power. JDM JingDa Machine Ningbo has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps JDM JingDa Machine Ningbo to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– JDM JingDa Machine Ningbo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled JDM JingDa Machine Ningbo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Misc. Capital Goods
– JDM JingDa Machine Ningbo is one of the leading players in the Misc. Capital Goods industry in China. Over the years it has not only transformed the business landscape in the Misc. Capital Goods industry in China but also across the existing markets. The ability to lead change has enabled JDM JingDa Machine Ningbo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– JDM JingDa Machine Ningbo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – JDM JingDa Machine Ningbo staying ahead in the Misc. Capital Goods industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of JDM JingDa Machine Ningbo comprises – understanding the underlying the factors in the Misc. Capital Goods 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.
High switching costs
– The high switching costs that JDM JingDa Machine Ningbo 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.
Organizational Resilience of JDM JingDa Machine Ningbo
– The covid-19 pandemic has put organizational resilience at the centre of everthing JDM JingDa Machine Ningbo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of JDM JingDa Machine Ningbo in Misc. Capital Goods industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of JDM JingDa Machine Ningbo | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of JDM JingDa Machine Ningbo are -
High cash cycle compare to competitors
JDM JingDa Machine Ningbo has a high cash cycle compare to other players in the Misc. Capital Goods industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 JDM JingDa Machine Ningbo supply chain. Even after few cautionary changes, JDM JingDa Machine Ningbo is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left JDM JingDa Machine Ningbo vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though JDM JingDa Machine Ningbo has some of the most successful models in the Misc. Capital Goods industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. JDM JingDa Machine Ningbo should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– From the 10K / annual statement of JDM JingDa Machine Ningbo, it seems that company is thinking out the frontier risks that can impact Misc. Capital Goods 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.
Ability to respond to the competition
– As the decision making is very deliberative at JDM JingDa Machine Ningbo, in the dynamic environment of Misc. Capital Goods industry it has struggled to respond to the nimble upstart competition. JDM JingDa Machine Ningbo 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, JDM JingDa Machine Ningbo 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.
Slow to strategic competitive environment developments
– As JDM JingDa Machine Ningbo is one of the leading players in the Misc. Capital Goods industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Capital Goods industry in last five years.
Employees’ less understanding of JDM JingDa Machine Ningbo strategy
– From the outside it seems that the employees of JDM JingDa Machine Ningbo 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, JDM JingDa Machine Ningbo is slow explore the new channels of communication. These new channels of communication can help JDM JingDa Machine Ningbo to provide better information regarding Misc. Capital Goods products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– From the outside it seems that JDM JingDa Machine Ningbo needs to have more collaboration between its sales team and marketing team. Sales professionals in the Misc. Capital Goods industry have deep experience in developing customer relationships. Marketing department at JDM JingDa Machine Ningbo can leverage the sales team experience to cultivate customer relationships as JDM JingDa Machine Ningbo is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of JDM JingDa Machine Ningbo is dominated by functional specialists. It is not different from other players in the Misc. Capital Goods industry, but JDM JingDa Machine Ningbo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help JDM JingDa Machine Ningbo to focus more on services in the Misc. Capital Goods industry rather than just following the product oriented approach.
JDM JingDa Machine Ningbo Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of JDM JingDa Machine Ningbo are -
Creating value in data economy
– The success of analytics program of JDM JingDa Machine Ningbo has opened avenues for new revenue streams for the organization in Misc. Capital Goods industry. This can help JDM JingDa Machine Ningbo to build a more holistic ecosystem for JDM JingDa Machine Ningbo products in the Misc. Capital Goods industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at JDM JingDa Machine Ningbo 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 Misc. Capital Goods industry.
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. JDM JingDa Machine Ningbo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– JDM JingDa Machine Ningbo 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– JDM JingDa Machine Ningbo has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Capital Goods sector. This continuous investment in analytics has enabled JDM JingDa Machine Ningbo to build a competitive advantage using analytics. The analytics driven competitive advantage can help JDM JingDa Machine Ningbo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo to hire the very best people irrespective of their geographical location.
Manufacturing automation
– JDM JingDa Machine Ningbo can use the latest technology developments to improve its manufacturing and designing process in Misc. Capital Goods 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.
Use of Bitcoin and other crypto currencies for transactions in Misc. Capital Goods industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for JDM JingDa Machine Ningbo in the Misc. Capital Goods industry. Now JDM JingDa Machine Ningbo can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects JDM JingDa Machine Ningbo 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, JDM JingDa Machine Ningbo can use these opportunities to build new business models that can help the communities that JDM JingDa Machine Ningbo operates in. Secondly it can use opportunities from government spending in Misc. Capital Goods sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for JDM JingDa Machine Ningbo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Capital Goods industry, and it will provide faster access to the consumers.
Loyalty marketing
– JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of JDM JingDa Machine Ningbo are -
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 JDM JingDa Machine Ningbo business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– JDM JingDa Machine Ningbo 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 Misc. Capital Goods industry.
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. JDM JingDa Machine Ningbo needs to understand the core reasons impacting the Misc. Capital Goods 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, JDM JingDa Machine Ningbo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Capital Goods sector.
Easy access to finance
– Easy access to finance in Misc. Capital Goods industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. JDM JingDa Machine Ningbo 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
– JDM JingDa Machine Ningbo has witnessed rapid integration of technology during Covid-19 in the Misc. Capital Goods industry. As one of the leading players in the industry, JDM JingDa Machine Ningbo needs to keep up with the evolution of technology in the Misc. Capital Goods 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.
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.
High dependence on third party suppliers
– JDM JingDa Machine Ningbo 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.
Regulatory challenges
– JDM JingDa Machine Ningbo 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 Misc. Capital Goods industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for JDM JingDa Machine Ningbo in Misc. Capital Goods industry. The Misc. Capital Goods 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.
Environmental challenges
– JDM JingDa Machine Ningbo 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. JDM JingDa Machine Ningbo can take advantage of this fund but it will also bring new competitors in the Misc. Capital Goods industry.
Increasing wage structure of JDM JingDa Machine Ningbo
– 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 JDM JingDa Machine Ningbo.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Misc. Capital Goods industry are lowering. It can presents JDM JingDa Machine Ningbo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Misc. Capital Goods sector.
Weighted SWOT Analysis of JDM JingDa Machine Ningbo Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo 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 JDM JingDa Machine Ningbo needs to make to build a sustainable competitive advantage.