China Aircraft Leasing Group Hold (1848) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for China Aircraft Leasing Group Hold (Hong Kong)

Based on various researches at Oak Spring University , China Aircraft Leasing Group Hold is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of China Aircraft Leasing Group Hold

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that China Aircraft Leasing Group Hold can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the China Aircraft Leasing Group Hold, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which China Aircraft Leasing Group Hold 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of China Aircraft Leasing Group Hold can be done for the following purposes –
1. Strategic planning of China Aircraft Leasing Group Hold
2. Improving business portfolio management of China Aircraft Leasing Group Hold
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Rental & Leasing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of China Aircraft Leasing Group Hold

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Strengths of China Aircraft Leasing Group Hold | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of China Aircraft Leasing Group Hold are -

Innovation driven organization

– China Aircraft Leasing Group Hold is one of the most innovative firm in Rental & Leasing sector.

Ability to recruit top talent

– China Aircraft Leasing Group Hold is one of the leading players in the Rental & Leasing industry in Hong Kong. It is in a position to attract the best talent available in Hong Kong. The firm has a robust talent identification program that helps in identifying the brightest.

Ability to lead change in Rental & Leasing

– China Aircraft Leasing Group Hold is one of the leading players in the Rental & Leasing industry in Hong Kong. Over the years it has not only transformed the business landscape in the Rental & Leasing industry in Hong Kong but also across the existing markets. The ability to lead change has enabled China Aircraft Leasing Group Hold in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Organizational Resilience of China Aircraft Leasing Group Hold

– The covid-19 pandemic has put organizational resilience at the centre of everthing China Aircraft Leasing Group Hold does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Low bargaining power of suppliers

– Suppliers of China Aircraft Leasing Group Hold in the Services sector have low bargaining power. China Aircraft Leasing Group Hold has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps China Aircraft Leasing Group Hold to manage not only supply disruptions but also source products at highly competitive prices.

Highly skilled collaborators

– China Aircraft Leasing Group Hold has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Rental & Leasing industry. Secondly the value chain collaborators of China Aircraft Leasing Group Hold have helped the firm to develop new products and bring them quickly to the marketplace.

Operational resilience

– The operational resilience strategy of China Aircraft Leasing Group Hold comprises – understanding the underlying the factors in the Rental & Leasing 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.

Learning organization

- China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at China Aircraft Leasing Group Hold emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– China Aircraft Leasing Group Hold has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – China Aircraft Leasing Group Hold staying ahead in the Rental & Leasing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Digital Transformation in Rental & Leasing industry

- digital transformation varies from industry to industry. For China Aircraft Leasing Group Hold digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. China Aircraft Leasing Group Hold 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.

Analytics focus

– China Aircraft Leasing Group Hold is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Rental & Leasing industry. The technology infrastructure of Hong Kong is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Superior customer experience

– The customer experience strategy of China Aircraft Leasing Group Hold in Rental & Leasing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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Weaknesses of China Aircraft Leasing Group Hold | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of China Aircraft Leasing Group Hold are -

Interest costs

– Compare to the competition, China Aircraft Leasing Group Hold 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 decision making process

– As mentioned earlier in the report, China Aircraft Leasing Group Hold has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Rental & Leasing industry over the last five years. China Aircraft Leasing Group Hold 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.

Increasing silos among functional specialists

– The organizational structure of China Aircraft Leasing Group Hold is dominated by functional specialists. It is not different from other players in the Rental & Leasing industry, but China Aircraft Leasing Group Hold needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help China Aircraft Leasing Group Hold to focus more on services in the Rental & Leasing industry rather than just following the product oriented approach.

Slow to strategic competitive environment developments

– As China Aircraft Leasing Group Hold is one of the leading players in the Rental & Leasing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Rental & Leasing industry in last five years.

Capital Spending Reduction

– Even during the low interest decade, China Aircraft Leasing Group Hold 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 Rental & Leasing industry using digital technology.

Workers concerns about automation

– As automation is fast increasing in the Rental & Leasing industry, China Aircraft Leasing Group Hold needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Low market penetration in new markets

– Outside its home market of Hong Kong, China Aircraft Leasing Group Hold needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Aligning sales with marketing

– From the outside it seems that China Aircraft Leasing Group Hold needs to have more collaboration between its sales team and marketing team. Sales professionals in the Rental & Leasing industry have deep experience in developing customer relationships. Marketing department at China Aircraft Leasing Group Hold can leverage the sales team experience to cultivate customer relationships as China Aircraft Leasing Group Hold is planning to shift buying processes online.

Compensation and incentives

– The revenue per employee of China Aircraft Leasing Group Hold is just above the Rental & Leasing 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.

High operating costs

– Compare to the competitors, China Aircraft Leasing Group Hold has high operating costs in the Rental & Leasing industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract China Aircraft Leasing Group Hold lucrative customers.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, China Aircraft Leasing Group Hold is slow explore the new channels of communication. These new channels of communication can help China Aircraft Leasing Group Hold to provide better information regarding Rental & Leasing products and services. It can also build an online community to further reach out to potential customers.

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China Aircraft Leasing Group Hold Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of China Aircraft Leasing Group Hold are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, China Aircraft Leasing Group Hold can use these opportunities to build new business models that can help the communities that China Aircraft Leasing Group Hold operates in. Secondly it can use opportunities from government spending in Rental & Leasing sector.

Learning at scale

– Online learning technologies has now opened space for China Aircraft Leasing Group Hold 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.

Leveraging digital technologies

– China Aircraft Leasing Group Hold 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for China Aircraft Leasing Group Hold in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Rental & Leasing industry, and it will provide faster access to the consumers.

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. China Aircraft Leasing Group Hold can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects China Aircraft Leasing Group Hold can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Rental & Leasing industry, but it has also influenced the consumer preferences. China Aircraft Leasing Group Hold can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Using analytics as competitive advantage

– China Aircraft Leasing Group Hold has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Rental & Leasing sector. This continuous investment in analytics has enabled China Aircraft Leasing Group Hold to build a competitive advantage using analytics. The analytics driven competitive advantage can help China Aircraft Leasing Group Hold to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Use of Bitcoin and other crypto currencies for transactions in Rental & Leasing industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for China Aircraft Leasing Group Hold in the Rental & Leasing industry. Now China Aircraft Leasing Group Hold can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– China Aircraft Leasing Group Hold can use the latest technology developments to improve its manufacturing and designing process in Rental & Leasing 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, China Aircraft Leasing Group Hold 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Rental & Leasing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. China Aircraft Leasing Group Hold 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. China Aircraft Leasing Group Hold 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.

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Threats China Aircraft Leasing Group Hold External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of China Aircraft Leasing Group Hold are -

Technology acceleration in Forth Industrial Revolution

– China Aircraft Leasing Group Hold has witnessed rapid integration of technology during Covid-19 in the Rental & Leasing industry. As one of the leading players in the industry, China Aircraft Leasing Group Hold needs to keep up with the evolution of technology in the Rental & Leasing 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for China Aircraft Leasing Group Hold in Rental & Leasing industry. The Rental & Leasing 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Rental & Leasing industry are lowering. It can presents China Aircraft Leasing Group Hold with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Rental & Leasing sector.

Environmental challenges

– China Aircraft Leasing Group Hold 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. China Aircraft Leasing Group Hold can take advantage of this fund but it will also bring new competitors in the Rental & Leasing industry.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

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.

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. China Aircraft Leasing Group Hold 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, China Aircraft Leasing Group Hold may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Rental & Leasing sector.

Consumer confidence and its impact on China Aircraft Leasing Group Hold 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 Rental & Leasing industry and other sectors.

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 China Aircraft Leasing Group Hold.

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. China Aircraft Leasing Group Hold needs to understand the core reasons impacting the Rental & Leasing industry. This will help it in building a better workplace.

Regulatory challenges

– China Aircraft Leasing Group Hold 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 Rental & Leasing industry regulations.

Increasing wage structure of China Aircraft Leasing Group Hold

– 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 China Aircraft Leasing Group Hold.

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Weighted SWOT Analysis of China Aircraft Leasing Group Hold Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold 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 China Aircraft Leasing Group Hold needs to make to build a sustainable competitive advantage.

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