Beijing Jingcheng Machinery Electric (187) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Beijing Jingcheng Machinery Electric (Hong Kong)

Based on various researches at Oak Spring University , Beijing Jingcheng Machinery Electric is operating in a macro-environment that has been destablized by – digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, etc

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Introduction to SWOT Analysis of Beijing Jingcheng Machinery Electric

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Beijing Jingcheng Machinery Electric can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beijing Jingcheng Machinery Electric, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric can be done for the following purposes –
1. Strategic planning of Beijing Jingcheng Machinery Electric
2. Improving business portfolio management of Beijing Jingcheng Machinery Electric
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Misc. Capital Goods sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Beijing Jingcheng Machinery Electric

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Strengths of Beijing Jingcheng Machinery Electric | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Beijing Jingcheng Machinery Electric are -

High switching costs

– The high switching costs that Beijing Jingcheng Machinery Electric 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.

Analytics focus

– Beijing Jingcheng Machinery Electric 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 Misc. Capital Goods 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.

Low bargaining power of suppliers

– Suppliers of Beijing Jingcheng Machinery Electric in the Capital Goods sector have low bargaining power. Beijing Jingcheng Machinery Electric has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beijing Jingcheng Machinery Electric to manage not only supply disruptions but also source products at highly competitive prices.

Diverse revenue streams

– Beijing Jingcheng Machinery Electric is present in almost all the verticals within the Misc. Capital Goods industry. This has provided Beijing Jingcheng Machinery Electric 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.

Learning organization

- Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Beijing Jingcheng Machinery Electric emphasize – knowledge, initiative, and innovation.

Innovation driven organization

– Beijing Jingcheng Machinery Electric is one of the most innovative firm in Misc. Capital Goods sector.

Highly skilled collaborators

– Beijing Jingcheng Machinery Electric has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Capital Goods industry. Secondly the value chain collaborators of Beijing Jingcheng Machinery Electric have helped the firm to develop new products and bring them quickly to the marketplace.

Organizational Resilience of Beijing Jingcheng Machinery Electric

– The covid-19 pandemic has put organizational resilience at the centre of everthing Beijing Jingcheng Machinery Electric does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to lead change in Misc. Capital Goods

– Beijing Jingcheng Machinery Electric is one of the leading players in the Misc. Capital Goods industry in Hong Kong. Over the years it has not only transformed the business landscape in the Misc. Capital Goods industry in Hong Kong but also across the existing markets. The ability to lead change has enabled Beijing Jingcheng Machinery Electric in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy of Beijing Jingcheng Machinery Electric 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.

Effective Research and Development (R&D)

– Beijing Jingcheng Machinery Electric has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Beijing Jingcheng Machinery Electric 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.

Superior customer experience

– The customer experience strategy of Beijing Jingcheng Machinery Electric in Misc. Capital Goods industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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Weaknesses of Beijing Jingcheng Machinery Electric | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Beijing Jingcheng Machinery Electric are -

Skills based hiring in Misc. Capital Goods industry

– The stress on hiring functional specialists at Beijing Jingcheng Machinery Electric has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Increasing silos among functional specialists

– The organizational structure of Beijing Jingcheng Machinery Electric is dominated by functional specialists. It is not different from other players in the Misc. Capital Goods industry, but Beijing Jingcheng Machinery Electric needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Beijing Jingcheng Machinery Electric to focus more on services in the Misc. Capital Goods industry rather than just following the product oriented approach.

Employees’ less understanding of Beijing Jingcheng Machinery Electric strategy

– From the outside it seems that the employees of Beijing Jingcheng Machinery Electric 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.

Capital Spending Reduction

– Even during the low interest decade, Beijing Jingcheng Machinery Electric 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 Misc. Capital Goods industry using digital technology.

Compensation and incentives

– The revenue per employee of Beijing Jingcheng Machinery Electric is just above the Misc. Capital Goods 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.

Interest costs

– Compare to the competition, Beijing Jingcheng Machinery Electric 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, Beijing Jingcheng Machinery Electric has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Capital Goods industry over the last five years. Beijing Jingcheng Machinery Electric 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.

Aligning sales with marketing

– From the outside it seems that Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric can leverage the sales team experience to cultivate customer relationships as Beijing Jingcheng Machinery Electric is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Beijing Jingcheng Machinery Electric 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.

High cash cycle compare to competitors

Beijing Jingcheng Machinery Electric 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 bargaining power of channel partners in Misc. Capital Goods industry

– because of the regulatory requirements in Hong Kong, Beijing Jingcheng Machinery Electric 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 Misc. Capital Goods industry.

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Beijing Jingcheng Machinery Electric Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Beijing Jingcheng Machinery Electric are -

Buying journey improvements

– Beijing Jingcheng Machinery Electric can improve the customer journey of consumers in the Misc. Capital Goods 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.

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 Beijing Jingcheng Machinery Electric in the Misc. Capital Goods industry. Now Beijing Jingcheng Machinery Electric can target international markets with far fewer capital restrictions requirements than the existing system.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beijing Jingcheng Machinery Electric can use these opportunities to build new business models that can help the communities that Beijing Jingcheng Machinery Electric operates in. Secondly it can use opportunities from government spending in Misc. Capital Goods sector.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Beijing Jingcheng Machinery Electric is facing challenges because of the dominance of functional experts in the organization. Beijing Jingcheng Machinery Electric can utilize new technology in the field of Misc. Capital Goods industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Leveraging digital technologies

– Beijing Jingcheng Machinery Electric 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, Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Misc. Capital Goods industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Beijing Jingcheng Machinery Electric 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. Beijing Jingcheng Machinery Electric 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.

Creating value in data economy

– The success of analytics program of Beijing Jingcheng Machinery Electric has opened avenues for new revenue streams for the organization in Misc. Capital Goods industry. This can help Beijing Jingcheng Machinery Electric to build a more holistic ecosystem for Beijing Jingcheng Machinery Electric products in the Misc. Capital Goods industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric to hire the very best people irrespective of their geographical location.

Loyalty marketing

– Beijing Jingcheng Machinery Electric 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.

Using analytics as competitive advantage

– Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beijing Jingcheng Machinery Electric to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Beijing Jingcheng Machinery Electric 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.

Developing new processes and practices

– Beijing Jingcheng Machinery Electric can develop new processes and procedures in Misc. Capital Goods 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.

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Threats Beijing Jingcheng Machinery Electric External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Beijing Jingcheng Machinery Electric are -

Environmental challenges

– Beijing Jingcheng Machinery Electric 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. Beijing Jingcheng Machinery Electric can take advantage of this fund but it will also bring new competitors in the Misc. Capital Goods industry.

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 Beijing Jingcheng Machinery Electric.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Beijing Jingcheng Machinery Electric 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.

High dependence on third party suppliers

– Beijing Jingcheng Machinery Electric 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.

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 Beijing Jingcheng Machinery Electric business can come under increasing regulations regarding data privacy, data security, etc.

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. Beijing Jingcheng Machinery Electric needs to understand the core reasons impacting the Misc. Capital Goods industry. This will help it in building a better workplace.

Consumer confidence and its impact on Beijing Jingcheng Machinery Electric 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 Misc. Capital Goods industry and other sectors.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric prominent markets.

Shortening product life cycle

– it is one of the major threat that Beijing Jingcheng Machinery Electric is facing in Misc. Capital Goods sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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. Beijing Jingcheng Machinery Electric 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

– Beijing Jingcheng Machinery Electric has witnessed rapid integration of technology during Covid-19 in the Misc. Capital Goods industry. As one of the leading players in the industry, Beijing Jingcheng Machinery Electric 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Misc. Capital Goods industry are lowering. It can presents Beijing Jingcheng Machinery Electric 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.

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Weighted SWOT Analysis of Beijing Jingcheng Machinery Electric Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric 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 Beijing Jingcheng Machinery Electric needs to make to build a sustainable competitive advantage.

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