Kunming Dianchi Water (3768) SWOT Analysis / TOWS Matrix / MBA Resources
Waste Management Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Kunming Dianchi Water (Hong Kong)
Based on various researches at Oak Spring University , Kunming Dianchi Water is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, technology disruption, increasing household debt because of falling income levels,
there is backlash against globalization, wage bills are increasing, etc
Introduction to SWOT Analysis of Kunming Dianchi Water
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Kunming Dianchi Water can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kunming Dianchi Water, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kunming Dianchi Water 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 Kunming Dianchi Water can be done for the following purposes –
1. Strategic planning of Kunming Dianchi Water
2. Improving business portfolio management of Kunming Dianchi Water
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Waste Management Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kunming Dianchi Water
Strengths of Kunming Dianchi Water | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kunming Dianchi Water are -
Cross disciplinary teams
– Horizontal connected teams at the Kunming Dianchi Water 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.
High switching costs
– The high switching costs that Kunming Dianchi Water 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.
Strong track record of project management in the Waste Management Services industry
– Kunming Dianchi Water 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
– Kunming Dianchi Water is present in almost all the verticals within the Waste Management Services industry. This has provided Kunming Dianchi Water 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.
High brand equity
– Kunming Dianchi Water has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kunming Dianchi Water to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Kunming Dianchi Water is one of the most innovative firm in Waste Management Services sector.
Highly skilled collaborators
– Kunming Dianchi Water has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Waste Management Services industry. Secondly the value chain collaborators of Kunming Dianchi Water have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Kunming Dianchi Water has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Kunming Dianchi Water staying ahead in the Waste Management Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Waste Management Services industry
- digital transformation varies from industry to industry. For Kunming Dianchi Water digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kunming Dianchi Water 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.
Ability to recruit top talent
– Kunming Dianchi Water is one of the leading players in the Waste Management Services 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.
Operational resilience
– The operational resilience strategy of Kunming Dianchi Water comprises – understanding the underlying the factors in the Waste Management Services 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
- Kunming Dianchi Water 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 Kunming Dianchi Water is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Kunming Dianchi Water emphasize – knowledge, initiative, and innovation.
Weaknesses of Kunming Dianchi Water | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kunming Dianchi Water are -
Aligning sales with marketing
– From the outside it seems that Kunming Dianchi Water needs to have more collaboration between its sales team and marketing team. Sales professionals in the Waste Management Services industry have deep experience in developing customer relationships. Marketing department at Kunming Dianchi Water can leverage the sales team experience to cultivate customer relationships as Kunming Dianchi Water is planning to shift buying processes online.
High cash cycle compare to competitors
Kunming Dianchi Water has a high cash cycle compare to other players in the Waste Management Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the Waste Management Services industry, Kunming Dianchi Water 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.
Skills based hiring in Waste Management Services industry
– The stress on hiring functional specialists at Kunming Dianchi Water 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.
Interest costs
– Compare to the competition, Kunming Dianchi Water 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.
Products dominated business model
– Even though Kunming Dianchi Water has some of the most successful models in the Waste Management Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Kunming Dianchi Water should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Kunming Dianchi Water has high operating costs in the Waste Management Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Kunming Dianchi Water lucrative customers.
Compensation and incentives
– The revenue per employee of Kunming Dianchi Water is just above the Waste Management Services 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 dependence on Kunming Dianchi Water ‘s star products
– The top 2 products and services of Kunming Dianchi Water still accounts for major business revenue. This dependence on star products in Waste Management Services industry has resulted into insufficient focus on developing new products, even though Kunming Dianchi Water has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Kunming Dianchi Water is dominated by functional specialists. It is not different from other players in the Waste Management Services industry, but Kunming Dianchi Water needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kunming Dianchi Water to focus more on services in the Waste Management Services industry rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative at Kunming Dianchi Water, in the dynamic environment of Waste Management Services industry it has struggled to respond to the nimble upstart competition. Kunming Dianchi Water has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Kunming Dianchi Water Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Kunming Dianchi Water are -
Building a culture of innovation
– managers at Kunming Dianchi Water 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 Waste Management Services industry.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Waste Management Services industry, but it has also influenced the consumer preferences. Kunming Dianchi Water can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Kunming Dianchi Water 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kunming Dianchi Water 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.
Using analytics as competitive advantage
– Kunming Dianchi Water has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Waste Management Services sector. This continuous investment in analytics has enabled Kunming Dianchi Water to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kunming Dianchi Water to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kunming Dianchi Water 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 Kunming Dianchi Water to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Waste Management Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Kunming Dianchi Water in the Waste Management Services industry. Now Kunming Dianchi Water can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Kunming Dianchi Water can improve the customer journey of consumers in the Waste Management Services 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.
Manufacturing automation
– Kunming Dianchi Water can use the latest technology developments to improve its manufacturing and designing process in Waste Management Services 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.
Leveraging digital technologies
– Kunming Dianchi Water 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kunming Dianchi Water can use these opportunities to build new business models that can help the communities that Kunming Dianchi Water operates in. Secondly it can use opportunities from government spending in Waste Management Services sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kunming Dianchi Water is facing challenges because of the dominance of functional experts in the organization. Kunming Dianchi Water can utilize new technology in the field of Waste Management Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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. Kunming Dianchi Water can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Kunming Dianchi Water External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Kunming Dianchi Water are -
Easy access to finance
– Easy access to finance in Waste Management Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Kunming Dianchi Water can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Kunming Dianchi Water business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Kunming Dianchi Water 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 Waste Management Services industry regulations.
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.
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 Kunming Dianchi Water in the Waste Management Services sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kunming Dianchi Water 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 Kunming Dianchi Water prominent markets.
Technology acceleration in Forth Industrial Revolution
– Kunming Dianchi Water has witnessed rapid integration of technology during Covid-19 in the Waste Management Services industry. As one of the leading players in the industry, Kunming Dianchi Water needs to keep up with the evolution of technology in the Waste Management Services 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 Kunming Dianchi Water in Waste Management Services industry. The Waste Management Services 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Kunming Dianchi Water may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Waste Management Services sector.
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. Kunming Dianchi Water needs to understand the core reasons impacting the Waste Management Services industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Kunming Dianchi Water is facing in Waste Management Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Kunming Dianchi Water.
Stagnating economy with rate increase
– Kunming Dianchi Water 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 Waste Management Services industry.
Weighted SWOT Analysis of Kunming Dianchi Water Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Kunming Dianchi Water 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 Kunming Dianchi Water 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 Kunming Dianchi Water 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 Kunming Dianchi Water 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 Kunming Dianchi Water needs to make to build a sustainable competitive advantage.