Based on various researches at Oak Spring University , EVOC Intelligent Tech is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of EVOC Intelligent Tech
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that EVOC Intelligent Tech can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the EVOC Intelligent Tech, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which EVOC Intelligent Tech 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 EVOC Intelligent Tech can be done for the following purposes –
1. Strategic planning of EVOC Intelligent Tech
2. Improving business portfolio management of EVOC Intelligent Tech
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Computer Hardware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of EVOC Intelligent Tech
Strengths of EVOC Intelligent Tech | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of EVOC Intelligent Tech are -
High brand equity
– EVOC Intelligent Tech has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled EVOC Intelligent Tech to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that EVOC Intelligent Tech 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.
Operational resilience
– The operational resilience strategy of EVOC Intelligent Tech comprises – understanding the underlying the factors in the Computer Hardware 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
- EVOC Intelligent Tech 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 EVOC Intelligent Tech is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at EVOC Intelligent Tech emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of EVOC Intelligent Tech in the Technology sector have low bargaining power. EVOC Intelligent Tech has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps EVOC Intelligent Tech to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Computer Hardware industry
- digital transformation varies from industry to industry. For EVOC Intelligent Tech digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. EVOC Intelligent Tech 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.
Sustainable margins compare to other players in Computer Hardware industry
– EVOC Intelligent Tech has clearly differentiated products in the market place. This has enabled EVOC Intelligent Tech to fetch slight price premium compare to the competitors in the Computer Hardware industry. The sustainable margins have also helped EVOC Intelligent Tech to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– EVOC Intelligent Tech has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – EVOC Intelligent Tech staying ahead in the Computer Hardware industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– EVOC Intelligent Tech is present in almost all the verticals within the Computer Hardware industry. This has provided EVOC Intelligent Tech 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.
Cross disciplinary teams
– Horizontal connected teams at the EVOC Intelligent Tech 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.
Strong track record of project management in the Computer Hardware industry
– EVOC Intelligent Tech is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– EVOC Intelligent Tech is one of the most innovative firm in Computer Hardware sector.
Weaknesses of EVOC Intelligent Tech | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EVOC Intelligent Tech are -
Lack of clear differentiation of EVOC Intelligent Tech products
– To increase the profitability and margins on the products, EVOC Intelligent Tech needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners in Computer Hardware industry
– because of the regulatory requirements in Hong Kong, EVOC Intelligent Tech 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 Computer Hardware industry.
Employees’ less understanding of EVOC Intelligent Tech strategy
– From the outside it seems that the employees of EVOC Intelligent Tech 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.
High cash cycle compare to competitors
EVOC Intelligent Tech has a high cash cycle compare to other players in the Computer Hardware 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 EVOC Intelligent Tech supply chain. Even after few cautionary changes, EVOC Intelligent Tech is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left EVOC Intelligent Tech vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of EVOC Intelligent Tech is dominated by functional specialists. It is not different from other players in the Computer Hardware industry, but EVOC Intelligent Tech needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help EVOC Intelligent Tech to focus more on services in the Computer Hardware industry rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Hong Kong, EVOC Intelligent Tech needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, EVOC Intelligent Tech 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 Computer Hardware industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, EVOC Intelligent Tech has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Computer Hardware industry over the last five years. EVOC Intelligent Tech 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.
Workers concerns about automation
– As automation is fast increasing in the Computer Hardware industry, EVOC Intelligent Tech 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, EVOC Intelligent Tech is slow explore the new channels of communication. These new channels of communication can help EVOC Intelligent Tech to provide better information regarding Computer Hardware products and services. It can also build an online community to further reach out to potential customers.
EVOC Intelligent Tech Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of EVOC Intelligent Tech are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, EVOC Intelligent Tech 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 EVOC Intelligent Tech 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, EVOC Intelligent Tech can use these opportunities to build new business models that can help the communities that EVOC Intelligent Tech operates in. Secondly it can use opportunities from government spending in Computer Hardware sector.
Leveraging digital technologies
– EVOC Intelligent Tech 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Computer Hardware industry, but it has also influenced the consumer preferences. EVOC Intelligent Tech 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
– EVOC Intelligent Tech has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Computer Hardware sector. This continuous investment in analytics has enabled EVOC Intelligent Tech to build a competitive advantage using analytics. The analytics driven competitive advantage can help EVOC Intelligent Tech to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for EVOC Intelligent Tech 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for EVOC Intelligent Tech in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Computer Hardware industry, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions in Computer Hardware industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for EVOC Intelligent Tech in the Computer Hardware industry. Now EVOC Intelligent Tech can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at EVOC Intelligent Tech 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 Computer Hardware industry.
Developing new processes and practices
– EVOC Intelligent Tech can develop new processes and procedures in Computer Hardware 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.
Better consumer reach
– The expansion of the 5G network will help EVOC Intelligent Tech to increase its market reach. EVOC Intelligent Tech will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Buying journey improvements
– EVOC Intelligent Tech can improve the customer journey of consumers in the Computer Hardware 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.
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. EVOC Intelligent Tech can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats EVOC Intelligent Tech External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of EVOC Intelligent Tech are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. EVOC Intelligent Tech needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– EVOC Intelligent Tech 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 Computer Hardware industry.
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 EVOC Intelligent Tech business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of EVOC Intelligent Tech
– 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 EVOC Intelligent Tech.
Regulatory challenges
– EVOC Intelligent Tech 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 Computer Hardware industry regulations.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for EVOC Intelligent Tech in Computer Hardware industry. The Computer Hardware 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 Computer Hardware industry are lowering. It can presents EVOC Intelligent Tech with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Hardware sector.
High dependence on third party suppliers
– EVOC Intelligent Tech 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, EVOC Intelligent Tech 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 EVOC Intelligent Tech prominent markets.
Consumer confidence and its impact on EVOC Intelligent Tech 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 Computer Hardware industry and other sectors.
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.
Shortening product life cycle
– it is one of the major threat that EVOC Intelligent Tech is facing in Computer Hardware 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 EVOC Intelligent Tech.
Weighted SWOT Analysis of EVOC Intelligent Tech Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at EVOC Intelligent Tech 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 EVOC Intelligent Tech 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 EVOC Intelligent Tech 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 EVOC Intelligent Tech 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 EVOC Intelligent Tech needs to make to build a sustainable competitive advantage.