Tse Sui Luen Jewellery Intl (417) SWOT Analysis / TOWS Matrix / MBA Resources
Jewelry & Silverware
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Tse Sui Luen Jewellery Intl (Hong Kong)
Based on various researches at Oak Spring University , Tse Sui Luen Jewellery Intl is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, there is backlash against globalization, wage bills are increasing, increasing commodity prices, there is increasing trade war between United States & China,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Tse Sui Luen Jewellery Intl
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Tse Sui Luen Jewellery Intl can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tse Sui Luen Jewellery Intl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl can be done for the following purposes –
1. Strategic planning of Tse Sui Luen Jewellery Intl
2. Improving business portfolio management of Tse Sui Luen Jewellery Intl
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Jewelry & Silverware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tse Sui Luen Jewellery Intl
Strengths of Tse Sui Luen Jewellery Intl | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tse Sui Luen Jewellery Intl are -
Successful track record of launching new products
– Tse Sui Luen Jewellery Intl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tse Sui Luen Jewellery Intl has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Tse Sui Luen Jewellery Intl is one of the most innovative firm in Jewelry & Silverware sector.
High switching costs
– The high switching costs that Tse Sui Luen Jewellery Intl 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.
Low bargaining power of suppliers
– Suppliers of Tse Sui Luen Jewellery Intl in the Consumer Cyclical sector have low bargaining power. Tse Sui Luen Jewellery Intl has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tse Sui Luen Jewellery Intl to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Tse Sui Luen Jewellery Intl is one of the leading players in the Jewelry & Silverware 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.
Sustainable margins compare to other players in Jewelry & Silverware industry
– Tse Sui Luen Jewellery Intl has clearly differentiated products in the market place. This has enabled Tse Sui Luen Jewellery Intl to fetch slight price premium compare to the competitors in the Jewelry & Silverware industry. The sustainable margins have also helped Tse Sui Luen Jewellery Intl to invest into research and development (R&D) and innovation.
Digital Transformation in Jewelry & Silverware industry
- digital transformation varies from industry to industry. For Tse Sui Luen Jewellery Intl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tse Sui Luen Jewellery Intl 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 lead change in Jewelry & Silverware
– Tse Sui Luen Jewellery Intl is one of the leading players in the Jewelry & Silverware industry in Hong Kong. Over the years it has not only transformed the business landscape in the Jewelry & Silverware industry in Hong Kong but also across the existing markets. The ability to lead change has enabled Tse Sui Luen Jewellery Intl in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Tse Sui Luen Jewellery Intl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tse Sui Luen Jewellery Intl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Tse Sui Luen Jewellery Intl has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Tse Sui Luen Jewellery Intl staying ahead in the Jewelry & Silverware industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of Tse Sui Luen Jewellery Intl comprises – understanding the underlying the factors in the Jewelry & Silverware 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.
Diverse revenue streams
– Tse Sui Luen Jewellery Intl is present in almost all the verticals within the Jewelry & Silverware industry. This has provided Tse Sui Luen Jewellery Intl 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.
Weaknesses of Tse Sui Luen Jewellery Intl | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tse Sui Luen Jewellery Intl are -
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 Tse Sui Luen Jewellery Intl supply chain. Even after few cautionary changes, Tse Sui Luen Jewellery Intl is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tse Sui Luen Jewellery Intl vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Tse Sui Luen Jewellery Intl is dominated by functional specialists. It is not different from other players in the Jewelry & Silverware industry, but Tse Sui Luen Jewellery Intl needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tse Sui Luen Jewellery Intl to focus more on services in the Jewelry & Silverware industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tse Sui Luen Jewellery Intl is slow explore the new channels of communication. These new channels of communication can help Tse Sui Luen Jewellery Intl to provide better information regarding Jewelry & Silverware products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Tse Sui Luen Jewellery Intl has a high cash cycle compare to other players in the Jewelry & Silverware industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Tse Sui Luen Jewellery Intl 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 Jewelry & Silverware industry using digital technology.
Low market penetration in new markets
– Outside its home market of Hong Kong, Tse Sui Luen Jewellery Intl needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Tse Sui Luen Jewellery Intl has some of the most successful models in the Jewelry & Silverware industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Tse Sui Luen Jewellery Intl should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Tse Sui Luen Jewellery Intl has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– From the outside it seems that Tse Sui Luen Jewellery Intl needs to have more collaboration between its sales team and marketing team. Sales professionals in the Jewelry & Silverware industry have deep experience in developing customer relationships. Marketing department at Tse Sui Luen Jewellery Intl can leverage the sales team experience to cultivate customer relationships as Tse Sui Luen Jewellery Intl is planning to shift buying processes online.
High dependence on Tse Sui Luen Jewellery Intl ‘s star products
– The top 2 products and services of Tse Sui Luen Jewellery Intl still accounts for major business revenue. This dependence on star products in Jewelry & Silverware industry has resulted into insufficient focus on developing new products, even though Tse Sui Luen Jewellery Intl has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, Tse Sui Luen Jewellery Intl has high operating costs in the Jewelry & Silverware industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Tse Sui Luen Jewellery Intl lucrative customers.
Tse Sui Luen Jewellery Intl Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Tse Sui Luen Jewellery Intl are -
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. Tse Sui Luen Jewellery Intl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Tse Sui Luen Jewellery Intl has opened avenues for new revenue streams for the organization in Jewelry & Silverware industry. This can help Tse Sui Luen Jewellery Intl to build a more holistic ecosystem for Tse Sui Luen Jewellery Intl products in the Jewelry & Silverware industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Tse Sui Luen Jewellery Intl 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.
Loyalty marketing
– Tse Sui Luen Jewellery Intl 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tse Sui Luen Jewellery Intl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Jewelry & Silverware industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Tse Sui Luen Jewellery Intl in the Jewelry & Silverware industry. Now Tse Sui Luen Jewellery Intl can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Tse Sui Luen Jewellery Intl to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Jewelry & Silverware industry, but it has also influenced the consumer preferences. Tse Sui Luen Jewellery Intl can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Tse Sui Luen Jewellery Intl to increase its market reach. Tse Sui Luen Jewellery Intl 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Tse Sui Luen Jewellery Intl 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tse Sui Luen Jewellery Intl can use these opportunities to build new business models that can help the communities that Tse Sui Luen Jewellery Intl operates in. Secondly it can use opportunities from government spending in Jewelry & Silverware sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Tse Sui Luen Jewellery Intl External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Tse Sui Luen Jewellery Intl are -
Technology acceleration in Forth Industrial Revolution
– Tse Sui Luen Jewellery Intl has witnessed rapid integration of technology during Covid-19 in the Jewelry & Silverware industry. As one of the leading players in the industry, Tse Sui Luen Jewellery Intl needs to keep up with the evolution of technology in the Jewelry & Silverware 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.
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. Tse Sui Luen Jewellery Intl needs to understand the core reasons impacting the Jewelry & Silverware industry. This will help it in building a better workplace.
Increasing wage structure of Tse Sui Luen Jewellery Intl
– 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 Tse Sui Luen Jewellery Intl.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl prominent markets.
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 Tse Sui Luen Jewellery Intl in the Jewelry & Silverware sector and impact the bottomline of the organization.
Environmental challenges
– Tse Sui Luen Jewellery Intl 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. Tse Sui Luen Jewellery Intl can take advantage of this fund but it will also bring new competitors in the Jewelry & Silverware industry.
Regulatory challenges
– Tse Sui Luen Jewellery Intl 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 Jewelry & Silverware 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.
Stagnating economy with rate increase
– Tse Sui Luen Jewellery Intl 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 Jewelry & Silverware industry.
Easy access to finance
– Easy access to finance in Jewelry & Silverware industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tse Sui Luen Jewellery Intl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Tse Sui Luen Jewellery Intl may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Jewelry & Silverware sector.
Shortening product life cycle
– it is one of the major threat that Tse Sui Luen Jewellery Intl is facing in Jewelry & Silverware sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Tse Sui Luen Jewellery Intl Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl needs to make to build a sustainable competitive advantage.