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 – cloud computing is disrupting traditional business models, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption,
talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, 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 -
Learning organization
- Tse Sui Luen Jewellery Intl 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 Tse Sui Luen Jewellery Intl is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Tse Sui Luen Jewellery Intl emphasize – knowledge, initiative, and innovation.
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.
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.
Highly skilled collaborators
– Tse Sui Luen Jewellery Intl has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Jewelry & Silverware industry. Secondly the value chain collaborators of Tse Sui Luen Jewellery Intl have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Strong track record of project management in the Jewelry & Silverware industry
– Tse Sui Luen Jewellery Intl is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Tse Sui Luen Jewellery Intl 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.
Superior customer experience
– The customer experience strategy of Tse Sui Luen Jewellery Intl in Jewelry & Silverware industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
Analytics focus
– Tse Sui Luen Jewellery Intl 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 Jewelry & Silverware 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.
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.
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 -
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.
Slow to strategic competitive environment developments
– As Tse Sui Luen Jewellery Intl is one of the leading players in the Jewelry & Silverware industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Jewelry & Silverware industry in last five years.
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.
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.
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.
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.
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.
Interest costs
– Compare to the competition, Tse Sui Luen Jewellery Intl 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.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Tse Sui Luen Jewellery Intl has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Jewelry & Silverware industry over the last five years. Tse Sui Luen Jewellery Intl 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.
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 -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tse Sui Luen Jewellery Intl is facing challenges because of the dominance of functional experts in the organization. Tse Sui Luen Jewellery Intl can utilize new technology in the field of Jewelry & Silverware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Jewelry & Silverware industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tse Sui Luen Jewellery Intl 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. Tse Sui Luen Jewellery Intl 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.
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.
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.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tse Sui Luen Jewellery Intl in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Jewelry & Silverware industry, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Tse Sui Luen Jewellery Intl has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Jewelry & Silverware sector. This continuous investment in analytics has enabled Tse Sui Luen Jewellery Intl to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tse Sui Luen Jewellery Intl to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Tse Sui Luen Jewellery Intl can use the latest technology developments to improve its manufacturing and designing process in Jewelry & Silverware 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.
Buying journey improvements
– Tse Sui Luen Jewellery Intl can improve the customer journey of consumers in the Jewelry & Silverware 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 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.
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 -
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.
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.
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 Tse Sui Luen Jewellery Intl.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tse Sui Luen Jewellery Intl will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Tse Sui Luen Jewellery Intl 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 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.
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 Tse Sui Luen Jewellery Intl business can come under increasing regulations regarding data privacy, data security, etc.
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.
Consumer confidence and its impact on Tse Sui Luen Jewellery Intl 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 Jewelry & Silverware 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.
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.
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.
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.
