SWOT analysis is a tool for identifying an organization and its

environment. The word swot stands for strengths, weaknesses, opportunities, and
threats. Normally the strengths and weaknesses are internal factors. Opportunities
and threats are external factors. Strength is a positive internal factor meanwhile
weakness is a negative internal factor. Otherwise opportunity is a positive external
factor and the threat is a negative external factor. Base on the case of China Doll, we
have make swot analysis to evaluates those four elements.

The strengths element in the case can be described as characteristics of the

business that give it an advantage over others (normally competitors). We have
identified the advantages from the case started from it have been established over
more than 30 years with past generation or family run business. Furthermore, most
likely their employees have been with the business since first corporation that might
create loyal and hardworking employees. Due to that, it also has the benefit of has
many talented employees with high skills to produce high quality garments that
meets the demand of European and American market since it is already known in the
European and American market as a high quality contract manufacturer.

The second element is weaknesses which elaborate the characteristics of the

business that place the business at a disadvantage relative to others. As been
discussing earlier in the class, we found the highlighted weaknesses of the business
are that the business is not enough financial strength to finance expansion to China.
The business are very depending too much by relying on contract manufacturing
activity and not seek for others financing. Normally, financial in any organization
plays a vital rules to from making decision.

Third element in swot analysis is opportunity that is the elements in the

environment that the business could exploit to its advantage. Opportunity arise from
the weaknesses for other competitor and grab the opportunity from the weaknesses.
The opportunity arrive from the business is that they need to move all current
operation to China and maintain existing customers. By doing that they also might to
expand to China by joint venture, and maintain existing local operation to create own
brand name. Furthermore, they also might to exit contract manufacturing activity and
create own brand name using existing factories and equipment.
 The last element of swot analysis is threat. Treat can be categorising as the
elements in the environment that could cause trouble or harm for the business. In the
case of China Doll, we found the threat in the situation of them to reduce of trade
barriers between countries all around the world. With the advantages of China has
lowest labour cost is the threat to them because of their major client, KiKi and
Houida that may looking to China for prices there were very competitive.