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4.3.1 Strengths

Above the above analysis, the strengths are from the following aspects: (1) the efficient marketing team located in the global market; most of the sales are bachelor or above which are fluent in at least one foreign language which can assure them well communication with its customers and support their global marketing and promotion; (2) higher ability of R&D department invested more than 10% of total revenues, the large investment of R&D makes Neo-Neo provide more attractive products to their customers against the fierce competition; (3) complete technology of LED products, Neo-Neo develops many kinds of technology to rich its products and then make the products mix to their customers, under this situation, the customers has low power of bargaining with it, the rich kind products can take up more market share and then improve its brand.

4.3.2 Weakness

With the development of Neo-Neo, its weaknesses are obviously exposed to the shareholders; the weaknesses are from the following parts: (1) outdated information system, the low efficiency on information system leads to the managers cannot master

the timely information and then can make the right judgments on the changed external environment.; also, the internal information cannot flow smoothly from different departments that the employees often complaints with the inconvenience in the working time; (2) employee retention, Neo-Neo does not well in employee retention, especially in the sale department, there is a higher mobility in this department, which leads to the business loss; (3) waste on the R&D expenditure, although the R&D department is core of Neo-Neo, the capital is allocated to each project not according to their potential market share, which leads to that its core products will lose its competitive advantages;(3) the high inventory cost, Neo-Neo does not have special software system to evaluate the best inventory level, and the level of inventory is determined by the experience and expectation of the managers, which always cause much lose because of individual wrong judgment. 

4.3.3 Opportunity

Based on the above analysis, the external opportunities are from the following parts: (1) the economical development, the global development will make more people accept LED products in their shopping list; (2) the awareness of environment protection and the characteristics of LED, environment protection has become a trendy in the global market, the energy-saving and environment-protecting products are more and more popular among the customer while LED products are famous with its high quality and saving energy; (3) the expected decrease price of LED products, LED products are more expensive than the common products, but, with the development of technology, the price will be lower and lower, the price has decreased one half in only 10 years.

4.3.4 Threat

As illustrated in Table2, the threat of external environment mainly comes from the following aspects: (1) the fluctuation of exchange rate, the depreciation of dollar can affect the Neo-Neo development. In 2010, the average exchange rate USD/RMB=6.74, until now, the USD/RMB=6.25, that is to say, the revenues decrease by 8 % ; (2) global strict legal environment, the EU and America are pushing strict regulations towards the Chinese LED products to protect their own industry in this area, which will increase risk for the global buyers to buy Chinese LED products; (3)the limited power of bargaining with key suppliers, according to the above analysis, the key materials are menology by the several multinationals,they are not willing to sell the key products to keep their competitive advantages on this area, only little company sells those key products, but the price is higher or the quantity is required to be large; (4) more rivalry among competitions, there are many LED products in the global market that the menology LED company leaves. 


Table2. SWTO analysis of Neo-Neo


(1) efficient marketing team

(2) higher ability of R&D

(3) complete technology of LED products


(1) outdated information system

(2)employee retention

(3)waste on R&D expenditure


(1)   economical development

(2)   awareness of environment protection

(3)   the expected decrease price of LED products


(1)   fluctuation of exchange rate

(2)   global strict legal environment

(3)   limited power of bargaining with key suppliers