A SWOT Analysis for Tulip Mega Media

January 9, 2019 0 Comment


            Companies find it necessary to do a SWOT analysis on themselves in a bid to know their positions in their respective industries and markets. Tulip Mega Media is a Chinese based Company centered on advertising. The company has financial strength which dictates its continued business, while other companies are barred from the same advertising industry due to lack of funds. Tulip Mega Media uses light emitting diodes (LED) technology to display its adverts in major cities in China. This paper presents a 2*2 SWOT Analysis on Tulip Mega Media where internal strengths and weaknesses are highlighted, as well as external opportunities and threats.


Financially Stable Low numbers of employees A growing market Competitors
Innovative Slow to make industry decisions The development of technology Government regulations
Qualified &Competent Staff Limited Capital Available labor from the growing population Depletion of resources



Tulip Mega Media had nine years of business practice in the advertising field by 2007. This is because the company was founded in 1998. The several years the company has been in business connote its experience. Analytically, the company’s experience led to its wise moves that would see it enlist into the capital markets as financially stable and limited company. According to Qui Cheng’s case study, the Chinese government had ordered the disbandment of all advertising companies and a renewal of their licenses upon verification would be necessitated. It was not until, the Beijing Olympics was confirmed to happen in 2008 in Beijing, the Beijing Municipal council brought down all electronic and print advertising mediums. According to the Chinese government, the adverts gave a devastated look of the city and China in general. Tulip Mega Media shows its innovativeness by stressing its financially stability and showing a developed, aesthetic, and clean form of advertising (Cheng 9). The company could broadcast adverts using LED rays in strategic locations such as the Wangfujing shopping Mall. The company’s financial strength enabled it to secure a license for advertising. Tulips’ experience helped it innovate LED advertising and place the company strategically in the Chinese market. At the end the company is able to secure advertising contracts for the Beijing Olympics alongside other sponsors of the event.

The weaknesses that internally face Tulip Media are low employee number, slow decision making process and limited capital. The company strives to keep its employee number as low as possible in a bid to have low operational costs. This ails the company as it regularly had and has to outsource for personnel who could and can do particular tasks as pertains to LED technology. The reasoning behind this is that at most times the work needed is automatic and there is no need for many permanent employees for automating a process that can be done by one or two persons. The company therefore outsources specific talent when troubleshooting or faced with technical difficulties. Cognitively, the company is slow in making decisions. This has seen the company drag some miles behind its competitors in terms of operational policies and moves. This can be attributed to skepticism of new ideas which is dangerous. The low number of employees is also strained in performing tasks that could have been divide among other persons. The company operates in a limited form of capital that makes it hard to move in to risky ventures as well as research. This denies the company the added advantage of being ahead of other companies in the same industry.

Externally, the company has various opportunities that are a growing market, development of technology, and availability of labor (Chapman). China has a very large population which means there is an intricately large audience to pass messages about products to. Tulip Mega Media finds itself in a rightful market where it can aptly appeal to and as well cover needed population scopes. This will be achieved with the expansion of Tulip Mega Media which is probable. Furthermore, technology is further developing and means Tulip Mega Media will be able to leverage its innovativeness to engage technology to ensure its profitability and longevity. The large Chinese population needs more attention that will necessitate the employment of more employees by Tulip Mega Media. There are many intellectuals who are jobless in China and it is an opportunity that the company stands to benefit from as it grows.

Threats to Tulip Mega Media include, competitors, government regulations, and limited resources for LED’s alongside changing technology. Competitors like Advision are giving and will continue giving Tulip Mega Media a run for their money. The two companies; Tulip Mega Media and Advision being based in Shanghai made competition fierce as clients were torn between which companies to approach given both have good reputations. Price wars would result, service delivery and packages were changing to higher standards which would send Tulip Mega Media out of business. Currently, the advertising has grown to extreme levels where quality dictates what a client pays for and still affects Tulip Mega Media. The Chinese government is keen to keep with world trends and tailors its policies to conform to changing times. If Tulip Mega Media lags behind, the Chines government regulations might leave it out of business. Resources for LED are in high demand and required all around major towns and cities in the world. This shows a reduced number of available resources of LED to keep the LED industry going.

Consequently, Tulip Mega Media has the potential to be a market leader in the advertising industry. The several setbacks or rather weakness as well as threats can be addressed. The strengths and opportunities can also be increased. The low number of employees can be addressed by recruiting competent individuals who sum up as intellectuals (Dyer, Gregersen and Christensen 5). They make good human capital for an organization which will trigger fast decision making and intuitive moves that are bound to steer the company forward. Limited capital can be addressed by the company revise its financial plans and set aside money for research and ventures that are bound to steer it ahead whether risky or not. If that is improbable, Tulip Mega Media can look for an equally or more financially able company to partner with (Mark 7). This will help the company push its financial burdens away and engage the coveted research activities. The research will help the company to move to next probable technologies in the event of depletion or rare LED resources. That will also help the company to keep at par with its country’s government policy which ensures a peaceful business environment.

Conclusively, Tulip Mega Media has much potential for success. The company should invest in more human capital and research. The two will help keep the company ahead of its competitors and at par with conventional technologies that are able to address clients’ needs. If Tulip Mega Media implements the given recommendations, the company will achieve significant success.


Works Cited

Chapman, Alan. SWOTAnalysis. 24 July 2015. Article. 1 December 2015. <http://www.businessballs.com/swotanalysisfreetemplate.htm>.

Cheng, Qiu. Outdoor digital advertising media in China. Hong Kong: University of Hong Kong, 2015. Document.

Dyer, Feffrey H., Hal B. Gregersen and Clayton M. Christensen. The Innovator’s DNA. Review. New York: New York University, 2015. Article.

Mark, Ken . Entreprenuers at Twitter: Building a brand, social tool or a tech powerhouse? London: Ivey Publishing, 2010. Document.


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