Cyberport: Realisation of an IT Park Through a Public-Private Partnership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cyberport: Realisation of an IT Park Through a Public-Private Partnership
As Hong Kong emerged from the Asian recession in March 1999, a landmark real estate development was announced. The $2 billion development known as "Cyberport" was intended to create a strategic cluster of quality IT and IT-related companies that would help Hong Kong become the leading digital city within the region. To realize the project, a public private partnership (PPP) agreement was signed between the government and a company led by Richard Li, son of Li Ka-Shing. Examines the events leading up to the PPP agreement and evaluates the government's investment.
Swot Analysis of "Cyberport: Realisation of an IT Park Through a Public-Private Partnership" written by Ali Farhoomand, Jeroen Van Den Berg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cyberport Ppp facing as an external strategic factors. Some of the topics covered in Cyberport: Realisation of an IT Park Through a Public-Private Partnership case study are - Strategic Management Strategies, Financial analysis, Government, Internet, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Cyberport: Realisation of an IT Park Through a Public-Private Partnership casestudy better are - – there is backlash against globalization, wage bills are increasing, increasing energy prices, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Cyberport: Realisation of an IT Park Through a Public-Private Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cyberport: Realisation of an IT Park Through a Public-Private Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cyberport Ppp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cyberport Ppp 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 Cyberport: Realisation of an IT Park Through a Public-Private Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Cyberport: Realisation of an IT Park Through a Public-Private Partnership case study
2. Improving business portfolio management of Cyberport Ppp
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cyberport Ppp
Strengths Cyberport: Realisation of an IT Park Through a Public-Private Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cyberport Ppp in Cyberport: Realisation of an IT Park Through a Public-Private Partnership Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Cyberport Ppp 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.
Learning organization
- Cyberport Ppp 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 Cyberport Ppp is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Cyberport: Realisation of an IT Park Through a Public-Private Partnership Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Cyberport Ppp in the sector have low bargaining power. Cyberport: Realisation of an IT Park Through a Public-Private Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cyberport Ppp to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Cyberport Ppp
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cyberport Ppp does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Cyberport Ppp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Cyberport Ppp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cyberport Ppp 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.
High brand equity
– Cyberport Ppp has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cyberport Ppp to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Cyberport Ppp has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Cyberport: Realisation of an IT Park Through a Public-Private Partnership HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Cyberport Ppp is one of the leading recruiters in the industry. Managers in the Cyberport: Realisation of an IT Park Through a Public-Private Partnership are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Cyberport: Realisation of an IT Park Through a Public-Private Partnership Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
Training and development
– Cyberport Ppp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cyberport: Realisation of an IT Park Through a Public-Private Partnership Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Cyberport Ppp 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 industry. The technology infrastructure suggested by Ali Farhoomand, Jeroen Van Den Berg can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Cyberport: Realisation of an IT Park Through a Public-Private Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cyberport: Realisation of an IT Park Through a Public-Private Partnership are -
Capital Spending Reduction
– Even during the low interest decade, Cyberport Ppp 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 industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Cyberport Ppp needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali Farhoomand, Jeroen Van Den Berg suggests that, Cyberport Ppp is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Cyberport Ppp has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Aligning sales with marketing
– It come across in the case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Cyberport: Realisation of an IT Park Through a Public-Private Partnership can leverage the sales team experience to cultivate customer relationships as Cyberport Ppp is planning to shift buying processes online.
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 Cyberport Ppp supply chain. Even after few cautionary changes mentioned in the HBR case study - Cyberport: Realisation of an IT Park Through a Public-Private Partnership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cyberport Ppp vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Cyberport: Realisation of an IT Park Through a Public-Private Partnership HBR case study mentions - Cyberport Ppp takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow decision making process
– As mentioned earlier in the report, Cyberport Ppp has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cyberport Ppp 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cyberport Ppp is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cyberport Ppp 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership, it seems that the employees of Cyberport Ppp don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Cyberport: Realisation of an IT Park Through a Public-Private Partnership | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership are -
Creating value in data economy
– The success of analytics program of Cyberport Ppp has opened avenues for new revenue streams for the organization in the industry. This can help Cyberport Ppp to build a more holistic ecosystem as suggested in the Cyberport: Realisation of an IT Park Through a Public-Private Partnership case study. Cyberport Ppp can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cyberport Ppp can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Cyberport Ppp can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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. Cyberport Ppp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cyberport Ppp can use these opportunities to build new business models that can help the communities that Cyberport Ppp operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cyberport Ppp 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 Cyberport Ppp to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Cyberport Ppp can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cyberport Ppp is facing challenges because of the dominance of functional experts in the organization. Cyberport: Realisation of an IT Park Through a Public-Private Partnership case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– Cyberport Ppp can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Cyberport Ppp 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.
Buying journey improvements
– Cyberport Ppp can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cyberport: Realisation of an IT Park Through a Public-Private Partnership suggest that firm 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cyberport Ppp 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, as suggested in case study, Cyberport: Realisation of an IT Park Through a Public-Private Partnership, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Cyberport Ppp has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cyberport Ppp to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Cyberport: Realisation of an IT Park Through a Public-Private Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership are -
Shortening product life cycle
– it is one of the major threat that Cyberport Ppp is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cyberport Ppp in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership, Cyberport Ppp may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cyberport Ppp with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Cyberport Ppp.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cyberport Ppp 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 prominent markets illustrated in HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership .
Consumer confidence and its impact on Cyberport Ppp 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 the industry and other sectors.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cyberport Ppp can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Cyberport Ppp business can come under increasing regulations regarding data privacy, data security, etc.
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. Cyberport Ppp needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Cyberport Ppp 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. Cyberport Ppp can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Cyberport Ppp 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.
Weighted SWOT Analysis of Cyberport: Realisation of an IT Park Through a Public-Private Partnership Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership 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 the case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership 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 the Harvard case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership 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 Cyberport: Realisation of an IT Park Through a Public-Private Partnership is 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 Cyberport Ppp needs to make to build a sustainable competitive advantage.