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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs,
digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, 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 -
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.
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.
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.
High switching costs
– The high switching costs that Cyberport Ppp 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.
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.
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.
Ability to lead change in Strategy & Execution field
– Cyberport Ppp is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Cyberport Ppp in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Cyberport: Realisation of an IT Park Through a Public-Private Partnership firm has clearly differentiated products in the market place. This has enabled Cyberport Ppp to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Cyberport Ppp to invest into research and development (R&D) and innovation.
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.
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.
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 -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership, in the dynamic environment Cyberport Ppp has struggled to respond to the nimble upstart competition. Cyberport Ppp has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership, is just above the industry average. Cyberport Ppp needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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 cash cycle compare to competitors
Cyberport Ppp has a high cash cycle compare to other players in the 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 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cyberport: Realisation of an IT Park Through a Public-Private Partnership HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Cyberport Ppp has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Cyberport Ppp is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Cyberport Ppp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cyberport Ppp to focus more on services rather than just following the product oriented approach.
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.
Interest costs
– Compare to the competition, Cyberport Ppp 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.
No frontier risks strategy
– After analyzing the HBR case study Cyberport: Realisation of an IT Park Through a Public-Private Partnership, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
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 -
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.
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.
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.
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.
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cyberport Ppp in the consumer business. Now Cyberport Ppp can target international markets with far fewer capital restrictions requirements than the existing system.
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.
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.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cyberport Ppp 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. Cyberport Ppp 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.
Better consumer reach
– The expansion of the 5G network will help Cyberport Ppp to increase its market reach. Cyberport Ppp will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cyberport Ppp in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
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 -
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.
Increasing wage structure of Cyberport Ppp
– 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 Cyberport Ppp.
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.
Regulatory challenges
– Cyberport Ppp needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
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.
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.
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 .
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.
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.
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.
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.
Stagnating economy with rate increase
– Cyberport Ppp can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Cyberport Ppp in the Strategy & Execution sector and impact the bottomline of the organization.
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.
