Sea Change: Rewriting the Rules for Port-Security SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sea Change: Rewriting the Rules for Port-Security
This 29 min. video explores the innovative approach used by the Coast Guard to manage the process of developing new regulations that would increase port security in the wake of the September 11, 2001 attacks. It features an in-depth interview with Coast Guard Captain Suzanne Englebert, who volunteered to lead the effort, applying a more collaborative, less prescriptive framework than had ever been used before in a regulatory process to the monumental challenge of changing a complex system with hundreds of private organizations and scores of government agencies operating at different levels.Under a tight deadline to deliver that change, Captain Englebert set up and facilitated a series of public meetings aimed at turning the mandates of the new Maritime Transportation Security Act of 2002 into specific, concrete regulations. Her skill in managing those meetings ensured that the new port security regime was built to a large degree on the knowledge and interaction of its diverse stakeholders, and that a new network was created whose members felt more invested in communicating with each other. The video consists of five 5-6 min. segments that can be used in sequence or separately. Along with Captain Englebert, other members of the port security network are featured, representing a container terminal, the passenger ferry industry, labor unions, and small passenger vessels. Compelling footage of the port of Seattle provides students with a sense of its inner workings, while other scenes illustrate Captain Englebert's distinctive management style. List of segments: 1) The port system and the Coast Guard (6 min.) 2) The challenge after 9/11 (5:20 min.) 3) A new approach to regulation (4 min.) 4) The public meetings (6:30 min.) 5) Outcomes / The network (6 min.)
Authors :: Pamela Varley, John D. Donahue, Patricia Garcia-Rios
Swot Analysis of "Sea Change: Rewriting the Rules for Port-Security" written by Pamela Varley, John D. Donahue, Patricia Garcia-Rios includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Min Port facing as an external strategic factors. Some of the topics covered in Sea Change: Rewriting the Rules for Port-Security case study are - Strategic Management Strategies, Decision making, Government, International business, Leadership, Workspaces and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sea Change: Rewriting the Rules for Port-Security casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing energy prices, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Sea Change: Rewriting the Rules for Port-Security
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sea Change: Rewriting the Rules for Port-Security case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Min Port, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Min Port 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 Sea Change: Rewriting the Rules for Port-Security can be done for the following purposes –
1. Strategic planning using facts provided in Sea Change: Rewriting the Rules for Port-Security case study
2. Improving business portfolio management of Min Port
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 Min Port
Strengths Sea Change: Rewriting the Rules for Port-Security | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Min Port in Sea Change: Rewriting the Rules for Port-Security Harvard Business Review case study are -
Strong track record of project management
– Min Port is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Min Port has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Min Port has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Strategy & Execution field
– Min Port 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 Min Port in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Min Port in the sector have low bargaining power. Sea Change: Rewriting the Rules for Port-Security has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Min Port to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– Sea Change: Rewriting the Rules for Port-Security firm has clearly differentiated products in the market place. This has enabled Min Port to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Min Port to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Min Port is one of the leading recruiters in the industry. Managers in the Sea Change: Rewriting the Rules for Port-Security are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Min Port has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Sea Change: Rewriting the Rules for Port-Security - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Min Port 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 Min Port is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Sea Change: Rewriting the Rules for Port-Security Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Min Port 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 Pamela Varley, John D. Donahue, Patricia Garcia-Rios 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.
Highly skilled collaborators
– Min Port 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 Sea Change: Rewriting the Rules for Port-Security HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Min Port 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 Min Port digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Min Port 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.
Weaknesses Sea Change: Rewriting the Rules for Port-Security | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sea Change: Rewriting the Rules for Port-Security are -
High cash cycle compare to competitors
Min Port 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.
Lack of clear differentiation of Min Port products
– To increase the profitability and margins on the products, Min Port needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Min Port 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.
Slow to strategic competitive environment developments
– As Sea Change: Rewriting the Rules for Port-Security HBR case study mentions - Min Port 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Sea Change: Rewriting the Rules for Port-Security, it seems that the employees of Min Port 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.
Aligning sales with marketing
– It come across in the case study Sea Change: Rewriting the Rules for Port-Security 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 Sea Change: Rewriting the Rules for Port-Security can leverage the sales team experience to cultivate customer relationships as Min Port is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sea Change: Rewriting the Rules for Port-Security, in the dynamic environment Min Port has struggled to respond to the nimble upstart competition. Min Port has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Min Port supply chain. Even after few cautionary changes mentioned in the HBR case study - Sea Change: Rewriting the Rules for Port-Security, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Min Port vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Pamela Varley, John D. Donahue, Patricia Garcia-Rios suggests that, Min Port 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.
Products dominated business model
– Even though Min Port has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Sea Change: Rewriting the Rules for Port-Security should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Min Port is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Min Port needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Min Port to focus more on services rather than just following the product oriented approach.
Opportunities Sea Change: Rewriting the Rules for Port-Security | 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 Sea Change: Rewriting the Rules for Port-Security are -
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. Min Port 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. Min Port 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.
Building a culture of innovation
– managers at Min Port 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.
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 Min Port in the consumer business. Now Min Port can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Min Port can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Manufacturing automation
– Min Port 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.
Learning at scale
– Online learning technologies has now opened space for Min Port 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Min Port 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Min Port 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 Min Port to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Min Port can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Min Port has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Min Port 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 Sea Change: Rewriting the Rules for Port-Security - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Min Port to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Min Port can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Min Port 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, Sea Change: Rewriting the Rules for Port-Security, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Sea Change: Rewriting the Rules for Port-Security External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sea Change: Rewriting the Rules for Port-Security are -
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. Min Port can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Min Port in the Strategy & Execution sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Min Port will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Min Port with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Sea Change: Rewriting the Rules for Port-Security, Min Port 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 .
Environmental challenges
– Min Port 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. Min Port can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Min Port.
Regulatory challenges
– Min Port 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.
Increasing wage structure of Min Port
– 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 Min Port.
Consumer confidence and its impact on Min Port 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.
Technology acceleration in Forth Industrial Revolution
– Min Port has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Min Port needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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 Min Port business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Sea Change: Rewriting the Rules for Port-Security 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 Sea Change: Rewriting the Rules for Port-Security 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 Sea Change: Rewriting the Rules for Port-Security 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 Sea Change: Rewriting the Rules for Port-Security 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 Sea Change: Rewriting the Rules for Port-Security 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 Min Port needs to make to build a sustainable competitive advantage.
