Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine
Marco Polo Marine (MPM) Ltd is a medium-sized Singaporean shipping company listed on the Singapore Stock Exchange, involved in regional shipping and shipbuilding. The company was part of a larger Indonesian family business group, and had been built from scratch by the CEO, the heir to the group. MPM had started off providing barges to transport mining products and sand, initially for the group's mining operations, but increasingly for third parties. It subsequently entered the shipbuilding industry by establishing a shipyard in Batam, Indonesia, an island near Singapore. As a next step to grow the company, the CEO intended to become an international player in the much more sophisticated offshore marine services sector, but he had yet to decide what strategy to take to achieve it. The case study allows students to analyze a global industry and present recommendations to the CEO for positioning the company within this industry. As a company from an emerging market, MPM is an example of an aspiring "emerging market multinational" and the case discusses the challenges such companies face in catching up with more advanced incumbents in global industries. In order to penetrate this market, decisions are required as to what types of vessels to build or buy, which countries to target and how to enter this market given financial constraints and limited technical expertise.
Swot Analysis of "Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine" written by Marleen Dieleman, Yue-Jer Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mpm Marine facing as an external strategic factors. Some of the topics covered in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine case study are - Strategic Management Strategies, Entrepreneurship, Growth strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine casestudy better are - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, technology disruption, increasing household debt because of falling income levels, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs,
there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mpm Marine, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mpm Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine can be done for the following purposes –
1. Strategic planning using facts provided in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine case study
2. Improving business portfolio management of Mpm Marine
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 Mpm Marine
Strengths Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mpm Marine in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine Harvard Business Review case study are -
High switching costs
– The high switching costs that Mpm Marine 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.
Cross disciplinary teams
– Horizontal connected teams at the Mpm Marine 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
– Mpm Marine 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 Mpm Marine in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Mpm Marine has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mpm Marine to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Mpm Marine has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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.
Learning organization
- Mpm Marine 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 Mpm Marine is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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.
Ability to recruit top talent
– Mpm Marine is one of the leading recruiters in the industry. Managers in the Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Mpm Marine in the sector have low bargaining power. Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mpm Marine to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Mpm Marine has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mpm Marine 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.
Superior customer experience
– The customer experience strategy of Mpm Marine in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Mpm Marine is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine are -
Lack of clear differentiation of Mpm Marine products
– To increase the profitability and margins on the products, Mpm Marine needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine can leverage the sales team experience to cultivate customer relationships as Mpm Marine is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Mpm Marine 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. Mpm Marine 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.
Products dominated business model
– Even though Mpm Marine 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 - Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mpm Marine is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 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 Mpm Marine supply chain. Even after few cautionary changes mentioned in the HBR case study - Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mpm Marine vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Marleen Dieleman, Yue-Jer Lee suggests that, Mpm Marine 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.
Low market penetration in new markets
– Outside its home market of Mpm Marine, firm in the HBR case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Mpm Marine 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.
Skills based hiring
– The stress on hiring functional specialists at Mpm Marine 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine, is just above the industry average. Mpm Marine 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.
Opportunities Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine | 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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. Mpm Marine can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mpm Marine 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.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Mpm Marine to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mpm Marine can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mpm Marine 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, Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Mpm Marine 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. Mpm Marine 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.
Manufacturing automation
– Mpm Marine 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.
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 Mpm Marine in the consumer business. Now Mpm Marine can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mpm Marine is facing challenges because of the dominance of functional experts in the organization. Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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.
Developing new processes and practices
– Mpm Marine can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Mpm Marine to increase its market reach. Mpm Marine 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mpm Marine can use these opportunities to build new business models that can help the communities that Mpm Marine operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– Mpm Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mpm Marine to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine are -
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mpm Marine 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 Mpm Marine.
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. Mpm Marine needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Mpm Marine 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine, Mpm Marine 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mpm Marine 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.
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 Mpm Marine in the Strategy & Execution sector and impact the bottomline of the organization.
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 Mpm Marine business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Mpm Marine 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. Mpm Marine can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Mpm Marine can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Mpm Marine 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.
Regulatory challenges
– Mpm Marine 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.
Weighted SWOT Analysis of Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Strategic Entrepreneurship in Emerging Market Multinationals: Marco Polo Marine 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 Mpm Marine needs to make to build a sustainable competitive advantage.
