Port of Tauranga (A): Changing the Rules of Engagement SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Port of Tauranga (A): Changing the Rules of Engagement
The Port of Tauranga, located on the north island of New Zealand, was struggling against the Port of Auckland and not doing well financially. The case depicts the bold and dramatic steps during the 1990s to change the economic circumstances. Decisions were made that changed the rules of the game and, in so doing, made Tauranga a very successful and profitable enterprise. Capital investments and a total reframing of possibilities coupled with bold management execution transformed the port to a position of world-class performance.
Swot Analysis of "Port of Tauranga (A): Changing the Rules of Engagement" written by Alexander Horniman, David Cullwick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tauranga Port facing as an external strategic factors. Some of the topics covered in Port of Tauranga (A): Changing the Rules of Engagement case study are - Strategic Management Strategies, Leadership, Strategic planning, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Port of Tauranga (A): Changing the Rules of Engagement casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of Port of Tauranga (A): Changing the Rules of Engagement
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Port of Tauranga (A): Changing the Rules of Engagement case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tauranga Port, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tauranga 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 Port of Tauranga (A): Changing the Rules of Engagement can be done for the following purposes –
1. Strategic planning using facts provided in Port of Tauranga (A): Changing the Rules of Engagement case study
2. Improving business portfolio management of Tauranga 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 Tauranga Port
Strengths Port of Tauranga (A): Changing the Rules of Engagement | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tauranga Port in Port of Tauranga (A): Changing the Rules of Engagement Harvard Business Review case study are -
Strong track record of project management
– Tauranga 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.
Analytics focus
– Tauranga 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 Alexander Horniman, David Cullwick 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 Tauranga Port in the sector have low bargaining power. Port of Tauranga (A): Changing the Rules of Engagement has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tauranga Port to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Tauranga Port has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tauranga Port to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Tauranga Port 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Port of Tauranga (A): Changing the Rules of Engagement firm has clearly differentiated products in the market place. This has enabled Tauranga Port to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tauranga Port to invest into research and development (R&D) and innovation.
Innovation driven organization
– Tauranga Port is one of the most innovative firm in sector. Manager in Port of Tauranga (A): Changing the Rules of Engagement Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Tauranga Port
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tauranga Port does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Tauranga Port is present in almost all the verticals within the industry. This has provided firm in Port of Tauranga (A): Changing the Rules of Engagement case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Highly skilled collaborators
– Tauranga 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 Port of Tauranga (A): Changing the Rules of Engagement HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Port of Tauranga (A): Changing the Rules of Engagement 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.
Superior customer experience
– The customer experience strategy of Tauranga Port in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Port of Tauranga (A): Changing the Rules of Engagement | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Port of Tauranga (A): Changing the Rules of Engagement are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tauranga Port is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement 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 Tauranga Port 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Tauranga Port 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.
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 Tauranga Port supply chain. Even after few cautionary changes mentioned in the HBR case study - Port of Tauranga (A): Changing the Rules of Engagement, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tauranga Port vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Tauranga 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 Port of Tauranga (A): Changing the Rules of Engagement HBR case study mentions - Tauranga 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.
Aligning sales with marketing
– It come across in the case study Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement can leverage the sales team experience to cultivate customer relationships as Tauranga Port is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Port of Tauranga (A): Changing the Rules of Engagement, it seems that the employees of Tauranga 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.
High cash cycle compare to competitors
Tauranga 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.
Increasing silos among functional specialists
– The organizational structure of Tauranga Port is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Tauranga Port needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tauranga Port to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Alexander Horniman, David Cullwick suggests that, Tauranga 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.
Opportunities Port of Tauranga (A): Changing the Rules of Engagement | 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 Port of Tauranga (A): Changing the Rules of Engagement are -
Creating value in data economy
– The success of analytics program of Tauranga Port has opened avenues for new revenue streams for the organization in the industry. This can help Tauranga Port to build a more holistic ecosystem as suggested in the Port of Tauranga (A): Changing the Rules of Engagement case study. Tauranga Port can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tauranga 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tauranga Port is facing challenges because of the dominance of functional experts in the organization. Port of Tauranga (A): Changing the Rules of Engagement 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
– Tauranga Port 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.
Building a culture of innovation
– managers at Tauranga 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 Tauranga Port in the consumer business. Now Tauranga Port can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Tauranga Port can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Port of Tauranga (A): Changing the Rules of Engagement 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. Tauranga 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. Tauranga 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tauranga Port can use these opportunities to build new business models that can help the communities that Tauranga Port operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Tauranga Port to increase its market reach. Tauranga Port 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.
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 Tauranga Port 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.
Developing new processes and practices
– Tauranga Port 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.
Manufacturing automation
– Tauranga 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.
Threats Port of Tauranga (A): Changing the Rules of Engagement External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Port of Tauranga (A): Changing the Rules of Engagement are -
Shortening product life cycle
– it is one of the major threat that Tauranga Port 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 Tauranga Port 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.
Increasing wage structure of Tauranga 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 Tauranga Port.
Regulatory challenges
– Tauranga 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.
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 Tauranga Port in the Strategy & Execution sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Tauranga Port has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tauranga 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.
Consumer confidence and its impact on Tauranga 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.
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.
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. Tauranga Port needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Tauranga Port 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tauranga Port 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 Port of Tauranga (A): Changing the Rules of Engagement .
High dependence on third party suppliers
– Tauranga Port 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.
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 Tauranga Port business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement 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 Port of Tauranga (A): Changing the Rules of Engagement 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 Tauranga Port needs to make to build a sustainable competitive advantage.