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 case describes the task that confronted Coast Guard Captain Suzanne Englebert, the staff point-person who led an initiative to develop new regulations intended to improve the security of the nation's ports from terrorist attacks, in the wake of the September 11, 2001 attacks. It is intended for use in a strategic management class. Students are challenged to weigh an array of political, practical, legal, and technical considerations in assessing Englebert's approach. The case provides students with the background information they need to discuss the challenges inherent in tightening port security, including: basic information about the economic import of maritime trade, the range of conditions at US ports, the nature of international shipping and regulation, the particular problems posed by containerized shipping, and the kinds of terrorist attack foreseen by security experts. This case also describes several initiatives, undertaken in parallel, to improve port security immediately after 9/11, including immediate protocol shifts in the international ports, and bilateral negotiations with the largest ports outside the United States. The case introduces Englebert and describes her role in the Coast Guard's simultaneous efforts to work with US legislators to create a domestic port security law and with international partners in the International Maritime Organization to create a worldwide port security regime. The case ends with Englebert facing her next herculean task: to turn the mandates of the new federal law into specific, concrete regulations in just a few months' time. The case was designed as a companion piece to a dvd, case number: 1946.9. Case number 1946.0
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 Port Security 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 - – digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, increasing energy prices, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, wage bills are increasing, 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 Port Security, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Port Security 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 Port Security
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 Port Security
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 Port Security in Sea Change: Rewriting the Rules for Port Security Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Port Security 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 Port Security to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Port Security 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.
Superior customer experience
– The customer experience strategy of Port Security in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Port Security 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 Port Security 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.
Successful track record of launching new products
– Port Security has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Port Security 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.
Organizational Resilience of Port Security
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Port Security does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 Port Security to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Port Security to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Port Security 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.
Ability to lead change in Strategy & Execution field
– Port Security 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 Port Security in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Port Security 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.
Operational resilience
– The operational resilience strategy in the Sea Change: Rewriting the Rules for Port Security 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.
Strong track record of project management
– Port Security 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 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 -
Skills based hiring
– The stress on hiring functional specialists at Port Security 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Port Security needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High bargaining power of channel partners
– Because of the regulatory requirements, Pamela Varley, John D. Donahue, Patricia Garcia-Rios suggests that, Port Security 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.
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 Port Security has struggled to respond to the nimble upstart competition. Port Security 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 Sea Change: Rewriting the Rules for Port Security, is just above the industry average. Port Security 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.
Capital Spending Reduction
– Even during the low interest decade, Port Security 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.
Increasing silos among functional specialists
– The organizational structure of Port Security is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Port Security needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Port Security to focus more on services rather than just following the product oriented approach.
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 Port Security is planning to shift buying processes online.
Lack of clear differentiation of Port Security products
– To increase the profitability and margins on the products, Port Security needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Port Security, firm in the HBR case study Sea Change: Rewriting the Rules for Port Security needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Port Security 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.
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 -
Buying journey improvements
– Port Security can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sea Change: Rewriting the Rules for Port Security 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Port Security 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.
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 Port Security 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.
Creating value in data economy
– The success of analytics program of Port Security has opened avenues for new revenue streams for the organization in the industry. This can help Port Security to build a more holistic ecosystem as suggested in the Sea Change: Rewriting the Rules for Port Security case study. Port Security can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Port Security in the consumer business. Now Port Security can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Port Security 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.
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. Port Security can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Port Security 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, Port Security 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.
Developing new processes and practices
– Port Security 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.
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. Port Security 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. Port Security 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, Port Security can use these opportunities to build new business models that can help the communities that Port Security operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Port Security 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.
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 -
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, Port Security 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 .
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 Port Security in the Strategy & Execution sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Port Security business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Port Security 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.
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. Port Security needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Environmental challenges
– Port Security 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. Port Security 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 Port Security.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Port Security 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 Sea Change: Rewriting the Rules for Port Security .
High dependence on third party suppliers
– Port Security 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.
Increasing wage structure of Port Security
– 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 Port Security.
Technology acceleration in Forth Industrial Revolution
– Port Security has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Port Security 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Port Security with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Port Security needs to make to build a sustainable competitive advantage.