Four Star Industries Singapore - Matching Supply with Demand SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Four Star Industries Singapore - Matching Supply with Demand
In 2002, Neo Sia Meng took over as Executive Director of Four Star Industries Private Limited founded three decades earlier by his parents. After joining the family business as Director in 1996, Sia Meng saw several local and foreign mattress manufacturers enter the Singapore market. This intensified the competition in the local market which was already seasonal and volatile. The increased competition resulted in a proliferation of product offerings from all the manufacturers. The local dealers who dominated the retail mattress market sought an exclusive range of in-house models from the local manufacturers. As Four Star depended heavily on the local dealers, it tried to accommodate their demands to increase its product range and service level. However, as Four Star substantially increased the variety of mattress offerings, its operations became chaotic, and matching demand with the correct inventory of mattresses became a significant challenge. The order fulfillment problems created significant pressures on the manufacturing operations and Sia Meng was worried that these operational problems might provoke some of his long serving employees to consider leaving the company. Sia Meng pondered the short and long term options for Four Star to move towards a responsive, but cost-effective operations model.
Swot Analysis of "Four Star Industries Singapore - Matching Supply with Demand" written by S. Viswanathan, D.G. Allampalli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Meng Sia facing as an external strategic factors. Some of the topics covered in Four Star Industries Singapore - Matching Supply with Demand case study are - Strategic Management Strategies, Product development, Strategy, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Four Star Industries Singapore - Matching Supply with Demand casestudy better are - – there is backlash against globalization, central banks are concerned over increasing inflation, increasing commodity prices, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, technology disruption,
increasing government debt because of Covid-19 spendings, geopolitical disruptions, etc
Introduction to SWOT Analysis of Four Star Industries Singapore - Matching Supply with Demand
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Four Star Industries Singapore - Matching Supply with Demand case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Meng Sia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Meng Sia 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 Four Star Industries Singapore - Matching Supply with Demand can be done for the following purposes –
1. Strategic planning using facts provided in Four Star Industries Singapore - Matching Supply with Demand case study
2. Improving business portfolio management of Meng Sia
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 Meng Sia
Strengths Four Star Industries Singapore - Matching Supply with Demand | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Meng Sia in Four Star Industries Singapore - Matching Supply with Demand Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Meng Sia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Meng Sia 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.
Low bargaining power of suppliers
– Suppliers of Meng Sia in the sector have low bargaining power. Four Star Industries Singapore - Matching Supply with Demand has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Meng Sia to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Meng Sia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Meng Sia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Meng Sia 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 Meng Sia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Four Star Industries Singapore - Matching Supply with Demand Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Meng Sia 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 Four Star Industries Singapore - Matching Supply with Demand HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Four Star Industries Singapore - Matching Supply with Demand firm has clearly differentiated products in the market place. This has enabled Meng Sia to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Meng Sia to invest into research and development (R&D) and innovation.
Training and development
– Meng Sia has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Four Star Industries Singapore - Matching Supply with Demand 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.
Innovation driven organization
– Meng Sia is one of the most innovative firm in sector. Manager in Four Star Industries Singapore - Matching Supply with Demand Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Meng Sia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Meng Sia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Meng Sia 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 Meng Sia 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
– Meng Sia 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 Meng Sia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Four Star Industries Singapore - Matching Supply with Demand | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Four Star Industries Singapore - Matching Supply with Demand are -
Workers concerns about automation
– As automation is fast increasing in the segment, Meng Sia 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, S. Viswanathan, D.G. Allampalli suggests that, Meng Sia is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Four Star Industries Singapore - Matching Supply with Demand HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Meng Sia has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Four Star Industries Singapore - Matching Supply with Demand, it seems that the employees of Meng Sia 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.
Need for greater diversity
– Meng Sia has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study Four Star Industries Singapore - Matching Supply with Demand 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 Four Star Industries Singapore - Matching Supply with Demand can leverage the sales team experience to cultivate customer relationships as Meng Sia is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Four Star Industries Singapore - Matching Supply with Demand, is just above the industry average. Meng Sia 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.
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 Meng Sia supply chain. Even after few cautionary changes mentioned in the HBR case study - Four Star Industries Singapore - Matching Supply with Demand, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Meng Sia vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Meng Sia, firm in the HBR case study Four Star Industries Singapore - Matching Supply with Demand needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Meng Sia is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Meng Sia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Meng Sia to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Four Star Industries Singapore - Matching Supply with Demand, in the dynamic environment Meng Sia has struggled to respond to the nimble upstart competition. Meng Sia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Four Star Industries Singapore - Matching Supply with Demand | 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 Four Star Industries Singapore - Matching Supply with Demand are -
Using analytics as competitive advantage
– Meng Sia 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 Four Star Industries Singapore - Matching Supply with Demand - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Meng Sia 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. Meng Sia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Meng Sia 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 Meng Sia in the consumer business. Now Meng Sia can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Meng Sia 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.
Learning at scale
– Online learning technologies has now opened space for Meng Sia 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.
Creating value in data economy
– The success of analytics program of Meng Sia has opened avenues for new revenue streams for the organization in the industry. This can help Meng Sia to build a more holistic ecosystem as suggested in the Four Star Industries Singapore - Matching Supply with Demand case study. Meng Sia can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Meng Sia 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Meng Sia 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 Meng Sia to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Meng Sia can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Four Star Industries Singapore - Matching Supply with Demand 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.
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. Meng Sia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Meng Sia to increase its market reach. Meng Sia 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.
Loyalty marketing
– Meng Sia 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.
Threats Four Star Industries Singapore - Matching Supply with Demand External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Four Star Industries Singapore - Matching Supply with Demand 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. Meng Sia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Meng Sia 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. Meng Sia can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Four Star Industries Singapore - Matching Supply with Demand, Meng Sia 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 Meng Sia 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 Meng Sia in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Meng Sia 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 dependence on third party suppliers
– Meng Sia 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.
Consumer confidence and its impact on Meng Sia demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Meng Sia
– 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 Meng Sia.
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.
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.
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 Meng Sia.
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 Meng Sia business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Four Star Industries Singapore - Matching Supply with Demand 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 Four Star Industries Singapore - Matching Supply with Demand 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 Four Star Industries Singapore - Matching Supply with Demand 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 Four Star Industries Singapore - Matching Supply with Demand 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 Four Star Industries Singapore - Matching Supply with Demand 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 Meng Sia needs to make to build a sustainable competitive advantage.
