Singapore TradeNet: Beyond TradeNet to the Intelligent Island SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Singapore TradeNet: Beyond TradeNet to the Intelligent Island
Describes the actions taken by the government of Singapore to enable the country to survive and prosper after it achieved independence in the late 1960s. Recognizing that its small size, limited natural resources, but excellent location placed it in a vulnerable position, the prime minister, Lee Kuan Yew, defined a vision for the country as an information, trade, and business hub for Southeast Asia. TradeNet is an interesting class of IT system that possesses two distinct components: first, it is an example of an interorganizational strategic application that forms the core of a successful redesign of the trade process, which solidifies the country's position as a transshipment port for Southeast Asia; second, TradeNet also provides an information management and communication infrastructure that can be used to create additional strategic applications. This case relates how Singapore is continuing to implement its IT2000 National Information Infrastructure Plan in 1995.
Authors :: Lynda M. Applegate, Boon Siong Neo, John King
Swot Analysis of "Singapore TradeNet: Beyond TradeNet to the Intelligent Island" written by Lynda M. Applegate, Boon Siong Neo, John King includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tradenet Singapore facing as an external strategic factors. Some of the topics covered in Singapore TradeNet: Beyond TradeNet to the Intelligent Island case study are - Strategic Management Strategies, Change management, Communication, Corporate governance, IT, Policy, Regulation and Technology & Operations.
Some of the macro environment factors that can be used to understand the Singapore TradeNet: Beyond TradeNet to the Intelligent Island casestudy better are - – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, technology disruption, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models,
central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Singapore TradeNet: Beyond TradeNet to the Intelligent Island
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Singapore TradeNet: Beyond TradeNet to the Intelligent Island case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tradenet Singapore, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tradenet Singapore 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island can be done for the following purposes –
1. Strategic planning using facts provided in Singapore TradeNet: Beyond TradeNet to the Intelligent Island case study
2. Improving business portfolio management of Tradenet Singapore
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tradenet Singapore
Strengths Singapore TradeNet: Beyond TradeNet to the Intelligent Island | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tradenet Singapore in Singapore TradeNet: Beyond TradeNet to the Intelligent Island Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Tradenet Singapore in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Tradenet Singapore 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Tradenet Singapore in the sector have low bargaining power. Singapore TradeNet: Beyond TradeNet to the Intelligent Island has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tradenet Singapore to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Tradenet Singapore 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.
Effective Research and Development (R&D)
– Tradenet Singapore has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Tradenet Singapore is one of the most innovative firm in sector. Manager in Singapore TradeNet: Beyond TradeNet to the Intelligent Island Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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.
Diverse revenue streams
– Tradenet Singapore is present in almost all the verticals within the industry. This has provided firm in Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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.
Organizational Resilience of Tradenet Singapore
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Tradenet Singapore does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Tradenet Singapore has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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.
Successful track record of launching new products
– Tradenet Singapore has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tradenet Singapore 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Tradenet Singapore digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tradenet Singapore has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Singapore TradeNet: Beyond TradeNet to the Intelligent Island | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Singapore TradeNet: Beyond TradeNet to the Intelligent Island are -
High bargaining power of channel partners
– Because of the regulatory requirements, Lynda M. Applegate, Boon Siong Neo, John King suggests that, Tradenet Singapore 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island, it seems that the employees of Tradenet Singapore 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.
Lack of clear differentiation of Tradenet Singapore products
– To increase the profitability and margins on the products, Tradenet Singapore needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island, is just above the industry average. Tradenet Singapore 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 operating costs
– Compare to the competitors, firm in the HBR case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Tradenet Singapore 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island, in the dynamic environment Tradenet Singapore has struggled to respond to the nimble upstart competition. Tradenet Singapore has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Tradenet Singapore 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.
Interest costs
– Compare to the competition, Tradenet Singapore has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Tradenet Singapore 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 - Singapore TradeNet: Beyond TradeNet to the Intelligent Island should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Tradenet Singapore 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. Tradenet Singapore 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.
Low market penetration in new markets
– Outside its home market of Tradenet Singapore, firm in the HBR case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Singapore TradeNet: Beyond TradeNet to the Intelligent Island | 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Tradenet Singapore can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Tradenet Singapore can develop new processes and procedures in Technology & Operations 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 Tradenet Singapore to increase its market reach. Tradenet Singapore 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.
Creating value in data economy
– The success of analytics program of Tradenet Singapore has opened avenues for new revenue streams for the organization in the industry. This can help Tradenet Singapore to build a more holistic ecosystem as suggested in the Singapore TradeNet: Beyond TradeNet to the Intelligent Island case study. Tradenet Singapore can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tradenet Singapore 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 Tradenet Singapore to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Tradenet Singapore 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.
Loyalty marketing
– Tradenet Singapore 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tradenet Singapore in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
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 Tradenet Singapore in the consumer business. Now Tradenet Singapore can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tradenet Singapore can use these opportunities to build new business models that can help the communities that Tradenet Singapore operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tradenet Singapore 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, Singapore TradeNet: Beyond TradeNet to the Intelligent Island, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Tradenet Singapore 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.
Manufacturing automation
– Tradenet Singapore can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island, Tradenet Singapore may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing wage structure of Tradenet Singapore
– 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 Tradenet Singapore.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Tradenet Singapore will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tradenet Singapore in the Technology & Operations industry. The Technology & Operations 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tradenet Singapore with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Tradenet Singapore 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 Technology & Operations industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tradenet Singapore 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island .
Stagnating economy with rate increase
– Tradenet Singapore 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.
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.
Technology acceleration in Forth Industrial Revolution
– Tradenet Singapore has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Tradenet Singapore needs to keep up with the evolution of technology in the Technology & Operations 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.
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 Tradenet Singapore.
Consumer confidence and its impact on Tradenet Singapore 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.
Weighted SWOT Analysis of Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Singapore TradeNet: Beyond TradeNet to the Intelligent Island 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 Tradenet Singapore needs to make to build a sustainable competitive advantage.
