Eurasia International: Total Quality Management in the Shipping Industry SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Eurasia International: Total Quality Management in the Shipping Industry
Gives an account of how a ship management company was able to set itself apart from competitors and from its clients' own in-house technical and crew management capabilities by embracing a culture of continuous improvement and implementing Total Quality Management systems. The shipping industry was not alone in being regulated, but its distinctly international nature made ship managers, as cost-cutting practitioners, particularly open to criticism. A ship management company's very existence hinged upon its ability to convince ship owners that it would preserve their valuable assets and maximize revenue-earning potential--demonstrating that its collective skills were superior and more cost effective. As a result, an effective quality assurance system that continuously improved the organization's human and business systems could enhance efficiency and have a significant marketing impact.
Swot Analysis of "Eurasia International: Total Quality Management in the Shipping Industry" written by Ali Farhoomand, Amir Hoosain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ship Shipping facing as an external strategic factors. Some of the topics covered in Eurasia International: Total Quality Management in the Shipping Industry case study are - Strategic Management Strategies, Customers, International business, Product development and Technology & Operations.
Some of the macro environment factors that can be used to understand the Eurasia International: Total Quality Management in the Shipping Industry casestudy better are - – geopolitical disruptions, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Eurasia International: Total Quality Management in the Shipping Industry
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Eurasia International: Total Quality Management in the Shipping Industry case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ship Shipping, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ship Shipping 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 Eurasia International: Total Quality Management in the Shipping Industry can be done for the following purposes –
1. Strategic planning using facts provided in Eurasia International: Total Quality Management in the Shipping Industry case study
2. Improving business portfolio management of Ship Shipping
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 Ship Shipping
Strengths Eurasia International: Total Quality Management in the Shipping Industry | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ship Shipping in Eurasia International: Total Quality Management in the Shipping Industry Harvard Business Review case study are -
Diverse revenue streams
– Ship Shipping is present in almost all the verticals within the industry. This has provided firm in Eurasia International: Total Quality Management in the Shipping Industry 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.
Superior customer experience
– The customer experience strategy of Ship Shipping in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Ship Shipping has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ship Shipping to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Ship Shipping has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ship Shipping 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 Ship Shipping digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ship Shipping 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.
Sustainable margins compare to other players in Technology & Operations industry
– Eurasia International: Total Quality Management in the Shipping Industry firm has clearly differentiated products in the market place. This has enabled Ship Shipping to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ship Shipping to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Ship Shipping is one of the leading recruiters in the industry. Managers in the Eurasia International: Total Quality Management in the Shipping Industry are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Ship Shipping is one of the most innovative firm in sector. Manager in Eurasia International: Total Quality Management in the Shipping Industry Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Ship Shipping 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 Technology & Operations field
– Ship Shipping 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 Ship Shipping in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Ship Shipping
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ship Shipping does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Ship Shipping in the sector have low bargaining power. Eurasia International: Total Quality Management in the Shipping Industry has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ship Shipping to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Eurasia International: Total Quality Management in the Shipping Industry | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Eurasia International: Total Quality Management in the Shipping Industry are -
High operating costs
– Compare to the competitors, firm in the HBR case study Eurasia International: Total Quality Management in the Shipping Industry 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 Ship Shipping 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Ship Shipping 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.
Skills based hiring
– The stress on hiring functional specialists at Ship Shipping 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ship Shipping is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Eurasia International: Total Quality Management in the Shipping Industry 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 bargaining power of channel partners
– Because of the regulatory requirements, Ali Farhoomand, Amir Hoosain suggests that, Ship Shipping 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 Eurasia International: Total Quality Management in the Shipping Industry 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 Ship Shipping has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Ship Shipping is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ship Shipping needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ship Shipping to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Eurasia International: Total Quality Management in the Shipping Industry HBR case study mentions - Ship Shipping 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Eurasia International: Total Quality Management in the Shipping Industry, in the dynamic environment Ship Shipping has struggled to respond to the nimble upstart competition. Ship Shipping has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Eurasia International: Total Quality Management in the Shipping Industry, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Ship Shipping 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.
Opportunities Eurasia International: Total Quality Management in the Shipping Industry | 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 Eurasia International: Total Quality Management in the Shipping Industry are -
Creating value in data economy
– The success of analytics program of Ship Shipping has opened avenues for new revenue streams for the organization in the industry. This can help Ship Shipping to build a more holistic ecosystem as suggested in the Eurasia International: Total Quality Management in the Shipping Industry case study. Ship Shipping 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 Ship Shipping 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.
Developing new processes and practices
– Ship Shipping 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.
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 Ship Shipping in the consumer business. Now Ship Shipping can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ship Shipping 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. Ship Shipping 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.
Buying journey improvements
– Ship Shipping can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Eurasia International: Total Quality Management in the Shipping Industry 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.
Building a culture of innovation
– managers at Ship Shipping 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 Technology & Operations segment.
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 Ship Shipping to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ship Shipping can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ship Shipping 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 Ship Shipping to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Ship Shipping 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.
Learning at scale
– Online learning technologies has now opened space for Ship Shipping 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.
Better consumer reach
– The expansion of the 5G network will help Ship Shipping to increase its market reach. Ship Shipping 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.
Threats Eurasia International: Total Quality Management in the Shipping Industry External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Eurasia International: Total Quality Management in the Shipping Industry are -
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.
Regulatory challenges
– Ship Shipping 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Eurasia International: Total Quality Management in the Shipping Industry, Ship Shipping 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 .
Environmental challenges
– Ship Shipping 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. Ship Shipping can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ship Shipping 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ship Shipping 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 Eurasia International: Total Quality Management in the Shipping Industry .
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. Ship Shipping needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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. Ship Shipping 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.
High dependence on third party suppliers
– Ship Shipping 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ship Shipping can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Ship Shipping business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Ship Shipping is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Eurasia International: Total Quality Management in the Shipping Industry 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 Eurasia International: Total Quality Management in the Shipping Industry 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 Eurasia International: Total Quality Management in the Shipping Industry 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 Eurasia International: Total Quality Management in the Shipping Industry 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 Eurasia International: Total Quality Management in the Shipping Industry 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 Ship Shipping needs to make to build a sustainable competitive advantage.
