Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping
BollorA? Logistics Canada is an international freight forwarder based in Saint-Laurent, Quebec and part of the transportation and logistics division of the BollorA? Group, a conglomerate of French companies headed by Vincent BollorA?. Freight forwarders provide their clients with transport solutions by coordinating the modes of transportation used, customs clearance and documentation, port handling, and supervision of all shipping aspects. This case features Marc Gagnon, a new recruit in the sea freight export department of BollorA? Logistics Canada, who has to respond to calls from three clients. The three have asked about different shipments and transactions (transport of mining equipment to New Caledonia, pharmaceutical products to Chile, and circus show materials to Greece). Each client request involves international maritime shipping calling for the choice of a specific Incoterm (version 2010, as defined by the International Chamber of Commerce) and the corresponding estimate. For each of the three situations, the characteristics of the buyer and seller are described, along with their respective business objectives, their relationship, the merchandise and the destination. The three cases are presented in increasing order of difficulty.
Swot Analysis of "Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping" written by Leo Vincenti, Jacques Roy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bollora Logistics facing as an external strategic factors. Some of the topics covered in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping case study are - Strategic Management Strategies, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping casestudy better are - – wage bills are increasing, there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies,
there is increasing trade war between United States & China, geopolitical disruptions, etc
Introduction to SWOT Analysis of Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bollora Logistics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bollora Logistics 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping can be done for the following purposes –
1. Strategic planning using facts provided in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping case study
2. Improving business portfolio management of Bollora Logistics
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 Bollora Logistics
Strengths Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bollora Logistics in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping firm has clearly differentiated products in the market place. This has enabled Bollora Logistics to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bollora Logistics to invest into research and development (R&D) and innovation.
Innovation driven organization
– Bollora Logistics is one of the most innovative firm in sector. Manager in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Bollora Logistics is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Leo Vincenti, Jacques Roy can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Bollora Logistics digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bollora Logistics 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.
Cross disciplinary teams
– Horizontal connected teams at the Bollora Logistics 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.
Organizational Resilience of Bollora Logistics
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bollora Logistics does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Bollora Logistics is one of the leading recruiters in the industry. Managers in the Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Bollora Logistics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bollora Logistics 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.
Strong track record of project management
– Bollora Logistics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Bollora Logistics 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 Bollora Logistics is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Bollora Logistics has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bollora Logistics to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Bollora Logistics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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.
Weaknesses Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping are -
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 Bollora Logistics supply chain. Even after few cautionary changes mentioned in the HBR case study - Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bollora Logistics vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Bollora Logistics is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Bollora Logistics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bollora Logistics to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Leo Vincenti, Jacques Roy suggests that, Bollora Logistics 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.
Aligning sales with marketing
– It come across in the case study Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping can leverage the sales team experience to cultivate customer relationships as Bollora Logistics is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Bollora Logistics 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. Bollora Logistics 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping, in the dynamic environment Bollora Logistics has struggled to respond to the nimble upstart competition. Bollora Logistics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Bollora Logistics 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollora Logistics 's lucrative customers.
Interest costs
– Compare to the competition, Bollora Logistics 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 Bollora Logistics 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 - Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Bollora Logistics 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.
Opportunities Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping | 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping are -
Buying journey improvements
– Bollora Logistics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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.
Using analytics as competitive advantage
– Bollora Logistics 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bollora Logistics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bollora Logistics 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.
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. Bollora Logistics 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. Bollora Logistics 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bollora Logistics 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.
Loyalty marketing
– Bollora Logistics 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.
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. Bollora Logistics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bollora Logistics is facing challenges because of the dominance of functional experts in the organization. Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Bollora Logistics 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bollora Logistics 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, Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping, 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 Bollora Logistics 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.
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 Bollora Logistics in the consumer business. Now Bollora Logistics can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bollora Logistics 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 Bollora Logistics to hire the very best people irrespective of their geographical location.
Threats Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping are -
Stagnating economy with rate increase
– Bollora Logistics 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.
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. Bollora Logistics 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.
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 Bollora Logistics.
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 Bollora Logistics business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Bollora Logistics 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bollora Logistics 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 Bollora Logistics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Bollora Logistics is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping, Bollora Logistics 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 Bollora Logistics
– 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 Bollora Logistics.
Environmental challenges
– Bollora Logistics 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. Bollora Logistics can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bollora Logistics 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping .
Weighted SWOT Analysis of Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollore Logistics Canada and the Use of Incoterms in International Maritime Shipping 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 Bollora Logistics needs to make to build a sustainable competitive advantage.
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