Case Study Description of Sheng Siong - Mirror, Mirror... Whereto We Go?
Sheng Siong, one of the latest arrival of traditional grocers in the Singapore market, had been delivering better than average earnings. Why is this so? Would it be able to sustain its performance in an environment of intensifying competition, driven by new entrants and disruptive forces? What business adjustments does it need to make? Competitive advantages which had delivered in the past may be quickly eroded, and new ones need to be found, or current edges need to be sharpened.
Swot Analysis of "Sheng Siong - Mirror, Mirror... Whereto We Go?" written by Patricia Tan, Danielle Yew includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Siong Sheng facing as an external strategic factors. Some of the topics covered in Sheng Siong - Mirror, Mirror... Whereto We Go? case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sheng Siong - Mirror, Mirror... Whereto We Go? casestudy better are - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing commodity prices, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%,
increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Sheng Siong - Mirror, Mirror... Whereto We Go?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sheng Siong - Mirror, Mirror... Whereto We Go? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Siong Sheng, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Siong Sheng 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 Sheng Siong - Mirror, Mirror... Whereto We Go? can be done for the following purposes –
1. Strategic planning using facts provided in Sheng Siong - Mirror, Mirror... Whereto We Go? case study
2. Improving business portfolio management of Siong Sheng
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 Siong Sheng
Strengths Sheng Siong - Mirror, Mirror... Whereto We Go? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Siong Sheng in Sheng Siong - Mirror, Mirror... Whereto We Go? Harvard Business Review case study are -
Effective Research and Development (R&D)
– Siong Sheng 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 Sheng Siong - Mirror, Mirror... Whereto We Go? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Siong Sheng
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Siong Sheng 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 Siong Sheng in the sector have low bargaining power. Sheng Siong - Mirror, Mirror... Whereto We Go? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Siong Sheng to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Siong Sheng is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Siong Sheng 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 Siong Sheng in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Siong Sheng is one of the most innovative firm in sector. Manager in Sheng Siong - Mirror, Mirror... Whereto We Go? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Siong Sheng has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Sheng Siong - Mirror, Mirror... Whereto We Go? 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
– Siong Sheng has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Siong Sheng 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.
Ability to recruit top talent
– Siong Sheng is one of the leading recruiters in the industry. Managers in the Sheng Siong - Mirror, Mirror... Whereto We Go? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Siong Sheng 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 Sheng Siong - Mirror, Mirror... Whereto We Go? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Siong Sheng has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Siong Sheng to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Siong Sheng 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.
Weaknesses Sheng Siong - Mirror, Mirror... Whereto We Go? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sheng Siong - Mirror, Mirror... Whereto We Go? are -
Products dominated business model
– Even though Siong Sheng 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 - Sheng Siong - Mirror, Mirror... Whereto We Go? should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Sheng Siong - Mirror, Mirror... Whereto We Go?, is just above the industry average. Siong Sheng 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.
No frontier risks strategy
– After analyzing the HBR case study Sheng Siong - Mirror, Mirror... Whereto We Go?, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Increasing silos among functional specialists
– The organizational structure of Siong Sheng is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Siong Sheng needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Siong Sheng to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Siong Sheng 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Siong Sheng has relatively successful track record of launching new products.
Need for greater diversity
– Siong Sheng 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sheng Siong - Mirror, Mirror... Whereto We Go?, in the dynamic environment Siong Sheng has struggled to respond to the nimble upstart competition. Siong Sheng has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Sheng Siong - Mirror, Mirror... Whereto We Go? can leverage the sales team experience to cultivate customer relationships as Siong Sheng is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Sheng Siong - Mirror, Mirror... Whereto We Go? HBR case study mentions - Siong Sheng 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Siong Sheng is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Sheng Siong - Mirror, Mirror... Whereto We Go? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Sheng Siong - Mirror, Mirror... Whereto We Go? | 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 Sheng Siong - Mirror, Mirror... Whereto We Go? are -
Using analytics as competitive advantage
– Siong Sheng 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 Sheng Siong - Mirror, Mirror... Whereto We Go? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Siong Sheng to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Siong Sheng 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. Siong Sheng 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.
Loyalty marketing
– Siong Sheng 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.
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. Siong Sheng can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Siong Sheng has opened avenues for new revenue streams for the organization in the industry. This can help Siong Sheng to build a more holistic ecosystem as suggested in the Sheng Siong - Mirror, Mirror... Whereto We Go? case study. Siong Sheng can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Siong Sheng to increase its market reach. Siong Sheng 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Siong Sheng is facing challenges because of the dominance of functional experts in the organization. Sheng Siong - Mirror, Mirror... Whereto We Go? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Siong Sheng in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Siong Sheng 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.
Building a culture of innovation
– managers at Siong Sheng 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.
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 Siong Sheng in the consumer business. Now Siong Sheng can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Siong Sheng 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.
Buying journey improvements
– Siong Sheng can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sheng Siong - Mirror, Mirror... Whereto We Go? 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.
Threats Sheng Siong - Mirror, Mirror... Whereto We Go? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sheng Siong - Mirror, Mirror... Whereto We Go? are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Siong Sheng 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 Sheng Siong - Mirror, Mirror... Whereto We Go? .
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. Siong Sheng 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.
Stagnating economy with rate increase
– Siong Sheng 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.
Consumer confidence and its impact on Siong Sheng 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.
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 Siong Sheng in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Siong Sheng 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.
Technology acceleration in Forth Industrial Revolution
– Siong Sheng has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Siong Sheng needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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 Siong Sheng business can come under increasing regulations regarding data privacy, data security, 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.
High dependence on third party suppliers
– Siong Sheng 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Siong Sheng with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Siong Sheng can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Sheng Siong - Mirror, Mirror... Whereto We Go? 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 Siong Sheng needs to make to build a sustainable competitive advantage.
