Safety Regulation and the Rise of Towngas in Hong Kong SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Safety Regulation and the Rise of Towngas in Hong Kong
Kerosene, liquefied petroleum gas (LPG), and Towngas were the three major forms of heating fuels used in Hong Kong before 1980. Numerous accidents caused by the use of LPG that occurred in the years preceding 1981 prompted the government to commission a study on the safety aspects of gas, which resulted in strict regulations on LPG supply. Some argued that the safety regulation gave Towngas an unfair advantage over LPG and, hence, gave rise to Towngas' dominant position by the 1990s. But the government felt that there was sufficient competition and, therefore, no need for government intervention.
Authors :: Ka-Fu Wong, Richard Y.C. Wong, Andrew Lee
Swot Analysis of "Safety Regulation and the Rise of Towngas in Hong Kong" written by Ka-Fu Wong, Richard Y.C. Wong, Andrew Lee includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Towngas Lpg facing as an external strategic factors. Some of the topics covered in Safety Regulation and the Rise of Towngas in Hong Kong case study are - Strategic Management Strategies, Government, Health and Global Business.
Some of the macro environment factors that can be used to understand the Safety Regulation and the Rise of Towngas in Hong Kong casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Safety Regulation and the Rise of Towngas in Hong Kong
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Safety Regulation and the Rise of Towngas in Hong Kong case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Towngas Lpg, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Towngas Lpg 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 Safety Regulation and the Rise of Towngas in Hong Kong can be done for the following purposes –
1. Strategic planning using facts provided in Safety Regulation and the Rise of Towngas in Hong Kong case study
2. Improving business portfolio management of Towngas Lpg
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Towngas Lpg
Strengths Safety Regulation and the Rise of Towngas in Hong Kong | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Towngas Lpg in Safety Regulation and the Rise of Towngas in Hong Kong Harvard Business Review case study are -
Highly skilled collaborators
– Towngas Lpg 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 Safety Regulation and the Rise of Towngas in Hong Kong HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Towngas Lpg is one of the most innovative firm in sector. Manager in Safety Regulation and the Rise of Towngas in Hong Kong Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Towngas Lpg are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Global Business field
– Towngas Lpg 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 Towngas Lpg in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Towngas Lpg in the sector have low bargaining power. Safety Regulation and the Rise of Towngas in Hong Kong has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Towngas Lpg to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Towngas Lpg has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Safety Regulation and the Rise of Towngas in Hong Kong 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.
Operational resilience
– The operational resilience strategy in the Safety Regulation and the Rise of Towngas in Hong Kong 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.
Analytics focus
– Towngas Lpg 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 Ka-Fu Wong, Richard Y.C. Wong, Andrew Lee 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.
Learning organization
- Towngas Lpg 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 Towngas Lpg is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Safety Regulation and the Rise of Towngas in Hong Kong Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Towngas Lpg is one of the leading recruiters in the industry. Managers in the Safety Regulation and the Rise of Towngas in Hong Kong are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Towngas Lpg
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Towngas Lpg does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Global Business industry
– Safety Regulation and the Rise of Towngas in Hong Kong firm has clearly differentiated products in the market place. This has enabled Towngas Lpg to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Towngas Lpg to invest into research and development (R&D) and innovation.
Weaknesses Safety Regulation and the Rise of Towngas in Hong Kong | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Safety Regulation and the Rise of Towngas in Hong Kong are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Safety Regulation and the Rise of Towngas in Hong Kong, in the dynamic environment Towngas Lpg has struggled to respond to the nimble upstart competition. Towngas Lpg has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Towngas Lpg is dominated by functional specialists. It is not different from other players in the Global Business segment. Towngas Lpg needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Towngas Lpg to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Towngas Lpg products
– To increase the profitability and margins on the products, Towngas Lpg needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Safety Regulation and the Rise of Towngas in Hong Kong 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 Towngas Lpg has relatively successful track record of launching new products.
Need for greater diversity
– Towngas Lpg 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Towngas Lpg needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High 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 Towngas Lpg supply chain. Even after few cautionary changes mentioned in the HBR case study - Safety Regulation and the Rise of Towngas in Hong Kong, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Towngas Lpg vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Towngas Lpg 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.
Aligning sales with marketing
– It come across in the case study Safety Regulation and the Rise of Towngas in Hong Kong 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 Safety Regulation and the Rise of Towngas in Hong Kong can leverage the sales team experience to cultivate customer relationships as Towngas Lpg is planning to shift buying processes online.
Interest costs
– Compare to the competition, Towngas Lpg 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ka-Fu Wong, Richard Y.C. Wong, Andrew Lee suggests that, Towngas Lpg 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.
Opportunities Safety Regulation and the Rise of Towngas in Hong Kong | 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 Safety Regulation and the Rise of Towngas in Hong Kong are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Towngas Lpg can use these opportunities to build new business models that can help the communities that Towngas Lpg operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Towngas Lpg 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.
Loyalty marketing
– Towngas Lpg 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.
Leveraging digital technologies
– Towngas Lpg can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Towngas Lpg can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Towngas Lpg 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 Towngas Lpg to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Towngas Lpg is facing challenges because of the dominance of functional experts in the organization. Safety Regulation and the Rise of Towngas in Hong Kong 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Towngas Lpg can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Towngas Lpg can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Buying journey improvements
– Towngas Lpg can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Safety Regulation and the Rise of Towngas in Hong Kong 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
– Towngas Lpg 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 Safety Regulation and the Rise of Towngas in Hong Kong - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Towngas Lpg to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Towngas Lpg in the consumer business. Now Towngas Lpg can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Towngas Lpg 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 Global Business segment.
Threats Safety Regulation and the Rise of Towngas in Hong Kong External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Safety Regulation and the Rise of Towngas in Hong Kong are -
Regulatory challenges
– Towngas Lpg 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 Global Business industry regulations.
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. Towngas Lpg needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Towngas Lpg business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Towngas Lpg is facing in Global Business 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 Safety Regulation and the Rise of Towngas in Hong Kong, Towngas Lpg may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Environmental challenges
– Towngas Lpg 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. Towngas Lpg can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Towngas Lpg 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.
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 Towngas Lpg in the Global Business sector and impact the bottomline of the organization.
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 Towngas Lpg.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Towngas Lpg can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Towngas Lpg with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Weighted SWOT Analysis of Safety Regulation and the Rise of Towngas in Hong Kong 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 Safety Regulation and the Rise of Towngas in Hong Kong 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 Safety Regulation and the Rise of Towngas in Hong Kong 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 Safety Regulation and the Rise of Towngas in Hong Kong 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 Safety Regulation and the Rise of Towngas in Hong Kong 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 Towngas Lpg needs to make to build a sustainable competitive advantage.