Silicon Island of the East: Creating a Semiconductor Industry in Singapore SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Silicon Island of the East: Creating a Semiconductor Industry in Singapore
A remarkable semiconductor industry has been created in Singapore, through highly focused public policy directed towards attracting multinational corporations and leveraging skills and technology from them to spark local industry development. This article assesses the effectiveness of this strategy--examining the viability and sustainability of the industry it created--as well as its replicability. If other countries such as China are to emulate Singapore's approach, they will have to develop an institutional framework with the capability to direct the processes of technology leverage and diffusion.
Swot Analysis of "Silicon Island of the East: Creating a Semiconductor Industry in Singapore" written by John A. Mathews includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Semiconductor Singapore facing as an external strategic factors. Some of the topics covered in Silicon Island of the East: Creating a Semiconductor Industry in Singapore case study are - Strategic Management Strategies, Government and Global Business.
Some of the macro environment factors that can be used to understand the Silicon Island of the East: Creating a Semiconductor Industry in Singapore casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, increasing commodity prices, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Silicon Island of the East: Creating a Semiconductor Industry in Singapore
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Silicon Island of the East: Creating a Semiconductor Industry in Singapore case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Semiconductor Singapore, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Semiconductor Singapore operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Silicon Island of the East: Creating a Semiconductor Industry in Singapore can be done for the following purposes –
1. Strategic planning using facts provided in Silicon Island of the East: Creating a Semiconductor Industry in Singapore case study
2. Improving business portfolio management of Semiconductor Singapore
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 Semiconductor Singapore
Strengths Silicon Island of the East: Creating a Semiconductor Industry in Singapore | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Semiconductor Singapore in Silicon Island of the East: Creating a Semiconductor Industry in Singapore Harvard Business Review case study are -
Strong track record of project management
– Semiconductor Singapore is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Semiconductor Singapore 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 John A. Mathews 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.
Ability to lead change in Global Business field
– Semiconductor Singapore 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 Semiconductor Singapore in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Semiconductor Singapore has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Silicon Island of the East: Creating a Semiconductor Industry in Singapore HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Semiconductor Singapore has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Semiconductor Singapore to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Semiconductor Singapore in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Semiconductor Singapore 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 Semiconductor Singapore is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Silicon Island of the East: Creating a Semiconductor Industry in Singapore Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Semiconductor Singapore
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Semiconductor Singapore does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Semiconductor Singapore is one of the leading recruiters in the industry. Managers in the Silicon Island of the East: Creating a Semiconductor Industry in Singapore are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Semiconductor Singapore 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.
Effective Research and Development (R&D)
– Semiconductor Singapore has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Semiconductor Singapore in the sector have low bargaining power. Silicon Island of the East: Creating a Semiconductor Industry in Singapore has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Semiconductor Singapore to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Silicon Island of the East: Creating a Semiconductor Industry in Singapore | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Silicon Island of the East: Creating a Semiconductor Industry in Singapore are -
Low market penetration in new markets
– Outside its home market of Semiconductor Singapore, firm in the HBR case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Semiconductor Singapore products
– To increase the profitability and margins on the products, Semiconductor Singapore needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Semiconductor Singapore has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Semiconductor Singapore even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High cash cycle compare to competitors
Semiconductor Singapore 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.
Products dominated business model
– Even though Semiconductor Singapore has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Silicon Island of the East: Creating a Semiconductor Industry in Singapore should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore can leverage the sales team experience to cultivate customer relationships as Semiconductor Singapore is planning to shift buying processes online.
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 Semiconductor Singapore supply chain. Even after few cautionary changes mentioned in the HBR case study - Silicon Island of the East: Creating a Semiconductor Industry in Singapore, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Semiconductor Singapore vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore, in the dynamic environment Semiconductor Singapore has struggled to respond to the nimble upstart competition. Semiconductor Singapore has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Semiconductor Singapore has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Semiconductor Singapore has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Semiconductor Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore | 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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, Semiconductor Singapore can use these opportunities to build new business models that can help the communities that Semiconductor Singapore operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Semiconductor Singapore can develop new processes and procedures in Global Business 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.
Leveraging digital technologies
– Semiconductor Singapore 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.
Learning at scale
– Online learning technologies has now opened space for Semiconductor Singapore to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Semiconductor Singapore 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.
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. Semiconductor Singapore can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Semiconductor Singapore 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. Semiconductor Singapore 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.
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. Semiconductor Singapore can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Semiconductor Singapore 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.
Better consumer reach
– The expansion of the 5G network will help Semiconductor Singapore to increase its market reach. Semiconductor Singapore will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Semiconductor Singapore has opened avenues for new revenue streams for the organization in the industry. This can help Semiconductor Singapore to build a more holistic ecosystem as suggested in the Silicon Island of the East: Creating a Semiconductor Industry in Singapore case study. Semiconductor Singapore can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Semiconductor Singapore 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
– Semiconductor Singapore 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.
Threats Silicon Island of the East: Creating a Semiconductor Industry in Singapore External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore are -
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.
High dependence on third party suppliers
– Semiconductor Singapore 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.
Stagnating economy with rate increase
– Semiconductor Singapore can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Semiconductor Singapore with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Semiconductor Singapore
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Semiconductor Singapore.
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 Semiconductor Singapore business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Semiconductor Singapore has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Semiconductor Singapore needs to keep up with the evolution of technology in the Global Business 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.
Regulatory challenges
– Semiconductor Singapore needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Shortening product life cycle
– it is one of the major threat that Semiconductor Singapore is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore, Semiconductor Singapore may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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. Semiconductor Singapore needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Semiconductor Singapore 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. Semiconductor Singapore can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Semiconductor Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 Semiconductor Singapore needs to make to build a sustainable competitive advantage.
