Silicon Island of the East: Creating a Semiconductor Industry in Singapore SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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 energy prices, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, increasing commodity prices, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, 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 -
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.
Operational resilience
– The operational resilience strategy in the Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Semiconductor Singapore 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.
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.
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.
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.
Successful track record of launching new products
– Semiconductor Singapore has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Semiconductor Singapore has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Semiconductor Singapore digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Semiconductor Singapore 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.
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.
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.
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 -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Semiconductor Singapore is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Semiconductor Singapore is dominated by functional specialists. It is not different from other players in the Global Business segment. Semiconductor Singapore needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Semiconductor Singapore to focus more on services rather than just following the product oriented approach.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore, is just above the industry average. Semiconductor Singapore 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.
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.
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 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.
Need for greater diversity
– Semiconductor Singapore 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Silicon Island of the East: Creating a Semiconductor Industry in Singapore, it seems that the employees of Semiconductor Singapore don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Workers concerns about automation
– As automation is fast increasing in the segment, Semiconductor Singapore 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.
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 -
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.
Loyalty marketing
– Semiconductor Singapore 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. Semiconductor Singapore can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Semiconductor Singapore is facing challenges because of the dominance of functional experts in the organization. Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Semiconductor Singapore 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, Silicon Island of the East: Creating a Semiconductor Industry in Singapore, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Semiconductor Singapore 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 Semiconductor Singapore to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Semiconductor Singapore in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
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 Semiconductor Singapore in the consumer business. Now Semiconductor Singapore can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Semiconductor Singapore can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Silicon Island of the East: Creating a Semiconductor Industry in Singapore 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 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 -
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.
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 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 .
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Semiconductor Singapore in the Global Business industry. The Global Business 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.
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.
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.
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.
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.
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 Semiconductor Singapore.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Semiconductor Singapore 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 Silicon Island of the East: Creating a Semiconductor Industry in Singapore .
Consumer confidence and its impact on Semiconductor Singapore 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.
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.
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.