The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Battle of the Asian Transshipment Hubs: PSA versus PTP (B)
When the senior management team gathered in 2003 for the strategic planning meeting, it faced a number of tough decisions. While the Port of Singapore was still viable and profitable, the battle with PTP had significantly weakened PSA's position as the preeminent East Asian transshipment hub. PTP's lack of retaliation gave the appearance of a hard-won PSA victory. But how long would PTP remain dormant? Could PSA let down its guard at last-or should it gird itself for more competitive exchanges to come?
Swot Analysis of "The Battle of the Asian Transshipment Hubs: PSA versus PTP (B)" written by Ming-Jer Chen, Jin Leong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ptp Psa facing as an external strategic factors. Some of the topics covered in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) case study are - Strategic Management Strategies, Decision making, Emerging markets, Globalization, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) casestudy better are - – increasing household debt because of falling income levels, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing energy prices, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of The Battle of the Asian Transshipment Hubs: PSA versus PTP (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ptp Psa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ptp Psa 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) can be done for the following purposes –
1. Strategic planning using facts provided in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) case study
2. Improving business portfolio management of Ptp Psa
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 Ptp Psa
Strengths The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ptp Psa in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) Harvard Business Review case study are -
Learning organization
- Ptp Psa 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 Ptp Psa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Ptp Psa 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.
Diverse revenue streams
– Ptp Psa is present in almost all the verticals within the industry. This has provided firm in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Ptp Psa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ptp Psa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ptp Psa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ptp Psa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Global Business industry
– The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) firm has clearly differentiated products in the market place. This has enabled Ptp Psa to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Ptp Psa to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Ptp Psa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ptp Psa 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.
Innovation driven organization
– Ptp Psa is one of the most innovative firm in sector. Manager in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Ptp Psa is one of the leading recruiters in the industry. Managers in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Ptp Psa in the sector have low bargaining power. The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ptp Psa to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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.
Ability to lead change in Global Business field
– Ptp Psa 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 Ptp Psa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) are -
Low market penetration in new markets
– Outside its home market of Ptp Psa, firm in the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) can leverage the sales team experience to cultivate customer relationships as Ptp Psa is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Ptp Psa has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Ptp Psa products
– To increase the profitability and margins on the products, Ptp Psa needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B), it seems that company is thinking about the frontier risks that can impact Global Business 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B), is just above the industry average. Ptp Psa 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.
High operating costs
– Compare to the competitors, firm in the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ptp Psa 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Ptp Psa 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.
Slow to strategic competitive environment developments
– As The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) HBR case study mentions - Ptp Psa 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.
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 Ptp Psa supply chain. Even after few cautionary changes mentioned in the HBR case study - The Battle of the Asian Transshipment Hubs: PSA versus PTP (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ptp Psa vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Ptp Psa 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.
Opportunities The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) | 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) are -
Creating value in data economy
– The success of analytics program of Ptp Psa has opened avenues for new revenue streams for the organization in the industry. This can help Ptp Psa to build a more holistic ecosystem as suggested in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) case study. Ptp Psa 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 Ptp Psa to increase its market reach. Ptp Psa 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.
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. Ptp Psa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Ptp Psa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ptp Psa can use these opportunities to build new business models that can help the communities that Ptp Psa operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ptp Psa 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 Ptp Psa to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Ptp Psa 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ptp Psa 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.
Building a culture of innovation
– managers at Ptp Psa 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.
Developing new processes and practices
– Ptp Psa 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ptp Psa is facing challenges because of the dominance of functional experts in the organization. The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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.
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. Ptp Psa 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. Ptp Psa 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ptp Psa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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.
Technology acceleration in Forth Industrial Revolution
– Ptp Psa has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Ptp Psa 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.
Shortening product life cycle
– it is one of the major threat that Ptp Psa is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Ptp Psa
– 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 Ptp Psa.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B), Ptp Psa 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. Ptp Psa needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ptp Psa 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ptp Psa 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ptp Psa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Ptp Psa in the Global Business sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Ptp Psa 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.
Environmental challenges
– Ptp Psa 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. Ptp Psa can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Ptp Psa 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.
Weighted SWOT Analysis of The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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 Ptp Psa needs to make to build a sustainable competitive advantage.
