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 - – technology disruption, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, geopolitical disruptions, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google,
wage bills are increasing, central banks are concerned over increasing inflation, 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 -
Strong track record of project management
– Ptp Psa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Ptp Psa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) 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.
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.
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.
Effective Research and Development (R&D)
– Ptp Psa 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
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.
Successful track record of launching new products
– Ptp Psa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ptp Psa 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 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.
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.
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.
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 -
Need for greater diversity
– Ptp Psa 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.
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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Ptp Psa 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (B), in the dynamic environment Ptp Psa has struggled to respond to the nimble upstart competition. Ptp Psa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Ptp Psa 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. Ptp Psa 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.
Products dominated business model
– Even though Ptp Psa 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 - The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) should strive to include more intangible value offerings along with its core products and services.
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.
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 -
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.
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.
Using analytics as competitive advantage
– Ptp Psa 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 The Battle of the Asian Transshipment Hubs: PSA versus PTP (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ptp Psa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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 Ptp Psa 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.
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. Ptp Psa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ptp Psa 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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. Ptp Psa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Ptp Psa 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.
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.
Regulatory challenges
– Ptp Psa 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.
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 Ptp Psa business can come under increasing regulations regarding data privacy, data security, etc.
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.
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. Ptp Psa 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.
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.