The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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 (C)
This is the last case in the three-case series that explores competitive strategies in a mature industry within the context of the Asia-Pacific region. In April 2003, the 12-month rate cuts that Port of Singapore (PSA) announced in June 2002 would be up for renewal. PSA senior management had to decide whether to extend these discounts for another 12 months or restore prices back to 2002 levels. PTP had been diligently working to increase its operational capabilities over the years and was no longer a distant second to the PSA in service quality and efficiency. How could the PSA position itself for the next round of competitive activity?
Swot Analysis of "The Battle of the Asian Transshipment Hubs: PSA versus PTP (C)" written by Ming-Jer Chen, Jin Leong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Psa Ptp facing as an external strategic factors. Some of the topics covered in The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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 (C) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, central banks are concerned over increasing inflation, there is backlash against globalization, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
challanges to central banks by blockchain based private currencies, increasing commodity prices, etc
Introduction to SWOT Analysis of The Battle of the Asian Transshipment Hubs: PSA versus PTP (C)
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 (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Psa Ptp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Psa Ptp 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) case study
2. Improving business portfolio management of Psa Ptp
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 Psa Ptp
Strengths The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Psa Ptp in The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) Harvard Business Review case study are -
Learning organization
- Psa Ptp 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 Psa Ptp 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 (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Psa Ptp 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 Ming-Jer Chen, Jin Leong 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.
High switching costs
– The high switching costs that Psa Ptp 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.
Low bargaining power of suppliers
– Suppliers of Psa Ptp in the sector have low bargaining power. The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Psa Ptp to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Psa Ptp has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Psa Ptp 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.
Superior customer experience
– The customer experience strategy of Psa Ptp in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) firm has clearly differentiated products in the market place. This has enabled Psa Ptp to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Psa Ptp to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Psa Ptp digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Psa Ptp 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.
Effective Research and Development (R&D)
– Psa Ptp 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 (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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
– Psa Ptp is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Psa Ptp
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Psa Ptp does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) | 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 (C) are -
Skills based hiring
– The stress on hiring functional specialists at Psa Ptp 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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 Psa Ptp has relatively successful track record of launching new products.
Need for greater diversity
– Psa Ptp 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.
Capital Spending Reduction
– Even during the low interest decade, Psa Ptp 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (C), is just above the industry average. Psa Ptp 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 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 Psa Ptp supply chain. Even after few cautionary changes mentioned in the HBR case study - The Battle of the Asian Transshipment Hubs: PSA versus PTP (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Psa Ptp vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (C), 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Psa Ptp is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Psa Ptp 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 (C) should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Psa Ptp products
– To increase the profitability and margins on the products, Psa Ptp needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Ming-Jer Chen, Jin Leong suggests that, Psa Ptp is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) | 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 (C) are -
Learning at scale
– Online learning technologies has now opened space for Psa Ptp 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Psa Ptp 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, The Battle of the Asian Transshipment Hubs: PSA versus PTP (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Psa Ptp can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Psa Ptp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Psa Ptp 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.
Developing new processes and practices
– Psa Ptp 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Psa Ptp 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.
Buying journey improvements
– Psa Ptp 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 (C) 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 Psa Ptp 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 Psa Ptp to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Psa Ptp 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Psa Ptp can use these opportunities to build new business models that can help the communities that Psa Ptp operates in. Secondly it can use opportunities from government spending in Global Business sector.
Creating value in data economy
– The success of analytics program of Psa Ptp has opened avenues for new revenue streams for the organization in the industry. This can help Psa Ptp to build a more holistic ecosystem as suggested in the The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) case study. Psa Ptp can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Psa Ptp 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.
Threats The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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 (C) are -
High dependence on third party suppliers
– Psa Ptp 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.
Environmental challenges
– Psa Ptp 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. Psa Ptp can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 (C), Psa Ptp 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 .
Technology acceleration in Forth Industrial Revolution
– Psa Ptp has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Psa Ptp 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.
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 Psa Ptp business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Psa Ptp 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 (C) .
Increasing wage structure of Psa Ptp
– 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 Psa Ptp.
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 Psa Ptp.
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. Psa Ptp 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 Psa Ptp 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 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.
Consumer confidence and its impact on Psa Ptp 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.
Stagnating economy with rate increase
– Psa Ptp 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.
Weighted SWOT Analysis of The Battle of the Asian Transshipment Hubs: PSA versus PTP (C) 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 (C) 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 (C) 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 (C) 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 (C) 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 Psa Ptp needs to make to build a sustainable competitive advantage.