Open Skies: Allocation of Landing Slots at Hong Kong Airport SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Open Skies: Allocation of Landing Slots at Hong Kong Airport
Studies the allocation of airport slots. As airline traffic increases, slots become scarce. Well-established airlines have historically determined rights to these slots, which limits the possibilities for new entrants to the market. In addition, sometimes, the airlines do not make efficient use of their slots. It is often argued that this allocation system has to be revised to ensure economic efficiency. Several countries are considering this issue, which is often met with strong opposition from well-established airlines. Congestion in Hong Kong airport is increasing and the question whether Hong Kong should liberalize its allocation system is under debate.
Swot Analysis of "Open Skies: Allocation of Landing Slots at Hong Kong Airport" written by Ka-Fu Wong, Carola Ramon-Berjano includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Slots Allocation facing as an external strategic factors. Some of the topics covered in Open Skies: Allocation of Landing Slots at Hong Kong Airport case study are - Strategic Management Strategies, Marketing, Regulation, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the Open Skies: Allocation of Landing Slots at Hong Kong Airport casestudy better are - – cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , technology disruption, increasing transportation and logistics costs, increasing commodity prices,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Open Skies: Allocation of Landing Slots at Hong Kong Airport
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Open Skies: Allocation of Landing Slots at Hong Kong Airport case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Slots Allocation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Slots Allocation 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport can be done for the following purposes –
1. Strategic planning using facts provided in Open Skies: Allocation of Landing Slots at Hong Kong Airport case study
2. Improving business portfolio management of Slots Allocation
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 Slots Allocation
Strengths Open Skies: Allocation of Landing Slots at Hong Kong Airport | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Slots Allocation in Open Skies: Allocation of Landing Slots at Hong Kong Airport Harvard Business Review case study are -
Diverse revenue streams
– Slots Allocation is present in almost all the verticals within the industry. This has provided firm in Open Skies: Allocation of Landing Slots at Hong Kong Airport 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Slots Allocation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Slots Allocation 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.
Ability to recruit top talent
– Slots Allocation is one of the leading recruiters in the industry. Managers in the Open Skies: Allocation of Landing Slots at Hong Kong Airport are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Slots Allocation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Open Skies: Allocation of Landing Slots at Hong Kong Airport 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.
Superior customer experience
– The customer experience strategy of Slots Allocation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Slots Allocation 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.
Effective Research and Development (R&D)
– Slots Allocation 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Slots Allocation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Slots Allocation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Slots Allocation 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 Ka-Fu Wong, Carola Ramon-Berjano 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.
Highly skilled collaborators
– Slots Allocation has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Open Skies: Allocation of Landing Slots at Hong Kong Airport HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Global Business industry
– Open Skies: Allocation of Landing Slots at Hong Kong Airport firm has clearly differentiated products in the market place. This has enabled Slots Allocation to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Slots Allocation to invest into research and development (R&D) and innovation.
Strong track record of project management
– Slots Allocation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Open Skies: Allocation of Landing Slots at Hong Kong Airport | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Open Skies: Allocation of Landing Slots at Hong Kong Airport are -
High bargaining power of channel partners
– Because of the regulatory requirements, Ka-Fu Wong, Carola Ramon-Berjano suggests that, Slots Allocation 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.
Products dominated business model
– Even though Slots Allocation 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 - Open Skies: Allocation of Landing Slots at Hong Kong Airport should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Slots Allocation is dominated by functional specialists. It is not different from other players in the Global Business segment. Slots Allocation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Slots Allocation to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Slots Allocation 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Slots Allocation 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.
Low market penetration in new markets
– Outside its home market of Slots Allocation, firm in the HBR case study Open Skies: Allocation of Landing Slots at Hong Kong Airport needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Slots Allocation 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Slots Allocation 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. Slots Allocation 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.
No frontier risks strategy
– After analyzing the HBR case study Open Skies: Allocation of Landing Slots at Hong Kong Airport, 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.
Lack of clear differentiation of Slots Allocation products
– To increase the profitability and margins on the products, Slots Allocation needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Open Skies: Allocation of Landing Slots at Hong Kong Airport, it seems that the employees of Slots Allocation 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.
Opportunities Open Skies: Allocation of Landing Slots at Hong Kong Airport | 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport are -
Developing new processes and practices
– Slots Allocation 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, Slots Allocation is facing challenges because of the dominance of functional experts in the organization. Open Skies: Allocation of Landing Slots at Hong Kong Airport 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. Slots Allocation can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Slots Allocation has opened avenues for new revenue streams for the organization in the industry. This can help Slots Allocation to build a more holistic ecosystem as suggested in the Open Skies: Allocation of Landing Slots at Hong Kong Airport case study. Slots Allocation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Slots Allocation can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Slots Allocation can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Slots Allocation can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Slots Allocation can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Open Skies: Allocation of Landing Slots at Hong Kong Airport 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.
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 Slots Allocation in the consumer business. Now Slots Allocation can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Slots Allocation 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 Slots Allocation to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Slots Allocation can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Slots Allocation to increase its market reach. Slots Allocation 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.
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. Slots Allocation 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. Slots Allocation 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.
Threats Open Skies: Allocation of Landing Slots at Hong Kong Airport External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Open Skies: Allocation of Landing Slots at Hong Kong Airport are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High dependence on third party suppliers
– Slots Allocation 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.
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 Slots Allocation.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Slots Allocation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Slots Allocation 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.
Consumer confidence and its impact on Slots Allocation 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 Slots Allocation business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Slots Allocation
– 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 Slots Allocation.
Environmental challenges
– Slots Allocation 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. Slots Allocation can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Technology acceleration in Forth Industrial Revolution
– Slots Allocation has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Slots Allocation 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.
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 Slots Allocation in the Global Business sector and impact the bottomline of the organization.
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. Slots Allocation 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Slots Allocation 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport .
Weighted SWOT Analysis of Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Open Skies: Allocation of Landing Slots at Hong Kong Airport 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 Slots Allocation needs to make to build a sustainable competitive advantage.