Entrepreneurial Leadership at Maritime Bus SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Entrepreneurial Leadership at Maritime Bus
An entrepreneur in Atlantic Canada believes he has a five to six year window to capitalize on the growth of his newest venture, Maritime Bus, a passenger transportation and parcel delivery service, before his retirement. Having turned around a business that lost $12 million over the previous eight years in less than six months, he believes he has the opportunity to continue this success. However, he is unsure what strategies to follow to achieve growth: expand the parcel service, partner with other transportation operators to attract more riders, increase marketing efforts or move into Newfoundland and Labrador. He is also unsure about the value of the business and how he can smoothly and profitably transfer his ownership shares to his partner, one or more of his children or an external investor. Any decision needs to be made in consultation with his family.
Authors :: Edward Gamble, Simon Parker, Peter Moroz, Parker Baglole
Swot Analysis of "Entrepreneurial Leadership at Maritime Bus" written by Edward Gamble, Simon Parker, Peter Moroz, Parker Baglole includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maritime Parcel facing as an external strategic factors. Some of the topics covered in Entrepreneurial Leadership at Maritime Bus case study are - Strategic Management Strategies, Financial analysis, Leadership, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Entrepreneurial Leadership at Maritime Bus casestudy better are - – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization,
increasing transportation and logistics costs, increasing energy prices, etc
Introduction to SWOT Analysis of Entrepreneurial Leadership at Maritime Bus
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Entrepreneurial Leadership at Maritime Bus case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maritime Parcel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maritime Parcel 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 Entrepreneurial Leadership at Maritime Bus can be done for the following purposes –
1. Strategic planning using facts provided in Entrepreneurial Leadership at Maritime Bus case study
2. Improving business portfolio management of Maritime Parcel
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Maritime Parcel
Strengths Entrepreneurial Leadership at Maritime Bus | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maritime Parcel in Entrepreneurial Leadership at Maritime Bus Harvard Business Review case study are -
High switching costs
– The high switching costs that Maritime Parcel 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.
Strong track record of project management
– Maritime Parcel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Maritime Parcel has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maritime Parcel to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Maritime Parcel 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 Entrepreneurial Leadership at Maritime Bus - 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 Entrepreneurial Leadership at Maritime Bus 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.
Low bargaining power of suppliers
– Suppliers of Maritime Parcel in the sector have low bargaining power. Entrepreneurial Leadership at Maritime Bus has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Maritime Parcel to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Maritime Parcel is one of the most innovative firm in sector. Manager in Entrepreneurial Leadership at Maritime Bus Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Leadership & Managing People field
– Maritime Parcel 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 Maritime Parcel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Maritime Parcel 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 Entrepreneurial Leadership at Maritime Bus HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Maritime Parcel
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Maritime Parcel does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Maritime Parcel 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.
Superior customer experience
– The customer experience strategy of Maritime Parcel in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Entrepreneurial Leadership at Maritime Bus | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Entrepreneurial Leadership at Maritime Bus are -
High operating costs
– Compare to the competitors, firm in the HBR case study Entrepreneurial Leadership at Maritime Bus 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 Maritime Parcel 's lucrative customers.
Products dominated business model
– Even though Maritime Parcel 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 - Entrepreneurial Leadership at Maritime Bus should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Entrepreneurial Leadership at Maritime Bus, in the dynamic environment Maritime Parcel has struggled to respond to the nimble upstart competition. Maritime Parcel has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Maritime Parcel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Entrepreneurial Leadership at Maritime Bus can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Maritime Parcel 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.
Slow decision making process
– As mentioned earlier in the report, Maritime Parcel 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. Maritime Parcel 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.
High cash cycle compare to competitors
Maritime Parcel has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Entrepreneurial Leadership at Maritime Bus, is just above the industry average. Maritime Parcel 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 Maritime Parcel supply chain. Even after few cautionary changes mentioned in the HBR case study - Entrepreneurial Leadership at Maritime Bus, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Maritime Parcel vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Maritime Parcel 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.
Increasing silos among functional specialists
– The organizational structure of Maritime Parcel is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Maritime Parcel needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Maritime Parcel to focus more on services rather than just following the product oriented approach.
Opportunities Entrepreneurial Leadership at Maritime Bus | 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 Entrepreneurial Leadership at Maritime Bus are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maritime Parcel can use these opportunities to build new business models that can help the communities that Maritime Parcel operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Building a culture of innovation
– managers at Maritime Parcel 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 Leadership & Managing People segment.
Developing new processes and practices
– Maritime Parcel can develop new processes and procedures in Leadership & Managing People 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Maritime Parcel 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. Maritime Parcel 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.
Creating value in data economy
– The success of analytics program of Maritime Parcel has opened avenues for new revenue streams for the organization in the industry. This can help Maritime Parcel to build a more holistic ecosystem as suggested in the Entrepreneurial Leadership at Maritime Bus case study. Maritime Parcel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Maritime Parcel 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 Maritime Parcel to increase its market reach. Maritime Parcel 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Maritime Parcel 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Maritime Parcel 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, Entrepreneurial Leadership at Maritime Bus, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Maritime Parcel 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
– Maritime Parcel can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Entrepreneurial Leadership at Maritime Bus 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.
Leveraging digital technologies
– Maritime Parcel 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.
Loyalty marketing
– Maritime Parcel has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Entrepreneurial Leadership at Maritime Bus External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Entrepreneurial Leadership at Maritime Bus are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Maritime Parcel in the Leadership & Managing People industry. The Leadership & Managing People 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Maritime Parcel can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Maritime Parcel 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 Entrepreneurial Leadership at Maritime Bus .
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 Maritime Parcel.
Stagnating economy with rate increase
– Maritime Parcel 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.
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.
Regulatory challenges
– Maritime Parcel 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 Leadership & Managing People industry regulations.
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 Maritime Parcel in the Leadership & Managing People sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Entrepreneurial Leadership at Maritime Bus, Maritime Parcel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High dependence on third party suppliers
– Maritime Parcel 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
– Maritime Parcel 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. Maritime Parcel can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Maritime Parcel
– 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 Maritime Parcel.
Weighted SWOT Analysis of Entrepreneurial Leadership at Maritime Bus 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 Entrepreneurial Leadership at Maritime Bus 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 Entrepreneurial Leadership at Maritime Bus 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 Entrepreneurial Leadership at Maritime Bus 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 Entrepreneurial Leadership at Maritime Bus 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 Maritime Parcel needs to make to build a sustainable competitive advantage.
