Globe International Carriers (GLOR) SWOT Analysis / TOWS Matrix / MBA Resources
Railroads
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Globe International Carriers (India)
Based on various researches at Oak Spring University , Globe International Carriers is operating in a macro-environment that has been destablized by – technology disruption, increasing commodity prices, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, there is backlash against globalization, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, wage bills are increasing, etc
Introduction to SWOT Analysis of Globe International Carriers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Globe International Carriers can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Globe International Carriers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Globe International Carriers 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 Globe International Carriers can be done for the following purposes –
1. Strategic planning of Globe International Carriers
2. Improving business portfolio management of Globe International Carriers
3. Assessing feasibility of the new initiative in India
4. Making a Railroads sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Globe International Carriers
Strengths of Globe International Carriers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Globe International Carriers are -
Analytics focus
– Globe International Carriers 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 Railroads industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Globe International Carriers in Railroads industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Railroads
– Globe International Carriers is one of the leading players in the Railroads industry in India. Over the years it has not only transformed the business landscape in the Railroads industry in India but also across the existing markets. The ability to lead change has enabled Globe International Carriers in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Globe International Carriers in the Transportation sector have low bargaining power. Globe International Carriers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Globe International Carriers to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy of Globe International Carriers comprises – understanding the underlying the factors in the Railroads 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.
Digital Transformation in Railroads industry
- digital transformation varies from industry to industry. For Globe International Carriers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Globe International Carriers has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Globe International Carriers is one of the most innovative firm in Railroads sector.
Ability to recruit top talent
– Globe International Carriers is one of the leading players in the Railroads industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Railroads industry
– Globe International Carriers has clearly differentiated products in the market place. This has enabled Globe International Carriers to fetch slight price premium compare to the competitors in the Railroads industry. The sustainable margins have also helped Globe International Carriers to invest into research and development (R&D) and innovation.
Strong track record of project management in the Railroads industry
– Globe International Carriers 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
– Globe International Carriers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Globe International Carriers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Globe International Carriers 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 Globe International Carriers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Globe International Carriers emphasize – knowledge, initiative, and innovation.
Weaknesses of Globe International Carriers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Globe International Carriers are -
High operating costs
– Compare to the competitors, Globe International Carriers has high operating costs in the Railroads industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Globe International Carriers lucrative customers.
High cash cycle compare to competitors
Globe International Carriers has a high cash cycle compare to other players in the Railroads industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 Globe International Carriers supply chain. Even after few cautionary changes, Globe International Carriers is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Globe International Carriers vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of Globe International Carriers is just above the Railroads industry average. It 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.
Ability to respond to the competition
– As the decision making is very deliberative at Globe International Carriers, in the dynamic environment of Railroads industry it has struggled to respond to the nimble upstart competition. Globe International Carriers 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, Globe International Carriers is slow explore the new channels of communication. These new channels of communication can help Globe International Carriers to provide better information regarding Railroads products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Globe International Carriers products
– To increase the profitability and margins on the products, Globe International Carriers needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring in Railroads industry
– The stress on hiring functional specialists at Globe International Carriers 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.
Capital Spending Reduction
– Even during the low interest decade, Globe International Carriers 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 Railroads industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Globe International Carriers is dominated by functional specialists. It is not different from other players in the Railroads industry, but Globe International Carriers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Globe International Carriers to focus more on services in the Railroads industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Railroads industry, Globe International Carriers 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.
Globe International Carriers Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Globe International Carriers are -
Leveraging digital technologies
– Globe International Carriers 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.
Learning at scale
– Online learning technologies has now opened space for Globe International Carriers 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.
Developing new processes and practices
– Globe International Carriers can develop new processes and procedures in Railroads 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.
Loyalty marketing
– Globe International Carriers 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.
Manufacturing automation
– Globe International Carriers can use the latest technology developments to improve its manufacturing and designing process in Railroads sector. 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.
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. Globe International Carriers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Globe International Carriers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Globe International Carriers 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 Globe International Carriers to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Globe International Carriers 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 Globe International Carriers 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 Globe International Carriers 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 Globe International Carriers to increase its market reach. Globe International Carriers 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Globe International Carriers can use these opportunities to build new business models that can help the communities that Globe International Carriers operates in. Secondly it can use opportunities from government spending in Railroads sector.
Creating value in data economy
– The success of analytics program of Globe International Carriers has opened avenues for new revenue streams for the organization in Railroads industry. This can help Globe International Carriers to build a more holistic ecosystem for Globe International Carriers products in the Railroads industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Globe International Carriers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Globe International Carriers are -
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. Globe International Carriers 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.
Technology acceleration in Forth Industrial Revolution
– Globe International Carriers has witnessed rapid integration of technology during Covid-19 in the Railroads industry. As one of the leading players in the industry, Globe International Carriers needs to keep up with the evolution of technology in the Railroads 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Globe International Carriers 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 Globe International Carriers prominent markets.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Railroads industry are lowering. It can presents Globe International Carriers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Railroads sector.
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.
Regulatory challenges
– Globe International Carriers 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 Railroads industry regulations.
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. Globe International Carriers needs to understand the core reasons impacting the Railroads industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Globe International Carriers is facing in Railroads sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Railroads industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Globe International Carriers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Globe International Carriers may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Railroads sector.
Environmental challenges
– Globe International Carriers 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. Globe International Carriers can take advantage of this fund but it will also bring new competitors in the Railroads industry.
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 Globe International Carriers business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Globe International Carriers Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Globe International Carriers 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 Globe International Carriers 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 Globe International Carriers 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 Globe International Carriers 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 Globe International Carriers needs to make to build a sustainable competitive advantage.