Malaysia Marine and Heavy Eng (MHEB) SWOT Analysis / TOWS Matrix / MBA Resources
Construction Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Malaysia Marine and Heavy Eng (Malaysia)
Based on various researches at Oak Spring University , Malaysia Marine and Heavy Eng is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models,
increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Malaysia Marine and Heavy Eng
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Malaysia Marine and Heavy Eng can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Malaysia Marine and Heavy Eng, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng can be done for the following purposes –
1. Strategic planning of Malaysia Marine and Heavy Eng
2. Improving business portfolio management of Malaysia Marine and Heavy Eng
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Malaysia Marine and Heavy Eng
Strengths of Malaysia Marine and Heavy Eng | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Malaysia Marine and Heavy Eng are -
Innovation driven organization
– Malaysia Marine and Heavy Eng is one of the most innovative firm in Construction Services sector.
Ability to recruit top talent
– Malaysia Marine and Heavy Eng is one of the leading players in the Construction Services industry in Malaysia. It is in a position to attract the best talent available in Malaysia. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Construction Services industry
– Malaysia Marine and Heavy Eng has clearly differentiated products in the market place. This has enabled Malaysia Marine and Heavy Eng to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Malaysia Marine and Heavy Eng to invest into research and development (R&D) and innovation.
Organizational Resilience of Malaysia Marine and Heavy Eng
– The covid-19 pandemic has put organizational resilience at the centre of everthing Malaysia Marine and Heavy Eng does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Malaysia Marine and Heavy Eng has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Malaysia Marine and Heavy Eng staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Malaysia Marine and Heavy Eng digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Malaysia Marine and Heavy Eng 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.
Successful track record of launching new products
– Malaysia Marine and Heavy Eng has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Malaysia Marine and Heavy Eng 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.
Cross disciplinary teams
– Horizontal connected teams at the Malaysia Marine and Heavy Eng 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.
Learning organization
- Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Malaysia Marine and Heavy Eng emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Construction Services industry
– Malaysia Marine and Heavy Eng is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Construction Services
– Malaysia Marine and Heavy Eng is one of the leading players in the Construction Services industry in Malaysia. Over the years it has not only transformed the business landscape in the Construction Services industry in Malaysia but also across the existing markets. The ability to lead change has enabled Malaysia Marine and Heavy Eng in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Malaysia Marine and Heavy Eng 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 Construction Services industry. The technology infrastructure of Malaysia 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.
Weaknesses of Malaysia Marine and Heavy Eng | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Malaysia Marine and Heavy Eng are -
No frontier risks strategy
– From the 10K / annual statement of Malaysia Marine and Heavy Eng, it seems that company is thinking out the frontier risks that can impact Construction Services industry. 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.
High dependence on Malaysia Marine and Heavy Eng ‘s star products
– The top 2 products and services of Malaysia Marine and Heavy Eng still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Malaysia Marine and Heavy Eng has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Malaysia, Malaysia Marine and Heavy Eng needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Malaysia Marine and Heavy Eng has some of the most successful models in the Construction Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Malaysia Marine and Heavy Eng should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, Malaysia Marine and Heavy Eng has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Malaysia Marine and Heavy Eng lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Malaysia Marine and Heavy Eng 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 Construction Services industry using digital technology.
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 Malaysia Marine and Heavy Eng supply chain. Even after few cautionary changes, Malaysia Marine and Heavy Eng is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Malaysia Marine and Heavy Eng vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Malaysia Marine and Heavy Eng has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Malaysia Marine and Heavy Eng 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.
Lack of clear differentiation of Malaysia Marine and Heavy Eng products
– To increase the profitability and margins on the products, Malaysia Marine and Heavy Eng needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– From the outside it seems that Malaysia Marine and Heavy Eng needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Malaysia Marine and Heavy Eng can leverage the sales team experience to cultivate customer relationships as Malaysia Marine and Heavy Eng is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative at Malaysia Marine and Heavy Eng, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Malaysia Marine and Heavy Eng has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Malaysia Marine and Heavy Eng Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Malaysia Marine and Heavy Eng are -
Learning at scale
– Online learning technologies has now opened space for Malaysia Marine and Heavy Eng 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.
Better consumer reach
– The expansion of the 5G network will help Malaysia Marine and Heavy Eng to increase its market reach. Malaysia Marine and Heavy Eng 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.
Leveraging digital technologies
– Malaysia Marine and Heavy Eng 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.
Building a culture of innovation
– managers at Malaysia Marine and Heavy Eng 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 Construction Services industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, Malaysia Marine and Heavy Eng 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Malaysia Marine and Heavy Eng 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. Malaysia Marine and Heavy Eng 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Malaysia Marine and Heavy Eng in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Construction Services industry, but it has also influenced the consumer preferences. Malaysia Marine and Heavy Eng can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Malaysia Marine and Heavy Eng can use these opportunities to build new business models that can help the communities that Malaysia Marine and Heavy Eng operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Manufacturing automation
– Malaysia Marine and Heavy Eng can use the latest technology developments to improve its manufacturing and designing process in Construction Services 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.
Use of Bitcoin and other crypto currencies for transactions in Construction Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Malaysia Marine and Heavy Eng in the Construction Services industry. Now Malaysia Marine and Heavy Eng can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Malaysia Marine and Heavy Eng can improve the customer journey of consumers in the Construction Services industry by using analytics and artificial intelligence. It 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.
Using analytics as competitive advantage
– Malaysia Marine and Heavy Eng has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Construction Services sector. This continuous investment in analytics has enabled Malaysia Marine and Heavy Eng to build a competitive advantage using analytics. The analytics driven competitive advantage can help Malaysia Marine and Heavy Eng to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Malaysia Marine and Heavy Eng External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Malaysia Marine and Heavy Eng 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.
Stagnating economy with rate increase
– Malaysia Marine and Heavy Eng 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 Construction Services industry.
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 Malaysia Marine and Heavy Eng.
Technology acceleration in Forth Industrial Revolution
– Malaysia Marine and Heavy Eng has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Malaysia Marine and Heavy Eng needs to keep up with the evolution of technology in the Construction Services 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 Malaysia Marine and Heavy Eng business can come under increasing regulations regarding data privacy, data security, etc.
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. Malaysia Marine and Heavy Eng needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Malaysia Marine and Heavy Eng with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Shortening product life cycle
– it is one of the major threat that Malaysia Marine and Heavy Eng is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Malaysia Marine and Heavy Eng may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Construction Services sector.
Increasing wage structure of Malaysia Marine and Heavy Eng
– 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 Malaysia Marine and Heavy Eng.
Consumer confidence and its impact on Malaysia Marine and Heavy Eng 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 Construction Services industry and other sectors.
Easy access to finance
– Easy access to finance in Construction Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Malaysia Marine and Heavy Eng 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, Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng prominent markets.
Weighted SWOT Analysis of Malaysia Marine and Heavy Eng Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng 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 Malaysia Marine and Heavy Eng needs to make to build a sustainable competitive advantage.