Shin Yang Shipping Corporation Bhd (SYSC) SWOT Analysis / TOWS Matrix / MBA Resources
Water Transportation
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Shin Yang Shipping Corporation Bhd (Malaysia)
Based on various researches at Oak Spring University , Shin Yang Shipping Corporation Bhd is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, wage bills are increasing, there is increasing trade war between United States & China, increasing commodity prices, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Shin Yang Shipping Corporation Bhd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Shin Yang Shipping Corporation Bhd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shin Yang Shipping Corporation Bhd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd can be done for the following purposes –
1. Strategic planning of Shin Yang Shipping Corporation Bhd
2. Improving business portfolio management of Shin Yang Shipping Corporation Bhd
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Water Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shin Yang Shipping Corporation Bhd
Strengths of Shin Yang Shipping Corporation Bhd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shin Yang Shipping Corporation Bhd are -
Successful track record of launching new products
– Shin Yang Shipping Corporation Bhd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shin Yang Shipping Corporation Bhd 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.
Innovation driven organization
– Shin Yang Shipping Corporation Bhd is one of the most innovative firm in Water Transportation sector.
Analytics focus
– Shin Yang Shipping Corporation Bhd 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 Water Transportation 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.
Digital Transformation in Water Transportation industry
- digital transformation varies from industry to industry. For Shin Yang Shipping Corporation Bhd digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shin Yang Shipping Corporation Bhd 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.
Sustainable margins compare to other players in Water Transportation industry
– Shin Yang Shipping Corporation Bhd has clearly differentiated products in the market place. This has enabled Shin Yang Shipping Corporation Bhd to fetch slight price premium compare to the competitors in the Water Transportation industry. The sustainable margins have also helped Shin Yang Shipping Corporation Bhd to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Shin Yang Shipping Corporation Bhd 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
- Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Shin Yang Shipping Corporation Bhd emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Shin Yang Shipping Corporation Bhd is one of the leading players in the Water Transportation 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.
Low bargaining power of suppliers
– Suppliers of Shin Yang Shipping Corporation Bhd in the Transportation sector have low bargaining power. Shin Yang Shipping Corporation Bhd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shin Yang Shipping Corporation Bhd to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Water Transportation
– Shin Yang Shipping Corporation Bhd is one of the leading players in the Water Transportation industry in Malaysia. Over the years it has not only transformed the business landscape in the Water Transportation industry in Malaysia but also across the existing markets. The ability to lead change has enabled Shin Yang Shipping Corporation Bhd in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Shin Yang Shipping Corporation Bhd 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.
High brand equity
– Shin Yang Shipping Corporation Bhd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Shin Yang Shipping Corporation Bhd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses of Shin Yang Shipping Corporation Bhd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shin Yang Shipping Corporation Bhd are -
High bargaining power of channel partners in Water Transportation industry
– because of the regulatory requirements in Malaysia, Shin Yang Shipping Corporation Bhd 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 Water Transportation industry.
High cash cycle compare to competitors
Shin Yang Shipping Corporation Bhd has a high cash cycle compare to other players in the Water Transportation industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Water Transportation industry
– The stress on hiring functional specialists at Shin Yang Shipping Corporation Bhd 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.
Aligning sales with marketing
– From the outside it seems that Shin Yang Shipping Corporation Bhd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Water Transportation industry have deep experience in developing customer relationships. Marketing department at Shin Yang Shipping Corporation Bhd can leverage the sales team experience to cultivate customer relationships as Shin Yang Shipping Corporation Bhd is planning to shift buying processes online.
Interest costs
– Compare to the competition, Shin Yang Shipping Corporation Bhd 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.
Workers concerns about automation
– As automation is fast increasing in the Water Transportation industry, Shin Yang Shipping Corporation Bhd 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.
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 Shin Yang Shipping Corporation Bhd supply chain. Even after few cautionary changes, Shin Yang Shipping Corporation Bhd is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shin Yang Shipping Corporation Bhd vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Shin Yang Shipping Corporation Bhd has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Water Transportation industry over the last five years. Shin Yang Shipping Corporation Bhd 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.
Employees’ less understanding of Shin Yang Shipping Corporation Bhd strategy
– From the outside it seems that the employees of Shin Yang Shipping Corporation Bhd 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.
Capital Spending Reduction
– Even during the low interest decade, Shin Yang Shipping Corporation Bhd 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 Water Transportation industry using digital technology.
High operating costs
– Compare to the competitors, Shin Yang Shipping Corporation Bhd has high operating costs in the Water Transportation industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Shin Yang Shipping Corporation Bhd lucrative customers.
Shin Yang Shipping Corporation Bhd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Shin Yang Shipping Corporation Bhd are -
Creating value in data economy
– The success of analytics program of Shin Yang Shipping Corporation Bhd has opened avenues for new revenue streams for the organization in Water Transportation industry. This can help Shin Yang Shipping Corporation Bhd to build a more holistic ecosystem for Shin Yang Shipping Corporation Bhd products in the Water Transportation industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Water Transportation industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Shin Yang Shipping Corporation Bhd in the Water Transportation industry. Now Shin Yang Shipping Corporation Bhd can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Shin Yang Shipping Corporation Bhd can improve the customer journey of consumers in the Water Transportation 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.
Developing new processes and practices
– Shin Yang Shipping Corporation Bhd can develop new processes and procedures in Water Transportation 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shin Yang Shipping Corporation Bhd can use these opportunities to build new business models that can help the communities that Shin Yang Shipping Corporation Bhd operates in. Secondly it can use opportunities from government spending in Water Transportation sector.
Learning at scale
– Online learning technologies has now opened space for Shin Yang Shipping Corporation Bhd 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shin Yang Shipping Corporation Bhd in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Water Transportation industry, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Shin Yang Shipping Corporation Bhd 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 Water Transportation industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Shin Yang Shipping Corporation Bhd 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. Shin Yang Shipping Corporation Bhd 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Water Transportation industry, but it has also influenced the consumer preferences. Shin Yang Shipping Corporation Bhd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Shin Yang Shipping Corporation Bhd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Shin Yang Shipping Corporation Bhd are -
Stagnating economy with rate increase
– Shin Yang Shipping Corporation Bhd 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 Water Transportation industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd prominent markets.
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 Shin Yang Shipping Corporation Bhd business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Shin Yang Shipping Corporation Bhd
– 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 Shin Yang Shipping Corporation Bhd.
Consumer confidence and its impact on Shin Yang Shipping Corporation Bhd 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 Water Transportation industry and other sectors.
Regulatory challenges
– Shin Yang Shipping Corporation Bhd 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 Water Transportation industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Shin Yang Shipping Corporation Bhd may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Water Transportation sector.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Water Transportation industry are lowering. It can presents Shin Yang Shipping Corporation Bhd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Water Transportation sector.
Technology acceleration in Forth Industrial Revolution
– Shin Yang Shipping Corporation Bhd has witnessed rapid integration of technology during Covid-19 in the Water Transportation industry. As one of the leading players in the industry, Shin Yang Shipping Corporation Bhd needs to keep up with the evolution of technology in the Water Transportation 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.
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. Shin Yang Shipping Corporation Bhd 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shin Yang Shipping Corporation Bhd in Water Transportation industry. The Water Transportation 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.
Shortening product life cycle
– it is one of the major threat that Shin Yang Shipping Corporation Bhd is facing in Water Transportation sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Shin Yang Shipping Corporation Bhd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd 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 Shin Yang Shipping Corporation Bhd needs to make to build a sustainable competitive advantage.
