See Hup Consolidated Bhd (SCHB) SWOT Analysis / TOWS Matrix / MBA Resources
Trucking
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for See Hup Consolidated Bhd (Malaysia)
Based on various researches at Oak Spring University , See Hup Consolidated Bhd is operating in a macro-environment that has been destablized by – increasing energy prices, technology disruption, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, geopolitical disruptions, central banks are concerned over increasing inflation,
there is backlash against globalization, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of See Hup Consolidated Bhd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that See Hup Consolidated Bhd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the See Hup Consolidated Bhd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which See Hup Consolidated 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 See Hup Consolidated Bhd can be done for the following purposes –
1. Strategic planning of See Hup Consolidated Bhd
2. Improving business portfolio management of See Hup Consolidated Bhd
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Trucking sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of See Hup Consolidated Bhd
Strengths of See Hup Consolidated Bhd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of See Hup Consolidated Bhd are -
Sustainable margins compare to other players in Trucking industry
– See Hup Consolidated Bhd has clearly differentiated products in the market place. This has enabled See Hup Consolidated Bhd to fetch slight price premium compare to the competitors in the Trucking industry. The sustainable margins have also helped See Hup Consolidated Bhd to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– See Hup Consolidated Bhd has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Trucking industry. Secondly the value chain collaborators of See Hup Consolidated Bhd have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the See Hup Consolidated 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.
Operational resilience
– The operational resilience strategy of See Hup Consolidated Bhd comprises – understanding the underlying the factors in the Trucking 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.
Learning organization
- See Hup Consolidated 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 See Hup Consolidated Bhd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at See Hup Consolidated Bhd emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Trucking industry
– See Hup Consolidated Bhd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of See Hup Consolidated Bhd in Trucking industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– See Hup Consolidated Bhd has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled See Hup Consolidated Bhd to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– See Hup Consolidated Bhd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. See Hup Consolidated 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.
Low bargaining power of suppliers
– Suppliers of See Hup Consolidated Bhd in the Transportation sector have low bargaining power. See Hup Consolidated Bhd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps See Hup Consolidated Bhd to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– See Hup Consolidated Bhd has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – See Hup Consolidated Bhd staying ahead in the Trucking industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– See Hup Consolidated Bhd has one of the best training and development program in Transportation industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses of See Hup Consolidated Bhd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of See Hup Consolidated Bhd are -
Need for greater diversity
– See Hup Consolidated Bhd has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, See Hup Consolidated 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 Trucking industry using digital technology.
Products dominated business model
– Even though See Hup Consolidated Bhd has some of the most successful models in the Trucking industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. See Hup Consolidated Bhd should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners in Trucking industry
– because of the regulatory requirements in Malaysia, See Hup Consolidated 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 Trucking industry.
Workers concerns about automation
– As automation is fast increasing in the Trucking industry, See Hup Consolidated 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.
Employees’ less understanding of See Hup Consolidated Bhd strategy
– From the outside it seems that the employees of See Hup Consolidated 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.
Aligning sales with marketing
– From the outside it seems that See Hup Consolidated Bhd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Trucking industry have deep experience in developing customer relationships. Marketing department at See Hup Consolidated Bhd can leverage the sales team experience to cultivate customer relationships as See Hup Consolidated Bhd is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Malaysia, See Hup Consolidated Bhd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As See Hup Consolidated Bhd is one of the leading players in the Trucking industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Trucking industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, See Hup Consolidated Bhd is slow explore the new channels of communication. These new channels of communication can help See Hup Consolidated Bhd to provide better information regarding Trucking products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of See Hup Consolidated Bhd is dominated by functional specialists. It is not different from other players in the Trucking industry, but See Hup Consolidated Bhd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help See Hup Consolidated Bhd to focus more on services in the Trucking industry rather than just following the product oriented approach.
See Hup Consolidated Bhd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of See Hup Consolidated Bhd are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, See Hup Consolidated Bhd is facing challenges because of the dominance of functional experts in the organization. See Hup Consolidated Bhd can utilize new technology in the field of Trucking industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Leveraging digital technologies
– See Hup Consolidated Bhd 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.
Better consumer reach
– The expansion of the 5G network will help See Hup Consolidated Bhd to increase its market reach. See Hup Consolidated Bhd 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, See Hup Consolidated Bhd can use these opportunities to build new business models that can help the communities that See Hup Consolidated Bhd operates in. Secondly it can use opportunities from government spending in Trucking sector.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Trucking industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. See Hup Consolidated 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. See Hup Consolidated 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, See Hup Consolidated 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 See Hup Consolidated 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for See Hup Consolidated 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 Trucking industry, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of See Hup Consolidated Bhd has opened avenues for new revenue streams for the organization in Trucking industry. This can help See Hup Consolidated Bhd to build a more holistic ecosystem for See Hup Consolidated Bhd products in the Trucking industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– See Hup Consolidated 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.
Manufacturing automation
– See Hup Consolidated Bhd can use the latest technology developments to improve its manufacturing and designing process in Trucking 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.
Buying journey improvements
– See Hup Consolidated Bhd can improve the customer journey of consumers in the Trucking 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
– See Hup Consolidated Bhd can develop new processes and procedures in Trucking 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.
Use of Bitcoin and other crypto currencies for transactions in Trucking industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for See Hup Consolidated Bhd in the Trucking industry. Now See Hup Consolidated Bhd can target international markets with far fewer capital restrictions requirements than the existing system.
Threats See Hup Consolidated Bhd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of See Hup Consolidated Bhd are -
Technology acceleration in Forth Industrial Revolution
– See Hup Consolidated Bhd has witnessed rapid integration of technology during Covid-19 in the Trucking industry. As one of the leading players in the industry, See Hup Consolidated Bhd needs to keep up with the evolution of technology in the Trucking 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for See Hup Consolidated Bhd in Trucking industry. The Trucking 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.
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 See Hup Consolidated Bhd business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Trucking industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. See Hup Consolidated Bhd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. See Hup Consolidated 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, See Hup Consolidated 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 Trucking sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, See Hup Consolidated 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 See Hup Consolidated Bhd 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.
Environmental challenges
– See Hup Consolidated Bhd 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. See Hup Consolidated Bhd can take advantage of this fund but it will also bring new competitors in the Trucking industry.
Consumer confidence and its impact on See Hup Consolidated 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 Trucking industry and other sectors.
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. See Hup Consolidated Bhd needs to understand the core reasons impacting the Trucking industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that See Hup Consolidated Bhd is facing in Trucking sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of See Hup Consolidated Bhd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at See Hup Consolidated 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 See Hup Consolidated 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 See Hup Consolidated 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 See Hup Consolidated 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 See Hup Consolidated Bhd needs to make to build a sustainable competitive advantage.
