Hanjin Heavy Ind. & Const. (97230) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Hanjin Heavy Ind. & Const. (South Korea)

Based on various researches at Oak Spring University , Hanjin Heavy Ind. & Const. is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , technology disruption, increasing energy prices, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, increasing government debt because of Covid-19 spendings, etc

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Introduction to SWOT Analysis of Hanjin Heavy Ind. & Const.

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hanjin Heavy Ind. & Const. can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hanjin Heavy Ind. & Const., and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hanjin Heavy Ind. & Const. 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Hanjin Heavy Ind. & Const. can be done for the following purposes –
1. Strategic planning of Hanjin Heavy Ind. & Const.
2. Improving business portfolio management of Hanjin Heavy Ind. & Const.
3. Assessing feasibility of the new initiative in South Korea
4. Making a Water Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hanjin Heavy Ind. & Const.

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Strengths of Hanjin Heavy Ind. & Const. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hanjin Heavy Ind. & Const. are -

Superior customer experience

– The customer experience strategy of Hanjin Heavy Ind. & Const. in Water Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Water Transportation industry

- digital transformation varies from industry to industry. For Hanjin Heavy Ind. & Const. digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hanjin Heavy Ind. & Const. 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.

Highly skilled collaborators

– Hanjin Heavy Ind. & Const. has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Water Transportation industry. Secondly the value chain collaborators of Hanjin Heavy Ind. & Const. have helped the firm to develop new products and bring them quickly to the marketplace.

Strong track record of project management in the Water Transportation industry

– Hanjin Heavy Ind. & Const. is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Cross disciplinary teams

– Horizontal connected teams at the Hanjin Heavy Ind. & Const. 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.

Training and development

– Hanjin Heavy Ind. & Const. 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.

Low bargaining power of suppliers

– Suppliers of Hanjin Heavy Ind. & Const. in the Transportation sector have low bargaining power. Hanjin Heavy Ind. & Const. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hanjin Heavy Ind. & Const. to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Hanjin Heavy Ind. & Const. emphasize – knowledge, initiative, and innovation.

Operational resilience

– The operational resilience strategy of Hanjin Heavy Ind. & Const. comprises – understanding the underlying the factors in the Water Transportation 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.

High brand equity

– Hanjin Heavy Ind. & Const. has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hanjin Heavy Ind. & Const. to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– Hanjin Heavy Ind. & Const. has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hanjin Heavy Ind. & Const. 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.

Effective Research and Development (R&D)

– Hanjin Heavy Ind. & Const. has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hanjin Heavy Ind. & Const. staying ahead in the Water Transportation industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses of Hanjin Heavy Ind. & Const. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Hanjin Heavy Ind. & Const. are -

Compensation and incentives

– The revenue per employee of Hanjin Heavy Ind. & Const. is just above the Water Transportation 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.

High operating costs

– Compare to the competitors, Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. lucrative customers.

High dependence on Hanjin Heavy Ind. & Const. ‘s star products

– The top 2 products and services of Hanjin Heavy Ind. & Const. still accounts for major business revenue. This dependence on star products in Water Transportation industry has resulted into insufficient focus on developing new products, even though Hanjin Heavy Ind. & Const. has relatively successful track record of launching new products.

Lack of clear differentiation of Hanjin Heavy Ind. & Const. products

– To increase the profitability and margins on the products, Hanjin Heavy Ind. & Const. needs to provide more differentiated products than what it is currently offering in the marketplace.

High cash cycle compare to competitors

Hanjin Heavy Ind. & Const. 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hanjin Heavy Ind. & Const. is slow explore the new channels of communication. These new channels of communication can help Hanjin Heavy Ind. & Const. to provide better information regarding Water Transportation products and services. It can also build an online community to further reach out to potential customers.

No frontier risks strategy

– From the 10K / annual statement of Hanjin Heavy Ind. & Const., it seems that company is thinking out the frontier risks that can impact Water Transportation 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.

Skills based hiring in Water Transportation industry

– The stress on hiring functional specialists at Hanjin Heavy Ind. & Const. 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.

Slow decision making process

– As mentioned earlier in the report, Hanjin Heavy Ind. & Const. 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. Hanjin Heavy Ind. & Const. 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.

Capital Spending Reduction

– Even during the low interest decade, Hanjin Heavy Ind. & Const. 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.

Low market penetration in new markets

– Outside its home market of South Korea, Hanjin Heavy Ind. & Const. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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Hanjin Heavy Ind. & Const. Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Hanjin Heavy Ind. & Const. are -

Developing new processes and practices

– Hanjin Heavy Ind. & Const. 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hanjin Heavy Ind. & Const. 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, Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Hanjin Heavy Ind. & Const. can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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. Hanjin Heavy Ind. & Const. can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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 Hanjin Heavy Ind. & Const. 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.

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. Hanjin Heavy Ind. & Const. 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. Hanjin Heavy Ind. & Const. 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.

Building a culture of innovation

– managers at Hanjin Heavy Ind. & Const. 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 Water Transportation industry.

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 Hanjin Heavy Ind. & Const. in the Water Transportation industry. Now Hanjin Heavy Ind. & Const. can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Hanjin Heavy Ind. & Const. has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Water Transportation sector. This continuous investment in analytics has enabled Hanjin Heavy Ind. & Const. to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hanjin Heavy Ind. & Const. to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Loyalty marketing

– Hanjin Heavy Ind. & Const. 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.

Creating value in data economy

– The success of analytics program of Hanjin Heavy Ind. & Const. has opened avenues for new revenue streams for the organization in Water Transportation industry. This can help Hanjin Heavy Ind. & Const. to build a more holistic ecosystem for Hanjin Heavy Ind. & Const. products in the Water Transportation industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hanjin Heavy Ind. & Const. 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.

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Threats Hanjin Heavy Ind. & Const. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Hanjin Heavy Ind. & Const. are -

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 Hanjin Heavy Ind. & Const. business can come under increasing regulations regarding data privacy, data security, etc.

Technology acceleration in Forth Industrial Revolution

– Hanjin Heavy Ind. & Const. has witnessed rapid integration of technology during Covid-19 in the Water Transportation industry. As one of the leading players in the industry, Hanjin Heavy Ind. & Const. 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Hanjin Heavy Ind. & Const. 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.

Increasing wage structure of Hanjin Heavy Ind. & Const.

– 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 Hanjin Heavy Ind. & Const..

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Hanjin Heavy Ind. & Const. 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. prominent markets.

Consumer confidence and its impact on Hanjin Heavy Ind. & Const. 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.

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.

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 Hanjin Heavy Ind. & Const..

Environmental challenges

– Hanjin Heavy Ind. & Const. 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. Hanjin Heavy Ind. & Const. can take advantage of this fund but it will also bring new competitors in the Water Transportation industry.

Easy access to finance

– Easy access to finance in Water Transportation industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hanjin Heavy Ind. & Const. can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Regulatory challenges

– Hanjin Heavy Ind. & Const. 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.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Hanjin Heavy Ind. & Const. in the Water Transportation sector and impact the bottomline of the organization.

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Weighted SWOT Analysis of Hanjin Heavy Ind. & Const. Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. 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 Hanjin Heavy Ind. & Const. needs to make to build a sustainable competitive advantage.

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