Chu Kong Shipping Enterprises (560) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Chu Kong Shipping Enterprises (Hong Kong)

Based on various researches at Oak Spring University , Chu Kong Shipping Enterprises is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, increasing energy prices, challanges to central banks by blockchain based private currencies, geopolitical disruptions, wage bills are increasing, increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of Chu Kong Shipping Enterprises

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Chu Kong Shipping Enterprises can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chu Kong Shipping Enterprises, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises can be done for the following purposes –
1. Strategic planning of Chu Kong Shipping Enterprises
2. Improving business portfolio management of Chu Kong Shipping Enterprises
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Water Transportation sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chu Kong Shipping Enterprises

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Strengths of Chu Kong Shipping Enterprises | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Chu Kong Shipping Enterprises are -

Diverse revenue streams

– Chu Kong Shipping Enterprises is present in almost all the verticals within the Water Transportation industry. This has provided Chu Kong Shipping Enterprises a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Sustainable margins compare to other players in Water Transportation industry

– Chu Kong Shipping Enterprises has clearly differentiated products in the market place. This has enabled Chu Kong Shipping Enterprises to fetch slight price premium compare to the competitors in the Water Transportation industry. The sustainable margins have also helped Chu Kong Shipping Enterprises to invest into research and development (R&D) and innovation.

Ability to lead change in Water Transportation

– Chu Kong Shipping Enterprises is one of the leading players in the Water Transportation industry in Hong Kong. Over the years it has not only transformed the business landscape in the Water Transportation industry in Hong Kong but also across the existing markets. The ability to lead change has enabled Chu Kong Shipping Enterprises in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Cross disciplinary teams

– Horizontal connected teams at the Chu Kong Shipping Enterprises 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.

Effective Research and Development (R&D)

– Chu Kong Shipping Enterprises has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Chu Kong Shipping Enterprises 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.

Organizational Resilience of Chu Kong Shipping Enterprises

– The covid-19 pandemic has put organizational resilience at the centre of everthing Chu Kong Shipping Enterprises does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

High switching costs

– The high switching costs that Chu Kong Shipping Enterprises 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.

Learning organization

- Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Chu Kong Shipping Enterprises emphasize – knowledge, initiative, and innovation.

Highly skilled collaborators

– Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises have helped the firm to develop new products and bring them quickly to the marketplace.

Digital Transformation in Water Transportation industry

- digital transformation varies from industry to industry. For Chu Kong Shipping Enterprises digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Chu Kong Shipping Enterprises 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.

Analytics focus

– Chu Kong Shipping Enterprises 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 Hong Kong is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Superior customer experience

– The customer experience strategy of Chu Kong Shipping Enterprises in Water Transportation industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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Weaknesses of Chu Kong Shipping Enterprises | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Chu Kong Shipping Enterprises are -

Products dominated business model

– Even though Chu Kong Shipping Enterprises has some of the most successful models in the Water Transportation industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Chu Kong Shipping Enterprises should strive to include more intangible value offerings along with its core products and services.

Workers concerns about automation

– As automation is fast increasing in the Water Transportation industry, Chu Kong Shipping Enterprises 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.

Skills based hiring in Water Transportation industry

– The stress on hiring functional specialists at Chu Kong Shipping Enterprises 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 to harness new channels of communication

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

Lack of clear differentiation of Chu Kong Shipping Enterprises products

– To increase the profitability and margins on the products, Chu Kong Shipping Enterprises needs to provide more differentiated products than what it is currently offering in the marketplace.

No frontier risks strategy

– From the 10K / annual statement of Chu Kong Shipping Enterprises, 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.

Increasing silos among functional specialists

– The organizational structure of Chu Kong Shipping Enterprises is dominated by functional specialists. It is not different from other players in the Water Transportation industry, but Chu Kong Shipping Enterprises needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Chu Kong Shipping Enterprises to focus more on services in the Water Transportation industry rather than just following the product oriented approach.

Low market penetration in new markets

– Outside its home market of Hong Kong, Chu Kong Shipping Enterprises needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Ability to respond to the competition

– As the decision making is very deliberative at Chu Kong Shipping Enterprises, in the dynamic environment of Water Transportation industry it has struggled to respond to the nimble upstart competition. Chu Kong Shipping Enterprises has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners in Water Transportation industry

– because of the regulatory requirements in Hong Kong, Chu Kong Shipping Enterprises 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.

Compensation and incentives

– The revenue per employee of Chu Kong Shipping Enterprises 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.

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Chu Kong Shipping Enterprises Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Chu Kong Shipping Enterprises are -

Better consumer reach

– The expansion of the 5G network will help Chu Kong Shipping Enterprises to increase its market reach. Chu Kong Shipping Enterprises 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.

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. Chu Kong Shipping Enterprises can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chu Kong Shipping Enterprises to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Chu Kong Shipping Enterprises to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

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

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. Chu Kong Shipping Enterprises 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. Chu Kong Shipping Enterprises 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.

Using analytics as competitive advantage

– Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises to build a competitive advantage using analytics. The analytics driven competitive advantage can help Chu Kong Shipping Enterprises to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Learning at scale

– Online learning technologies has now opened space for Chu Kong Shipping Enterprises 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Creating value in data economy

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

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. Chu Kong Shipping Enterprises can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Developing new processes and practices

– Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Chu Kong Shipping Enterprises can use these opportunities to build new business models that can help the communities that Chu Kong Shipping Enterprises operates in. Secondly it can use opportunities from government spending in Water Transportation sector.

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Threats Chu Kong Shipping Enterprises External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Chu Kong Shipping Enterprises are -

Increasing wage structure of Chu Kong Shipping Enterprises

– 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 Chu Kong Shipping Enterprises.

Stagnating economy with rate increase

– Chu Kong Shipping Enterprises 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Chu Kong Shipping Enterprises 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.

High dependence on third party suppliers

– Chu Kong Shipping Enterprises high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

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 Chu Kong Shipping Enterprises.

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 Chu Kong Shipping Enterprises business can come under increasing regulations regarding data privacy, data security, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Chu Kong Shipping Enterprises 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.

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. Chu Kong Shipping Enterprises needs to understand the core reasons impacting the Water Transportation industry. This will help it in building a better workplace.

Environmental challenges

– Chu Kong Shipping Enterprises 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. Chu Kong Shipping Enterprises can take advantage of this fund but it will also bring new competitors in the Water Transportation industry.

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.

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.

Regulatory challenges

– Chu Kong Shipping Enterprises 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.

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. Chu Kong Shipping Enterprises can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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Weighted SWOT Analysis of Chu Kong Shipping Enterprises Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises 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 Chu Kong Shipping Enterprises needs to make to build a sustainable competitive advantage.

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