SWOT and Porter’s Five Force Analysis on Transland Shipping Group
SWOT Analysis
Sustaining the internal and operational environment of the organization is also important to determine the necessary strategies the organization should implemented. Within the SWOT analysis, the organization has a responsibility is maintaining or enhancing the identified strengths, recognize and test the opportunities, and then reduce or if possible eliminating the weaknesses and threats in the operation.
Strengths
Transland Shipping keeps the business with the professionalism and integrity by providing measurement in the confidential accounts of the customers. The professionalism arrives in their dedication to meet the job deadline and handling the other items. In addition the quality and reliability is also emphasized because of their logistics that aids the organization in managing the information. With all of these strengths, the organization can manage the competitive environment.
Weaknesses
There is an identified declination in the operating margin which entails to the increase in the cost incurred in the transaction. For such the high tax rates implemented by other countries creates the declination of the services. In addition, there is a limited investor confidence which is also identified among the other competitors.
Opportunities
The organization has opportunities in their warehouse management, just-in-time delivery process, transport and services, and even in freight management. Transland has a knowledge-driven logistics which is the foundation for their services. Because of the opportunities provided by the logistics, the approach in the infrastructure is versatile, expanding and ever improving service structure. In addition, the people can also receive the latest information technologies to ensure a strong competitive edge that adds to their credibility in shipping services.
Threats
There is a growing threat in terms of pulling of the accounts once created by the clients or rejecting the services that the organization already scheduled. If there is a continuous flow in this kind of behavior, there will be a slowdown in terms of sales. In addition, the macroeconomic indicators like the foreign currency are difficult to assess because of the instability in the currency in other countries.
The Five Forces of Competitive Advantage
The idea of gaining the competitive advantage is based on the position that a firm occupies against its competitors. A business that had the advantage among the competitors can surpass the expected revenue and had a possibility to be the leading firm in the business sector or industry. Many forms of competitive advantage cannot be sustained indefinitely because the promise of economic rents invites competitors to duplicate the competitive advantage held by any one firm. Accordingly, a firm possesses a sustainable competitive advantage when its value-creating processes and position have not been able to be duplicated or imitated by other firms.
Bargaining power of suppliers
The suppliers in this kind of industry are clearly the client and who can create a significant influence on the competitiveness of an industry. The transactions being held between them is a product of the organization.
Bargaining power of customers
Since the customers are the source of revenue in an industry, they are of course key in determining its overall attractiveness. The level of information available to them, their price sensitivity, geographic concentration, and switching costs will affect the revenue a competitor in the market can expect to receive.
Threat of substitute products
There are other services in the warehousing and delivery/shipping services that can serve the demand. However, because of the large investment involved in the industry, there is a little threat that can be found in terms of substitutes.
Potential entrants
The entry in the potential is in the high degree because of the requirements such as space utilization, material handling, data collection and others. The warehousing and other associated operation should also have to pass in the legal the regulations.
Industry rivals
The players that make up the industry makes the competition for market share. Factors that determine the level of attractiveness include the degree of rivalry between players, the degree of complexity involved, economies of scale enjoyed by existing players, and the level of investment needed to become a viable competitor. However, within this kind of business, the rivals or competitors indicated in a little degree. Like the substitutes, the shipping group is not threatened because of the large investment and needs for innovative logistics and other technical support.
Conclusion
Within the industry, an organization needs to consult both internal and external environment in order to understand and determine the position of the business. With the help of SWOT analysis and Porter’s Five Force analysis, the Transland Shipping Group is expected to improve and create differences in their business operations.
Credit:ivythesis.typepad.com
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