Category Factors Political: PESTLE and SWOT Analysis

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PESTLE and SWOT Analysis

Category Factors

Political ● Strong and stable economic and legal systems


● Taiwanese government had implemented various measures
● supporting its logistics industry
● Less competition due to relocation to mainland china, Cambodia etc.
● Issues with china
● Restructuring and globalization

Economic ● Deep-water harbors allowing for large container vessels to pass through
● Central location from the rest of Asia and from Europe and North America
● Well-developed transportation system
● providing tax incentives for logistics companies
● integrating different transportation channels
● Economic issues with china

Social ● Decreasing demand for logistic services


● Strong market hold
● Alliances
● Company`s cultural issues
● Resistance to technology No precedence to learn from

Technological ● Supporting the usage


● Development of new technologies
● Vast experience in technology
● Enterprise resource planning business system
● Automation system
● Innovation and cost of innovation

Legal ● deregulating its transportation and relevant sectors

Environmental ● strengthening Taiwan’s infrastructure


HCT Business Issues Strengths Weaknesses

● Innovation ● Company culture


● Technology ● No precedence for Technology
adaptation/testing
● Cost

Opportunities [Expand in land into 4 PL] [Training]


[Coalition formation]
● Less market competition due to migrating
companies

Threats [Use technology and innovation to venture into [Making alliances’]


air transportation]
● Taiwan Road Infrastructure

Porter’s Five Forces of New Market Entrants,


 entry ease/barriers
Competitive Position
 geographical factors
 incumbents resistance
 new entrant strategy
 routes to market
Supplier Power:
Buyer Power,:
 buyer choice
 brand reputation
 buyers size/number
 geographical coverage
 change cost/frequency
 product/service level quality
 product/service
 relationships with customers
importance
 bidding processes/capabilities
 volumes, JIT scheduling

Competitive Rivalry,:
 number and size of firms
 industry size and trends
 fixed v variable cost bases
 product/service ranges
 differentiation, strategy
iv. Corner stones of current strategy

1. Innovation,
2. Technology
3. Alliances]
v. Issues/areas to be covered based on output of above three analysis

1. Company culture,
2. Cost of technology to be covered through innovation,
vi. Future strategy based, its benefits and expected limitations.

1. Capitalize on regulatory concessions,


2. Explore new areas of investment due to migration of companies,
3. Consolidate inland
4. Exploit market competitive advantage of technology and innovation

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