This document provides expert SEO advice for Desklib, an online library for study material. It includes information on the company background, industry analysis, situational analysis, marketing theories, branding, Ansoff model, internationalization, and online activities. The document also offers recommendations and conclusions.
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Executive Summary
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1.Organization Profile and Industry Analysis 1.1Company Background Hayleys Advantis Limited is a fully owned subsidiary of one of the largest conglomerates in Sri Lanka Hayleys PLC and in operation over 6 decades as the Transportation and Logistics arm of the Hayleys Group. Hayleys Advantis Ltd provides a comprehensive tailor made solutions covering entire scope of logistics services in air, land and sea. Despite its operation in Sri Lanka as the market leader Advantis, has today, strategically expanded its portfolio across the Asian Regionand progressively expanding in to the middle eastern region. The company is dedicated to offer wide array of end to end logistic solutions to its clients under 4 main sectors. A Snap shot of the Company’s current Business portfolio
(Hayleys Advantis Ltd Annual Report 2017/2018, 2018) 1.2 Industy Analysis - Porter’s Five Forces Analysis Industry Rivalry
Harleys Advantis owns a 22% of the market share in transport and Logistic industry in Sri Lanka and accounts to 19% of throughput handled by the Colombo Port. The Internal competition of the industry is extremely high due to low differentiation. companies compete with the pricing and quality of services resulting companies to become extremely hard to increase the market share. 22% 21% 16% 8% 6% 6% 6% 5%9% Transport and Logistics Market share 18/19 Advantis Expo JKH Hermas Finlays Dp logistics Aitkenspence Dart Logistics Other (Annual Report 2018/2019, Advantis.world) Entry Barriers Entry Barriers are at moderate level as the technology and infrastructure development of the country has provided a favorable platform for new business models. However, since the industry is a highly regulated industry subject to Tariffs and other regulatory requirements there could be a difficulty in entering the industry along with the increased capital requirement to initiate the business. Bargaining Power of Suppliers.
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Suppliers have very low bargaining power, suppliers such as transport service providers who offer light weight vehicles, trucks cranes, folk lifts etc. Since there is a wide range of small to medium scale suppliers available in the market, they are chosen purely based on the pricing. Bargaining Power of Customers Presence of low differentiation and low switching cost gives the customer high bargaining power to the buyers as there exist a considerable number of reputed players in the industry. However customers prefer to stick with players who deliver faster & Quality Service. Threat of Substitute Products Threat of substitute is low as logistic industry is a fast growing one and offers variety of value added services in different price ranges hence customers do not have much alternative for services provided by the transport and logistic industry. 2. Situational Analysis 2.1 PESTAL Analysis FactorFindingsImpact PoliticalChanges in the Ruling party & Government policies Frequent changes in fiscal and monetary policy decisions creates uncertainty in the business environment discouraging investments within the country. Changes to the tariff rates and direct and indirect taxes has a direct impact on company profitability EconomicalFluctuation in External Value of Currency This has a direct impact on companies top and bottom line as majority of the financial dealings of the company are in foreign currency. Expansion in Colombo Port and other infrastructure Facilities such as Colombo Port City Project, Expansion of Highways and Expressways This facilitate in increasing the throughput of the company resulting high revenue growth and potential increase in market share however current congestion at the Colombo port and under development of other regional ports in sri lanka has resulted in less growth potential in the industry Freight Rate Fluctuations. The Shipping industry underwent a difficult period due to wide consolidation amongst large shipping lines in the world posing various risks and opportunities to the Group. Similarly, the Group’s Freight Management sector revenue has a direct hit from any adverse fluctuations in international freight
rates. SocialGeneration of employment opportunities and ensuring community wellbeing It could be a challenging task for the company maintain a good corporate image while serving the community as a good corporate citizen. Actions taken by the pressure groups within the society can have a direct impact on company reputation and profitability. Technologica l Heavy dependence on Technology and automation This has resulted in the Group facing a significant risk, as any disruption regardless of the time period during which it prevails would have an adverse impact on the ongoing business. At the same time, issues in network systems may cause leakage of confidential information, incomplete transactions, etc affecting company reputation and profitability. LegalEntering to overseas market under different legal environments and ensuring compliance to the local legal framework could be challenging The Group has pursued overseas expansions extensively during the year, changes in the regulatory framework in these countries could pose challenges to long-term investment decisions. New guidelines, laws and regulatory requirements are continuously being introduced by relevant governmental bodies and/or authorities. Noncompliance with these laws and regulations would have harmful impacts on the Group’s image which would limit its ability to pursue new business opportunities while subjecting it to penalty or compensation payments. SWOT Analysis Strengths Widerangeofproductandservice portfoliocateringtocomprehensive logistic needs. Diverscustomerportfolioincluding number of reputed Multinationals Expertise in emerging economies and growing global expansion End to end Logistic Services SeriesofAcquisitions,merges, partnerships and joint ventures Weaknesses Over dependence on Principals Huge Capital Outlay LackofPresenceindeveloped economies LowBrandRecallininternational Markets. Lack of Competent workforce. Lack of funds for new investments High Leverage
Wide Network Opportunities Development of Infrastructure such as ports, expressway, bridges, flyovers etc. Upcoming Port city projects Tax holidays and tax viewers and BOI Concessions granted Digitisationanddevelopmentin Technology Expansion of International Trade Threats Global politics affecting freight rate, oil prices etc. Changing competitor landscape Regulatory requirements and pressure groups Globaleconomicchangessuchas currency fluctuation, creating alliances etc. Marketing theories Segmenting, targeting and branding Successful development and implementation for any global marketing strategy depends on the organizations’ ability to segment its markets so that uniform sets of marketing decisions can be applied to specific customers that exist horizontally (Mentzer, J.T et al ,2004)-govindu 7 Ps Product: As a comprehensive integrated logistics solutions provider, the company covers the entire range of logistics services which covers, Third Party Logistics, Warehousing, Free Zone Logistics, Project Logistics, Logistics related Engineering solutions, Oil & Gas Logistics, Shipping, Freight Forwarding, Ship Operations and Marine Services. Price: Pricing strategies could vary from one sector to another, in general company uses cost plus a fixed margin percentage price or pricing in par with competitors as well.
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Place: Advantis has well equipped modern warehouses fully or partially automated catering to wide array of supply chain needs. Having well networked offices distributed geographically across South East Asian region enables customers easy access. Promotion – As Company mainly caters to the B2B market, it chooses to advertise through its customer relations, seminars & Trade fairs, websites, e-flyers etc. People - Work force at the advantis group are given an exposure and a comprehensive training ensuring the compliance to ISO standards and other quality standards that enables the company to offer quality services to its customers. Physical evidence - having distinctiveness in physical layout through mix of color, temperature, odor. Then distinct logos, brochures and website. Process - hayleys advantis is committed to provide integrated logistics solutions through its wide array of product range which are interconnected. effective information flow is enabled it does all the work from the time a good is shipped and till it reaches the final destination. With proper information recording, information flow, redressal and management of internal as well as external issues. Branding Hayleys Advantis carries the Brand name “Advantis” along with its slogan of “Going Beyond logistics” suggests the wide range of product portfolio offered under the brand name Advantis. It also emphasizes that the brand is committed to ensure that they possess all means to deliver inspired logistic solutions they promise to the clients beyond their expectations. Under the core brand Advantis, there consists 10 sub Brands, covering a wide range of logistic solutions the company offers.
ANSOFF Model It is a 4-cells based basic tool of analysis used for developing marketing strategy. It consists of a planning tool able to help the business development to define its own structure and growth strategy in the future (Ansoff 1957 cited inNavarra, D. & Scaini, L., 2016). Advantis continuously apply different strategies to exploit opportunities arising in the ever growing market in local and global context.
Market Penetration Establishment of Sri Lanka’s largest distribution hub – Advantis 3PL Plus Logistics City – in Kotugoda, Ja-Ela in December 2018. This new facility adds 335,000 sq. ft. of space with 38,000 pallet positions and a holding capacity of up to 55,000 CBM to the company’s warehousing footprint. Product development Advantis Engineering Makes their Mark on Green Tourism with The Box House, constructed by converting marine containers to amusing villas promoting eco- tourism Advantis launched an M-commerce site named Presto which is a mobile commerce platform, connecting brands to consumers and businesses to opportunities overseas. Market Development Advantis 3pl operation expansion to India and Bangladesh markets. TTS is considered as a mini advantis operating in Maldives covering wide range of end to end logistic solutions in the Maldivian market. Diversification Strategy Advantis is to operate and manage Inland Container Depot (ICD) and third-party Container Freight Station (CFS) being developed by Trustworthy.ae Group in the Khalifa Industrial Zone Abu Dhabi. Internationalization–put theory quoting article Advantis in India logiwiz logistics india pvt ltdwas incorporated in India with the aim of expandingits 3PL business to cover the states of Tamil Nadu, Kerala and Karnataka offering warehousing, in-plant management, cold storage and transport management services to large scale clients such as Hindustan unilevers in India a r k e t s Product
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and also to small scale regional clients Utilizing the strength of extensive transportation network and strategically located modern warehousing infrastructure, the company serves to diverse industry verticals utilizing bench-marked technologies and ensure that their clients stay ahead of their game. Also Advantis is competent to provide consultancy services in designing setting up and operating world class distribution facilities. Advantis in Bangladesh Warehousing facility, distribution and third party logistics (3PL) established in Bangladesh provides supply chain management, project logistics and freight forwarding services for multiple industry verticals such as Telecommunications, FMCG, Apparel, F&B, Construction and Pharmaceuticals both in terms of multinational companies and local companies. Advantis In Hongkong Advantis has been offering logistics services in Hong Kong for well over 13 years capturing all freighting services be it in air, land or sea. Advantis has built longstanding relationships with air lines and shipping lines in this ever growing market. Advantis in Maldives Hayleys Advantis has partnered with Arowana Investment (Pvt) Limited in Maldives in forming Total Transport Solutions (Maldives) as a joint venture to engage in the businesses of international freight forwarding, express freight, project logistics solutions, relocation & removal services, liner & feeder services, inter-atoll logistics, bunkering & fuel supplies and yacht & cruise support services in Maldives Advantis inAbu Dhabi Advantis has entered into a landmark deal with Dubai-based Trustworthy.ae Group to operate and manage a state of the art Inland Container Depot (ICD) and third-party Container Freight Station (CFS) being developed in the Khalifa Industrial Zone Abu Dhabi (KIZAD). Advantis had to compete with 7 local and international bidders for this project, which marks its first foray into the Middle Eastern market. Diamond Model- put some theory
Online Activities – Presto.lk Presto Lanka (Private) Limited, a subsidiary of Hayleys Advantis. This M-Commerce platform facilitates trade, empower small and medium sized enterprises, entrepreneurs and multinationals by enabling them to connect on a common marketplace online. Kpi- daraz Recommendation and Conclusion References Anon, Sri Lanka - Hayleys Advantis Limited - Responsive.Hayleys Advantis. Available at: https://www.hayleysadvantis.com/ [Accessed July 16, 2019]. Advantis Annual Report
Anon, Hayleys Advantis to expand Maldives operations with two landing craft. Lanka Business Online. Available at: https://www.lankabusinessonline.com/hayleys-advantis-to-expand-maldives-operations- with-two-landing-craft/ [Accessed July 16, 2019]. De Mel , C., Waidyaratne, R. & Pathirane, J.,NATIONAL EXPORT STRATEGY OF SRI LANKA LOGISTICS STRATEGY, Government of Sri Lanka. Mentzer, J.T., Myers, M.B. & Cheung, M.-S., 2004. Global market segmentation for logistics services.Industrial Marketing Management, 33(1), pp.15–20. Navarra, D. & Scaini, L., 2016. Improvements In The Strategic Use Of The Marketing Matrices Applying Dynamics Parameters Based On Time: A Better Analysis Of Prospect.European Scientific Journal, ESJ, 12(10), p.1.