Hayleys Advantis: In-depth Analysis of Logistics Company and Industry

This report provides a comprehensive analysis of Hayleys Advantis Limited, a prominent logistics and transportation company and a subsidiary of Hayleys PLC in Sri Lanka. The report begins with an executive summary and company background, highlighting Advantis's market leadership and expansion across Asia and the Middle East. It then delves into an industry analysis using Porter's Five Forces, assessing the competitive landscape, entry barriers, supplier and customer power, and the threat of substitutes. A detailed PESTAL analysis examines the political, economic, social, technological, and legal factors influencing the company. The report also includes a SWOT analysis to evaluate Advantis's strengths, weaknesses, opportunities, and threats. Furthermore, it explores marketing theories, including the 7 Ps and branding strategies, and applies the Ansoff matrix to assess market penetration, product development, market development, and diversification strategies. Finally, the report examines online activities, such as Presto.lk, and provides a conclusion and recommendations.

Executive Summary

1. Organization Profile and Industry Analysis
1.1 Company 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 Region and 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.

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
Factor Findings Impact
Political Changes 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
Economical Fluctuation 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.
Social Generation 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.
Legal Entering 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
 Wide range of product and service
portfolio catering to comprehensive
logistic needs.
 Divers customer portfolio including
number of reputed Multinationals
 Expertise in emerging economies and
growing global expansion
 End to end Logistic Services
 Series of Acquisitions, merges,
partnerships and joint ventures
Weaknesses
 Over dependence on Principals
 Huge Capital Outlay
 Lack of Presence in developed
economies
 Low Brand Recall in international
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
 Digitisation and development in
Technology
 Expansion of International Trade
Threats
 Global politics affecting freight rate, oil
prices etc.
 Changing competitor landscape
 Regulatory requirements and pressure
groups
 Global economic changes such as
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.

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 in Navarra, 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 ltd was incorporated in India with the aim of expanding its 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

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 in Abu 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