Вы находитесь на странице: 1из 13

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.

Transport and Logistics Market


share 18/19
Advantis
Expo
10% JKH
5% 22%
6% Hermas
6% Finlays
6%
21% Dp logistics
8%
Aitkenspence
16%
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 Frequent changes in fiscal and monetary policy decisions creates
party & Government uncertainty in the business environment discouraging
policies 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 This has a direct impact on companies top and bottom line as
Value of Currency majority of the financial dealings of the company are in foreign
currency.
Expansion in Colombo This facilitate in increasing the throughput of the company
Port and other resulting high revenue growth and potential increase in market
infrastructure Facilities share however current congestion at the Colombo port and
such as Colombo Port under development of other regional ports in sri lanka has
City Project, Expansion resulted in less growth potential in the industry
of Highways and
Expressways
Freight Rate The Shipping industry underwent a difficult period due to wide
Fluctuations. 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 It could be a challenging task for the company maintain a good
employment corporate image while serving the community as a good
opportunities and corporate citizen. Actions taken by the pressure groups within
ensuring community the society can have a direct impact on company reputation and
wellbeing profitability.

Technological Heavy dependence on This has resulted in the Group facing a significant risk, as any
Technology and disruption regardless of the time period during which it prevails
automation 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 The Group has pursued overseas expansions extensively during
market under different the year, changes in the regulatory framework in these countries
legal environments and could pose challenges to long-term investment decisions. New
ensuring compliance to guidelines, laws and regulatory requirements are continuously
the local legal being introduced by relevant governmental bodies and/or
framework could be authorities. Noncompliance with these laws and regulations
challenging 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 Weaknesses

 Wide range of product and service  Over dependence on Principals


portfolio catering to comprehensive
logistic needs.  Huge Capital Outlay

 Divers customer portfolio including  Lack of Presence in developed

number of reputed Multinationals economies


 Expertise in emerging economies and  Low Brand Recall in international
growing global expansion Markets.

 End to end Logistic Services  Lack of Competent workforce.

 Series of Acquisitions, merges,  Lack of funds for new investments


partnerships and joint ventures
 High Leverage
 Wide Network

Opportunities Threats

 Development of Infrastructure such as  Global politics affecting freight rate, oil


ports, expressway, bridges, flyovers etc. prices etc.

 Upcoming Port city projects  Changing competitor landscape

 Tax holidays and tax viewers and BOI  Regulatory requirements and pressure
Concessions granted groups

 Digitisation and development in  Global economic changes such as


Technology currency fluctuation, creating alliances
etc.
 Expansion of International Trade

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 Product development


 Establishment of Sri Lanka’s largest  Advantis Engineering Makes their
distribution hub – Advantis 3PL Plus Mark on Green Tourism with The
Logistics City – in Kotugoda, Ja-Ela Box House, constructed by
in December 2018. converting marine containers to
 This new facility adds 335,000 sq. amusing villas promoting eco-
M ft. of space with 38,000 pallet tourism
a positions and a holding capacity of  Advantis launched an M-commerce
r up to 55,000 CBM to the company’s site named Presto which is a mobile
k warehousing footprint. commerce platform, connecting
e brands to consumers and
t businesses to opportunities
s overseas.

Market Development Diversification Strategy


 Advantis 3pl operation expansion  Advantis is to operate and manage
to India and Bangladesh markets. Inland Container Depot (ICD) and
 TTS is considered as a mini advantis third-party Container Freight
operating in Maldives covering Station (CFS) being developed by
wide range of end to end logistic Trustworthy.ae Group in the Khalifa
solutions in the Maldivian market. Industrial Zone Abu Dhabi.

Product
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 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

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.

Вам также может понравиться