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Competing with Southeast Asia: A Strategic Plan
Too often, I hear shops speak of overseas manufacturers as if there is nothing they can do to establish a competitive advantage. While SE Asia and other areas of the globe present a new challenge to US shops, success has not become an impossibility. It is vital that today's North American manufacturer carefully analyze the market and capitalize on all available advantages. SWOT (Strength, Weakness, Opportunity, Threat) analysis provides a particularly effective tool for taking inventory of your shop's position and maximizing your potential for profit.
Below you will find a SWOT matrix that I've completed that compares the advantages and disadvantages of the typical American job shop in relation to SE Asia. At the bottom of this page, you can download a copy of my original paper explaining the usefulness of SWOT analysis. You can also download a worksheet to help you start and complete your own, personalized SWOT analysis. By recognizing where you're strong, you'll discover the best areas to focus your efforts and enjoy continued success in this global marketplace.
Harry Moser
GF AgieCharmilles
SE Asia SWOT Matrix
| STRENGTHS |
WEAKNESSES |
| • US/Local - visits, freight, duty |
• Labor Rates/Total Compensation -
direct and indirect |
| • 'Same' Time Zone |
• Skilled Labor Availability |
| • Common Language |
• US Government Regulations |
| • Common Measurement System |
| • Credibility Through Visibility |
| • Closer Relationships |
| • Subject To Enforceable Product Liability And Confidentiality Regarding Intellectual Property |
| NEUTRAL FACTORS |
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| • Capital Costs - machine prices and interest rates |
| • Material Costs |
| OPPORTUNITIES |
THREATS |
| • Growth Markets - e.g. medical |
• Chinese Currency Not Revalued |
| • Markets With Natural Preference For Domestic Sources - e.g. medical, defense, aerospace |
• Loss Of Proprietary Technology/Processes |
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