個案總覽

SATS Ltd., an airline service provider headquartered in Singapore, was the largest air cargo terminal operator at Singapore’s Changi Airport. As a key player in the Asia-Pacific region, it had built its reputation as one of the top air cargo terminal operators in the world. With meticulous strategic planning, it had developed technological capabilities to navigate through many challenges and stay ahead of its competitors. In 2019, multiple challenges were arising from the external factors that had transformed the nature of the global air cargo value chain. An impending labour crisis, coupled with changing customer expectations and the threat of substitutes, meant that the company faced a fresh set of challenges. To fight these challenges, it had to decide whether to further develop its automation capabilities or to focus on driving digitalization within its operations to improve its operational efficiency.

In 2019, SATS Ltd. (SATS), the primary ground handling and inflight catering service provider at Singapore’s Changi Airport, was considering its growth strategy for the next five years. China and Japan were identified as target markets in the cold chain logistics sector. Should the company consider the Chinese air cargo market, which was in a stage of high growth but fraught with bureaucracy? Or should it focus on the Japanese air freight industry, which was more established but challenging for foreign investments? The senior vice-president of SATS needed to choose between the two opportunities.

In 2019, SATS Ltd. (SATS), the primary ground handling and inflight catering service provider at Singapore's Changi Airport, was considering its growth strategy for the next five years. China and Japan were identified as target markets in the cold chain logistics sector. Should the company consider the Chinese air cargo market, which was in a stage of high growth but fraught with bureaucracy? Or should it focus on the Japanese air freight industry, which was more established but challenging for foreign investments? The senior vice-president of SATS needed to choose between the two opportunities.

SATS Ltd., an airline service provider headquartered in Singapore, was the largest air cargo terminal operator at Singapore's Changi Airport. As a key player in the Asia-Pacific region, it had built its reputation as one of the top air cargo terminal operators in the world. With meticulous strategic planning, it had developed technological capabilities to navigate through many challenges and stay ahead of its competitors. In 2019, multiple challenges were arising from the external factors that had transformed the nature of the global air cargo value chain. An impending labour crisis, coupled with changing customer expectations and the threat of substitutes, meant that the company faced a fresh set of challenges. To fight these challenges, it had to decide whether to further develop its automation capabilities or to focus on driving digitalization within its operations to improve its operational efficiency.

Spreadsheet to accompany product 9B18N023.

In December 2017, the managing director of Nipponply Distributors Private Limited (Nipponply) planned to expand his firm geographically. Nipponply provided plywood products to household consumers, architects, interior designers, and original equipment manufacturers. The company already operated in Gujarat, India, but the managing director had found an opportunity to expand into the western Indian states of Rajasthan, Maharashtra, and Madhya Pradesh, where there were large volume requirements in housing, corporate, and industrial projects. The managing director completed a market survey to determine cost- and market-related information. On the basis of his initial analysis, he decided to start an expansion project, but he first wanted to ascertain its feasibility using a cost–volume–profit analysis.

In December 2017, the managing director of Nipponply Distributors Private Limited (Nipponply) planned to expand his firm geographically. Nipponply provided plywood products to household consumers, architects, interior designers, and original equipment manufacturers. The company already operated in Gujarat, India, but the managing director had found an opportunity to expand into the western Indian states of Rajasthan, Maharashtra, and Madhya Pradesh, where there were large volume requirements in housing, corporate, and industrial projects. The managing director completed a market survey to determine cost- and market-related information. On the basis of his initial analysis, he decided to start an expansion project, but he first wanted to ascertain its feasibility using a cost-volume-profit analysis.

Student spreadsheet for case W18653