A RESOURCES-BASED VIEW OF COMPETITIVE ADVANTAGE AT THE PORT OF SINGAPORE
Written on 15.19 by Dimas Sugeng Rachmadi
A resource-based view of competitive advantage at the Port of Singapore*
Ref : JohnR.M.Gordona,Pui-MunLeeb,HenryC.LucasJr.c,* a Queen’s School of Business,Queen’sUniversity,Kingston,Ont.,CanadabNanyangBusinessSchool,Nanyang Technological University,SingaporecRobertH.SmithSchoolofBusiness,UniversityofMaryland,
CollegePark,MD20742,USASustaining Competitive
1. A resource-based view of competitive advantage at the Port of Singapore*.
The purpose is to describe the key resources, including operations and information technology (IT ) that have contribute to the competitive position of the Port of Singapore. The Port of Singapore has a chieved a sustainable competitive advantage relative to other locations by carefully building asset of resources that other Ports would find very difficult to match. Some of these resources are natural (a superb sheltered).
1.1 Data,
Undertake by Interviewed MrEricLui, ExecutiveVicet-President (InformationTechnology) /Executive Vice - President, Container Terminals Division and several members of his staff at PSA. Second, one author visited Kent Ridge Digital Laboratory, the organization that assisted in developing expert systems at the port
1.2 Resouces at the Port.
Singapore’s most important natural resources include its large, protected harbor,its location on major trade routes,and the skills of its well-educated workforce.
1.3 Operation at the Port
1.4 Enabling the Port Operation
Features or enablers that make the Port operations highly effective and help sustain its competitive edge are Singapore has a large merchant fleet,3037 ships with 25.572 million gross ton sattheend of 2003. Second, PSA is the largest owner of warehouse space in Singapore, managing over 500,000 m2 of space. Third,PSA’s work force is trained to focus on customers. A quality culture is prevalent in the organization. The Port has programs such as the ‘Key Customer Managers’ and ‘Chat Time’.
1.5 Innovation in Information and Operation Technology
PSA has invested heavily in information and operations technology, both to solve immediate operating problems and to remove constraints on the growth of container traffic.
1.6 Key Performance Data
PSA facilities can provide on average 100 container moves per hour. Itr ecorded 280.4 containers moves per hour in 2001 with the ship ‘APL Sardonyx’. PSA Marine, a wholly-owned subsidiary, performed 108,048 pilot age jobs and 94,904 tug jobs in 1997. The company provides high standards of service as 99 % of pilot age jobs were serviced with in 30 min and 96 % of tug jobs were serviced within 15 min.
2. Conclusions
2.1 PSAs Strategy In Summary, Singapore began with two natural resources : its location and a large, protected, deep-water Port. These resources, while rare and valuable, were imitable and substitutable.
2.2 Competitive Response, .The Port cut fees by a total of S$ 300 million for 1 year, and began a new policy to promote greater customer focus and flexibility.
2.3 Implication for Management, Managers should look at resources provided by nature and build resources to supplement them. Not all important resources are under the control of an organization, so one must (1) identify externa lresources that can be used to one’s advantage and (2) build internal resources capable of enhancing those external resources).
