Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure
In January 2009, Herry Zudianto the Mayor of Yogyakarta was reflecting on the apparent failure of his first effort to involve the private sector in the financing and provision of municipal infrastructure. Seven years earlier the City had awarded a 30-year concession to a local private company to build and operate an intercity bus terminal. Earlier that month, the company had sent the Mayor a letter announcing its intention to return the concession on the grounds that the City had not lived up to its commitments. This case is designed to introduce Public-Private Partnerships (PPPs) to an audience that has limited prior exposure to them. The case brings out the various motives or goals for PPPs and the circumstances under which those goals are likely to be sensible and achievable. Case Number 1979.0
Swot Analysis of "Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure" written by Danang Parikesit, Jose Gomez-Ibanez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Yogyakarta Ppps facing as an external strategic factors. Some of the topics covered in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure case study are - Strategic Management Strategies, Emerging markets, Joint ventures, Policy, Strategic planning and Global Business.
Some of the macro environment factors that can be used to understand the Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure casestudy better are - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, technology disruption, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models,
talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Yogyakarta Ppps, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Yogyakarta Ppps operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure can be done for the following purposes –
1. Strategic planning using facts provided in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure case study
2. Improving business portfolio management of Yogyakarta Ppps
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Yogyakarta Ppps
Strengths Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Yogyakarta Ppps in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Harvard Business Review case study are -
Sustainable margins compare to other players in Global Business industry
– Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure firm has clearly differentiated products in the market place. This has enabled Yogyakarta Ppps to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Yogyakarta Ppps to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Yogyakarta Ppps has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Yogyakarta Ppps is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Danang Parikesit, Jose Gomez-Ibanez can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Yogyakarta Ppps are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Yogyakarta Ppps has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Yogyakarta Ppps to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Yogyakarta Ppps has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Yogyakarta Ppps is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Yogyakarta Ppps is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Yogyakarta Ppps is one of the leading recruiters in the industry. Managers in the Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Yogyakarta Ppps is one of the most innovative firm in sector. Manager in Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Yogyakarta Ppps has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Yogyakarta Ppps in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Yogyakarta Ppps has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Yogyakarta Ppps, firm in the HBR case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure can leverage the sales team experience to cultivate customer relationships as Yogyakarta Ppps is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure HBR case study mentions - Yogyakarta Ppps takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Yogyakarta Ppps is dominated by functional specialists. It is not different from other players in the Global Business segment. Yogyakarta Ppps needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Yogyakarta Ppps to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Yogyakarta Ppps has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Need for greater diversity
– Yogyakarta Ppps has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Yogyakarta Ppps needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Yogyakarta Ppps has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Yogyakarta Ppps even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Yogyakarta Ppps has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Yogyakarta Ppps to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Yogyakarta Ppps to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Yogyakarta Ppps can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Yogyakarta Ppps to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Better consumer reach
– The expansion of the 5G network will help Yogyakarta Ppps to increase its market reach. Yogyakarta Ppps will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Yogyakarta Ppps can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Yogyakarta Ppps can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Yogyakarta Ppps can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Yogyakarta Ppps can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Yogyakarta Ppps in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Yogyakarta Ppps in the consumer business. Now Yogyakarta Ppps can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Yogyakarta Ppps can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Yogyakarta Ppps can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Yogyakarta Ppps to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Yogyakarta Ppps has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Yogyakarta Ppps to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure are -
Shortening product life cycle
– it is one of the major threat that Yogyakarta Ppps is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure, Yogyakarta Ppps may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Consumer confidence and its impact on Yogyakarta Ppps demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Yogyakarta Ppps high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Yogyakarta Ppps can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Yogyakarta Ppps with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Yogyakarta Ppps needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Yogyakarta Ppps needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Yogyakarta Ppps can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Yogyakarta Ppps in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Yogyakarta Ppps business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Yogyakarta Ppps has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Yogyakarta Ppps needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Yogyakarta Ppps can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Yogyakarta Ppps needs to make to build a sustainable competitive advantage.
