Mitra Keluarga Karyasehat (MIKA) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Mitra Keluarga Karyasehat (Indonesia)

Based on various researches at Oak Spring University , Mitra Keluarga Karyasehat is operating in a macro-environment that has been destablized by – increasing commodity prices, wage bills are increasing, there is increasing trade war between United States & China, geopolitical disruptions, central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of Mitra Keluarga Karyasehat

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mitra Keluarga Karyasehat can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mitra Keluarga Karyasehat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mitra Keluarga Karyasehat 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Mitra Keluarga Karyasehat can be done for the following purposes –
1. Strategic planning of Mitra Keluarga Karyasehat
2. Improving business portfolio management of Mitra Keluarga Karyasehat
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Healthcare Facilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mitra Keluarga Karyasehat

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Strengths of Mitra Keluarga Karyasehat | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mitra Keluarga Karyasehat are -

High switching costs

– The high switching costs that Mitra Keluarga Karyasehat 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.

Successful track record of launching new products

– Mitra Keluarga Karyasehat has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mitra Keluarga Karyasehat has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Analytics focus

– Mitra Keluarga Karyasehat 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 Healthcare Facilities industry. The technology infrastructure of Indonesia is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Low bargaining power of suppliers

– Suppliers of Mitra Keluarga Karyasehat in the Healthcare sector have low bargaining power. Mitra Keluarga Karyasehat has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mitra Keluarga Karyasehat to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Mitra Keluarga Karyasehat in Healthcare Facilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Operational resilience

– The operational resilience strategy of Mitra Keluarga Karyasehat comprises – understanding the underlying the factors in the Healthcare Facilities 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.

Strong track record of project management in the Healthcare Facilities industry

– Mitra Keluarga Karyasehat is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Mitra Keluarga Karyasehat has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Mitra Keluarga Karyasehat staying ahead in the Healthcare Facilities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to lead change in Healthcare Facilities

– Mitra Keluarga Karyasehat is one of the leading players in the Healthcare Facilities industry in Indonesia. Over the years it has not only transformed the business landscape in the Healthcare Facilities industry in Indonesia but also across the existing markets. The ability to lead change has enabled Mitra Keluarga Karyasehat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Ability to recruit top talent

– Mitra Keluarga Karyasehat is one of the leading players in the Healthcare Facilities industry in Indonesia. It is in a position to attract the best talent available in Indonesia. The firm has a robust talent identification program that helps in identifying the brightest.

Innovation driven organization

– Mitra Keluarga Karyasehat is one of the most innovative firm in Healthcare Facilities sector.

Training and development

– Mitra Keluarga Karyasehat has one of the best training and development program in Healthcare industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

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Weaknesses of Mitra Keluarga Karyasehat | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Mitra Keluarga Karyasehat are -

Interest costs

– Compare to the competition, Mitra Keluarga Karyasehat has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Products dominated business model

– Even though Mitra Keluarga Karyasehat has some of the most successful models in the Healthcare Facilities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Mitra Keluarga Karyasehat should strive to include more intangible value offerings along with its core products and services.

Compensation and incentives

– The revenue per employee of Mitra Keluarga Karyasehat is just above the Healthcare Facilities industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Need for greater diversity

– Mitra Keluarga Karyasehat 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.

Employees’ less understanding of Mitra Keluarga Karyasehat strategy

– From the outside it seems that the employees of Mitra Keluarga Karyasehat don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High cash cycle compare to competitors

Mitra Keluarga Karyasehat has a high cash cycle compare to other players in the Healthcare Facilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Capital Spending Reduction

– Even during the low interest decade, Mitra Keluarga Karyasehat 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 Healthcare Facilities industry using digital technology.

Slow to strategic competitive environment developments

– As Mitra Keluarga Karyasehat is one of the leading players in the Healthcare Facilities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Healthcare Facilities industry in last five years.

Increasing silos among functional specialists

– The organizational structure of Mitra Keluarga Karyasehat is dominated by functional specialists. It is not different from other players in the Healthcare Facilities industry, but Mitra Keluarga Karyasehat needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mitra Keluarga Karyasehat to focus more on services in the Healthcare Facilities industry rather than just following the product oriented approach.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mitra Keluarga Karyasehat supply chain. Even after few cautionary changes, Mitra Keluarga Karyasehat is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mitra Keluarga Karyasehat vulnerable to further global disruptions in South East Asia.

High operating costs

– Compare to the competitors, Mitra Keluarga Karyasehat has high operating costs in the Healthcare Facilities industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mitra Keluarga Karyasehat lucrative customers.

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Mitra Keluarga Karyasehat Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Mitra Keluarga Karyasehat are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Mitra Keluarga Karyasehat can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Mitra Keluarga Karyasehat to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Buying journey improvements

– Mitra Keluarga Karyasehat can improve the customer journey of consumers in the Healthcare Facilities industry by using analytics and artificial intelligence. It 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.

Creating value in data economy

– The success of analytics program of Mitra Keluarga Karyasehat has opened avenues for new revenue streams for the organization in Healthcare Facilities industry. This can help Mitra Keluarga Karyasehat to build a more holistic ecosystem for Mitra Keluarga Karyasehat products in the Healthcare Facilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Developing new processes and practices

– Mitra Keluarga Karyasehat can develop new processes and procedures in Healthcare Facilities 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.

Manufacturing automation

– Mitra Keluarga Karyasehat can use the latest technology developments to improve its manufacturing and designing process in Healthcare Facilities sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Healthcare Facilities industry, but it has also influenced the consumer preferences. Mitra Keluarga Karyasehat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mitra Keluarga Karyasehat 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 Mitra Keluarga Karyasehat to hire the very best people irrespective of their geographical location.

Leveraging digital technologies

– Mitra Keluarga Karyasehat can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Loyalty marketing

– Mitra Keluarga Karyasehat has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Healthcare Facilities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mitra Keluarga Karyasehat 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. Mitra Keluarga Karyasehat 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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Mitra Keluarga Karyasehat is facing challenges because of the dominance of functional experts in the organization. Mitra Keluarga Karyasehat can utilize new technology in the field of Healthcare Facilities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Building a culture of innovation

– managers at Mitra Keluarga Karyasehat can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Healthcare Facilities industry.

Use of Bitcoin and other crypto currencies for transactions in Healthcare Facilities industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mitra Keluarga Karyasehat in the Healthcare Facilities industry. Now Mitra Keluarga Karyasehat can target international markets with far fewer capital restrictions requirements than the existing system.

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Threats Mitra Keluarga Karyasehat External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Mitra Keluarga Karyasehat are -

High dependence on third party suppliers

– Mitra Keluarga Karyasehat 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Mitra Keluarga Karyasehat may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Healthcare Facilities sector.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Mitra Keluarga Karyasehat in the Healthcare Facilities sector and impact the bottomline of the organization.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mitra Keluarga Karyasehat.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Mitra Keluarga Karyasehat will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Shortening product life cycle

– it is one of the major threat that Mitra Keluarga Karyasehat is facing in Healthcare Facilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– Mitra Keluarga Karyasehat has witnessed rapid integration of technology during Covid-19 in the Healthcare Facilities industry. As one of the leading players in the industry, Mitra Keluarga Karyasehat needs to keep up with the evolution of technology in the Healthcare Facilities 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.

Environmental challenges

– Mitra Keluarga Karyasehat 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. Mitra Keluarga Karyasehat can take advantage of this fund but it will also bring new competitors in the Healthcare Facilities industry.

Regulatory challenges

– Mitra Keluarga Karyasehat needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Healthcare Facilities industry regulations.

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 Mitra Keluarga Karyasehat business can come under increasing regulations regarding data privacy, data security, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Mitra Keluarga Karyasehat in Healthcare Facilities industry. The Healthcare Facilities 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Healthcare Facilities industry are lowering. It can presents Mitra Keluarga Karyasehat with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Healthcare Facilities sector.

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. Mitra Keluarga Karyasehat needs to understand the core reasons impacting the Healthcare Facilities industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Mitra Keluarga Karyasehat Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mitra Keluarga Karyasehat 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 Mitra Keluarga Karyasehat 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 Mitra Keluarga Karyasehat 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 Mitra Keluarga Karyasehat 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 Mitra Keluarga Karyasehat needs to make to build a sustainable competitive advantage.

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