SWOT Analysis / TOWS Matrix for Trikomsel Oke (Indonesia)
Based on various researches at Oak Spring University , Trikomsel Oke is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing transportation and logistics costs, there is increasing trade war between United States & China, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, increasing energy prices,
digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Trikomsel Oke can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Trikomsel Oke, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Trikomsel Oke 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 Trikomsel Oke can be done for the following purposes –
1. Strategic planning of Trikomsel Oke
2. Improving business portfolio management of Trikomsel Oke
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Retail (Technology) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Trikomsel Oke
Strengths of Trikomsel Oke | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Trikomsel Oke are -
Sustainable margins compare to other players in Retail (Technology) industry
– Trikomsel Oke has clearly differentiated products in the market place. This has enabled Trikomsel Oke to fetch slight price premium compare to the competitors in the Retail (Technology) industry. The sustainable margins have also helped Trikomsel Oke to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Trikomsel Oke in the Services sector have low bargaining power. Trikomsel Oke has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Trikomsel Oke to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Trikomsel Oke
– The covid-19 pandemic has put organizational resilience at the centre of everthing Trikomsel Oke does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Trikomsel Oke has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Trikomsel Oke 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.
Training and development
– Trikomsel Oke has one of the best training and development program in Services 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.
Ability to lead change in Retail (Technology)
– Trikomsel Oke is one of the leading players in the Retail (Technology) industry in Indonesia. Over the years it has not only transformed the business landscape in the Retail (Technology) industry in Indonesia but also across the existing markets. The ability to lead change has enabled Trikomsel Oke in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Trikomsel Oke has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Trikomsel Oke to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the Retail (Technology) industry
– Trikomsel Oke is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Trikomsel Oke 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 Trikomsel Oke is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Trikomsel Oke emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Trikomsel Oke 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.
Innovation driven organization
– Trikomsel Oke is one of the most innovative firm in Retail (Technology) sector.
Digital Transformation in Retail (Technology) industry
- digital transformation varies from industry to industry. For Trikomsel Oke digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Trikomsel Oke has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses of Trikomsel Oke | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Trikomsel Oke are -
Need for greater diversity
– Trikomsel Oke 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.
Increasing silos among functional specialists
– The organizational structure of Trikomsel Oke is dominated by functional specialists. It is not different from other players in the Retail (Technology) industry, but Trikomsel Oke needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Trikomsel Oke to focus more on services in the Retail (Technology) industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Trikomsel Oke is just above the Retail (Technology) 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.
Slow to strategic competitive environment developments
– As Trikomsel Oke is one of the leading players in the Retail (Technology) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Retail (Technology) industry in last five years.
Aligning sales with marketing
– From the outside it seems that Trikomsel Oke needs to have more collaboration between its sales team and marketing team. Sales professionals in the Retail (Technology) industry have deep experience in developing customer relationships. Marketing department at Trikomsel Oke can leverage the sales team experience to cultivate customer relationships as Trikomsel Oke is planning to shift buying processes online.
Skills based hiring in Retail (Technology) industry
– The stress on hiring functional specialists at Trikomsel Oke 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Trikomsel Oke is slow explore the new channels of communication. These new channels of communication can help Trikomsel Oke to provide better information regarding Retail (Technology) products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Trikomsel Oke has a high cash cycle compare to other players in the Retail (Technology) 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, Trikomsel Oke 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 Retail (Technology) industry using digital technology.
Interest costs
– Compare to the competition, Trikomsel Oke 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.
Workers concerns about automation
– As automation is fast increasing in the Retail (Technology) industry, Trikomsel Oke 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.
Trikomsel Oke Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Trikomsel Oke are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Trikomsel Oke 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.
Use of Bitcoin and other crypto currencies for transactions in Retail (Technology) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Trikomsel Oke in the Retail (Technology) industry. Now Trikomsel Oke can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Trikomsel Oke 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 Retail (Technology) industry.
Learning at scale
– Online learning technologies has now opened space for Trikomsel Oke 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.
Creating value in data economy
– The success of analytics program of Trikomsel Oke has opened avenues for new revenue streams for the organization in Retail (Technology) industry. This can help Trikomsel Oke to build a more holistic ecosystem for Trikomsel Oke products in the Retail (Technology) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Trikomsel Oke 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 Trikomsel Oke to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Trikomsel Oke in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Retail (Technology) industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Trikomsel Oke to increase its market reach. Trikomsel Oke 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.
Manufacturing automation
– Trikomsel Oke can use the latest technology developments to improve its manufacturing and designing process in Retail (Technology) 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Trikomsel Oke can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Trikomsel Oke 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.
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 Trikomsel Oke 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Retail (Technology) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Trikomsel Oke 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. Trikomsel Oke 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.
Threats Trikomsel Oke External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Trikomsel Oke are -
Increasing wage structure of Trikomsel Oke
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Trikomsel Oke.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Trikomsel Oke can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Trikomsel Oke prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Retail (Technology) industry are lowering. It can presents Trikomsel Oke with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Retail (Technology) sector.
High dependence on third party suppliers
– Trikomsel Oke 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.
Regulatory challenges
– Trikomsel Oke 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 Retail (Technology) industry regulations.
Technology acceleration in Forth Industrial Revolution
– Trikomsel Oke has witnessed rapid integration of technology during Covid-19 in the Retail (Technology) industry. As one of the leading players in the industry, Trikomsel Oke needs to keep up with the evolution of technology in the Retail (Technology) 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Trikomsel Oke may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Retail (Technology) sector.
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. Trikomsel Oke 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
Easy access to finance
– Easy access to finance in Retail (Technology) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Trikomsel Oke can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Trikomsel Oke 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 Retail (Technology) industry and other sectors.
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 Trikomsel Oke business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Trikomsel Oke Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Trikomsel Oke 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 Trikomsel Oke 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 Trikomsel Oke 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 Trikomsel Oke 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 Trikomsel Oke needs to make to build a sustainable competitive advantage.
