Based on various researches at Oak Spring University , Puradelta Lestari Tbk Pt is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing commodity prices, technology disruption, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Puradelta Lestari Tbk Pt
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Puradelta Lestari Tbk Pt can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Puradelta Lestari Tbk Pt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt can be done for the following purposes –
1. Strategic planning of Puradelta Lestari Tbk Pt
2. Improving business portfolio management of Puradelta Lestari Tbk Pt
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Puradelta Lestari Tbk Pt
Strengths of Puradelta Lestari Tbk Pt | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Puradelta Lestari Tbk Pt are -
Diverse revenue streams
– Puradelta Lestari Tbk Pt is present in almost all the verticals within the Construction Services industry. This has provided Puradelta Lestari Tbk Pt a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Puradelta Lestari Tbk Pt has one of the best training and development program in Capital Goods 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.
Effective Research and Development (R&D)
– Puradelta Lestari Tbk Pt has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Puradelta Lestari Tbk Pt staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Puradelta Lestari Tbk Pt in the Capital Goods sector have low bargaining power. Puradelta Lestari Tbk Pt has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Puradelta Lestari Tbk Pt to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Construction Services
– Puradelta Lestari Tbk Pt is one of the leading players in the Construction Services industry in Indonesia. Over the years it has not only transformed the business landscape in the Construction Services industry in Indonesia but also across the existing markets. The ability to lead change has enabled Puradelta Lestari Tbk Pt 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
– Puradelta Lestari Tbk Pt is one of the leading players in the Construction Services 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.
Organizational Resilience of Puradelta Lestari Tbk Pt
– The covid-19 pandemic has put organizational resilience at the centre of everthing Puradelta Lestari Tbk Pt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Puradelta Lestari Tbk Pt is one of the most innovative firm in Construction Services sector.
Strong track record of project management in the Construction Services industry
– Puradelta Lestari Tbk Pt is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Construction Services industry
– Puradelta Lestari Tbk Pt has clearly differentiated products in the market place. This has enabled Puradelta Lestari Tbk Pt to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Puradelta Lestari Tbk Pt to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Puradelta Lestari Tbk Pt in Construction Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy of Puradelta Lestari Tbk Pt comprises – understanding the underlying the factors in the Construction Services 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.
Weaknesses of Puradelta Lestari Tbk Pt | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Puradelta Lestari Tbk Pt are -
Skills based hiring in Construction Services industry
– The stress on hiring functional specialists at Puradelta Lestari Tbk Pt 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.
Workers concerns about automation
– As automation is fast increasing in the Construction Services industry, Puradelta Lestari Tbk Pt 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.
Lack of clear differentiation of Puradelta Lestari Tbk Pt products
– To increase the profitability and margins on the products, Puradelta Lestari Tbk Pt needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Puradelta Lestari Tbk Pt supply chain. Even after few cautionary changes, Puradelta Lestari Tbk Pt is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Puradelta Lestari Tbk Pt vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Puradelta Lestari Tbk Pt 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 Construction Services industry using digital technology.
Slow to strategic competitive environment developments
– As Puradelta Lestari Tbk Pt is one of the leading players in the Construction Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Construction Services industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Puradelta Lestari Tbk Pt is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Puradelta Lestari Tbk Pt needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Puradelta Lestari Tbk Pt to focus more on services in the Construction Services industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Puradelta Lestari Tbk Pt is slow explore the new channels of communication. These new channels of communication can help Puradelta Lestari Tbk Pt to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– From the outside it seems that Puradelta Lestari Tbk Pt needs to have more collaboration between its sales team and marketing team. Sales professionals in the Construction Services industry have deep experience in developing customer relationships. Marketing department at Puradelta Lestari Tbk Pt can leverage the sales team experience to cultivate customer relationships as Puradelta Lestari Tbk Pt is planning to shift buying processes online.
Need for greater diversity
– Puradelta Lestari Tbk Pt 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.
High cash cycle compare to competitors
Puradelta Lestari Tbk Pt has a high cash cycle compare to other players in the Construction Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Puradelta Lestari Tbk Pt Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Puradelta Lestari Tbk Pt are -
Building a culture of innovation
– managers at Puradelta Lestari Tbk Pt 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 Construction Services industry.
Use of Bitcoin and other crypto currencies for transactions in Construction Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Puradelta Lestari Tbk Pt in the Construction Services industry. Now Puradelta Lestari Tbk Pt can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Puradelta Lestari Tbk Pt can develop new processes and procedures in Construction Services 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Puradelta Lestari Tbk Pt is facing challenges because of the dominance of functional experts in the organization. Puradelta Lestari Tbk Pt can utilize new technology in the field of Construction Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Puradelta Lestari Tbk Pt 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Puradelta Lestari Tbk Pt in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.
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 Puradelta Lestari Tbk Pt 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.
Buying journey improvements
– Puradelta Lestari Tbk Pt can improve the customer journey of consumers in the Construction Services 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.
Better consumer reach
– The expansion of the 5G network will help Puradelta Lestari Tbk Pt to increase its market reach. Puradelta Lestari Tbk Pt 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Puradelta Lestari Tbk Pt 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. Puradelta Lestari Tbk Pt 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Construction Services industry, but it has also influenced the consumer preferences. Puradelta Lestari Tbk Pt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Puradelta Lestari Tbk Pt External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Puradelta Lestari Tbk Pt are -
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.
Shortening product life cycle
– it is one of the major threat that Puradelta Lestari Tbk Pt is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Puradelta Lestari Tbk Pt.
Technology acceleration in Forth Industrial Revolution
– Puradelta Lestari Tbk Pt has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Puradelta Lestari Tbk Pt needs to keep up with the evolution of technology in the Construction Services 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.
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.
Regulatory challenges
– Puradelta Lestari Tbk Pt 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 Construction Services industry regulations.
Increasing wage structure of Puradelta Lestari Tbk Pt
– 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 Puradelta Lestari Tbk Pt.
Environmental challenges
– Puradelta Lestari Tbk Pt 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. Puradelta Lestari Tbk Pt can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
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. Puradelta Lestari Tbk Pt 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Puradelta Lestari Tbk Pt in Construction Services industry. The Construction Services 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.
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. Puradelta Lestari Tbk Pt needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Construction Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Puradelta Lestari Tbk Pt can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Puradelta Lestari Tbk Pt business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Puradelta Lestari Tbk Pt Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt 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 Puradelta Lestari Tbk Pt needs to make to build a sustainable competitive advantage.