Multistrada Arah Sarana (MASA) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Multistrada Arah Sarana (Indonesia)

Based on various researches at Oak Spring University , Multistrada Arah Sarana is operating in a macro-environment that has been destablized by – geopolitical disruptions, technology disruption, wage bills are increasing, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing energy prices, increasing commodity prices, increasing government debt because of Covid-19 spendings, there is backlash against globalization, etc

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Introduction to SWOT Analysis of Multistrada Arah Sarana

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Multistrada Arah Sarana can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Multistrada Arah Sarana, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Multistrada Arah Sarana 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 Multistrada Arah Sarana can be done for the following purposes –
1. Strategic planning of Multistrada Arah Sarana
2. Improving business portfolio management of Multistrada Arah Sarana
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Tires sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Multistrada Arah Sarana

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Strengths of Multistrada Arah Sarana | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Multistrada Arah Sarana are -

Ability to recruit top talent

– Multistrada Arah Sarana is one of the leading players in the Tires 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

– Multistrada Arah Sarana is one of the most innovative firm in Tires sector.

High switching costs

– The high switching costs that Multistrada Arah Sarana 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.

High brand equity

– Multistrada Arah Sarana has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Multistrada Arah Sarana to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Learning organization

- Multistrada Arah Sarana 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 Multistrada Arah Sarana is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Multistrada Arah Sarana emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Multistrada Arah Sarana

– The covid-19 pandemic has put organizational resilience at the centre of everthing Multistrada Arah Sarana does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Digital Transformation in Tires industry

- digital transformation varies from industry to industry. For Multistrada Arah Sarana digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Multistrada Arah Sarana 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.

Strong track record of project management in the Tires industry

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

Diverse revenue streams

– Multistrada Arah Sarana is present in almost all the verticals within the Tires industry. This has provided Multistrada Arah Sarana 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.

Cross disciplinary teams

– Horizontal connected teams at the Multistrada Arah Sarana 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.

Successful track record of launching new products

– Multistrada Arah Sarana has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Multistrada Arah Sarana 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.

Ability to lead change in Tires

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

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Weaknesses of Multistrada Arah Sarana | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Multistrada Arah Sarana are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Multistrada Arah Sarana is slow explore the new channels of communication. These new channels of communication can help Multistrada Arah Sarana to provide better information regarding Tires products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

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

Aligning sales with marketing

– From the outside it seems that Multistrada Arah Sarana needs to have more collaboration between its sales team and marketing team. Sales professionals in the Tires industry have deep experience in developing customer relationships. Marketing department at Multistrada Arah Sarana can leverage the sales team experience to cultivate customer relationships as Multistrada Arah Sarana is planning to shift buying processes online.

Low market penetration in new markets

– Outside its home market of Indonesia, Multistrada Arah Sarana needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Compensation and incentives

– The revenue per employee of Multistrada Arah Sarana is just above the Tires 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 decision making process

– As mentioned earlier in the report, Multistrada Arah Sarana has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Tires industry over the last five years. Multistrada Arah Sarana 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 in Tires industry

– The stress on hiring functional specialists at Multistrada Arah Sarana 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.

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 Multistrada Arah Sarana supply chain. Even after few cautionary changes, Multistrada Arah Sarana is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Multistrada Arah Sarana vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners in Tires industry

– because of the regulatory requirements in Indonesia, Multistrada Arah Sarana is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Tires industry.

High cash cycle compare to competitors

Multistrada Arah Sarana has a high cash cycle compare to other players in the Tires 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, Multistrada Arah Sarana 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 Tires industry using digital technology.

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Multistrada Arah Sarana Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Multistrada Arah Sarana are -

Redefining models of collaboration and team work

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

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Multistrada Arah Sarana 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 Multistrada Arah Sarana to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Leveraging digital technologies

– Multistrada Arah Sarana 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Multistrada Arah Sarana can use these opportunities to build new business models that can help the communities that Multistrada Arah Sarana operates in. Secondly it can use opportunities from government spending in Tires sector.

Remote work and new talent hiring opportunities

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

Creating value in data economy

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

Use of Bitcoin and other crypto currencies for transactions in Tires industry

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

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 Multistrada Arah Sarana 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Multistrada Arah Sarana can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Tires industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Multistrada Arah Sarana 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. Multistrada Arah Sarana 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.

Learning at scale

– Online learning technologies has now opened space for Multistrada Arah Sarana 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.

Building a culture of innovation

– managers at Multistrada Arah Sarana 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 Tires industry.

Using analytics as competitive advantage

– Multistrada Arah Sarana has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Tires sector. This continuous investment in analytics has enabled Multistrada Arah Sarana to build a competitive advantage using analytics. The analytics driven competitive advantage can help Multistrada Arah Sarana to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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Threats Multistrada Arah Sarana External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Multistrada Arah Sarana are -

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 Multistrada Arah Sarana in the Tires sector and impact the bottomline of the organization.

Shortening product life cycle

– it is one of the major threat that Multistrada Arah Sarana is facing in Tires sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

High dependence on third party suppliers

– Multistrada Arah Sarana 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

– Multistrada Arah Sarana 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 Tires industry regulations.

Consumer confidence and its impact on Multistrada Arah Sarana 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 Tires industry and other sectors.

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.

Increasing wage structure of Multistrada Arah Sarana

– 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 Multistrada Arah Sarana.

Technology acceleration in Forth Industrial Revolution

– Multistrada Arah Sarana has witnessed rapid integration of technology during Covid-19 in the Tires industry. As one of the leading players in the industry, Multistrada Arah Sarana needs to keep up with the evolution of technology in the Tires 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Multistrada Arah Sarana 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 Multistrada Arah Sarana prominent markets.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Multistrada Arah Sarana in Tires industry. The Tires 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.

Easy access to finance

– Easy access to finance in Tires industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Multistrada Arah Sarana can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Multistrada Arah Sarana needs to understand the core reasons impacting the Tires industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Multistrada Arah Sarana Template, Example

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

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