Wijaya Karya Bangunan Gedung (WEGE) SWOT Analysis / TOWS Matrix / MBA Resources
Construction Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Wijaya Karya Bangunan Gedung (Indonesia)
Based on various researches at Oak Spring University , Wijaya Karya Bangunan Gedung is operating in a macro-environment that has been destablized by – increasing energy prices, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Wijaya Karya Bangunan Gedung
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Wijaya Karya Bangunan Gedung can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wijaya Karya Bangunan Gedung, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung can be done for the following purposes –
1. Strategic planning of Wijaya Karya Bangunan Gedung
2. Improving business portfolio management of Wijaya Karya Bangunan Gedung
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 Wijaya Karya Bangunan Gedung
Strengths of Wijaya Karya Bangunan Gedung | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wijaya Karya Bangunan Gedung are -
Effective Research and Development (R&D)
– Wijaya Karya Bangunan Gedung has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Wijaya Karya Bangunan Gedung 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.
Successful track record of launching new products
– Wijaya Karya Bangunan Gedung has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Wijaya Karya Bangunan Gedung 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.
Organizational Resilience of Wijaya Karya Bangunan Gedung
– The covid-19 pandemic has put organizational resilience at the centre of everthing Wijaya Karya Bangunan Gedung does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Wijaya Karya Bangunan Gedung emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Construction Services industry
– Wijaya Karya Bangunan Gedung is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Construction Services industry
- digital transformation varies from industry to industry. For Wijaya Karya Bangunan Gedung digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wijaya Karya Bangunan Gedung 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.
Sustainable margins compare to other players in Construction Services industry
– Wijaya Karya Bangunan Gedung has clearly differentiated products in the market place. This has enabled Wijaya Karya Bangunan Gedung to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Wijaya Karya Bangunan Gedung to invest into research and development (R&D) and innovation.
Innovation driven organization
– Wijaya Karya Bangunan Gedung is one of the most innovative firm in Construction Services sector.
Ability to recruit top talent
– Wijaya Karya Bangunan Gedung 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.
High brand equity
– Wijaya Karya Bangunan Gedung has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wijaya Karya Bangunan Gedung to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Wijaya Karya Bangunan Gedung 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.
Cross disciplinary teams
– Horizontal connected teams at the Wijaya Karya Bangunan Gedung 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.
Weaknesses of Wijaya Karya Bangunan Gedung | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Wijaya Karya Bangunan Gedung are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wijaya Karya Bangunan Gedung is slow explore the new channels of communication. These new channels of communication can help Wijaya Karya Bangunan Gedung to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Wijaya Karya Bangunan Gedung 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
Wijaya Karya Bangunan Gedung 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.
Slow to strategic competitive environment developments
– As Wijaya Karya Bangunan Gedung 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.
Employees’ less understanding of Wijaya Karya Bangunan Gedung strategy
– From the outside it seems that the employees of Wijaya Karya Bangunan Gedung 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.
Compensation and incentives
– The revenue per employee of Wijaya Karya Bangunan Gedung is just above the Construction Services 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.
High dependence on Wijaya Karya Bangunan Gedung ‘s star products
– The top 2 products and services of Wijaya Karya Bangunan Gedung still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Wijaya Karya Bangunan Gedung has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Wijaya Karya Bangunan Gedung, in the dynamic environment of Construction Services industry it has struggled to respond to the nimble upstart competition. Wijaya Karya Bangunan Gedung has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Wijaya Karya Bangunan Gedung has some of the most successful models in the Construction Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Wijaya Karya Bangunan Gedung should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Wijaya Karya Bangunan Gedung 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.
Aligning sales with marketing
– From the outside it seems that Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung can leverage the sales team experience to cultivate customer relationships as Wijaya Karya Bangunan Gedung is planning to shift buying processes online.
Wijaya Karya Bangunan Gedung Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Wijaya Karya Bangunan Gedung are -
Better consumer reach
– The expansion of the 5G network will help Wijaya Karya Bangunan Gedung to increase its market reach. Wijaya Karya Bangunan Gedung 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.
Learning at scale
– Online learning technologies has now opened space for Wijaya Karya Bangunan Gedung 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.
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 Wijaya Karya Bangunan Gedung 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.
Manufacturing automation
– Wijaya Karya Bangunan Gedung can use the latest technology developments to improve its manufacturing and designing process in Construction Services 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.
Building a culture of innovation
– managers at Wijaya Karya Bangunan Gedung 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wijaya Karya Bangunan Gedung can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wijaya Karya Bangunan Gedung 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.
Creating value in data economy
– The success of analytics program of Wijaya Karya Bangunan Gedung has opened avenues for new revenue streams for the organization in Construction Services industry. This can help Wijaya Karya Bangunan Gedung to build a more holistic ecosystem for Wijaya Karya Bangunan Gedung products in the Construction Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Wijaya Karya Bangunan Gedung 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wijaya Karya Bangunan Gedung 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 Construction Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Wijaya Karya Bangunan Gedung in the Construction Services industry. Now Wijaya Karya Bangunan Gedung can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Wijaya Karya Bangunan Gedung 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Wijaya Karya Bangunan Gedung can use these opportunities to build new business models that can help the communities that Wijaya Karya Bangunan Gedung operates in. Secondly it can use opportunities from government spending in Construction Services sector.
Threats Wijaya Karya Bangunan Gedung External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Wijaya Karya Bangunan Gedung are -
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. Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Construction Services industry are lowering. It can presents Wijaya Karya Bangunan Gedung with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Construction Services sector.
Environmental challenges
– Wijaya Karya Bangunan Gedung 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. Wijaya Karya Bangunan Gedung can take advantage of this fund but it will also bring new competitors in the Construction Services industry.
Technology acceleration in Forth Industrial Revolution
– Wijaya Karya Bangunan Gedung has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Wijaya Karya Bangunan Gedung 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wijaya Karya Bangunan Gedung 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.
Stagnating economy with rate increase
– Wijaya Karya Bangunan Gedung can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Construction Services industry.
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 Wijaya Karya Bangunan Gedung business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Wijaya Karya Bangunan Gedung
– 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 Wijaya Karya Bangunan Gedung.
Consumer confidence and its impact on Wijaya Karya Bangunan Gedung 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 Construction Services industry and other sectors.
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 Wijaya Karya Bangunan Gedung in the Construction Services sector and impact the bottomline 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung prominent markets.
Weighted SWOT Analysis of Wijaya Karya Bangunan Gedung Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung needs to make to build a sustainable competitive advantage.
