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 – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, geopolitical disruptions, talent flight as more people leaving formal jobs, increasing energy prices, digital marketing is dominated by two big players Facebook and Google,
banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
Innovation driven organization
– Wijaya Karya Bangunan Gedung is one of the most innovative firm in Construction Services sector.
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.
Training and development
– Wijaya Karya Bangunan Gedung 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.
Ability to lead change in Construction Services
– Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
Analytics focus
– Wijaya Karya Bangunan Gedung is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Construction Services industry. The technology infrastructure of Indonesia is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
Highly skilled collaborators
– Wijaya Karya Bangunan Gedung has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Construction Services industry. Secondly the value chain collaborators of Wijaya Karya Bangunan Gedung have helped the firm to develop new products and bring them quickly to 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 -
Increasing silos among functional specialists
– The organizational structure of Wijaya Karya Bangunan Gedung is dominated by functional specialists. It is not different from other players in the Construction Services industry, but Wijaya Karya Bangunan Gedung needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wijaya Karya Bangunan Gedung to focus more on services in the Construction Services industry rather than just following the product oriented approach.
No frontier risks strategy
– From the 10K / annual statement of Wijaya Karya Bangunan Gedung, it seems that company is thinking out the frontier risks that can impact Construction Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Skills based hiring in Construction Services industry
– The stress on hiring functional specialists at Wijaya Karya Bangunan Gedung 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 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.
High bargaining power of channel partners in Construction Services industry
– because of the regulatory requirements in Indonesia, Wijaya Karya Bangunan Gedung 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 Construction Services industry.
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.
Low market penetration in new markets
– Outside its home market of Indonesia, Wijaya Karya Bangunan Gedung needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
Capital Spending Reduction
– Even during the low interest decade, Wijaya Karya Bangunan Gedung 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.
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.
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.
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 -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Wijaya Karya Bangunan Gedung can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung to hire the very best people irrespective of their geographical location.
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.
Buying journey improvements
– Wijaya Karya Bangunan Gedung 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.
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.
Leveraging digital technologies
– Wijaya Karya Bangunan Gedung 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, 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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wijaya Karya Bangunan Gedung 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 Wijaya Karya Bangunan Gedung to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wijaya Karya Bangunan Gedung is facing challenges because of the dominance of functional experts in the organization. Wijaya Karya Bangunan Gedung 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.
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.
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 -
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. Wijaya Karya Bangunan Gedung can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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.
Regulatory challenges
– Wijaya Karya Bangunan Gedung 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.
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.
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 Wijaya Karya Bangunan Gedung.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Wijaya Karya Bangunan Gedung may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Construction Services sector.
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.
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.
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.
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. Wijaya Karya Bangunan Gedung needs to understand the core reasons impacting the Construction Services industry. This will help it in building a better workplace.
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.