Pembangunan Jaya Ancol (PJAA) SWOT Analysis / TOWS Matrix / MBA Resources
Recreational Activities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Pembangunan Jaya Ancol (Indonesia)
Based on various researches at Oak Spring University , Pembangunan Jaya Ancol is operating in a macro-environment that has been destablized by – cloud computing is disrupting traditional business models, geopolitical disruptions, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Pembangunan Jaya Ancol
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Pembangunan Jaya Ancol can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pembangunan Jaya Ancol, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol can be done for the following purposes –
1. Strategic planning of Pembangunan Jaya Ancol
2. Improving business portfolio management of Pembangunan Jaya Ancol
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pembangunan Jaya Ancol
Strengths of Pembangunan Jaya Ancol | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pembangunan Jaya Ancol are -
Organizational Resilience of Pembangunan Jaya Ancol
– The covid-19 pandemic has put organizational resilience at the centre of everthing Pembangunan Jaya Ancol does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Pembangunan Jaya Ancol has one of the best training and development program in Services industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Pembangunan Jaya Ancol 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 Recreational Activities 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.
Digital Transformation in Recreational Activities industry
- digital transformation varies from industry to industry. For Pembangunan Jaya Ancol digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pembangunan Jaya Ancol 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.
High switching costs
– The high switching costs that Pembangunan Jaya Ancol 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
– Pembangunan Jaya Ancol has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pembangunan Jaya Ancol to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Pembangunan Jaya Ancol has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pembangunan Jaya Ancol 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.
Sustainable margins compare to other players in Recreational Activities industry
– Pembangunan Jaya Ancol has clearly differentiated products in the market place. This has enabled Pembangunan Jaya Ancol to fetch slight price premium compare to the competitors in the Recreational Activities industry. The sustainable margins have also helped Pembangunan Jaya Ancol to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Pembangunan Jaya Ancol has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Recreational Activities industry. Secondly the value chain collaborators of Pembangunan Jaya Ancol have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Pembangunan Jaya Ancol 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.
Superior customer experience
– The customer experience strategy of Pembangunan Jaya Ancol in Recreational Activities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the Recreational Activities industry
– Pembangunan Jaya Ancol is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of Pembangunan Jaya Ancol | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pembangunan Jaya Ancol are -
Workers concerns about automation
– As automation is fast increasing in the Recreational Activities industry, Pembangunan Jaya Ancol 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.
High cash cycle compare to competitors
Pembangunan Jaya Ancol has a high cash cycle compare to other players in the Recreational Activities 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pembangunan Jaya Ancol is slow explore the new channels of communication. These new channels of communication can help Pembangunan Jaya Ancol to provide better information regarding Recreational Activities products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Pembangunan Jaya Ancol is one of the leading players in the Recreational Activities industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Recreational Activities industry in last five years.
Lack of clear differentiation of Pembangunan Jaya Ancol products
– To increase the profitability and margins on the products, Pembangunan Jaya Ancol needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Pembangunan Jaya Ancol is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but Pembangunan Jaya Ancol needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pembangunan Jaya Ancol to focus more on services in the Recreational Activities industry rather than just following the product 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 Pembangunan Jaya Ancol supply chain. Even after few cautionary changes, Pembangunan Jaya Ancol is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pembangunan Jaya Ancol vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that Pembangunan Jaya Ancol needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Activities industry have deep experience in developing customer relationships. Marketing department at Pembangunan Jaya Ancol can leverage the sales team experience to cultivate customer relationships as Pembangunan Jaya Ancol is planning to shift buying processes online.
No frontier risks strategy
– From the 10K / annual statement of Pembangunan Jaya Ancol, it seems that company is thinking out the frontier risks that can impact Recreational Activities 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 Recreational Activities industry
– The stress on hiring functional specialists at Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol ‘s star products
– The top 2 products and services of Pembangunan Jaya Ancol still accounts for major business revenue. This dependence on star products in Recreational Activities industry has resulted into insufficient focus on developing new products, even though Pembangunan Jaya Ancol has relatively successful track record of launching new products.
Pembangunan Jaya Ancol Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Pembangunan Jaya Ancol are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pembangunan Jaya Ancol can use these opportunities to build new business models that can help the communities that Pembangunan Jaya Ancol operates in. Secondly it can use opportunities from government spending in Recreational Activities sector.
Use of Bitcoin and other crypto currencies for transactions in Recreational Activities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pembangunan Jaya Ancol in the Recreational Activities industry. Now Pembangunan Jaya Ancol can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pembangunan Jaya Ancol can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Pembangunan Jaya Ancol can develop new processes and procedures in Recreational Activities 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.
Creating value in data economy
– The success of analytics program of Pembangunan Jaya Ancol has opened avenues for new revenue streams for the organization in Recreational Activities industry. This can help Pembangunan Jaya Ancol to build a more holistic ecosystem for Pembangunan Jaya Ancol products in the Recreational Activities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Recreational Activities industry, but it has also influenced the consumer preferences. Pembangunan Jaya Ancol can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Pembangunan Jaya Ancol can improve the customer journey of consumers in the Recreational Activities 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.
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 Pembangunan Jaya Ancol 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pembangunan Jaya Ancol 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.
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. Pembangunan Jaya Ancol can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Pembangunan Jaya Ancol 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.
Manufacturing automation
– Pembangunan Jaya Ancol can use the latest technology developments to improve its manufacturing and designing process in Recreational Activities 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.
Threats Pembangunan Jaya Ancol External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Pembangunan Jaya Ancol 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.
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 Pembangunan Jaya Ancol in the Recreational Activities sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Pembangunan Jaya Ancol 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 Recreational Activities industry.
Technology acceleration in Forth Industrial Revolution
– Pembangunan Jaya Ancol has witnessed rapid integration of technology during Covid-19 in the Recreational Activities industry. As one of the leading players in the industry, Pembangunan Jaya Ancol needs to keep up with the evolution of technology in the Recreational Activities 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.
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 Pembangunan Jaya Ancol business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Pembangunan Jaya Ancol
– 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 Pembangunan Jaya Ancol.
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. Pembangunan Jaya Ancol 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.
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 Pembangunan Jaya Ancol.
Environmental challenges
– Pembangunan Jaya Ancol 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. Pembangunan Jaya Ancol can take advantage of this fund but it will also bring new competitors in the Recreational Activities industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol prominent markets.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Recreational Activities industry are lowering. It can presents Pembangunan Jaya Ancol with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Activities sector.
High dependence on third party suppliers
– Pembangunan Jaya Ancol 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.
Shortening product life cycle
– it is one of the major threat that Pembangunan Jaya Ancol is facing in Recreational Activities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Pembangunan Jaya Ancol Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol needs to make to build a sustainable competitive advantage.