Pembangunan Jaya Ancol (PJAA) SWOT Analysis / TOWS Matrix / 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 – there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc

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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.

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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

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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 -

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.

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.

Innovation driven organization

– Pembangunan Jaya Ancol is one of the most innovative firm in Recreational Activities sector.

Low bargaining power of suppliers

– Suppliers of Pembangunan Jaya Ancol in the Services sector have low bargaining power. Pembangunan Jaya Ancol has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pembangunan Jaya Ancol to manage not only supply disruptions but also source products at highly competitive prices.

Diverse revenue streams

– Pembangunan Jaya Ancol is present in almost all the verticals within the Recreational Activities industry. This has provided Pembangunan Jaya Ancol 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.

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.

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.

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.

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.

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.

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.

Effective Research and Development (R&D)

– Pembangunan Jaya Ancol has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Pembangunan Jaya Ancol staying ahead in the Recreational Activities industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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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 -

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.

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.

Low market penetration in new markets

– Outside its home market of Indonesia, Pembangunan Jaya Ancol needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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.

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.

Products dominated business model

– Even though Pembangunan Jaya Ancol has some of the most successful models in the Recreational Activities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Pembangunan Jaya Ancol should strive to include more intangible value offerings along with its core products and services.

Need for greater diversity

– Pembangunan Jaya Ancol 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.

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.

High bargaining power of channel partners in Recreational Activities industry

– because of the regulatory requirements in Indonesia, Pembangunan Jaya Ancol 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 Recreational Activities industry.

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.

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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 -

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Recreational Activities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pembangunan Jaya Ancol 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. Pembangunan Jaya Ancol 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.

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.

Loyalty marketing

– Pembangunan Jaya Ancol 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, 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.

Building a culture of innovation

– managers at Pembangunan Jaya Ancol 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 Recreational Activities industry.

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.

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.

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.

Using analytics as competitive advantage

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

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.

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.

Leveraging digital technologies

– Pembangunan Jaya Ancol 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.

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.

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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 -

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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Pembangunan Jaya Ancol may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Recreational Activities sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Pembangunan Jaya Ancol in Recreational Activities industry. The Recreational Activities industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Pembangunan Jaya Ancol needs to understand the core reasons impacting the Recreational Activities industry. This will help it in building a better workplace.

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.

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.

Regulatory challenges

– Pembangunan Jaya Ancol 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 Recreational Activities industry regulations.

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.

Consumer confidence and its impact on Pembangunan Jaya Ancol 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 Recreational Activities industry and other sectors.

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.

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.

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.

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.

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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.

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