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 – challanges to central banks by blockchain based private currencies, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion,
increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, 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 -
Innovation driven organization
– Pembangunan Jaya Ancol is one of the most innovative firm in Recreational Activities sector.
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.
Ability to lead change in Recreational Activities
– Pembangunan Jaya Ancol is one of the leading players in the Recreational Activities industry in Indonesia. Over the years it has not only transformed the business landscape in the Recreational Activities industry in Indonesia but also across the existing markets. The ability to lead change has enabled Pembangunan Jaya Ancol in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
Employees’ less understanding of Pembangunan Jaya Ancol strategy
– From the outside it seems that the employees of Pembangunan Jaya Ancol 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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Pembangunan Jaya Ancol to increase its market reach. Pembangunan Jaya Ancol 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.
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pembangunan Jaya Ancol 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 Pembangunan Jaya Ancol to hire the very best people irrespective of their geographical location.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pembangunan Jaya Ancol in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Recreational Activities industry, and it will provide faster access to the consumers.
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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pembangunan Jaya Ancol is facing challenges because of the dominance of functional experts in the organization. Pembangunan Jaya Ancol can utilize new technology in the field of Recreational Activities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 -
Easy access to finance
– Easy access to finance in Recreational Activities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Pembangunan Jaya Ancol can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.