SWOT Analysis / TOWS Matrix for Anabatic Technologies Tbk (Indonesia)
Based on various researches at Oak Spring University , Anabatic Technologies Tbk is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, increasing energy prices,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Anabatic Technologies Tbk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Anabatic Technologies Tbk can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Anabatic Technologies Tbk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Anabatic Technologies Tbk 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 Anabatic Technologies Tbk can be done for the following purposes –
1. Strategic planning of Anabatic Technologies Tbk
2. Improving business portfolio management of Anabatic Technologies Tbk
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Computer Hardware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Anabatic Technologies Tbk
Strengths of Anabatic Technologies Tbk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Anabatic Technologies Tbk are -
High switching costs
– The high switching costs that Anabatic Technologies Tbk 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.
Ability to lead change in Computer Hardware
– Anabatic Technologies Tbk is one of the leading players in the Computer Hardware industry in Indonesia. Over the years it has not only transformed the business landscape in the Computer Hardware industry in Indonesia but also across the existing markets. The ability to lead change has enabled Anabatic Technologies Tbk in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Computer Hardware industry
- digital transformation varies from industry to industry. For Anabatic Technologies Tbk digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Anabatic Technologies Tbk 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
– Anabatic Technologies Tbk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Anabatic Technologies Tbk 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.
Highly skilled collaborators
– Anabatic Technologies Tbk has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Computer Hardware industry. Secondly the value chain collaborators of Anabatic Technologies Tbk have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Anabatic Technologies Tbk has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Anabatic Technologies Tbk to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Anabatic Technologies Tbk has one of the best training and development program in Technology 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.
Low bargaining power of suppliers
– Suppliers of Anabatic Technologies Tbk in the Technology sector have low bargaining power. Anabatic Technologies Tbk has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Anabatic Technologies Tbk to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Anabatic Technologies Tbk has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Anabatic Technologies Tbk staying ahead in the Computer Hardware industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Anabatic Technologies Tbk is one of the most innovative firm in Computer Hardware sector.
Learning organization
- Anabatic Technologies Tbk 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 Anabatic Technologies Tbk is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Anabatic Technologies Tbk emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Computer Hardware industry
– Anabatic Technologies Tbk has clearly differentiated products in the market place. This has enabled Anabatic Technologies Tbk to fetch slight price premium compare to the competitors in the Computer Hardware industry. The sustainable margins have also helped Anabatic Technologies Tbk to invest into research and development (R&D) and innovation.
Weaknesses of Anabatic Technologies Tbk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Anabatic Technologies Tbk are -
Employees’ less understanding of Anabatic Technologies Tbk strategy
– From the outside it seems that the employees of Anabatic Technologies Tbk 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.
High cash cycle compare to competitors
Anabatic Technologies Tbk has a high cash cycle compare to other players in the Computer Hardware industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Anabatic Technologies Tbk 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 Computer Hardware industry using digital technology.
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 Anabatic Technologies Tbk supply chain. Even after few cautionary changes, Anabatic Technologies Tbk is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Anabatic Technologies Tbk vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee of Anabatic Technologies Tbk is just above the Computer Hardware industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Need for greater diversity
– Anabatic Technologies Tbk 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.
Increasing silos among functional specialists
– The organizational structure of Anabatic Technologies Tbk is dominated by functional specialists. It is not different from other players in the Computer Hardware industry, but Anabatic Technologies Tbk needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Anabatic Technologies Tbk to focus more on services in the Computer Hardware industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Computer Hardware industry, Anabatic Technologies Tbk 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 bargaining power of channel partners in Computer Hardware industry
– because of the regulatory requirements in Indonesia, Anabatic Technologies Tbk 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 Computer Hardware industry.
Products dominated business model
– Even though Anabatic Technologies Tbk has some of the most successful models in the Computer Hardware industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Anabatic Technologies Tbk should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Anabatic Technologies Tbk has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Computer Hardware industry over the last five years. Anabatic Technologies Tbk even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Anabatic Technologies Tbk Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Anabatic Technologies Tbk are -
Manufacturing automation
– Anabatic Technologies Tbk can use the latest technology developments to improve its manufacturing and designing process in Computer Hardware 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.
Developing new processes and practices
– Anabatic Technologies Tbk can develop new processes and procedures in Computer Hardware 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Anabatic Technologies Tbk 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 Anabatic Technologies Tbk 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 Anabatic Technologies Tbk 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Anabatic Technologies Tbk in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Computer Hardware industry, and it will provide faster access to the consumers.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Anabatic Technologies Tbk can use these opportunities to build new business models that can help the communities that Anabatic Technologies Tbk operates in. Secondly it can use opportunities from government spending in Computer Hardware sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Anabatic Technologies Tbk is facing challenges because of the dominance of functional experts in the organization. Anabatic Technologies Tbk can utilize new technology in the field of Computer Hardware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Anabatic Technologies Tbk can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Anabatic Technologies Tbk has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Computer Hardware sector. This continuous investment in analytics has enabled Anabatic Technologies Tbk to build a competitive advantage using analytics. The analytics driven competitive advantage can help Anabatic Technologies Tbk to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Computer Hardware industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Anabatic Technologies Tbk 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. Anabatic Technologies Tbk 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Anabatic Technologies Tbk 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 Anabatic Technologies Tbk to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions in Computer Hardware industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Anabatic Technologies Tbk in the Computer Hardware industry. Now Anabatic Technologies Tbk can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Anabatic Technologies Tbk 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.
Threats Anabatic Technologies Tbk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Anabatic Technologies Tbk are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Computer Hardware industry are lowering. It can presents Anabatic Technologies Tbk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Computer Hardware sector.
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 Anabatic Technologies Tbk.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Anabatic Technologies Tbk 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 Anabatic Technologies Tbk prominent markets.
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. Anabatic Technologies Tbk needs to understand the core reasons impacting the Computer Hardware industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Anabatic Technologies Tbk has witnessed rapid integration of technology during Covid-19 in the Computer Hardware industry. As one of the leading players in the industry, Anabatic Technologies Tbk needs to keep up with the evolution of technology in the Computer Hardware 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Anabatic Technologies Tbk may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Computer Hardware sector.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Anabatic Technologies Tbk in Computer Hardware industry. The Computer Hardware 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.
Consumer confidence and its impact on Anabatic Technologies Tbk 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 Computer Hardware industry and other sectors.
Easy access to finance
– Easy access to finance in Computer Hardware industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Anabatic Technologies Tbk can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Anabatic Technologies Tbk
– 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 Anabatic Technologies Tbk.
Stagnating economy with rate increase
– Anabatic Technologies Tbk 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 Computer Hardware industry.
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 Anabatic Technologies Tbk in the Computer Hardware sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Anabatic Technologies Tbk Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Anabatic Technologies Tbk 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 Anabatic Technologies Tbk 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 Anabatic Technologies Tbk 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 Anabatic Technologies Tbk 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 Anabatic Technologies Tbk needs to make to build a sustainable competitive advantage.