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 – wage bills are increasing, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, 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 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 -
Operational resilience
– The operational resilience strategy of Anabatic Technologies Tbk comprises – understanding the underlying the factors in the Computer Hardware industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
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.
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.
Superior customer experience
– The customer experience strategy of Anabatic Technologies Tbk in Computer Hardware industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Anabatic Technologies Tbk
– The covid-19 pandemic has put organizational resilience at the centre of everthing Anabatic Technologies Tbk does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management in the Computer Hardware industry
– Anabatic Technologies Tbk is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Anabatic Technologies Tbk 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.
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.
Analytics focus
– Anabatic Technologies Tbk 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 Computer Hardware 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.
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 -
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.
Skills based hiring in Computer Hardware industry
– The stress on hiring functional specialists at Anabatic Technologies Tbk 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Anabatic Technologies Tbk is slow explore the new channels of communication. These new channels of communication can help Anabatic Technologies Tbk to provide better information regarding Computer Hardware products and services. It can also build an online community to further reach out to potential customers.
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.
Low market penetration in new markets
– Outside its home market of Indonesia, Anabatic Technologies Tbk needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
High dependence on Anabatic Technologies Tbk ‘s star products
– The top 2 products and services of Anabatic Technologies Tbk still accounts for major business revenue. This dependence on star products in Computer Hardware industry has resulted into insufficient focus on developing new products, even though Anabatic Technologies Tbk has relatively successful track record of launching new products.
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 to strategic competitive environment developments
– As Anabatic Technologies Tbk is one of the leading players in the Computer Hardware industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Computer Hardware industry in last five years.
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.
Lack of clear differentiation of Anabatic Technologies Tbk products
– To increase the profitability and margins on the products, Anabatic Technologies Tbk needs to provide more differentiated products than what it is currently offering in the marketplace.
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 -
Creating value in data economy
– The success of analytics program of Anabatic Technologies Tbk has opened avenues for new revenue streams for the organization in Computer Hardware industry. This can help Anabatic Technologies Tbk to build a more holistic ecosystem for Anabatic Technologies Tbk products in the Computer Hardware industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 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.
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.
Leveraging digital technologies
– Anabatic Technologies Tbk 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.
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.
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.
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.
Buying journey improvements
– Anabatic Technologies Tbk can improve the customer journey of consumers in the Computer Hardware 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.
Learning at scale
– Online learning technologies has now opened space for Anabatic Technologies Tbk 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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Computer Hardware industry, but it has also influenced the consumer preferences. Anabatic Technologies Tbk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Anabatic Technologies Tbk to increase its market reach. Anabatic Technologies Tbk 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.
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.
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 -
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.
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.
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.
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 Anabatic Technologies Tbk 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 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.
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.
High dependence on third party suppliers
– Anabatic Technologies Tbk 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.
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.
Environmental challenges
– Anabatic Technologies Tbk 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. Anabatic Technologies Tbk can take advantage of this fund but it will also bring new competitors 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.
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.
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.
Regulatory challenges
– Anabatic Technologies Tbk 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 Computer Hardware industry regulations.
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.
