Bukit Uluwatu Villa (BUVA) SWOT Analysis / TOWS Matrix / MBA Resources
Hotels & Motels
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Bukit Uluwatu Villa (Indonesia)
Based on various researches at Oak Spring University , Bukit Uluwatu Villa is operating in a macro-environment that has been destablized by – there is backlash against globalization, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, supply chains are disrupted by pandemic , geopolitical disruptions,
increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Bukit Uluwatu Villa
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Bukit Uluwatu Villa can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bukit Uluwatu Villa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bukit Uluwatu Villa 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 Bukit Uluwatu Villa can be done for the following purposes –
1. Strategic planning of Bukit Uluwatu Villa
2. Improving business portfolio management of Bukit Uluwatu Villa
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Hotels & Motels sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bukit Uluwatu Villa
Strengths of Bukit Uluwatu Villa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bukit Uluwatu Villa are -
Organizational Resilience of Bukit Uluwatu Villa
– The covid-19 pandemic has put organizational resilience at the centre of everthing Bukit Uluwatu Villa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Bukit Uluwatu Villa has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Hotels & Motels industry. Secondly the value chain collaborators of Bukit Uluwatu Villa have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Bukit Uluwatu Villa 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 Bukit Uluwatu Villa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Bukit Uluwatu Villa emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Bukit Uluwatu Villa 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.
Training and development
– Bukit Uluwatu Villa 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.
Ability to recruit top talent
– Bukit Uluwatu Villa is one of the leading players in the Hotels & Motels industry in Indonesia. It is in a position to attract the best talent available in Indonesia. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Bukit Uluwatu Villa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Bukit Uluwatu Villa staying ahead in the Hotels & Motels industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Bukit Uluwatu Villa in Hotels & Motels industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Bukit Uluwatu Villa is one of the most innovative firm in Hotels & Motels sector.
Strong track record of project management in the Hotels & Motels industry
– Bukit Uluwatu Villa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of Bukit Uluwatu Villa comprises – understanding the underlying the factors in the Hotels & Motels 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.
Analytics focus
– Bukit Uluwatu Villa 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 Hotels & Motels 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 Bukit Uluwatu Villa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bukit Uluwatu Villa 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 Bukit Uluwatu Villa supply chain. Even after few cautionary changes, Bukit Uluwatu Villa is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bukit Uluwatu Villa vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Bukit Uluwatu Villa is dominated by functional specialists. It is not different from other players in the Hotels & Motels industry, but Bukit Uluwatu Villa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bukit Uluwatu Villa to focus more on services in the Hotels & Motels industry rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the Hotels & Motels industry, Bukit Uluwatu Villa 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.
Products dominated business model
– Even though Bukit Uluwatu Villa has some of the most successful models in the Hotels & Motels industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Bukit Uluwatu Villa should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Bukit Uluwatu Villa 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 Hotels & Motels industry using digital technology.
High operating costs
– Compare to the competitors, Bukit Uluwatu Villa has high operating costs in the Hotels & Motels industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bukit Uluwatu Villa lucrative customers.
High dependence on Bukit Uluwatu Villa ‘s star products
– The top 2 products and services of Bukit Uluwatu Villa still accounts for major business revenue. This dependence on star products in Hotels & Motels industry has resulted into insufficient focus on developing new products, even though Bukit Uluwatu Villa has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative at Bukit Uluwatu Villa, in the dynamic environment of Hotels & Motels industry it has struggled to respond to the nimble upstart competition. Bukit Uluwatu Villa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee of Bukit Uluwatu Villa is just above the Hotels & Motels 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.
Slow decision making process
– As mentioned earlier in the report, Bukit Uluwatu Villa has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Hotels & Motels industry over the last five years. Bukit Uluwatu Villa 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.
Interest costs
– Compare to the competition, Bukit Uluwatu Villa has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Bukit Uluwatu Villa Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Bukit Uluwatu Villa are -
Loyalty marketing
– Bukit Uluwatu Villa 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, Bukit Uluwatu Villa 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.
Learning at scale
– Online learning technologies has now opened space for Bukit Uluwatu Villa 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.
Developing new processes and practices
– Bukit Uluwatu Villa can develop new processes and procedures in Hotels & Motels 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.
Building a culture of innovation
– managers at Bukit Uluwatu Villa 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 Hotels & Motels industry.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bukit Uluwatu Villa 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 Bukit Uluwatu Villa to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Bukit Uluwatu Villa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Hotels & Motels sector. This continuous investment in analytics has enabled Bukit Uluwatu Villa to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bukit Uluwatu Villa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Bukit Uluwatu Villa has opened avenues for new revenue streams for the organization in Hotels & Motels industry. This can help Bukit Uluwatu Villa to build a more holistic ecosystem for Bukit Uluwatu Villa products in the Hotels & Motels 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, Bukit Uluwatu Villa can use these opportunities to build new business models that can help the communities that Bukit Uluwatu Villa operates in. Secondly it can use opportunities from government spending in Hotels & Motels sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bukit Uluwatu Villa 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 Bukit Uluwatu Villa to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bukit Uluwatu Villa is facing challenges because of the dominance of functional experts in the organization. Bukit Uluwatu Villa can utilize new technology in the field of Hotels & Motels industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Bukit Uluwatu Villa can use the latest technology developments to improve its manufacturing and designing process in Hotels & Motels 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.
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. Bukit Uluwatu Villa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Bukit Uluwatu Villa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Bukit Uluwatu Villa are -
Shortening product life cycle
– it is one of the major threat that Bukit Uluwatu Villa is facing in Hotels & Motels sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Bukit Uluwatu Villa business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Bukit Uluwatu Villa
– 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 Bukit Uluwatu Villa.
Regulatory challenges
– Bukit Uluwatu Villa 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 Hotels & Motels industry regulations.
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.
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. Bukit Uluwatu Villa 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.
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. Bukit Uluwatu Villa needs to understand the core reasons impacting the Hotels & Motels industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Bukit Uluwatu Villa 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.
Environmental challenges
– Bukit Uluwatu Villa 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. Bukit Uluwatu Villa can take advantage of this fund but it will also bring new competitors in the Hotels & Motels industry.
Stagnating economy with rate increase
– Bukit Uluwatu Villa 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 Hotels & Motels industry.
Easy access to finance
– Easy access to finance in Hotels & Motels industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bukit Uluwatu Villa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bukit Uluwatu Villa.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bukit Uluwatu Villa 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 Bukit Uluwatu Villa prominent markets.
Weighted SWOT Analysis of Bukit Uluwatu Villa Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Bukit Uluwatu Villa 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 Bukit Uluwatu Villa 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 Bukit Uluwatu Villa 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 Bukit Uluwatu Villa 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 Bukit Uluwatu Villa needs to make to build a sustainable competitive advantage.
