Bank Maspion Indonesia (BMAS) SWOT Analysis / TOWS Matrix / MBA Resources
S&Ls/Savings Banks
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Bank Maspion Indonesia (Indonesia)
Based on various researches at Oak Spring University , Bank Maspion Indonesia is operating in a macro-environment that has been destablized by – geopolitical disruptions, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, technology disruption, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc
Introduction to SWOT Analysis of Bank Maspion Indonesia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Bank Maspion Indonesia can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bank Maspion Indonesia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bank Maspion Indonesia 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 Bank Maspion Indonesia can be done for the following purposes –
1. Strategic planning of Bank Maspion Indonesia
2. Improving business portfolio management of Bank Maspion Indonesia
3. Assessing feasibility of the new initiative in Indonesia
4. Making a S&Ls/Savings Banks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bank Maspion Indonesia
Strengths of Bank Maspion Indonesia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bank Maspion Indonesia are -
Sustainable margins compare to other players in S&Ls/Savings Banks industry
– Bank Maspion Indonesia has clearly differentiated products in the market place. This has enabled Bank Maspion Indonesia to fetch slight price premium compare to the competitors in the S&Ls/Savings Banks industry. The sustainable margins have also helped Bank Maspion Indonesia to invest into research and development (R&D) and innovation.
Ability to lead change in S&Ls/Savings Banks
– Bank Maspion Indonesia is one of the leading players in the S&Ls/Savings Banks industry in Indonesia. Over the years it has not only transformed the business landscape in the S&Ls/Savings Banks industry in Indonesia but also across the existing markets. The ability to lead change has enabled Bank Maspion Indonesia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Bank Maspion Indonesia 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.
Learning organization
- Bank Maspion Indonesia 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 Bank Maspion Indonesia is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Bank Maspion Indonesia emphasize – knowledge, initiative, and innovation.
Analytics focus
– Bank Maspion Indonesia 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 S&Ls/Savings Banks 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.
High brand equity
– Bank Maspion Indonesia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bank Maspion Indonesia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Bank Maspion Indonesia has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bank Maspion Indonesia 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.
Digital Transformation in S&Ls/Savings Banks industry
- digital transformation varies from industry to industry. For Bank Maspion Indonesia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bank Maspion Indonesia 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.
Low bargaining power of suppliers
– Suppliers of Bank Maspion Indonesia in the Financial sector have low bargaining power. Bank Maspion Indonesia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bank Maspion Indonesia to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Bank Maspion Indonesia
– The covid-19 pandemic has put organizational resilience at the centre of everthing Bank Maspion Indonesia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Bank Maspion Indonesia is one of the most innovative firm in S&Ls/Savings Banks sector.
Cross disciplinary teams
– Horizontal connected teams at the Bank Maspion Indonesia 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.
Weaknesses of Bank Maspion Indonesia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bank Maspion Indonesia are -
Aligning sales with marketing
– From the outside it seems that Bank Maspion Indonesia needs to have more collaboration between its sales team and marketing team. Sales professionals in the S&Ls/Savings Banks industry have deep experience in developing customer relationships. Marketing department at Bank Maspion Indonesia can leverage the sales team experience to cultivate customer relationships as Bank Maspion Indonesia is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative at Bank Maspion Indonesia, in the dynamic environment of S&Ls/Savings Banks industry it has struggled to respond to the nimble upstart competition. Bank Maspion Indonesia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Indonesia, Bank Maspion Indonesia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Bank Maspion Indonesia has a high cash cycle compare to other players in the S&Ls/Savings Banks industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Bank Maspion Indonesia is one of the leading players in the S&Ls/Savings Banks industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the S&Ls/Savings Banks industry in last five years.
High operating costs
– Compare to the competitors, Bank Maspion Indonesia has high operating costs in the S&Ls/Savings Banks industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bank Maspion Indonesia lucrative customers.
Skills based hiring in S&Ls/Savings Banks industry
– The stress on hiring functional specialists at Bank Maspion Indonesia 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.
Capital Spending Reduction
– Even during the low interest decade, Bank Maspion Indonesia 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 S&Ls/Savings Banks industry using digital technology.
High bargaining power of channel partners in S&Ls/Savings Banks industry
– because of the regulatory requirements in Indonesia, Bank Maspion Indonesia 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 S&Ls/Savings Banks industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bank Maspion Indonesia is slow explore the new channels of communication. These new channels of communication can help Bank Maspion Indonesia to provide better information regarding S&Ls/Savings Banks products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Bank Maspion Indonesia has some of the most successful models in the S&Ls/Savings Banks industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Bank Maspion Indonesia should strive to include more intangible value offerings along with its core products and services.
Bank Maspion Indonesia Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Bank Maspion Indonesia are -
Buying journey improvements
– Bank Maspion Indonesia can improve the customer journey of consumers in the S&Ls/Savings Banks 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.
Building a culture of innovation
– managers at Bank Maspion Indonesia 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 S&Ls/Savings Banks industry.
Developing new processes and practices
– Bank Maspion Indonesia can develop new processes and procedures in S&Ls/Savings Banks 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.
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. Bank Maspion Indonesia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bank Maspion Indonesia is facing challenges because of the dominance of functional experts in the organization. Bank Maspion Indonesia can utilize new technology in the field of S&Ls/Savings Banks industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Bank Maspion Indonesia has opened avenues for new revenue streams for the organization in S&Ls/Savings Banks industry. This can help Bank Maspion Indonesia to build a more holistic ecosystem for Bank Maspion Indonesia products in the S&Ls/Savings Banks industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bank Maspion Indonesia in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the S&Ls/Savings Banks industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Bank Maspion Indonesia to increase its market reach. Bank Maspion Indonesia 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bank Maspion Indonesia can use these opportunities to build new business models that can help the communities that Bank Maspion Indonesia operates in. Secondly it can use opportunities from government spending in S&Ls/Savings Banks sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bank Maspion Indonesia 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.
Use of Bitcoin and other crypto currencies for transactions in S&Ls/Savings Banks industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bank Maspion Indonesia in the S&Ls/Savings Banks industry. Now Bank Maspion Indonesia can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Bank Maspion Indonesia 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.
Using analytics as competitive advantage
– Bank Maspion Indonesia has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in S&Ls/Savings Banks sector. This continuous investment in analytics has enabled Bank Maspion Indonesia to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bank Maspion Indonesia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Bank Maspion Indonesia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Bank Maspion Indonesia are -
Technology acceleration in Forth Industrial Revolution
– Bank Maspion Indonesia has witnessed rapid integration of technology during Covid-19 in the S&Ls/Savings Banks industry. As one of the leading players in the industry, Bank Maspion Indonesia needs to keep up with the evolution of technology in the S&Ls/Savings Banks 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.
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 Bank Maspion Indonesia business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in S&Ls/Savings Banks industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bank Maspion Indonesia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bank Maspion Indonesia 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 Bank Maspion Indonesia prominent markets.
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 Bank Maspion Indonesia.
Increasing wage structure of Bank Maspion Indonesia
– 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 Bank Maspion Indonesia.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Bank Maspion Indonesia may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of S&Ls/Savings Banks sector.
High dependence on third party suppliers
– Bank Maspion Indonesia 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to S&Ls/Savings Banks industry are lowering. It can presents Bank Maspion Indonesia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the S&Ls/Savings Banks sector.
Consumer confidence and its impact on Bank Maspion Indonesia 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 S&Ls/Savings Banks industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bank Maspion Indonesia in S&Ls/Savings Banks industry. The S&Ls/Savings Banks 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.
Stagnating economy with rate increase
– Bank Maspion Indonesia 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 S&Ls/Savings Banks industry.
Environmental challenges
– Bank Maspion Indonesia 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. Bank Maspion Indonesia can take advantage of this fund but it will also bring new competitors in the S&Ls/Savings Banks industry.
Weighted SWOT Analysis of Bank Maspion Indonesia Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Bank Maspion Indonesia 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 Bank Maspion Indonesia 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 Bank Maspion Indonesia 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 Bank Maspion Indonesia 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 Bank Maspion Indonesia needs to make to build a sustainable competitive advantage.