SWOT Analysis / TOWS Matrix for Graha Andrasentra (Indonesia)
Based on various researches at Oak Spring University , Graha Andrasentra is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of Graha Andrasentra
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Graha Andrasentra can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Graha Andrasentra, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Graha Andrasentra 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 Graha Andrasentra can be done for the following purposes –
1. Strategic planning of Graha Andrasentra
2. Improving business portfolio management of Graha Andrasentra
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Recreational Activities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Graha Andrasentra
Strengths of Graha Andrasentra | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Graha Andrasentra are -
Cross disciplinary teams
– Horizontal connected teams at the Graha Andrasentra 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.
Sustainable margins compare to other players in Recreational Activities industry
– Graha Andrasentra has clearly differentiated products in the market place. This has enabled Graha Andrasentra to fetch slight price premium compare to the competitors in the Recreational Activities industry. The sustainable margins have also helped Graha Andrasentra to invest into research and development (R&D) and innovation.
Strong track record of project management in the Recreational Activities industry
– Graha Andrasentra is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Graha Andrasentra is one of the most innovative firm in Recreational Activities sector.
Digital Transformation in Recreational Activities industry
- digital transformation varies from industry to industry. For Graha Andrasentra digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Graha Andrasentra 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.
Ability to lead change in Recreational Activities
– Graha Andrasentra is one of the leading players in the Recreational Activities industry in Indonesia. Over the years it has not only transformed the business landscape in the Recreational Activities industry in Indonesia but also across the existing markets. The ability to lead change has enabled Graha Andrasentra in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Graha Andrasentra has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Graha Andrasentra to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Graha Andrasentra is present in almost all the verticals within the Recreational Activities industry. This has provided Graha Andrasentra a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Graha Andrasentra in Recreational Activities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Graha Andrasentra has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Graha Andrasentra 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.
Operational resilience
– The operational resilience strategy of Graha Andrasentra comprises – understanding the underlying the factors in the Recreational Activities 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.
Low bargaining power of suppliers
– Suppliers of Graha Andrasentra in the Services sector have low bargaining power. Graha Andrasentra has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Graha Andrasentra to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Graha Andrasentra | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Graha Andrasentra are -
Aligning sales with marketing
– From the outside it seems that Graha Andrasentra needs to have more collaboration between its sales team and marketing team. Sales professionals in the Recreational Activities industry have deep experience in developing customer relationships. Marketing department at Graha Andrasentra can leverage the sales team experience to cultivate customer relationships as Graha Andrasentra is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Graha Andrasentra is dominated by functional specialists. It is not different from other players in the Recreational Activities industry, but Graha Andrasentra needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Graha Andrasentra to focus more on services in the Recreational Activities industry rather than just following the product oriented approach.
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 Graha Andrasentra supply chain. Even after few cautionary changes, Graha Andrasentra is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Graha Andrasentra vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Graha Andrasentra has some of the most successful models in the Recreational Activities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Graha Andrasentra should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Graha Andrasentra 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 Recreational Activities industry using digital technology.
Lack of clear differentiation of Graha Andrasentra products
– To increase the profitability and margins on the products, Graha Andrasentra needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Graha Andrasentra has a high cash cycle compare to other players in the Recreational Activities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Recreational Activities industry
– The stress on hiring functional specialists at Graha Andrasentra 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.
High bargaining power of channel partners in Recreational Activities industry
– because of the regulatory requirements in Indonesia, Graha Andrasentra is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Recreational Activities industry.
Ability to respond to the competition
– As the decision making is very deliberative at Graha Andrasentra, in the dynamic environment of Recreational Activities industry it has struggled to respond to the nimble upstart competition. Graha Andrasentra has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Graha Andrasentra has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Recreational Activities industry over the last five years. Graha Andrasentra 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.
Graha Andrasentra Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Graha Andrasentra are -
Better consumer reach
– The expansion of the 5G network will help Graha Andrasentra to increase its market reach. Graha Andrasentra 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Recreational Activities industry, but it has also influenced the consumer preferences. Graha Andrasentra can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Graha Andrasentra 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Graha Andrasentra is facing challenges because of the dominance of functional experts in the organization. Graha Andrasentra can utilize new technology in the field of Recreational Activities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Graha Andrasentra can develop new processes and procedures in Recreational Activities 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Recreational Activities industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Graha Andrasentra 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. Graha Andrasentra 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.
Use of Bitcoin and other crypto currencies for transactions in Recreational Activities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Graha Andrasentra in the Recreational Activities industry. Now Graha Andrasentra can target international markets with far fewer capital restrictions requirements than the existing system.
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. Graha Andrasentra can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Graha Andrasentra has opened avenues for new revenue streams for the organization in Recreational Activities industry. This can help Graha Andrasentra to build a more holistic ecosystem for Graha Andrasentra products in the Recreational Activities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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 Graha Andrasentra 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Graha Andrasentra can use these opportunities to build new business models that can help the communities that Graha Andrasentra operates in. Secondly it can use opportunities from government spending in Recreational Activities sector.
Manufacturing automation
– Graha Andrasentra can use the latest technology developments to improve its manufacturing and designing process in Recreational Activities sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Leveraging digital technologies
– Graha Andrasentra 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.
Threats Graha Andrasentra External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Graha Andrasentra are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Graha Andrasentra may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Recreational Activities sector.
Regulatory challenges
– Graha Andrasentra 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 Recreational Activities industry regulations.
Consumer confidence and its impact on Graha Andrasentra demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Recreational Activities industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Graha Andrasentra 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 Graha Andrasentra prominent markets.
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.
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.
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 Graha Andrasentra business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Recreational Activities industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Graha Andrasentra can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Graha Andrasentra in the Recreational Activities sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Graha Andrasentra can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Recreational Activities industry.
Shortening product life cycle
– it is one of the major threat that Graha Andrasentra is facing in Recreational Activities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Recreational Activities industry are lowering. It can presents Graha Andrasentra with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Recreational Activities sector.
High dependence on third party suppliers
– Graha Andrasentra 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.
Weighted SWOT Analysis of Graha Andrasentra Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra 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 Graha Andrasentra needs to make to build a sustainable competitive advantage.