Mitra Komunikasi Nusantara Tbk PT (MKNT) SWOT Analysis / TOWS Matrix / MBA Resources
Communications Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Mitra Komunikasi Nusantara Tbk PT (Indonesia)
Based on various researches at Oak Spring University , Mitra Komunikasi Nusantara Tbk PT is operating in a macro-environment that has been destablized by – increasing energy prices, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices,
technology disruption, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Mitra Komunikasi Nusantara Tbk PT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Mitra Komunikasi Nusantara Tbk PT can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mitra Komunikasi Nusantara Tbk PT, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT can be done for the following purposes –
1. Strategic planning of Mitra Komunikasi Nusantara Tbk PT
2. Improving business portfolio management of Mitra Komunikasi Nusantara Tbk PT
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Communications Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mitra Komunikasi Nusantara Tbk PT
Strengths of Mitra Komunikasi Nusantara Tbk PT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mitra Komunikasi Nusantara Tbk PT are -
Innovation driven organization
– Mitra Komunikasi Nusantara Tbk PT is one of the most innovative firm in Communications Services sector.
Successful track record of launching new products
– Mitra Komunikasi Nusantara Tbk PT has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mitra Komunikasi Nusantara Tbk PT 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.
Organizational Resilience of Mitra Komunikasi Nusantara Tbk PT
– The covid-19 pandemic has put organizational resilience at the centre of everthing Mitra Komunikasi Nusantara Tbk PT does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Communications Services
– Mitra Komunikasi Nusantara Tbk PT is one of the leading players in the Communications Services industry in Indonesia. Over the years it has not only transformed the business landscape in the Communications Services industry in Indonesia but also across the existing markets. The ability to lead change has enabled Mitra Komunikasi Nusantara Tbk PT in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Mitra Komunikasi Nusantara Tbk PT emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Mitra Komunikasi Nusantara Tbk PT in the Services sector have low bargaining power. Mitra Komunikasi Nusantara Tbk PT has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mitra Komunikasi Nusantara Tbk PT to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Mitra Komunikasi Nusantara Tbk PT has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Communications Services industry. Secondly the value chain collaborators of Mitra Komunikasi Nusantara Tbk PT have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Mitra Komunikasi Nusantara Tbk PT is one of the leading players in the Communications Services 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.
Digital Transformation in Communications Services industry
- digital transformation varies from industry to industry. For Mitra Komunikasi Nusantara Tbk PT digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mitra Komunikasi Nusantara Tbk PT 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.
Operational resilience
– The operational resilience strategy of Mitra Komunikasi Nusantara Tbk PT comprises – understanding the underlying the factors in the Communications Services 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 Communications Services industry
– Mitra Komunikasi Nusantara Tbk PT has clearly differentiated products in the market place. This has enabled Mitra Komunikasi Nusantara Tbk PT to fetch slight price premium compare to the competitors in the Communications Services industry. The sustainable margins have also helped Mitra Komunikasi Nusantara Tbk PT to invest into research and development (R&D) and innovation.
Strong track record of project management in the Communications Services industry
– Mitra Komunikasi Nusantara Tbk PT is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses of Mitra Komunikasi Nusantara Tbk PT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mitra Komunikasi Nusantara Tbk PT are -
Increasing silos among functional specialists
– The organizational structure of Mitra Komunikasi Nusantara Tbk PT is dominated by functional specialists. It is not different from other players in the Communications Services industry, but Mitra Komunikasi Nusantara Tbk PT needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mitra Komunikasi Nusantara Tbk PT to focus more on services in the Communications Services 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 Mitra Komunikasi Nusantara Tbk PT supply chain. Even after few cautionary changes, Mitra Komunikasi Nusantara Tbk PT is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mitra Komunikasi Nusantara Tbk PT vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Mitra Komunikasi Nusantara Tbk PT, it seems that company is thinking out the frontier risks that can impact Communications Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, Mitra Komunikasi Nusantara Tbk PT has high operating costs in the Communications Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mitra Komunikasi Nusantara Tbk PT lucrative customers.
Products dominated business model
– Even though Mitra Komunikasi Nusantara Tbk PT has some of the most successful models in the Communications Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Mitra Komunikasi Nusantara Tbk PT should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that Mitra Komunikasi Nusantara Tbk PT needs to have more collaboration between its sales team and marketing team. Sales professionals in the Communications Services industry have deep experience in developing customer relationships. Marketing department at Mitra Komunikasi Nusantara Tbk PT can leverage the sales team experience to cultivate customer relationships as Mitra Komunikasi Nusantara Tbk PT is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Indonesia, Mitra Komunikasi Nusantara Tbk PT needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Communications Services industry
– because of the regulatory requirements in Indonesia, Mitra Komunikasi Nusantara Tbk PT 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 Communications Services industry.
Slow to strategic competitive environment developments
– As Mitra Komunikasi Nusantara Tbk PT is one of the leading players in the Communications Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Communications Services industry in last five years.
Capital Spending Reduction
– Even during the low interest decade, Mitra Komunikasi Nusantara Tbk PT 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 Communications Services industry using digital technology.
Slow decision making process
– As mentioned earlier in the report, Mitra Komunikasi Nusantara Tbk PT has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Communications Services industry over the last five years. Mitra Komunikasi Nusantara Tbk PT 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.
Mitra Komunikasi Nusantara Tbk PT Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Mitra Komunikasi Nusantara Tbk PT are -
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 Mitra Komunikasi Nusantara Tbk PT 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mitra Komunikasi Nusantara Tbk PT is facing challenges because of the dominance of functional experts in the organization. Mitra Komunikasi Nusantara Tbk PT can utilize new technology in the field of Communications Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mitra Komunikasi Nusantara Tbk PT can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Communications Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mitra Komunikasi Nusantara Tbk PT 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. Mitra Komunikasi Nusantara Tbk PT 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.
Using analytics as competitive advantage
– Mitra Komunikasi Nusantara Tbk PT has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Communications Services sector. This continuous investment in analytics has enabled Mitra Komunikasi Nusantara Tbk PT to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mitra Komunikasi Nusantara Tbk PT to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Mitra Komunikasi Nusantara Tbk PT 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.
Use of Bitcoin and other crypto currencies for transactions in Communications Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Mitra Komunikasi Nusantara Tbk PT in the Communications Services industry. Now Mitra Komunikasi Nusantara Tbk PT can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Mitra Komunikasi Nusantara Tbk PT to increase its market reach. Mitra Komunikasi Nusantara Tbk PT 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.
Buying journey improvements
– Mitra Komunikasi Nusantara Tbk PT can improve the customer journey of consumers in the Communications Services 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 Mitra Komunikasi Nusantara Tbk PT 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mitra Komunikasi Nusantara Tbk PT in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communications Services industry, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communications Services industry, but it has also influenced the consumer preferences. Mitra Komunikasi Nusantara Tbk PT can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Mitra Komunikasi Nusantara Tbk PT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Mitra Komunikasi Nusantara Tbk PT are -
Shortening product life cycle
– it is one of the major threat that Mitra Komunikasi Nusantara Tbk PT is facing in Communications Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Mitra Komunikasi Nusantara Tbk PT 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
– Mitra Komunikasi Nusantara Tbk PT 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. Mitra Komunikasi Nusantara Tbk PT can take advantage of this fund but it will also bring new competitors in the Communications Services industry.
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.
Consumer confidence and its impact on Mitra Komunikasi Nusantara Tbk PT 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 Communications Services industry and other sectors.
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 Mitra Komunikasi Nusantara Tbk PT.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Mitra Komunikasi Nusantara Tbk PT may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communications Services sector.
Technology acceleration in Forth Industrial Revolution
– Mitra Komunikasi Nusantara Tbk PT has witnessed rapid integration of technology during Covid-19 in the Communications Services industry. As one of the leading players in the industry, Mitra Komunikasi Nusantara Tbk PT needs to keep up with the evolution of technology in the Communications Services 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mitra Komunikasi Nusantara Tbk PT in Communications Services industry. The Communications Services 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.
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. Mitra Komunikasi Nusantara Tbk PT 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.
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 Mitra Komunikasi Nusantara Tbk PT in the Communications Services sector and impact the bottomline of the organization.
Regulatory challenges
– Mitra Komunikasi Nusantara Tbk PT 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 Communications Services industry regulations.
Easy access to finance
– Easy access to finance in Communications Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Mitra Komunikasi Nusantara Tbk PT can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Mitra Komunikasi Nusantara Tbk PT Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT 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 Mitra Komunikasi Nusantara Tbk PT needs to make to build a sustainable competitive advantage.