Asuransi Jiwa Syariah (JMAS) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Asuransi Jiwa Syariah (Indonesia)

Based on various researches at Oak Spring University , Asuransi Jiwa Syariah is operating in a macro-environment that has been destablized by – increasing energy prices, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, etc

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Introduction to SWOT Analysis of Asuransi Jiwa Syariah

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Asuransi Jiwa Syariah can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Asuransi Jiwa Syariah, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Asuransi Jiwa Syariah 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Asuransi Jiwa Syariah can be done for the following purposes –
1. Strategic planning of Asuransi Jiwa Syariah
2. Improving business portfolio management of Asuransi Jiwa Syariah
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Insurance (Life) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Asuransi Jiwa Syariah

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Strengths of Asuransi Jiwa Syariah | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Asuransi Jiwa Syariah are -

Learning organization

- Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Asuransi Jiwa Syariah emphasize – knowledge, initiative, and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Asuransi Jiwa Syariah 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.

High brand equity

– Asuransi Jiwa Syariah has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Asuransi Jiwa Syariah to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– Asuransi Jiwa Syariah has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Asuransi Jiwa Syariah 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.

Innovation driven organization

– Asuransi Jiwa Syariah is one of the most innovative firm in Insurance (Life) sector.

Ability to recruit top talent

– Asuransi Jiwa Syariah is one of the leading players in the Insurance (Life) 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.

Analytics focus

– Asuransi Jiwa Syariah 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 Insurance (Life) 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.

Operational resilience

– The operational resilience strategy of Asuransi Jiwa Syariah comprises – understanding the underlying the factors in the Insurance (Life) 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.

Digital Transformation in Insurance (Life) industry

- digital transformation varies from industry to industry. For Asuransi Jiwa Syariah digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah in the Financial sector have low bargaining power. Asuransi Jiwa Syariah has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Asuransi Jiwa Syariah to manage not only supply disruptions but also source products at highly competitive prices.

Effective Research and Development (R&D)

– Asuransi Jiwa Syariah has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Asuransi Jiwa Syariah staying ahead in the Insurance (Life) industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Asuransi Jiwa Syariah has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Insurance (Life) industry. Secondly the value chain collaborators of Asuransi Jiwa Syariah have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses of Asuransi Jiwa Syariah | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Asuransi Jiwa Syariah are -

Products dominated business model

– Even though Asuransi Jiwa Syariah has some of the most successful models in the Insurance (Life) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Asuransi Jiwa Syariah should strive to include more intangible value offerings along with its core products and services.

High bargaining power of channel partners in Insurance (Life) industry

– because of the regulatory requirements in Indonesia, Asuransi Jiwa Syariah 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 Insurance (Life) industry.

High cash cycle compare to competitors

Asuransi Jiwa Syariah has a high cash cycle compare to other players in the Insurance (Life) 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 Insurance (Life) industry

– The stress on hiring functional specialists at Asuransi Jiwa Syariah 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.

Low market penetration in new markets

– Outside its home market of Indonesia, Asuransi Jiwa Syariah needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Asuransi Jiwa Syariah is slow explore the new channels of communication. These new channels of communication can help Asuransi Jiwa Syariah to provide better information regarding Insurance (Life) products and services. It can also build an online community to further reach out to potential customers.

Interest costs

– Compare to the competition, Asuransi Jiwa Syariah 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.

Lack of clear differentiation of Asuransi Jiwa Syariah products

– To increase the profitability and margins on the products, Asuransi Jiwa Syariah needs to provide more differentiated products than what it is currently offering in the marketplace.

Ability to respond to the competition

– As the decision making is very deliberative at Asuransi Jiwa Syariah, in the dynamic environment of Insurance (Life) industry it has struggled to respond to the nimble upstart competition. Asuransi Jiwa Syariah has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ less understanding of Asuransi Jiwa Syariah strategy

– From the outside it seems that the employees of Asuransi Jiwa Syariah don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Aligning sales with marketing

– From the outside it seems that Asuransi Jiwa Syariah needs to have more collaboration between its sales team and marketing team. Sales professionals in the Insurance (Life) industry have deep experience in developing customer relationships. Marketing department at Asuransi Jiwa Syariah can leverage the sales team experience to cultivate customer relationships as Asuransi Jiwa Syariah is planning to shift buying processes online.

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Asuransi Jiwa Syariah Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Asuransi Jiwa Syariah are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Insurance (Life) industry, but it has also influenced the consumer preferences. Asuransi Jiwa Syariah can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Building a culture of innovation

– managers at Asuransi Jiwa Syariah 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 Insurance (Life) industry.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Insurance (Life) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Asuransi Jiwa Syariah 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. Asuransi Jiwa Syariah 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

– Asuransi Jiwa Syariah has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Life) sector. This continuous investment in analytics has enabled Asuransi Jiwa Syariah to build a competitive advantage using analytics. The analytics driven competitive advantage can help Asuransi Jiwa Syariah to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Asuransi Jiwa Syariah is facing challenges because of the dominance of functional experts in the organization. Asuransi Jiwa Syariah can utilize new technology in the field of Insurance (Life) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Use of Bitcoin and other crypto currencies for transactions in Insurance (Life) industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Asuransi Jiwa Syariah in the Insurance (Life) industry. Now Asuransi Jiwa Syariah can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Asuransi Jiwa Syariah can use the latest technology developments to improve its manufacturing and designing process in Insurance (Life) 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.

Better consumer reach

– The expansion of the 5G network will help Asuransi Jiwa Syariah to increase its market reach. Asuransi Jiwa Syariah 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Asuransi Jiwa Syariah 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.

Leveraging digital technologies

– Asuransi Jiwa Syariah 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.

Creating value in data economy

– The success of analytics program of Asuransi Jiwa Syariah has opened avenues for new revenue streams for the organization in Insurance (Life) industry. This can help Asuransi Jiwa Syariah to build a more holistic ecosystem for Asuransi Jiwa Syariah products in the Insurance (Life) industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Asuransi Jiwa Syariah can improve the customer journey of consumers in the Insurance (Life) 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.

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Threats Asuransi Jiwa Syariah External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Asuransi Jiwa Syariah are -

Stagnating economy with rate increase

– Asuransi Jiwa Syariah 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 Insurance (Life) industry.

Increasing wage structure of Asuransi Jiwa Syariah

– 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 Asuransi Jiwa Syariah.

Easy access to finance

– Easy access to finance in Insurance (Life) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Asuransi Jiwa Syariah can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Environmental challenges

– Asuransi Jiwa Syariah 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. Asuransi Jiwa Syariah can take advantage of this fund but it will also bring new competitors in the Insurance (Life) industry.

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. Asuransi Jiwa Syariah needs to understand the core reasons impacting the Insurance (Life) industry. This will help it in building a better workplace.

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 Asuransi Jiwa Syariah in the Insurance (Life) sector and impact the bottomline of the organization.

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 Asuransi Jiwa Syariah 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 Insurance (Life) industry and other sectors.

Technology acceleration in Forth Industrial Revolution

– Asuransi Jiwa Syariah has witnessed rapid integration of technology during Covid-19 in the Insurance (Life) industry. As one of the leading players in the industry, Asuransi Jiwa Syariah needs to keep up with the evolution of technology in the Insurance (Life) 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 Asuransi Jiwa Syariah business can come under increasing regulations regarding data privacy, data security, etc.

Regulatory challenges

– Asuransi Jiwa Syariah 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 Insurance (Life) industry regulations.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah prominent markets.

Shortening product life cycle

– it is one of the major threat that Asuransi Jiwa Syariah is facing in Insurance (Life) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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Weighted SWOT Analysis of Asuransi Jiwa Syariah Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah needs to make to build a sustainable competitive advantage.

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