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 – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, etc

---

---

---

---

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.

---

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

---

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 -

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.

Superior customer experience

– The customer experience strategy of Asuransi Jiwa Syariah in Insurance (Life) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Innovation driven organization

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

Strong track record of project management in the Insurance (Life) industry

– Asuransi Jiwa Syariah is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Training and development

– Asuransi Jiwa Syariah has one of the best training and development program in Financial industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Ability to lead change in Insurance (Life)

– Asuransi Jiwa Syariah is one of the leading players in the Insurance (Life) industry in Indonesia. Over the years it has not only transformed the business landscape in the Insurance (Life) industry in Indonesia but also across the existing markets. The ability to lead change has enabled Asuransi Jiwa Syariah in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

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.

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.

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.

Sustainable margins compare to other players in Insurance (Life) industry

– Asuransi Jiwa Syariah has clearly differentiated products in the market place. This has enabled Asuransi Jiwa Syariah to fetch slight price premium compare to the competitors in the Insurance (Life) industry. The sustainable margins have also helped Asuransi Jiwa Syariah to invest into research and development (R&D) and innovation.

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.

High switching costs

– The high switching costs that Asuransi Jiwa Syariah 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.

---

---

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 -

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.

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 dependence on Asuransi Jiwa Syariah ‘s star products

– The top 2 products and services of Asuransi Jiwa Syariah still accounts for major business revenue. This dependence on star products in Insurance (Life) industry has resulted into insufficient focus on developing new products, even though Asuransi Jiwa Syariah has relatively successful track record of launching new products.

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.

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.

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.

Need for greater diversity

– Asuransi Jiwa Syariah has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Increasing silos among functional specialists

– The organizational structure of Asuransi Jiwa Syariah is dominated by functional specialists. It is not different from other players in the Insurance (Life) industry, but Asuransi Jiwa Syariah needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Asuransi Jiwa Syariah to focus more on services in the Insurance (Life) 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 Asuransi Jiwa Syariah supply chain. Even after few cautionary changes, Asuransi Jiwa Syariah is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Asuransi Jiwa Syariah vulnerable to further global disruptions in South East Asia.

Workers concerns about automation

– As automation is fast increasing in the Insurance (Life) industry, Asuransi Jiwa Syariah needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

---

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 -

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Asuransi Jiwa Syariah can use these opportunities to build new business models that can help the communities that Asuransi Jiwa Syariah operates in. Secondly it can use opportunities from government spending in Insurance (Life) sector.

Developing new processes and practices

– Asuransi Jiwa Syariah can develop new processes and procedures in Insurance (Life) 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.

Learning at scale

– Online learning technologies has now opened space for Asuransi Jiwa Syariah 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, 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Asuransi Jiwa Syariah in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Insurance (Life) industry, and it will provide faster access to the consumers.

Loyalty marketing

– Asuransi Jiwa Syariah 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.

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. Asuransi Jiwa Syariah can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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.

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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Asuransi Jiwa Syariah 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 Asuransi Jiwa Syariah to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Asuransi Jiwa Syariah can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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.

---

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.

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.

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.

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.

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.

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.

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.

High dependence on third party suppliers

– Asuransi Jiwa Syariah 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.

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.

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. Asuransi Jiwa Syariah 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Asuransi Jiwa Syariah in Insurance (Life) industry. The Insurance (Life) 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Insurance (Life) industry are lowering. It can presents Asuransi Jiwa Syariah with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Insurance (Life) sector.

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.

---

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.

--- ---