Jasuindo Tiga Perkasa (JTPE) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Jasuindo Tiga Perkasa (Indonesia)

Based on various researches at Oak Spring University , Jasuindo Tiga Perkasa is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, central banks are concerned over increasing inflation, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc

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Introduction to SWOT Analysis of Jasuindo Tiga Perkasa

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jasuindo Tiga Perkasa can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jasuindo Tiga Perkasa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jasuindo Tiga Perkasa 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 Jasuindo Tiga Perkasa can be done for the following purposes –
1. Strategic planning of Jasuindo Tiga Perkasa
2. Improving business portfolio management of Jasuindo Tiga Perkasa
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Printing Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jasuindo Tiga Perkasa

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Strengths of Jasuindo Tiga Perkasa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Jasuindo Tiga Perkasa are -

Learning organization

- Jasuindo Tiga Perkasa 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 Jasuindo Tiga Perkasa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jasuindo Tiga Perkasa emphasize – knowledge, initiative, and innovation.

High switching costs

– The high switching costs that Jasuindo Tiga Perkasa 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.

Strong track record of project management in the Printing Services industry

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

Ability to lead change in Printing Services

– Jasuindo Tiga Perkasa is one of the leading players in the Printing Services industry in Indonesia. Over the years it has not only transformed the business landscape in the Printing Services industry in Indonesia but also across the existing markets. The ability to lead change has enabled Jasuindo Tiga Perkasa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in Printing Services industry

– Jasuindo Tiga Perkasa has clearly differentiated products in the market place. This has enabled Jasuindo Tiga Perkasa to fetch slight price premium compare to the competitors in the Printing Services industry. The sustainable margins have also helped Jasuindo Tiga Perkasa to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Jasuindo Tiga Perkasa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jasuindo Tiga Perkasa staying ahead in the Printing Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Superior customer experience

– The customer experience strategy of Jasuindo Tiga Perkasa in Printing Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Digital Transformation in Printing Services industry

- digital transformation varies from industry to industry. For Jasuindo Tiga Perkasa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jasuindo Tiga Perkasa 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.

Diverse revenue streams

– Jasuindo Tiga Perkasa is present in almost all the verticals within the Printing Services industry. This has provided Jasuindo Tiga Perkasa 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.

High brand equity

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

Organizational Resilience of Jasuindo Tiga Perkasa

– The covid-19 pandemic has put organizational resilience at the centre of everthing Jasuindo Tiga Perkasa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– Jasuindo Tiga Perkasa is one of the leading players in the Printing 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.

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Weaknesses of Jasuindo Tiga Perkasa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Jasuindo Tiga Perkasa are -

Skills based hiring in Printing Services industry

– The stress on hiring functional specialists at Jasuindo Tiga Perkasa 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 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 Jasuindo Tiga Perkasa supply chain. Even after few cautionary changes, Jasuindo Tiga Perkasa is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jasuindo Tiga Perkasa vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jasuindo Tiga Perkasa is slow explore the new channels of communication. These new channels of communication can help Jasuindo Tiga Perkasa to provide better information regarding Printing Services products and services. It can also build an online community to further reach out to potential customers.

Slow decision making process

– As mentioned earlier in the report, Jasuindo Tiga Perkasa has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Printing Services industry over the last five years. Jasuindo Tiga Perkasa 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.

Low market penetration in new markets

– Outside its home market of Indonesia, Jasuindo Tiga Perkasa needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

No frontier risks strategy

– From the 10K / annual statement of Jasuindo Tiga Perkasa, it seems that company is thinking out the frontier risks that can impact Printing 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.

Compensation and incentives

– The revenue per employee of Jasuindo Tiga Perkasa is just above the Printing Services industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Lack of clear differentiation of Jasuindo Tiga Perkasa products

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

Capital Spending Reduction

– Even during the low interest decade, Jasuindo Tiga Perkasa 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 Printing Services industry using digital technology.

Aligning sales with marketing

– From the outside it seems that Jasuindo Tiga Perkasa needs to have more collaboration between its sales team and marketing team. Sales professionals in the Printing Services industry have deep experience in developing customer relationships. Marketing department at Jasuindo Tiga Perkasa can leverage the sales team experience to cultivate customer relationships as Jasuindo Tiga Perkasa is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the Printing Services industry, Jasuindo Tiga Perkasa 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.

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Jasuindo Tiga Perkasa Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Jasuindo Tiga Perkasa are -

Developing new processes and practices

– Jasuindo Tiga Perkasa can develop new processes and procedures in Printing Services 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.

Creating value in data economy

– The success of analytics program of Jasuindo Tiga Perkasa has opened avenues for new revenue streams for the organization in Printing Services industry. This can help Jasuindo Tiga Perkasa to build a more holistic ecosystem for Jasuindo Tiga Perkasa products in the Printing Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Jasuindo Tiga Perkasa can use the latest technology developments to improve its manufacturing and designing process in Printing Services 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.

Using analytics as competitive advantage

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

Harnessing reconfiguration of the global supply chains

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

Low interest rates

– Even though inflation is raising its head in most developed economies, Jasuindo Tiga Perkasa can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Use of Bitcoin and other crypto currencies for transactions in Printing Services industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jasuindo Tiga Perkasa in the Printing Services industry. Now Jasuindo Tiga Perkasa can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Jasuindo Tiga Perkasa 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 Printing Services industry.

Buying journey improvements

– Jasuindo Tiga Perkasa can improve the customer journey of consumers in the Printing 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.

Better consumer reach

– The expansion of the 5G network will help Jasuindo Tiga Perkasa to increase its market reach. Jasuindo Tiga Perkasa 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.

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. Jasuindo Tiga Perkasa can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Jasuindo Tiga Perkasa is facing challenges because of the dominance of functional experts in the organization. Jasuindo Tiga Perkasa can utilize new technology in the field of Printing Services 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 Jasuindo Tiga Perkasa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Printing Services industry, and it will provide faster access to the consumers.

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Threats Jasuindo Tiga Perkasa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Jasuindo Tiga Perkasa are -

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Printing Services industry are lowering. It can presents Jasuindo Tiga Perkasa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Printing Services sector.

Technology acceleration in Forth Industrial Revolution

– Jasuindo Tiga Perkasa has witnessed rapid integration of technology during Covid-19 in the Printing Services industry. As one of the leading players in the industry, Jasuindo Tiga Perkasa needs to keep up with the evolution of technology in the Printing 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.

Shortening product life cycle

– it is one of the major threat that Jasuindo Tiga Perkasa is facing in Printing Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Stagnating economy with rate increase

– Jasuindo Tiga Perkasa 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 Printing 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.

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 Jasuindo Tiga Perkasa in the Printing Services sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Jasuindo Tiga Perkasa in Printing Services industry. The Printing 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Jasuindo Tiga Perkasa may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Printing Services sector.

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.

Easy access to finance

– Easy access to finance in Printing Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jasuindo Tiga Perkasa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Jasuindo Tiga Perkasa.

Environmental challenges

– Jasuindo Tiga Perkasa 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. Jasuindo Tiga Perkasa can take advantage of this fund but it will also bring new competitors in the Printing Services industry.

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. Jasuindo Tiga Perkasa 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.

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Weighted SWOT Analysis of Jasuindo Tiga Perkasa Template, Example

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

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