Dua Putra Utama Makmur PT (DPUM) SWOT Analysis / TOWS Matrix / MBA Resources
Fish/Livestock
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Dua Putra Utama Makmur PT (Indonesia)
Based on various researches at Oak Spring University , Dua Putra Utama Makmur PT is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Dua Putra Utama Makmur PT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Dua Putra Utama Makmur PT can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dua Putra Utama Makmur PT, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dua Putra Utama Makmur 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 Dua Putra Utama Makmur PT can be done for the following purposes –
1. Strategic planning of Dua Putra Utama Makmur PT
2. Improving business portfolio management of Dua Putra Utama Makmur PT
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Fish/Livestock sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Dua Putra Utama Makmur PT
Strengths of Dua Putra Utama Makmur PT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dua Putra Utama Makmur PT are -
Effective Research and Development (R&D)
– Dua Putra Utama Makmur PT has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Dua Putra Utama Makmur PT staying ahead in the Fish/Livestock industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Dua Putra Utama Makmur PT 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.
Operational resilience
– The operational resilience strategy of Dua Putra Utama Makmur PT comprises – understanding the underlying the factors in the Fish/Livestock 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.
Ability to recruit top talent
– Dua Putra Utama Makmur PT is one of the leading players in the Fish/Livestock 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.
Low bargaining power of suppliers
– Suppliers of Dua Putra Utama Makmur PT in the Consumer/Non-Cyclical sector have low bargaining power. Dua Putra Utama Makmur PT has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dua Putra Utama Makmur PT to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Dua Putra Utama Makmur PT has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dua Putra Utama Makmur 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.
Training and development
– Dua Putra Utama Makmur PT has one of the best training and development program in Consumer/Non-Cyclical 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.
High brand equity
– Dua Putra Utama Makmur PT has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dua Putra Utama Makmur PT to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Dua Putra Utama Makmur PT in Fish/Livestock industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Dua Putra Utama Makmur PT 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 Fish/Livestock 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.
Diverse revenue streams
– Dua Putra Utama Makmur PT is present in almost all the verticals within the Fish/Livestock industry. This has provided Dua Putra Utama Makmur PT 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.
Learning organization
- Dua Putra Utama Makmur 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 Dua Putra Utama Makmur PT is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Dua Putra Utama Makmur PT emphasize – knowledge, initiative, and innovation.
Weaknesses of Dua Putra Utama Makmur PT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dua Putra Utama Makmur PT are -
High dependence on Dua Putra Utama Makmur PT ‘s star products
– The top 2 products and services of Dua Putra Utama Makmur PT still accounts for major business revenue. This dependence on star products in Fish/Livestock industry has resulted into insufficient focus on developing new products, even though Dua Putra Utama Makmur PT has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Dua Putra Utama Makmur PT is one of the leading players in the Fish/Livestock industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Fish/Livestock industry in last five years.
High operating costs
– Compare to the competitors, Dua Putra Utama Makmur PT has high operating costs in the Fish/Livestock industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Dua Putra Utama Makmur PT lucrative customers.
High bargaining power of channel partners in Fish/Livestock industry
– because of the regulatory requirements in Indonesia, Dua Putra Utama Makmur 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 Fish/Livestock industry.
Compensation and incentives
– The revenue per employee of Dua Putra Utama Makmur PT is just above the Fish/Livestock 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dua Putra Utama Makmur PT is slow explore the new channels of communication. These new channels of communication can help Dua Putra Utama Makmur PT to provide better information regarding Fish/Livestock products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Dua Putra Utama Makmur PT, in the dynamic environment of Fish/Livestock industry it has struggled to respond to the nimble upstart competition. Dua Putra Utama Makmur PT has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Dua Putra Utama Makmur PT is dominated by functional specialists. It is not different from other players in the Fish/Livestock industry, but Dua Putra Utama Makmur PT needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dua Putra Utama Makmur PT to focus more on services in the Fish/Livestock 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 Dua Putra Utama Makmur PT supply chain. Even after few cautionary changes, Dua Putra Utama Makmur PT is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dua Putra Utama Makmur PT vulnerable to further global disruptions in South East Asia.
Skills based hiring in Fish/Livestock industry
– The stress on hiring functional specialists at Dua Putra Utama Makmur PT 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, Dua Putra Utama Makmur PT needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Dua Putra Utama Makmur PT Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Dua Putra Utama Makmur 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 Dua Putra Utama Makmur 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.
Using analytics as competitive advantage
– Dua Putra Utama Makmur PT has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Fish/Livestock sector. This continuous investment in analytics has enabled Dua Putra Utama Makmur PT to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dua Putra Utama Makmur PT to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Dua Putra Utama Makmur PT 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.
Creating value in data economy
– The success of analytics program of Dua Putra Utama Makmur PT has opened avenues for new revenue streams for the organization in Fish/Livestock industry. This can help Dua Putra Utama Makmur PT to build a more holistic ecosystem for Dua Putra Utama Makmur PT products in the Fish/Livestock industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Dua Putra Utama Makmur PT 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 Fish/Livestock industry.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Dua Putra Utama Makmur PT is facing challenges because of the dominance of functional experts in the organization. Dua Putra Utama Makmur PT can utilize new technology in the field of Fish/Livestock industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Dua Putra Utama Makmur PT can improve the customer journey of consumers in the Fish/Livestock 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.
Loyalty marketing
– Dua Putra Utama Makmur PT 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.
Learning at scale
– Online learning technologies has now opened space for Dua Putra Utama Makmur 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dua Putra Utama Makmur PT can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Fish/Livestock industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Dua Putra Utama Makmur PT in the Fish/Livestock industry. Now Dua Putra Utama Makmur PT can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Dua Putra Utama Makmur PT 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 Dua Putra Utama Makmur PT to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Dua Putra Utama Makmur PT can use the latest technology developments to improve its manufacturing and designing process in Fish/Livestock 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.
Threats Dua Putra Utama Makmur PT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Dua Putra Utama Makmur PT are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dua Putra Utama Makmur PT in Fish/Livestock industry. The Fish/Livestock 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.
Environmental challenges
– Dua Putra Utama Makmur 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. Dua Putra Utama Makmur PT can take advantage of this fund but it will also bring new competitors in the Fish/Livestock industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Dua Putra Utama Makmur PT business can come under increasing regulations regarding data privacy, data security, etc.
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 Dua Putra Utama Makmur PT.
High dependence on third party suppliers
– Dua Putra Utama Makmur 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.
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. Dua Putra Utama Makmur PT needs to understand the core reasons impacting the Fish/Livestock 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 Dua Putra Utama Makmur PT in the Fish/Livestock sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Dua Putra Utama Makmur 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 Fish/Livestock sector.
Increasing wage structure of Dua Putra Utama Makmur PT
– 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 Dua Putra Utama Makmur PT.
Consumer confidence and its impact on Dua Putra Utama Makmur 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 Fish/Livestock industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Dua Putra Utama Makmur PT is facing in Fish/Livestock sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Fish/Livestock industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Dua Putra Utama Makmur 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 Dua Putra Utama Makmur PT Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Dua Putra Utama Makmur 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 Dua Putra Utama Makmur 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 Dua Putra Utama Makmur 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 Dua Putra Utama Makmur 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 Dua Putra Utama Makmur PT needs to make to build a sustainable competitive advantage.