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 – talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, increasing commodity prices, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
increasing household debt because of falling income levels, increasing energy prices, 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 -
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.
Ability to lead change in Fish/Livestock
– Dua Putra Utama Makmur PT is one of the leading players in the Fish/Livestock industry in Indonesia. Over the years it has not only transformed the business landscape in the Fish/Livestock industry in Indonesia but also across the existing markets. The ability to lead change has enabled Dua Putra Utama Makmur PT in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Dua Putra Utama Makmur PT 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.
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.
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.
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.
Innovation driven organization
– Dua Putra Utama Makmur PT is one of the most innovative firm in Fish/Livestock sector.
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.
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.
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.
Sustainable margins compare to other players in Fish/Livestock industry
– Dua Putra Utama Makmur PT has clearly differentiated products in the market place. This has enabled Dua Putra Utama Makmur PT to fetch slight price premium compare to the competitors in the Fish/Livestock industry. The sustainable margins have also helped Dua Putra Utama Makmur PT to invest into research and development (R&D) and innovation.
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.
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 -
Employees’ less understanding of Dua Putra Utama Makmur PT strategy
– From the outside it seems that the employees of Dua Putra Utama Makmur PT 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.
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.
Slow decision making process
– As mentioned earlier in the report, Dua Putra Utama Makmur PT has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Fish/Livestock industry over the last five years. Dua Putra Utama Makmur PT even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the Fish/Livestock industry, Dua Putra Utama Makmur PT 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.
Aligning sales with marketing
– From the outside it seems that Dua Putra Utama Makmur PT needs to have more collaboration between its sales team and marketing team. Sales professionals in the Fish/Livestock industry have deep experience in developing customer relationships. Marketing department at Dua Putra Utama Makmur PT can leverage the sales team experience to cultivate customer relationships as Dua Putra Utama Makmur PT is planning to shift buying processes online.
No frontier risks strategy
– From the 10K / annual statement of Dua Putra Utama Makmur PT, it seems that company is thinking out the frontier risks that can impact Fish/Livestock industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High operating costs
– Compare to the competitors, 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 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.
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 -
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Fish/Livestock industry, but it has also influenced the consumer preferences. Dua Putra Utama Makmur PT can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Dua Putra Utama Makmur PT can use these opportunities to build new business models that can help the communities that Dua Putra Utama Makmur PT operates in. Secondly it can use opportunities from government spending in Fish/Livestock sector.
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.
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.
Leveraging digital technologies
– Dua Putra Utama Makmur PT can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Better consumer reach
– The expansion of the 5G network will help Dua Putra Utama Makmur PT to increase its market reach. Dua Putra Utama Makmur PT will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dua Putra Utama Makmur PT in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Fish/Livestock industry, and it will provide faster access to the consumers.
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.
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.
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.
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 -
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. Dua Putra Utama Makmur PT will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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.
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.
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 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.
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.
Technology acceleration in Forth Industrial Revolution
– Dua Putra Utama Makmur PT has witnessed rapid integration of technology during Covid-19 in the Fish/Livestock industry. As one of the leading players in the industry, Dua Putra Utama Makmur PT needs to keep up with the evolution of technology in the Fish/Livestock 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Fish/Livestock industry are lowering. It can presents Dua Putra Utama Makmur PT with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Fish/Livestock sector.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Dua Putra Utama Makmur PT 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 Dua Putra Utama Makmur PT prominent markets.
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.