SWOT Analysis / TOWS Matrix for Panorama Sentrawisata (Indonesia)
Based on various researches at Oak Spring University , Panorama Sentrawisata is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , wage bills are increasing, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Panorama Sentrawisata
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Panorama Sentrawisata can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Panorama Sentrawisata, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Panorama Sentrawisata 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 Panorama Sentrawisata can be done for the following purposes –
1. Strategic planning of Panorama Sentrawisata
2. Improving business portfolio management of Panorama Sentrawisata
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Personal Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Panorama Sentrawisata
Strengths of Panorama Sentrawisata | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Panorama Sentrawisata are -
Successful track record of launching new products
– Panorama Sentrawisata has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Panorama Sentrawisata 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.
Analytics focus
– Panorama Sentrawisata 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 Personal Services 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
– Panorama Sentrawisata is one of the leading players in the Personal 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.
Organizational Resilience of Panorama Sentrawisata
– The covid-19 pandemic has put organizational resilience at the centre of everthing Panorama Sentrawisata does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Panorama Sentrawisata has one of the best training and development program in Services 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
– Panorama Sentrawisata is one of the most innovative firm in Personal Services sector.
Diverse revenue streams
– Panorama Sentrawisata is present in almost all the verticals within the Personal Services industry. This has provided Panorama Sentrawisata 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 switching costs
– The high switching costs that Panorama Sentrawisata 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.
Ability to lead change in Personal Services
– Panorama Sentrawisata is one of the leading players in the Personal Services industry in Indonesia. Over the years it has not only transformed the business landscape in the Personal Services industry in Indonesia but also across the existing markets. The ability to lead change has enabled Panorama Sentrawisata in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Personal Services industry
- digital transformation varies from industry to industry. For Panorama Sentrawisata digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Panorama Sentrawisata 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.
Sustainable margins compare to other players in Personal Services industry
– Panorama Sentrawisata has clearly differentiated products in the market place. This has enabled Panorama Sentrawisata to fetch slight price premium compare to the competitors in the Personal Services industry. The sustainable margins have also helped Panorama Sentrawisata to invest into research and development (R&D) and innovation.
Learning organization
- Panorama Sentrawisata 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 Panorama Sentrawisata is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Panorama Sentrawisata emphasize – knowledge, initiative, and innovation.
Weaknesses of Panorama Sentrawisata | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Panorama Sentrawisata are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Panorama Sentrawisata is slow explore the new channels of communication. These new channels of communication can help Panorama Sentrawisata to provide better information regarding Personal Services products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Panorama Sentrawisata has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Panorama Sentrawisata has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Personal Services industry over the last five years. Panorama Sentrawisata 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.
Ability to respond to the competition
– As the decision making is very deliberative at Panorama Sentrawisata, in the dynamic environment of Personal Services industry it has struggled to respond to the nimble upstart competition. Panorama Sentrawisata has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Panorama Sentrawisata needs to have more collaboration between its sales team and marketing team. Sales professionals in the Personal Services industry have deep experience in developing customer relationships. Marketing department at Panorama Sentrawisata can leverage the sales team experience to cultivate customer relationships as Panorama Sentrawisata is planning to shift buying processes online.
Need for greater diversity
– Panorama Sentrawisata 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.
Products dominated business model
– Even though Panorama Sentrawisata has some of the most successful models in the Personal Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Panorama Sentrawisata should strive to include more intangible value offerings along with its core products and services.
Skills based hiring in Personal Services industry
– The stress on hiring functional specialists at Panorama Sentrawisata 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 Personal Services industry, Panorama Sentrawisata 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.
No frontier risks strategy
– From the 10K / annual statement of Panorama Sentrawisata, it seems that company is thinking out the frontier risks that can impact Personal 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.
Increasing silos among functional specialists
– The organizational structure of Panorama Sentrawisata is dominated by functional specialists. It is not different from other players in the Personal Services industry, but Panorama Sentrawisata needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Panorama Sentrawisata to focus more on services in the Personal Services industry rather than just following the product oriented approach.
Panorama Sentrawisata Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Panorama Sentrawisata are -
Manufacturing automation
– Panorama Sentrawisata can use the latest technology developments to improve its manufacturing and designing process in Personal 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Panorama Sentrawisata is facing challenges because of the dominance of functional experts in the organization. Panorama Sentrawisata can utilize new technology in the field of Personal Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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 Panorama Sentrawisata 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Panorama Sentrawisata 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 Panorama Sentrawisata to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Panorama Sentrawisata in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Personal Services industry, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Panorama Sentrawisata 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.
Using analytics as competitive advantage
– Panorama Sentrawisata has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Personal Services sector. This continuous investment in analytics has enabled Panorama Sentrawisata to build a competitive advantage using analytics. The analytics driven competitive advantage can help Panorama Sentrawisata to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Panorama Sentrawisata can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Panorama Sentrawisata can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Building a culture of innovation
– managers at Panorama Sentrawisata 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 Personal Services industry.
Leveraging digital technologies
– Panorama Sentrawisata 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.
Loyalty marketing
– Panorama Sentrawisata 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Panorama Sentrawisata can use these opportunities to build new business models that can help the communities that Panorama Sentrawisata operates in. Secondly it can use opportunities from government spending in Personal Services sector.
Threats Panorama Sentrawisata External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Panorama Sentrawisata are -
Regulatory challenges
– Panorama Sentrawisata 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 Personal Services industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Panorama Sentrawisata may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Personal Services sector.
Increasing wage structure of Panorama Sentrawisata
– 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 Panorama Sentrawisata.
Stagnating economy with rate increase
– Panorama Sentrawisata 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 Personal Services industry.
Shortening product life cycle
– it is one of the major threat that Panorama Sentrawisata is facing in Personal Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Panorama Sentrawisata 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.
Environmental challenges
– Panorama Sentrawisata 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. Panorama Sentrawisata can take advantage of this fund but it will also bring new competitors in the Personal Services 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 Panorama Sentrawisata business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Panorama Sentrawisata 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. Panorama Sentrawisata needs to understand the core reasons impacting the Personal Services industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Panorama Sentrawisata 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 Panorama Sentrawisata prominent markets.
Consumer confidence and its impact on Panorama Sentrawisata 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 Personal Services industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Personal Services industry are lowering. It can presents Panorama Sentrawisata with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Personal Services sector.
Weighted SWOT Analysis of Panorama Sentrawisata Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Panorama Sentrawisata 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 Panorama Sentrawisata 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 Panorama Sentrawisata 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 Panorama Sentrawisata 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 Panorama Sentrawisata needs to make to build a sustainable competitive advantage.