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 – technology disruption, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, there is backlash against globalization,
there is increasing trade war between United States & China, increasing commodity prices, 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 -
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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Panorama Sentrawisata in Personal Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Panorama Sentrawisata has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Panorama Sentrawisata staying ahead in the Personal Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Strong track record of project management in the Personal Services industry
– Panorama Sentrawisata is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Panorama Sentrawisata is one of the most innovative firm in Personal Services sector.
Low bargaining power of suppliers
– Suppliers of Panorama Sentrawisata in the Services sector have low bargaining power. Panorama Sentrawisata has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Panorama Sentrawisata to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Panorama Sentrawisata 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.
Weaknesses of Panorama Sentrawisata | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Panorama Sentrawisata are -
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.
High operating costs
– Compare to the competitors, Panorama Sentrawisata has high operating costs in the Personal Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Panorama Sentrawisata lucrative customers.
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.
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.
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.
Employees’ less understanding of Panorama Sentrawisata strategy
– From the outside it seems that the employees of Panorama Sentrawisata 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.
Lack of clear differentiation of Panorama Sentrawisata products
– To increase the profitability and margins on the products, Panorama Sentrawisata needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Compensation and incentives
– The revenue per employee of Panorama Sentrawisata is just above the Personal 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.
High dependence on Panorama Sentrawisata ‘s star products
– The top 2 products and services of Panorama Sentrawisata still accounts for major business revenue. This dependence on star products in Personal Services industry has resulted into insufficient focus on developing new products, even though Panorama Sentrawisata has relatively successful track record of launching new products.
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.
Panorama Sentrawisata Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Panorama Sentrawisata are -
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.
Use of Bitcoin and other crypto currencies for transactions in Personal Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Panorama Sentrawisata in the Personal Services industry. Now Panorama Sentrawisata can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Panorama Sentrawisata has opened avenues for new revenue streams for the organization in Personal Services industry. This can help Panorama Sentrawisata to build a more holistic ecosystem for Panorama Sentrawisata products in the Personal Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Panorama Sentrawisata can improve the customer journey of consumers in the Personal 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.
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.
Developing new processes and practices
– Panorama Sentrawisata can develop new processes and procedures in Personal 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.
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.
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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Personal Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Panorama Sentrawisata can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Panorama Sentrawisata can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
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.
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.
Threats Panorama Sentrawisata External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Panorama Sentrawisata are -
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.
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.
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.
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.
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.
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.
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.
Easy access to finance
– Easy access to finance in Personal Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Panorama Sentrawisata can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Technology acceleration in Forth Industrial Revolution
– Panorama Sentrawisata has witnessed rapid integration of technology during Covid-19 in the Personal Services industry. As one of the leading players in the industry, Panorama Sentrawisata needs to keep up with the evolution of technology in the Personal 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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Panorama Sentrawisata in Personal Services industry. The Personal 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.
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.
