Batavia Prosperindo Trans (BPTR) SWOT Analysis / TOWS Matrix / MBA Resources
Trucking
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Batavia Prosperindo Trans (Indonesia)
Based on various researches at Oak Spring University , Batavia Prosperindo Trans is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, increasing energy prices, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , technology disruption, talent flight as more people leaving formal jobs,
geopolitical disruptions, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Batavia Prosperindo Trans
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Batavia Prosperindo Trans can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Batavia Prosperindo Trans, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Batavia Prosperindo Trans 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 Batavia Prosperindo Trans can be done for the following purposes –
1. Strategic planning of Batavia Prosperindo Trans
2. Improving business portfolio management of Batavia Prosperindo Trans
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Trucking sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Batavia Prosperindo Trans
Strengths of Batavia Prosperindo Trans | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Batavia Prosperindo Trans are -
Organizational Resilience of Batavia Prosperindo Trans
– The covid-19 pandemic has put organizational resilience at the centre of everthing Batavia Prosperindo Trans does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Batavia Prosperindo Trans has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Batavia Prosperindo Trans to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Batavia Prosperindo Trans has one of the best training and development program in Transportation 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
– Batavia Prosperindo Trans has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Batavia Prosperindo Trans 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.
Sustainable margins compare to other players in Trucking industry
– Batavia Prosperindo Trans has clearly differentiated products in the market place. This has enabled Batavia Prosperindo Trans to fetch slight price premium compare to the competitors in the Trucking industry. The sustainable margins have also helped Batavia Prosperindo Trans to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Batavia Prosperindo Trans in the Transportation sector have low bargaining power. Batavia Prosperindo Trans has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Batavia Prosperindo Trans to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Batavia Prosperindo Trans has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Trucking industry. Secondly the value chain collaborators of Batavia Prosperindo Trans have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Batavia Prosperindo Trans 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 Batavia Prosperindo Trans is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Batavia Prosperindo Trans emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Batavia Prosperindo Trans in Trucking industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Batavia Prosperindo Trans 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.
Innovation driven organization
– Batavia Prosperindo Trans is one of the most innovative firm in Trucking sector.
Digital Transformation in Trucking industry
- digital transformation varies from industry to industry. For Batavia Prosperindo Trans digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Batavia Prosperindo Trans 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.
Weaknesses of Batavia Prosperindo Trans | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Batavia Prosperindo Trans are -
Interest costs
– Compare to the competition, Batavia Prosperindo Trans 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.
Skills based hiring in Trucking industry
– The stress on hiring functional specialists at Batavia Prosperindo Trans 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.
Aligning sales with marketing
– From the outside it seems that Batavia Prosperindo Trans needs to have more collaboration between its sales team and marketing team. Sales professionals in the Trucking industry have deep experience in developing customer relationships. Marketing department at Batavia Prosperindo Trans can leverage the sales team experience to cultivate customer relationships as Batavia Prosperindo Trans is planning to shift buying processes online.
High cash cycle compare to competitors
Batavia Prosperindo Trans has a high cash cycle compare to other players in the Trucking industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Batavia Prosperindo Trans has some of the most successful models in the Trucking industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Batavia Prosperindo Trans should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Indonesia, Batavia Prosperindo Trans needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Trucking industry
– because of the regulatory requirements in Indonesia, Batavia Prosperindo Trans 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 Trucking industry.
Slow decision making process
– As mentioned earlier in the report, Batavia Prosperindo Trans has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Trucking industry over the last five years. Batavia Prosperindo Trans 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.
No frontier risks strategy
– From the 10K / annual statement of Batavia Prosperindo Trans, it seems that company is thinking out the frontier risks that can impact Trucking 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.
Ability to respond to the competition
– As the decision making is very deliberative at Batavia Prosperindo Trans, in the dynamic environment of Trucking industry it has struggled to respond to the nimble upstart competition. Batavia Prosperindo Trans has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Batavia Prosperindo Trans is slow explore the new channels of communication. These new channels of communication can help Batavia Prosperindo Trans to provide better information regarding Trucking products and services. It can also build an online community to further reach out to potential customers.
Batavia Prosperindo Trans Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Batavia Prosperindo Trans are -
Creating value in data economy
– The success of analytics program of Batavia Prosperindo Trans has opened avenues for new revenue streams for the organization in Trucking industry. This can help Batavia Prosperindo Trans to build a more holistic ecosystem for Batavia Prosperindo Trans products in the Trucking industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Batavia Prosperindo Trans 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Batavia Prosperindo Trans can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Batavia Prosperindo Trans 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
– Batavia Prosperindo Trans has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Trucking sector. This continuous investment in analytics has enabled Batavia Prosperindo Trans to build a competitive advantage using analytics. The analytics driven competitive advantage can help Batavia Prosperindo Trans to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Batavia Prosperindo Trans 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 Trucking industry.
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 Batavia Prosperindo Trans 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Trucking industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Batavia Prosperindo Trans 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. Batavia Prosperindo Trans 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.
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. Batavia Prosperindo Trans can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Batavia Prosperindo Trans can use these opportunities to build new business models that can help the communities that Batavia Prosperindo Trans operates in. Secondly it can use opportunities from government spending in Trucking sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Batavia Prosperindo Trans 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 Batavia Prosperindo Trans to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Batavia Prosperindo Trans in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Trucking industry, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions in Trucking industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Batavia Prosperindo Trans in the Trucking industry. Now Batavia Prosperindo Trans can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Batavia Prosperindo Trans External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Batavia Prosperindo Trans 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.
Consumer confidence and its impact on Batavia Prosperindo Trans 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 Trucking industry and other sectors.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Trucking industry are lowering. It can presents Batavia Prosperindo Trans with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Trucking sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Batavia Prosperindo Trans 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 Batavia Prosperindo Trans prominent markets.
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 Batavia Prosperindo Trans in the Trucking sector and impact the bottomline of the organization.
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 Batavia Prosperindo Trans business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Batavia Prosperindo Trans has witnessed rapid integration of technology during Covid-19 in the Trucking industry. As one of the leading players in the industry, Batavia Prosperindo Trans needs to keep up with the evolution of technology in the Trucking 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.
Regulatory challenges
– Batavia Prosperindo Trans 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 Trucking industry regulations.
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. Batavia Prosperindo Trans needs to understand the core reasons impacting the Trucking industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Batavia Prosperindo Trans is facing in Trucking 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 Trucking industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Batavia Prosperindo Trans can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Batavia Prosperindo Trans may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Trucking 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.
Weighted SWOT Analysis of Batavia Prosperindo Trans Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Batavia Prosperindo Trans 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 Batavia Prosperindo Trans 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 Batavia Prosperindo Trans 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 Batavia Prosperindo Trans 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 Batavia Prosperindo Trans needs to make to build a sustainable competitive advantage.