SWOT Analysis / TOWS Matrix for Malacca Trust Wuwungan (Indonesia)
Based on various researches at Oak Spring University , Malacca Trust Wuwungan is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, challanges to central banks by blockchain based private currencies, technology disruption, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic ,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of Malacca Trust Wuwungan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Malacca Trust Wuwungan can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Malacca Trust Wuwungan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Malacca Trust Wuwungan 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 Malacca Trust Wuwungan can be done for the following purposes –
1. Strategic planning of Malacca Trust Wuwungan
2. Improving business portfolio management of Malacca Trust Wuwungan
3. Assessing feasibility of the new initiative in Indonesia
4. Making a Insurance (Miscellaneous) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Malacca Trust Wuwungan
Strengths of Malacca Trust Wuwungan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Malacca Trust Wuwungan are -
Learning organization
- Malacca Trust Wuwungan 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 Malacca Trust Wuwungan is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Malacca Trust Wuwungan emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Insurance (Miscellaneous) industry
– Malacca Trust Wuwungan is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Malacca Trust Wuwungan has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Malacca Trust Wuwungan to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Malacca Trust Wuwungan
– The covid-19 pandemic has put organizational resilience at the centre of everthing Malacca Trust Wuwungan does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Malacca Trust Wuwungan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Malacca Trust Wuwungan 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 Insurance (Miscellaneous) industry
– Malacca Trust Wuwungan has clearly differentiated products in the market place. This has enabled Malacca Trust Wuwungan to fetch slight price premium compare to the competitors in the Insurance (Miscellaneous) industry. The sustainable margins have also helped Malacca Trust Wuwungan to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Malacca Trust Wuwungan in the Financial sector have low bargaining power. Malacca Trust Wuwungan has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Malacca Trust Wuwungan to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Malacca Trust Wuwungan is one of the leading players in the Insurance (Miscellaneous) 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.
High switching costs
– The high switching costs that Malacca Trust Wuwungan 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.
Digital Transformation in Insurance (Miscellaneous) industry
- digital transformation varies from industry to industry. For Malacca Trust Wuwungan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Malacca Trust Wuwungan 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.
Diverse revenue streams
– Malacca Trust Wuwungan is present in almost all the verticals within the Insurance (Miscellaneous) industry. This has provided Malacca Trust Wuwungan 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.
Superior customer experience
– The customer experience strategy of Malacca Trust Wuwungan in Insurance (Miscellaneous) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Malacca Trust Wuwungan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Malacca Trust Wuwungan are -
Capital Spending Reduction
– Even during the low interest decade, Malacca Trust Wuwungan has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Insurance (Miscellaneous) industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the Insurance (Miscellaneous) industry, Malacca Trust Wuwungan 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.
High dependence on Malacca Trust Wuwungan ‘s star products
– The top 2 products and services of Malacca Trust Wuwungan still accounts for major business revenue. This dependence on star products in Insurance (Miscellaneous) industry has resulted into insufficient focus on developing new products, even though Malacca Trust Wuwungan has relatively successful track record of launching new products.
Employees’ less understanding of Malacca Trust Wuwungan strategy
– From the outside it seems that the employees of Malacca Trust Wuwungan 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.
Products dominated business model
– Even though Malacca Trust Wuwungan has some of the most successful models in the Insurance (Miscellaneous) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Malacca Trust Wuwungan 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, Malacca Trust Wuwungan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Malacca Trust Wuwungan is dominated by functional specialists. It is not different from other players in the Insurance (Miscellaneous) industry, but Malacca Trust Wuwungan needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Malacca Trust Wuwungan to focus more on services in the Insurance (Miscellaneous) industry rather than just following the product oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Malacca Trust Wuwungan supply chain. Even after few cautionary changes, Malacca Trust Wuwungan is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Malacca Trust Wuwungan vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative at Malacca Trust Wuwungan, in the dynamic environment of Insurance (Miscellaneous) industry it has struggled to respond to the nimble upstart competition. Malacca Trust Wuwungan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Malacca Trust Wuwungan products
– To increase the profitability and margins on the products, Malacca Trust Wuwungan needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Malacca Trust Wuwungan is slow explore the new channels of communication. These new channels of communication can help Malacca Trust Wuwungan to provide better information regarding Insurance (Miscellaneous) products and services. It can also build an online community to further reach out to potential customers.
Malacca Trust Wuwungan Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Malacca Trust Wuwungan are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Malacca Trust Wuwungan 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Insurance (Miscellaneous) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Malacca Trust Wuwungan 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. Malacca Trust Wuwungan 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. Malacca Trust Wuwungan can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions in Insurance (Miscellaneous) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Malacca Trust Wuwungan in the Insurance (Miscellaneous) industry. Now Malacca Trust Wuwungan 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 Malacca Trust Wuwungan has opened avenues for new revenue streams for the organization in Insurance (Miscellaneous) industry. This can help Malacca Trust Wuwungan to build a more holistic ecosystem for Malacca Trust Wuwungan products in the Insurance (Miscellaneous) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Malacca Trust Wuwungan can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Malacca Trust Wuwungan can use these opportunities to build new business models that can help the communities that Malacca Trust Wuwungan operates in. Secondly it can use opportunities from government spending in Insurance (Miscellaneous) sector.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Insurance (Miscellaneous) industry, but it has also influenced the consumer preferences. Malacca Trust Wuwungan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Malacca Trust Wuwungan 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.
Manufacturing automation
– Malacca Trust Wuwungan can use the latest technology developments to improve its manufacturing and designing process in Insurance (Miscellaneous) 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.
Using analytics as competitive advantage
– Malacca Trust Wuwungan has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Insurance (Miscellaneous) sector. This continuous investment in analytics has enabled Malacca Trust Wuwungan to build a competitive advantage using analytics. The analytics driven competitive advantage can help Malacca Trust Wuwungan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Malacca Trust Wuwungan 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 Malacca Trust Wuwungan to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Malacca Trust Wuwungan 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.
Threats Malacca Trust Wuwungan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Malacca Trust Wuwungan are -
Increasing wage structure of Malacca Trust Wuwungan
– 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 Malacca Trust Wuwungan.
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 Malacca Trust Wuwungan business can come under increasing regulations regarding data privacy, data security, etc.
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. Malacca Trust Wuwungan needs to understand the core reasons impacting the Insurance (Miscellaneous) industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Malacca Trust Wuwungan 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.
Shortening product life cycle
– it is one of the major threat that Malacca Trust Wuwungan is facing in Insurance (Miscellaneous) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Malacca Trust Wuwungan 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 Insurance (Miscellaneous) industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Malacca Trust Wuwungan in Insurance (Miscellaneous) industry. The Insurance (Miscellaneous) 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.
Easy access to finance
– Easy access to finance in Insurance (Miscellaneous) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Malacca Trust Wuwungan 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Malacca Trust Wuwungan 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 Malacca Trust Wuwungan prominent markets.
Stagnating economy with rate increase
– Malacca Trust Wuwungan 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 Insurance (Miscellaneous) industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Malacca Trust Wuwungan may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Insurance (Miscellaneous) sector.
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.
Weighted SWOT Analysis of Malacca Trust Wuwungan Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Malacca Trust Wuwungan 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 Malacca Trust Wuwungan 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 Malacca Trust Wuwungan 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 Malacca Trust Wuwungan 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 Malacca Trust Wuwungan needs to make to build a sustainable competitive advantage.