SWOT Analysis / TOWS Matrix for Sidomulyo Selaras (Indonesia)
Based on various researches at Oak Spring University , Sidomulyo Selaras is operating in a macro-environment that has been destablized by – increasing commodity prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, technology disruption, there is backlash against globalization, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic ,
customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Sidomulyo Selaras
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Sidomulyo Selaras can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sidomulyo Selaras, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sidomulyo Selaras 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 Sidomulyo Selaras can be done for the following purposes –
1. Strategic planning of Sidomulyo Selaras
2. Improving business portfolio management of Sidomulyo Selaras
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 Sidomulyo Selaras
Strengths of Sidomulyo Selaras | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sidomulyo Selaras are -
Strong track record of project management in the Trucking industry
– Sidomulyo Selaras is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Sidomulyo Selaras 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 Sidomulyo Selaras have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Sidomulyo Selaras is one of the most innovative firm in Trucking sector.
Organizational Resilience of Sidomulyo Selaras
– The covid-19 pandemic has put organizational resilience at the centre of everthing Sidomulyo Selaras does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Sidomulyo Selaras has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Sidomulyo Selaras staying ahead in the Trucking industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Sidomulyo Selaras in the Transportation sector have low bargaining power. Sidomulyo Selaras has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sidomulyo Selaras to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Sidomulyo Selaras has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sidomulyo Selaras to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Sidomulyo Selaras 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.
Analytics focus
– Sidomulyo Selaras 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 Trucking 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.
Sustainable margins compare to other players in Trucking industry
– Sidomulyo Selaras has clearly differentiated products in the market place. This has enabled Sidomulyo Selaras to fetch slight price premium compare to the competitors in the Trucking industry. The sustainable margins have also helped Sidomulyo Selaras to invest into research and development (R&D) and innovation.
Digital Transformation in Trucking industry
- digital transformation varies from industry to industry. For Sidomulyo Selaras digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Sidomulyo Selaras 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 Sidomulyo Selaras in Trucking industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses of Sidomulyo Selaras | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sidomulyo Selaras are -
Workers concerns about automation
– As automation is fast increasing in the Trucking industry, Sidomulyo Selaras 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.
Slow decision making process
– As mentioned earlier in the report, Sidomulyo Selaras 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. Sidomulyo Selaras 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.
Capital Spending Reduction
– Even during the low interest decade, Sidomulyo Selaras 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 Trucking industry using digital technology.
Low market penetration in new markets
– Outside its home market of Indonesia, Sidomulyo Selaras needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Sidomulyo Selaras supply chain. Even after few cautionary changes, Sidomulyo Selaras is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sidomulyo Selaras vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Sidomulyo Selaras is one of the leading players in the Trucking industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Trucking industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Sidomulyo Selaras is dominated by functional specialists. It is not different from other players in the Trucking industry, but Sidomulyo Selaras needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sidomulyo Selaras to focus more on services in the Trucking industry rather than just following the product oriented approach.
High bargaining power of channel partners in Trucking industry
– because of the regulatory requirements in Indonesia, Sidomulyo Selaras 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.
High dependence on Sidomulyo Selaras ‘s star products
– The top 2 products and services of Sidomulyo Selaras still accounts for major business revenue. This dependence on star products in Trucking industry has resulted into insufficient focus on developing new products, even though Sidomulyo Selaras has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Sidomulyo Selaras 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 Sidomulyo Selaras 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.
Sidomulyo Selaras Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Sidomulyo Selaras are -
Creating value in data economy
– The success of analytics program of Sidomulyo Selaras has opened avenues for new revenue streams for the organization in Trucking industry. This can help Sidomulyo Selaras to build a more holistic ecosystem for Sidomulyo Selaras products in the Trucking industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Sidomulyo Selaras to increase its market reach. Sidomulyo Selaras will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Sidomulyo Selaras can develop new processes and procedures in Trucking 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.
Building a culture of innovation
– managers at Sidomulyo Selaras 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.
Manufacturing automation
– Sidomulyo Selaras can use the latest technology developments to improve its manufacturing and designing process in Trucking 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.
Learning at scale
– Online learning technologies has now opened space for Sidomulyo Selaras 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
– Sidomulyo Selaras 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 Sidomulyo Selaras to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sidomulyo Selaras 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 Sidomulyo Selaras 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 Sidomulyo Selaras to hire the very best people irrespective of their geographical location.
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 Sidomulyo Selaras 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.
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. Sidomulyo Selaras can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Sidomulyo Selaras can improve the customer journey of consumers in the Trucking 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.
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 Sidomulyo Selaras in the Trucking industry. Now Sidomulyo Selaras can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Sidomulyo Selaras 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 Sidomulyo Selaras External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Sidomulyo Selaras are -
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 Sidomulyo Selaras in the Trucking sector and impact the bottomline of the organization.
Consumer confidence and its impact on Sidomulyo Selaras 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.
Increasing wage structure of Sidomulyo Selaras
– 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 Sidomulyo Selaras.
Shortening product life cycle
– it is one of the major threat that Sidomulyo Selaras is facing in Trucking sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Sidomulyo Selaras 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 Trucking industry.
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. Sidomulyo Selaras needs to understand the core reasons impacting the Trucking industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Trucking industry are lowering. It can presents Sidomulyo Selaras with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Trucking sector.
High dependence on third party suppliers
– Sidomulyo Selaras 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.
Technology acceleration in Forth Industrial Revolution
– Sidomulyo Selaras has witnessed rapid integration of technology during Covid-19 in the Trucking industry. As one of the leading players in the industry, Sidomulyo Selaras 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.
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 Sidomulyo Selaras business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sidomulyo Selaras 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 Sidomulyo Selaras prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Sidomulyo Selaras 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.
Regulatory challenges
– Sidomulyo Selaras 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.
Weighted SWOT Analysis of Sidomulyo Selaras Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Sidomulyo Selaras 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 Sidomulyo Selaras 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 Sidomulyo Selaras 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 Sidomulyo Selaras 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 Sidomulyo Selaras needs to make to build a sustainable competitive advantage.
