SWOT Analysis / TOWS Matrix for Cahayaputra Asa Keramik (Indonesia)
Based on various researches at Oak Spring University , Cahayaputra Asa Keramik is operating in a macro-environment that has been destablized by – increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, technology disruption,
increasing energy prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Cahayaputra Asa Keramik
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Cahayaputra Asa Keramik can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cahayaputra Asa Keramik, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik can be done for the following purposes –
1. Strategic planning of Cahayaputra Asa Keramik
2. Improving business portfolio management of Cahayaputra Asa Keramik
3. Assessing feasibility of the new initiative in Indonesia
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cahayaputra Asa Keramik
Strengths of Cahayaputra Asa Keramik | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cahayaputra Asa Keramik are -
Analytics focus
– Cahayaputra Asa Keramik 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 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.
Strong track record of project management in the industry
– Cahayaputra Asa Keramik 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
– Cahayaputra Asa Keramik is one of the most innovative firm in sector.
Learning organization
- Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Cahayaputra Asa Keramik emphasize – knowledge, initiative, and innovation.
Digital Transformation in industry
- digital transformation varies from industry to industry. For Cahayaputra Asa Keramik digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Cahayaputra Asa Keramik is one of the leading players in the 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 Cahayaputra Asa Keramik 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.
Highly skilled collaborators
– Cahayaputra Asa Keramik has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of Cahayaputra Asa Keramik have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Cahayaputra Asa Keramik has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Cahayaputra Asa Keramik staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Cahayaputra Asa Keramik has one of the best training and development program in 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.
Diverse revenue streams
– Cahayaputra Asa Keramik is present in almost all the verticals within the industry. This has provided Cahayaputra Asa Keramik 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.
Weaknesses of Cahayaputra Asa Keramik | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cahayaputra Asa Keramik are -
High operating costs
– Compare to the competitors, Cahayaputra Asa Keramik has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cahayaputra Asa Keramik lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Cahayaputra Asa Keramik is dominated by functional specialists. It is not different from other players in the industry, but Cahayaputra Asa Keramik needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cahayaputra Asa Keramik to focus more on services in the industry rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Cahayaputra Asa Keramik is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee of Cahayaputra Asa Keramik is just above the 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.
Capital Spending Reduction
– Even during the low interest decade, Cahayaputra Asa Keramik 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 industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cahayaputra Asa Keramik is slow explore the new channels of communication. These new channels of communication can help Cahayaputra Asa Keramik to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on Cahayaputra Asa Keramik ‘s star products
– The top 2 products and services of Cahayaputra Asa Keramik still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though Cahayaputra Asa Keramik has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Indonesia, Cahayaputra Asa Keramik needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Cahayaputra Asa Keramik has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Cahayaputra Asa Keramik should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative at Cahayaputra Asa Keramik, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. Cahayaputra Asa Keramik has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– From the 10K / annual statement of Cahayaputra Asa Keramik, it seems that company is thinking out the frontier risks that can impact 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.
Cahayaputra Asa Keramik Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Cahayaputra Asa Keramik are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Cahayaputra Asa Keramik can improve the customer journey of consumers in the 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cahayaputra Asa Keramik can use these opportunities to build new business models that can help the communities that Cahayaputra Asa Keramik operates in. Secondly it can use opportunities from government spending in sector.
Better consumer reach
– The expansion of the 5G network will help Cahayaputra Asa Keramik to increase its market reach. Cahayaputra Asa Keramik 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.
Creating value in data economy
– The success of analytics program of Cahayaputra Asa Keramik has opened avenues for new revenue streams for the organization in industry. This can help Cahayaputra Asa Keramik to build a more holistic ecosystem for Cahayaputra Asa Keramik products in the industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Cahayaputra Asa Keramik has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled Cahayaputra Asa Keramik to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cahayaputra Asa Keramik to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Cahayaputra Asa Keramik 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.
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 Cahayaputra Asa Keramik 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cahayaputra Asa Keramik is facing challenges because of the dominance of functional experts in the organization. Cahayaputra Asa Keramik can utilize new technology in the field of industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Cahayaputra Asa Keramik can develop new processes and procedures in 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.
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cahayaputra Asa Keramik in the industry. Now Cahayaputra Asa Keramik can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Cahayaputra Asa Keramik 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 industry.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in industry, but it has also influenced the consumer preferences. Cahayaputra Asa Keramik can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Cahayaputra Asa Keramik External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Cahayaputra Asa Keramik are -
Increasing wage structure of Cahayaputra Asa Keramik
– 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 Cahayaputra Asa Keramik.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cahayaputra Asa Keramik in industry. The 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.
High dependence on third party suppliers
– Cahayaputra Asa Keramik 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 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.
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 Cahayaputra Asa Keramik business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents Cahayaputra Asa Keramik with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cahayaputra Asa Keramik will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Cahayaputra Asa Keramik 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. Cahayaputra Asa Keramik can take advantage of this fund but it will also bring new competitors in the industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Cahayaputra Asa Keramik may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cahayaputra Asa Keramik can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik prominent markets.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cahayaputra Asa Keramik.
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 Cahayaputra Asa Keramik Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik needs to make to build a sustainable competitive advantage.
