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Cahayaputra Asa Keramik (CAKK) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

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 – challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, etc



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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 -

High brand equity

– Cahayaputra Asa Keramik has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cahayaputra Asa Keramik to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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.

Sustainable margins compare to other players in industry

– Cahayaputra Asa Keramik has clearly differentiated products in the market place. This has enabled Cahayaputra Asa Keramik to fetch slight price premium compare to the competitors in the industry. The sustainable margins have also helped Cahayaputra Asa Keramik to invest into research and development (R&D) and innovation.

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.

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.

Cross disciplinary teams

– Horizontal connected teams at the Cahayaputra Asa Keramik 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.

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.

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.

Organizational Resilience of Cahayaputra Asa Keramik

– The covid-19 pandemic has put organizational resilience at the centre of everthing Cahayaputra Asa Keramik does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Innovation driven organization

– Cahayaputra Asa Keramik is one of the most innovative firm in sector.

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.



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Net Promoter Score



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 -

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 cash cycle compare to competitors

Cahayaputra Asa Keramik has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

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 Cahayaputra Asa Keramik supply chain. Even after few cautionary changes, Cahayaputra Asa Keramik is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cahayaputra Asa Keramik vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners in industry

– because of the regulatory requirements in Indonesia, Cahayaputra Asa Keramik 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 industry.

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.

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.

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.

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.

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.

Interest costs

– Compare to the competition, Cahayaputra Asa Keramik 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.

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.




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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Cahayaputra Asa Keramik 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. Cahayaputra Asa Keramik 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.

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.

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.

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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Cahayaputra Asa Keramik 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Cahayaputra Asa Keramik 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 Cahayaputra Asa Keramik to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Cahayaputra Asa Keramik can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Leveraging digital technologies

– Cahayaputra Asa Keramik can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

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.

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.

Manufacturing automation

– Cahayaputra Asa Keramik can use the latest technology developments to improve its manufacturing and designing process in 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.




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 -

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.

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.

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.

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.

Regulatory challenges

– Cahayaputra Asa Keramik 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 industry regulations.

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.

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.

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.

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.

Stagnating economy with rate increase

– Cahayaputra Asa Keramik 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 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.

Shortening product life cycle

– it is one of the major threat that Cahayaputra Asa Keramik is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– Cahayaputra Asa Keramik has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, Cahayaputra Asa Keramik needs to keep up with the evolution of technology in the 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.




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.



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