Berjaya Sports Toto (BSTB) SWOT Analysis / TOWS Matrix / MBA Resources
Casinos & Gaming
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Berjaya Sports Toto (Malaysia)
Based on various researches at Oak Spring University , Berjaya Sports Toto is operating in a macro-environment that has been destablized by – increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, 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, challanges to central banks by blockchain based private currencies,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Berjaya Sports Toto
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Berjaya Sports Toto can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Berjaya Sports Toto, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Berjaya Sports Toto 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 Berjaya Sports Toto can be done for the following purposes –
1. Strategic planning of Berjaya Sports Toto
2. Improving business portfolio management of Berjaya Sports Toto
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Casinos & Gaming sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Berjaya Sports Toto
Strengths of Berjaya Sports Toto | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Berjaya Sports Toto are -
High switching costs
– The high switching costs that Berjaya Sports Toto 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.
High brand equity
– Berjaya Sports Toto has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Berjaya Sports Toto to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy of Berjaya Sports Toto comprises – understanding the underlying the factors in the Casinos & Gaming industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Berjaya Sports Toto is one of the most innovative firm in Casinos & Gaming sector.
Effective Research and Development (R&D)
– Berjaya Sports Toto has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Berjaya Sports Toto staying ahead in the Casinos & Gaming industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Berjaya Sports Toto 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 Berjaya Sports Toto is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Berjaya Sports Toto emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Berjaya Sports Toto has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Berjaya Sports Toto 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.
Superior customer experience
– The customer experience strategy of Berjaya Sports Toto in Casinos & Gaming industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Berjaya Sports Toto has one of the best training and development program in Services 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.
Sustainable margins compare to other players in Casinos & Gaming industry
– Berjaya Sports Toto has clearly differentiated products in the market place. This has enabled Berjaya Sports Toto to fetch slight price premium compare to the competitors in the Casinos & Gaming industry. The sustainable margins have also helped Berjaya Sports Toto to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Berjaya Sports Toto has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Casinos & Gaming industry. Secondly the value chain collaborators of Berjaya Sports Toto have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Berjaya Sports Toto is one of the leading players in the Casinos & Gaming industry in Malaysia. It is in a position to attract the best talent available in Malaysia. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses of Berjaya Sports Toto | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Berjaya Sports Toto are -
Lack of clear differentiation of Berjaya Sports Toto products
– To increase the profitability and margins on the products, Berjaya Sports Toto needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– From the outside it seems that Berjaya Sports Toto needs to have more collaboration between its sales team and marketing team. Sales professionals in the Casinos & Gaming industry have deep experience in developing customer relationships. Marketing department at Berjaya Sports Toto can leverage the sales team experience to cultivate customer relationships as Berjaya Sports Toto is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Berjaya Sports Toto is dominated by functional specialists. It is not different from other players in the Casinos & Gaming industry, but Berjaya Sports Toto needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Berjaya Sports Toto to focus more on services in the Casinos & Gaming industry rather than just following the product oriented approach.
Need for greater diversity
– Berjaya Sports Toto has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though Berjaya Sports Toto has some of the most successful models in the Casinos & Gaming industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Berjaya Sports Toto should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Berjaya Sports Toto 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.
Slow to strategic competitive environment developments
– As Berjaya Sports Toto is one of the leading players in the Casinos & Gaming industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Casinos & Gaming industry in last five years.
No frontier risks strategy
– From the 10K / annual statement of Berjaya Sports Toto, it seems that company is thinking out the frontier risks that can impact Casinos & Gaming 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Berjaya Sports Toto is slow explore the new channels of communication. These new channels of communication can help Berjaya Sports Toto to provide better information regarding Casinos & Gaming products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring in Casinos & Gaming industry
– The stress on hiring functional specialists at Berjaya Sports Toto 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.
High cash cycle compare to competitors
Berjaya Sports Toto has a high cash cycle compare to other players in the Casinos & Gaming industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Berjaya Sports Toto Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Berjaya Sports Toto are -
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 Berjaya Sports Toto 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 Casinos & Gaming industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Berjaya Sports Toto 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. Berjaya Sports Toto 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Berjaya Sports Toto can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Berjaya Sports Toto 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 Berjaya Sports Toto to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Berjaya Sports Toto 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.
Using analytics as competitive advantage
– Berjaya Sports Toto has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Casinos & Gaming sector. This continuous investment in analytics has enabled Berjaya Sports Toto to build a competitive advantage using analytics. The analytics driven competitive advantage can help Berjaya Sports Toto to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Berjaya Sports Toto is facing challenges because of the dominance of functional experts in the organization. Berjaya Sports Toto can utilize new technology in the field of Casinos & Gaming industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Berjaya Sports Toto can use these opportunities to build new business models that can help the communities that Berjaya Sports Toto operates in. Secondly it can use opportunities from government spending in Casinos & Gaming sector.
Learning at scale
– Online learning technologies has now opened space for Berjaya Sports Toto 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.
Leveraging digital technologies
– Berjaya Sports Toto 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Berjaya Sports Toto in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Casinos & Gaming industry, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Berjaya Sports Toto 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 Casinos & Gaming industry.
Creating value in data economy
– The success of analytics program of Berjaya Sports Toto has opened avenues for new revenue streams for the organization in Casinos & Gaming industry. This can help Berjaya Sports Toto to build a more holistic ecosystem for Berjaya Sports Toto products in the Casinos & Gaming industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Threats Berjaya Sports Toto External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Berjaya Sports Toto are -
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. Berjaya Sports Toto 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.
Stagnating economy with rate increase
– Berjaya Sports Toto 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 Casinos & Gaming industry.
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 Berjaya Sports Toto in the Casinos & Gaming sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Berjaya Sports Toto is facing in Casinos & Gaming sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Berjaya Sports Toto
– 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 Berjaya Sports Toto.
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 Berjaya Sports Toto 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, Berjaya Sports Toto 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 Berjaya Sports Toto prominent markets.
Easy access to finance
– Easy access to finance in Casinos & Gaming industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Berjaya Sports Toto can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Berjaya Sports Toto 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 Casinos & Gaming industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Berjaya Sports Toto may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Casinos & Gaming sector.
High dependence on third party suppliers
– Berjaya Sports Toto 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.
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. Berjaya Sports Toto needs to understand the core reasons impacting the Casinos & Gaming industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Berjaya Sports Toto Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Berjaya Sports Toto 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 Berjaya Sports Toto 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 Berjaya Sports Toto 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 Berjaya Sports Toto 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 Berjaya Sports Toto needs to make to build a sustainable competitive advantage.