CapitaLand Malaysia Mall (CAMA) SWOT Analysis / TOWS Matrix / MBA Resources
Real Estate Operations
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for CapitaLand Malaysia Mall (Malaysia)
Based on various researches at Oak Spring University , CapitaLand Malaysia Mall is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing government debt because of Covid-19 spendings, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, technology disruption, etc
Introduction to SWOT Analysis of CapitaLand Malaysia Mall
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that CapitaLand Malaysia Mall can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the CapitaLand Malaysia Mall, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall can be done for the following purposes –
1. Strategic planning of CapitaLand Malaysia Mall
2. Improving business portfolio management of CapitaLand Malaysia Mall
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Real Estate Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of CapitaLand Malaysia Mall
Strengths of CapitaLand Malaysia Mall | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of CapitaLand Malaysia Mall are -
Operational resilience
– The operational resilience strategy of CapitaLand Malaysia Mall comprises – understanding the underlying the factors in the Real Estate Operations 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.
Sustainable margins compare to other players in Real Estate Operations industry
– CapitaLand Malaysia Mall has clearly differentiated products in the market place. This has enabled CapitaLand Malaysia Mall to fetch slight price premium compare to the competitors in the Real Estate Operations industry. The sustainable margins have also helped CapitaLand Malaysia Mall to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the CapitaLand Malaysia Mall 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.
Ability to recruit top talent
– CapitaLand Malaysia Mall is one of the leading players in the Real Estate Operations 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.
Successful track record of launching new products
– CapitaLand Malaysia Mall has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. CapitaLand Malaysia Mall 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.
Training and development
– CapitaLand Malaysia Mall 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.
Highly skilled collaborators
– CapitaLand Malaysia Mall has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Real Estate Operations industry. Secondly the value chain collaborators of CapitaLand Malaysia Mall have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– CapitaLand Malaysia Mall is one of the most innovative firm in Real Estate Operations sector.
Learning organization
- CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at CapitaLand Malaysia Mall emphasize – knowledge, initiative, and innovation.
Strong track record of project management in the Real Estate Operations industry
– CapitaLand Malaysia Mall is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Real Estate Operations
– CapitaLand Malaysia Mall is one of the leading players in the Real Estate Operations industry in Malaysia. Over the years it has not only transformed the business landscape in the Real Estate Operations industry in Malaysia but also across the existing markets. The ability to lead change has enabled CapitaLand Malaysia Mall in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of CapitaLand Malaysia Mall in the Services sector have low bargaining power. CapitaLand Malaysia Mall has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps CapitaLand Malaysia Mall to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of CapitaLand Malaysia Mall | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CapitaLand Malaysia Mall are -
Lack of clear differentiation of CapitaLand Malaysia Mall products
– To increase the profitability and margins on the products, CapitaLand Malaysia Mall needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee of CapitaLand Malaysia Mall is just above the Real Estate Operations 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.
Increasing silos among functional specialists
– The organizational structure of CapitaLand Malaysia Mall is dominated by functional specialists. It is not different from other players in the Real Estate Operations industry, but CapitaLand Malaysia Mall needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help CapitaLand Malaysia Mall to focus more on services in the Real Estate Operations 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 CapitaLand Malaysia Mall supply chain. Even after few cautionary changes, CapitaLand Malaysia Mall is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left CapitaLand Malaysia Mall vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the Real Estate Operations industry, CapitaLand Malaysia Mall 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.
Products dominated business model
– Even though CapitaLand Malaysia Mall has some of the most successful models in the Real Estate Operations industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. CapitaLand Malaysia Mall should strive to include more intangible value offerings along with its core products and services.
Employees’ less understanding of CapitaLand Malaysia Mall strategy
– From the outside it seems that the employees of CapitaLand Malaysia Mall 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.
Slow decision making process
– As mentioned earlier in the report, CapitaLand Malaysia Mall has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Real Estate Operations industry over the last five years. CapitaLand Malaysia Mall 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.
Skills based hiring in Real Estate Operations industry
– The stress on hiring functional specialists at CapitaLand Malaysia Mall 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.
Slow to strategic competitive environment developments
– As CapitaLand Malaysia Mall is one of the leading players in the Real Estate Operations industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Real Estate Operations industry in last five years.
Low market penetration in new markets
– Outside its home market of Malaysia, CapitaLand Malaysia Mall needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
CapitaLand Malaysia Mall Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of CapitaLand Malaysia Mall are -
Creating value in data economy
– The success of analytics program of CapitaLand Malaysia Mall has opened avenues for new revenue streams for the organization in Real Estate Operations industry. This can help CapitaLand Malaysia Mall to build a more holistic ecosystem for CapitaLand Malaysia Mall products in the Real Estate Operations 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 CapitaLand Malaysia Mall to increase its market reach. CapitaLand Malaysia Mall 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 Real Estate Operations industry, but it has also influenced the consumer preferences. CapitaLand Malaysia Mall can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– CapitaLand Malaysia Mall 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Real Estate Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. CapitaLand Malaysia Mall 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. CapitaLand Malaysia Mall 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.
Manufacturing automation
– CapitaLand Malaysia Mall can use the latest technology developments to improve its manufacturing and designing process in Real Estate Operations 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, CapitaLand Malaysia Mall can use these opportunities to build new business models that can help the communities that CapitaLand Malaysia Mall operates in. Secondly it can use opportunities from government spending in Real Estate Operations sector.
Buying journey improvements
– CapitaLand Malaysia Mall can improve the customer journey of consumers in the Real Estate Operations 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.
Loyalty marketing
– CapitaLand Malaysia Mall 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
– CapitaLand Malaysia Mall has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Real Estate Operations sector. This continuous investment in analytics has enabled CapitaLand Malaysia Mall to build a competitive advantage using analytics. The analytics driven competitive advantage can help CapitaLand Malaysia Mall to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions in Real Estate Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for CapitaLand Malaysia Mall in the Real Estate Operations industry. Now CapitaLand Malaysia Mall can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects CapitaLand Malaysia Mall can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats CapitaLand Malaysia Mall External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of CapitaLand Malaysia Mall 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. CapitaLand Malaysia Mall 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.
Increasing wage structure of CapitaLand Malaysia Mall
– 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 CapitaLand Malaysia Mall.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for CapitaLand Malaysia Mall in Real Estate Operations industry. The Real Estate Operations 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, CapitaLand Malaysia Mall may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Real Estate Operations sector.
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 CapitaLand Malaysia Mall in the Real Estate Operations sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Real Estate Operations industry are lowering. It can presents CapitaLand Malaysia Mall with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Real Estate Operations sector.
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 CapitaLand Malaysia Mall.
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.
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. CapitaLand Malaysia Mall needs to understand the core reasons impacting the Real Estate Operations industry. This will help it in building a better workplace.
High dependence on third party suppliers
– CapitaLand Malaysia Mall 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
– CapitaLand Malaysia Mall has witnessed rapid integration of technology during Covid-19 in the Real Estate Operations industry. As one of the leading players in the industry, CapitaLand Malaysia Mall needs to keep up with the evolution of technology in the Real Estate Operations 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.
Easy access to finance
– Easy access to finance in Real Estate Operations industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. CapitaLand Malaysia Mall 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, CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall prominent markets.
Weighted SWOT Analysis of CapitaLand Malaysia Mall Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall 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 CapitaLand Malaysia Mall needs to make to build a sustainable competitive advantage.
