Perusahaan Sadur Timah (PSTM) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Perusahaan Sadur Timah (Malaysia)

Based on various researches at Oak Spring University , Perusahaan Sadur Timah is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, wage bills are increasing, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, increasing commodity prices, supply chains are disrupted by pandemic , etc

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Introduction to SWOT Analysis of Perusahaan Sadur Timah

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Perusahaan Sadur Timah can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Perusahaan Sadur Timah, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Perusahaan Sadur Timah 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Perusahaan Sadur Timah can be done for the following purposes –
1. Strategic planning of Perusahaan Sadur Timah
2. Improving business portfolio management of Perusahaan Sadur Timah
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Containers & Packaging sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Perusahaan Sadur Timah

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Strengths of Perusahaan Sadur Timah | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Perusahaan Sadur Timah are -

Ability to recruit top talent

– Perusahaan Sadur Timah is one of the leading players in the Containers & Packaging 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.

Low bargaining power of suppliers

– Suppliers of Perusahaan Sadur Timah in the Basic Materials sector have low bargaining power. Perusahaan Sadur Timah has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Perusahaan Sadur Timah to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Containers & Packaging industry

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

High brand equity

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

Effective Research and Development (R&D)

– Perusahaan Sadur Timah has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Perusahaan Sadur Timah staying ahead in the Containers & Packaging industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Digital Transformation in Containers & Packaging industry

- digital transformation varies from industry to industry. For Perusahaan Sadur Timah digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Perusahaan Sadur Timah 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.

Strong track record of project management in the Containers & Packaging industry

– Perusahaan Sadur Timah is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Successful track record of launching new products

– Perusahaan Sadur Timah has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Perusahaan Sadur Timah 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 Perusahaan Sadur Timah in Containers & Packaging industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– Perusahaan Sadur Timah is present in almost all the verticals within the Containers & Packaging industry. This has provided Perusahaan Sadur Timah 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.

Ability to lead change in Containers & Packaging

– Perusahaan Sadur Timah is one of the leading players in the Containers & Packaging industry in Malaysia. Over the years it has not only transformed the business landscape in the Containers & Packaging industry in Malaysia but also across the existing markets. The ability to lead change has enabled Perusahaan Sadur Timah in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Perusahaan Sadur Timah has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Containers & Packaging industry. Secondly the value chain collaborators of Perusahaan Sadur Timah have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses of Perusahaan Sadur Timah | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Perusahaan Sadur Timah are -

Employees’ less understanding of Perusahaan Sadur Timah strategy

– From the outside it seems that the employees of Perusahaan Sadur Timah 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.

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

Capital Spending Reduction

– Even during the low interest decade, Perusahaan Sadur Timah 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 Containers & Packaging industry using digital technology.

No frontier risks strategy

– From the 10K / annual statement of Perusahaan Sadur Timah, it seems that company is thinking out the frontier risks that can impact Containers & Packaging 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.

Lack of clear differentiation of Perusahaan Sadur Timah products

– To increase the profitability and margins on the products, Perusahaan Sadur Timah needs to provide more differentiated products than what it is currently offering in the marketplace.

High operating costs

– Compare to the competitors, Perusahaan Sadur Timah has high operating costs in the Containers & Packaging industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Perusahaan Sadur Timah lucrative customers.

High dependence on Perusahaan Sadur Timah ‘s star products

– The top 2 products and services of Perusahaan Sadur Timah still accounts for major business revenue. This dependence on star products in Containers & Packaging industry has resulted into insufficient focus on developing new products, even though Perusahaan Sadur Timah has relatively successful track record of launching new products.

Interest costs

– Compare to the competition, Perusahaan Sadur Timah 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.

Compensation and incentives

– The revenue per employee of Perusahaan Sadur Timah is just above the Containers & Packaging 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.

Workers concerns about automation

– As automation is fast increasing in the Containers & Packaging industry, Perusahaan Sadur Timah 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.

Low market penetration in new markets

– Outside its home market of Malaysia, Perusahaan Sadur Timah needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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Perusahaan Sadur Timah Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Perusahaan Sadur Timah are -

Buying journey improvements

– Perusahaan Sadur Timah can improve the customer journey of consumers in the Containers & Packaging 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.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Perusahaan Sadur Timah in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Containers & Packaging industry, and it will provide faster access to the consumers.

Use of Bitcoin and other crypto currencies for transactions in Containers & Packaging industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Perusahaan Sadur Timah in the Containers & Packaging industry. Now Perusahaan Sadur Timah can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Perusahaan Sadur Timah can use the latest technology developments to improve its manufacturing and designing process in Containers & Packaging 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Perusahaan Sadur Timah 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.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Containers & Packaging industry, but it has also influenced the consumer preferences. Perusahaan Sadur Timah can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Learning at scale

– Online learning technologies has now opened space for Perusahaan Sadur Timah 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.

Loyalty marketing

– Perusahaan Sadur Timah 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Perusahaan Sadur Timah can use these opportunities to build new business models that can help the communities that Perusahaan Sadur Timah operates in. Secondly it can use opportunities from government spending in Containers & Packaging sector.

Leveraging digital technologies

– Perusahaan Sadur Timah 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.

Developing new processes and practices

– Perusahaan Sadur Timah can develop new processes and procedures in Containers & Packaging 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.

Harnessing reconfiguration of the global supply chains

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

Creating value in data economy

– The success of analytics program of Perusahaan Sadur Timah has opened avenues for new revenue streams for the organization in Containers & Packaging industry. This can help Perusahaan Sadur Timah to build a more holistic ecosystem for Perusahaan Sadur Timah products in the Containers & Packaging industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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Threats Perusahaan Sadur Timah External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Perusahaan Sadur Timah are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Perusahaan Sadur Timah 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 Perusahaan Sadur Timah prominent markets.

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. Perusahaan Sadur Timah needs to understand the core reasons impacting the Containers & Packaging industry. This will help it in building a better workplace.

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Perusahaan Sadur Timah in Containers & Packaging industry. The Containers & Packaging 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Containers & Packaging industry are lowering. It can presents Perusahaan Sadur Timah with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Containers & Packaging 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. Perusahaan Sadur Timah 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

– Perusahaan Sadur Timah 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. Perusahaan Sadur Timah can take advantage of this fund but it will also bring new competitors in the Containers & Packaging industry.

Increasing wage structure of Perusahaan Sadur Timah

– 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 Perusahaan Sadur Timah.

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 Perusahaan Sadur Timah in the Containers & Packaging sector and impact the bottomline of the organization.

Easy access to finance

– Easy access to finance in Containers & Packaging industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Perusahaan Sadur Timah can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Consumer confidence and its impact on Perusahaan Sadur Timah demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Containers & Packaging industry and other sectors.

Regulatory challenges

– Perusahaan Sadur Timah 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 Containers & Packaging industry regulations.

Shortening product life cycle

– it is one of the major threat that Perusahaan Sadur Timah is facing in Containers & Packaging sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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Weighted SWOT Analysis of Perusahaan Sadur Timah Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Perusahaan Sadur Timah 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 Perusahaan Sadur Timah 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 Perusahaan Sadur Timah 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 Perusahaan Sadur Timah 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 Perusahaan Sadur Timah needs to make to build a sustainable competitive advantage.

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