SWOT Analysis / TOWS Matrix for Jaya Tiasa (Malaysia)
Based on various researches at Oak Spring University , Jaya Tiasa is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, technology disruption, increasing transportation and logistics costs, there is backlash against globalization,
central banks are concerned over increasing inflation, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jaya Tiasa can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jaya Tiasa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jaya Tiasa 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 Jaya Tiasa can be done for the following purposes –
1. Strategic planning of Jaya Tiasa
2. Improving business portfolio management of Jaya Tiasa
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Forestry & Wood Products sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jaya Tiasa
Strengths of Jaya Tiasa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jaya Tiasa are -
Successful track record of launching new products
– Jaya Tiasa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jaya Tiasa 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.
Ability to lead change in Forestry & Wood Products
– Jaya Tiasa is one of the leading players in the Forestry & Wood Products industry in Malaysia. Over the years it has not only transformed the business landscape in the Forestry & Wood Products industry in Malaysia but also across the existing markets. The ability to lead change has enabled Jaya Tiasa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Jaya Tiasa 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 Jaya Tiasa is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jaya Tiasa emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Jaya Tiasa has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Forestry & Wood Products industry. Secondly the value chain collaborators of Jaya Tiasa have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy of Jaya Tiasa comprises – understanding the underlying the factors in the Forestry & Wood Products 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.
High brand equity
– Jaya Tiasa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jaya Tiasa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Forestry & Wood Products industry
– Jaya Tiasa has clearly differentiated products in the market place. This has enabled Jaya Tiasa to fetch slight price premium compare to the competitors in the Forestry & Wood Products industry. The sustainable margins have also helped Jaya Tiasa to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Jaya Tiasa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jaya Tiasa staying ahead in the Forestry & Wood Products industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Forestry & Wood Products industry
- digital transformation varies from industry to industry. For Jaya Tiasa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jaya Tiasa 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
– Jaya Tiasa 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 Forestry & Wood Products industry. The technology infrastructure of Malaysia 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.
Diverse revenue streams
– Jaya Tiasa is present in almost all the verticals within the Forestry & Wood Products industry. This has provided Jaya Tiasa 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.
Low bargaining power of suppliers
– Suppliers of Jaya Tiasa in the Basic Materials sector have low bargaining power. Jaya Tiasa has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jaya Tiasa to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses of Jaya Tiasa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jaya Tiasa are -
Compensation and incentives
– The revenue per employee of Jaya Tiasa is just above the Forestry & Wood Products 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.
Aligning sales with marketing
– From the outside it seems that Jaya Tiasa needs to have more collaboration between its sales team and marketing team. Sales professionals in the Forestry & Wood Products industry have deep experience in developing customer relationships. Marketing department at Jaya Tiasa can leverage the sales team experience to cultivate customer relationships as Jaya Tiasa is planning to shift buying processes online.
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 Jaya Tiasa supply chain. Even after few cautionary changes, Jaya Tiasa is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jaya Tiasa vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Jaya Tiasa 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 Forestry & Wood Products industry using digital technology.
High operating costs
– Compare to the competitors, Jaya Tiasa has high operating costs in the Forestry & Wood Products industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Jaya Tiasa lucrative customers.
Need for greater diversity
– Jaya Tiasa 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.
High dependence on Jaya Tiasa ‘s star products
– The top 2 products and services of Jaya Tiasa still accounts for major business revenue. This dependence on star products in Forestry & Wood Products industry has resulted into insufficient focus on developing new products, even though Jaya Tiasa has relatively successful track record of launching new products.
Skills based hiring in Forestry & Wood Products industry
– The stress on hiring functional specialists at Jaya Tiasa 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.
Employees’ less understanding of Jaya Tiasa strategy
– From the outside it seems that the employees of Jaya Tiasa 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jaya Tiasa is slow explore the new channels of communication. These new channels of communication can help Jaya Tiasa to provide better information regarding Forestry & Wood Products products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners in Forestry & Wood Products industry
– because of the regulatory requirements in Malaysia, Jaya Tiasa 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 Forestry & Wood Products industry.
Jaya Tiasa Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jaya Tiasa are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jaya Tiasa 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 Jaya Tiasa to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Jaya Tiasa to increase its market reach. Jaya Tiasa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jaya Tiasa can use these opportunities to build new business models that can help the communities that Jaya Tiasa operates in. Secondly it can use opportunities from government spending in Forestry & Wood Products sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jaya Tiasa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jaya Tiasa in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Forestry & Wood Products industry, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Jaya Tiasa has opened avenues for new revenue streams for the organization in Forestry & Wood Products industry. This can help Jaya Tiasa to build a more holistic ecosystem for Jaya Tiasa products in the Forestry & Wood Products industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Jaya Tiasa 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.
Manufacturing automation
– Jaya Tiasa can use the latest technology developments to improve its manufacturing and designing process in Forestry & Wood Products 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, Jaya Tiasa 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.
Use of Bitcoin and other crypto currencies for transactions in Forestry & Wood Products industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jaya Tiasa in the Forestry & Wood Products industry. Now Jaya Tiasa can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jaya Tiasa is facing challenges because of the dominance of functional experts in the organization. Jaya Tiasa can utilize new technology in the field of Forestry & Wood Products industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Forestry & Wood Products industry, but it has also influenced the consumer preferences. Jaya Tiasa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Jaya Tiasa 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.
Threats Jaya Tiasa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jaya Tiasa are -
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.
Increasing wage structure of Jaya Tiasa
– 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 Jaya Tiasa.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Forestry & Wood Products industry are lowering. It can presents Jaya Tiasa with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Forestry & Wood Products sector.
Easy access to finance
– Easy access to finance in Forestry & Wood Products industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Jaya Tiasa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Jaya Tiasa in the Forestry & Wood Products sector and impact the bottomline of the organization.
Regulatory challenges
– Jaya Tiasa 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 Forestry & Wood Products industry regulations.
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 Jaya Tiasa business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Jaya Tiasa has witnessed rapid integration of technology during Covid-19 in the Forestry & Wood Products industry. As one of the leading players in the industry, Jaya Tiasa needs to keep up with the evolution of technology in the Forestry & Wood Products 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.
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. Jaya Tiasa needs to understand the core reasons impacting the Forestry & Wood Products industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Jaya Tiasa 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
– Jaya Tiasa 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. Jaya Tiasa can take advantage of this fund but it will also bring new competitors in the Forestry & Wood Products industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jaya Tiasa may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Forestry & Wood Products sector.
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.
Weighted SWOT Analysis of Jaya Tiasa Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jaya Tiasa 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 Jaya Tiasa 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 Jaya Tiasa 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 Jaya Tiasa 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 Jaya Tiasa needs to make to build a sustainable competitive advantage.
