Borneo Aqua Harvest (BAHV) SWOT Analysis / TOWS Matrix / MBA Resources
Fish/Livestock
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Borneo Aqua Harvest (Malaysia)
Based on various researches at Oak Spring University , Borneo Aqua Harvest is operating in a macro-environment that has been destablized by – talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Borneo Aqua Harvest
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Borneo Aqua Harvest can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Borneo Aqua Harvest, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Borneo Aqua Harvest 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 Borneo Aqua Harvest can be done for the following purposes –
1. Strategic planning of Borneo Aqua Harvest
2. Improving business portfolio management of Borneo Aqua Harvest
3. Assessing feasibility of the new initiative in Malaysia
4. Making a Fish/Livestock sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Borneo Aqua Harvest
Strengths of Borneo Aqua Harvest | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Borneo Aqua Harvest are -
Digital Transformation in Fish/Livestock industry
- digital transformation varies from industry to industry. For Borneo Aqua Harvest digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Borneo Aqua Harvest 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.
Diverse revenue streams
– Borneo Aqua Harvest is present in almost all the verticals within the Fish/Livestock industry. This has provided Borneo Aqua Harvest 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.
High switching costs
– The high switching costs that Borneo Aqua Harvest 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.
Operational resilience
– The operational resilience strategy of Borneo Aqua Harvest comprises – understanding the underlying the factors in the Fish/Livestock 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.
Training and development
– Borneo Aqua Harvest has one of the best training and development program in Consumer/Non-Cyclical 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.
Ability to recruit top talent
– Borneo Aqua Harvest is one of the leading players in the Fish/Livestock 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.
Effective Research and Development (R&D)
– Borneo Aqua Harvest has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Borneo Aqua Harvest staying ahead in the Fish/Livestock industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Borneo Aqua Harvest in the Consumer/Non-Cyclical sector have low bargaining power. Borneo Aqua Harvest has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Borneo Aqua Harvest to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Borneo Aqua Harvest has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Fish/Livestock industry. Secondly the value chain collaborators of Borneo Aqua Harvest have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Borneo Aqua Harvest
– The covid-19 pandemic has put organizational resilience at the centre of everthing Borneo Aqua Harvest does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Borneo Aqua Harvest has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Borneo Aqua Harvest 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 Fish/Livestock
– Borneo Aqua Harvest is one of the leading players in the Fish/Livestock industry in Malaysia. Over the years it has not only transformed the business landscape in the Fish/Livestock industry in Malaysia but also across the existing markets. The ability to lead change has enabled Borneo Aqua Harvest in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Borneo Aqua Harvest | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Borneo Aqua Harvest are -
Low market penetration in new markets
– Outside its home market of Malaysia, Borneo Aqua Harvest needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Borneo Aqua Harvest has a high cash cycle compare to other players in the Fish/Livestock industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring in Fish/Livestock industry
– The stress on hiring functional specialists at Borneo Aqua Harvest 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.
Lack of clear differentiation of Borneo Aqua Harvest products
– To increase the profitability and margins on the products, Borneo Aqua Harvest needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Borneo Aqua Harvest supply chain. Even after few cautionary changes, Borneo Aqua Harvest is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Borneo Aqua Harvest vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Borneo Aqua Harvest is one of the leading players in the Fish/Livestock industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Fish/Livestock industry in last five years.
High dependence on Borneo Aqua Harvest ‘s star products
– The top 2 products and services of Borneo Aqua Harvest still accounts for major business revenue. This dependence on star products in Fish/Livestock industry has resulted into insufficient focus on developing new products, even though Borneo Aqua Harvest has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the Fish/Livestock industry, Borneo Aqua Harvest 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.
Capital Spending Reduction
– Even during the low interest decade, Borneo Aqua Harvest 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 Fish/Livestock industry using digital technology.
Interest costs
– Compare to the competition, Borneo Aqua Harvest 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.
Increasing silos among functional specialists
– The organizational structure of Borneo Aqua Harvest is dominated by functional specialists. It is not different from other players in the Fish/Livestock industry, but Borneo Aqua Harvest needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Borneo Aqua Harvest to focus more on services in the Fish/Livestock industry rather than just following the product oriented approach.
Borneo Aqua Harvest Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Borneo Aqua Harvest are -
Loyalty marketing
– Borneo Aqua Harvest 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Borneo Aqua Harvest can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Borneo Aqua Harvest to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Borneo Aqua Harvest can use these opportunities to build new business models that can help the communities that Borneo Aqua Harvest operates in. Secondly it can use opportunities from government spending in Fish/Livestock sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Borneo Aqua Harvest in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Fish/Livestock industry, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Borneo Aqua Harvest 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 Borneo Aqua Harvest to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Borneo Aqua Harvest can improve the customer journey of consumers in the Fish/Livestock 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.
Developing new processes and practices
– Borneo Aqua Harvest can develop new processes and procedures in Fish/Livestock 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.
Creating value in data economy
– The success of analytics program of Borneo Aqua Harvest has opened avenues for new revenue streams for the organization in Fish/Livestock industry. This can help Borneo Aqua Harvest to build a more holistic ecosystem for Borneo Aqua Harvest products in the Fish/Livestock industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Borneo Aqua Harvest is facing challenges because of the dominance of functional experts in the organization. Borneo Aqua Harvest can utilize new technology in the field of Fish/Livestock industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Borneo Aqua Harvest can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Fish/Livestock industry, but it has also influenced the consumer preferences. Borneo Aqua Harvest can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Borneo Aqua Harvest to increase its market reach. Borneo Aqua Harvest 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.
Threats Borneo Aqua Harvest External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Borneo Aqua Harvest are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Borneo Aqua Harvest may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Fish/Livestock sector.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Borneo Aqua Harvest has witnessed rapid integration of technology during Covid-19 in the Fish/Livestock industry. As one of the leading players in the industry, Borneo Aqua Harvest needs to keep up with the evolution of technology in the Fish/Livestock 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Borneo Aqua Harvest in Fish/Livestock industry. The Fish/Livestock 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.
Consumer confidence and its impact on Borneo Aqua Harvest 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 Fish/Livestock industry and other sectors.
Increasing wage structure of Borneo Aqua Harvest
– 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 Borneo Aqua Harvest.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Fish/Livestock industry are lowering. It can presents Borneo Aqua Harvest with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Fish/Livestock sector.
Environmental challenges
– Borneo Aqua Harvest 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. Borneo Aqua Harvest can take advantage of this fund but it will also bring new competitors in the Fish/Livestock industry.
Regulatory challenges
– Borneo Aqua Harvest 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 Fish/Livestock industry regulations.
High dependence on third party suppliers
– Borneo Aqua Harvest 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.
Stagnating economy with rate increase
– Borneo Aqua Harvest 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 Fish/Livestock industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Borneo Aqua Harvest 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 Borneo Aqua Harvest 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. Borneo Aqua Harvest needs to understand the core reasons impacting the Fish/Livestock industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Borneo Aqua Harvest Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Borneo Aqua Harvest 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 Borneo Aqua Harvest 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 Borneo Aqua Harvest 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 Borneo Aqua Harvest 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 Borneo Aqua Harvest needs to make to build a sustainable competitive advantage.
