PT Bank Mandiri Persero TBK (PPERY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for PT Bank Mandiri Persero TBK (United States)
Based on various researches at Oak Spring University , PT Bank Mandiri Persero TBK is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, increasing transportation and logistics costs, talent flight as more people leaving formal jobs,
increasing energy prices, geopolitical disruptions, etc
Introduction to SWOT Analysis of PT Bank Mandiri Persero TBK
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that PT Bank Mandiri Persero TBK can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the PT Bank Mandiri Persero TBK, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK can be done for the following purposes –
1. Strategic planning of PT Bank Mandiri Persero TBK
2. Improving business portfolio management of PT Bank Mandiri Persero TBK
3. Assessing feasibility of the new initiative in United States
4. Making a sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of PT Bank Mandiri Persero TBK
Strengths of PT Bank Mandiri Persero TBK | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of PT Bank Mandiri Persero TBK are -
Innovation driven organization
– PT Bank Mandiri Persero TBK is one of the most innovative firm in sector.
Ability to recruit top talent
– PT Bank Mandiri Persero TBK is one of the leading players in the industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– PT Bank Mandiri Persero TBK has one of the best training and development program in 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.
Learning organization
- PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at PT Bank Mandiri Persero TBK emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– PT Bank Mandiri Persero TBK is present in almost all the verticals within the industry. This has provided PT Bank Mandiri Persero TBK 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.
Analytics focus
– PT Bank Mandiri Persero TBK 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 industry. The technology infrastructure of United States 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.
Highly skilled collaborators
– PT Bank Mandiri Persero TBK has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive industry. Secondly the value chain collaborators of PT Bank Mandiri Persero TBK have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the PT Bank Mandiri Persero TBK 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 lead change in
– PT Bank Mandiri Persero TBK is one of the leading players in the industry in United States. Over the years it has not only transformed the business landscape in the industry in United States but also across the existing markets. The ability to lead change has enabled PT Bank Mandiri Persero TBK in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of PT Bank Mandiri Persero TBK in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the industry
– PT Bank Mandiri Persero TBK is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– PT Bank Mandiri Persero TBK has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – PT Bank Mandiri Persero TBK staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of PT Bank Mandiri Persero TBK | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PT Bank Mandiri Persero TBK are -
Low market penetration in new markets
– Outside its home market of United States, PT Bank Mandiri Persero TBK needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, PT Bank Mandiri Persero TBK has high operating costs in the industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract PT Bank Mandiri Persero TBK lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, PT Bank Mandiri Persero TBK is slow explore the new channels of communication. These new channels of communication can help PT Bank Mandiri Persero TBK to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of PT Bank Mandiri Persero TBK products
– To increase the profitability and margins on the products, PT Bank Mandiri Persero TBK needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, PT Bank Mandiri Persero TBK has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. PT Bank Mandiri Persero TBK 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.
High dependence on PT Bank Mandiri Persero TBK ‘s star products
– The top 2 products and services of PT Bank Mandiri Persero TBK still accounts for major business revenue. This dependence on star products in industry has resulted into insufficient focus on developing new products, even though PT Bank Mandiri Persero TBK has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As PT Bank Mandiri Persero TBK is one of the leading players in the industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– From the 10K / annual statement of PT Bank Mandiri Persero TBK, it seems that company is thinking out the frontier risks that can impact 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.
Employees’ less understanding of PT Bank Mandiri Persero TBK strategy
– From the outside it seems that the employees of PT Bank Mandiri Persero TBK 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 bargaining power of channel partners in industry
– because of the regulatory requirements in United States, PT Bank Mandiri Persero TBK 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 industry.
Increasing silos among functional specialists
– The organizational structure of PT Bank Mandiri Persero TBK is dominated by functional specialists. It is not different from other players in the industry, but PT Bank Mandiri Persero TBK needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help PT Bank Mandiri Persero TBK to focus more on services in the industry rather than just following the product oriented approach.
PT Bank Mandiri Persero TBK Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of PT Bank Mandiri Persero TBK are -
Use of Bitcoin and other crypto currencies for transactions in industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for PT Bank Mandiri Persero TBK in the industry. Now PT Bank Mandiri Persero TBK can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for PT Bank Mandiri Persero TBK in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the industry, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects PT Bank Mandiri Persero TBK can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– PT Bank Mandiri Persero TBK can use the latest technology developments to improve its manufacturing and designing process in 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. PT Bank Mandiri Persero TBK 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. PT Bank Mandiri Persero TBK 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.
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. PT Bank Mandiri Persero TBK can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, PT Bank Mandiri Persero TBK is facing challenges because of the dominance of functional experts in the organization. PT Bank Mandiri Persero TBK can utilize new technology in the field of 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 industry, but it has also influenced the consumer preferences. PT Bank Mandiri Persero TBK can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at PT Bank Mandiri Persero TBK can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the industry.
Learning at scale
– Online learning technologies has now opened space for PT Bank Mandiri Persero TBK 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, PT Bank Mandiri Persero TBK can use these opportunities to build new business models that can help the communities that PT Bank Mandiri Persero TBK operates in. Secondly it can use opportunities from government spending in sector.
Using analytics as competitive advantage
– PT Bank Mandiri Persero TBK has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in sector. This continuous investment in analytics has enabled PT Bank Mandiri Persero TBK to build a competitive advantage using analytics. The analytics driven competitive advantage can help PT Bank Mandiri Persero TBK to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– PT Bank Mandiri Persero TBK can improve the customer journey of consumers in the 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.
Threats PT Bank Mandiri Persero TBK External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of PT Bank Mandiri Persero TBK are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to industry are lowering. It can presents PT Bank Mandiri Persero TBK with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– PT Bank Mandiri Persero TBK 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. PT Bank Mandiri Persero TBK can take advantage of this fund but it will also bring new competitors in the industry.
Technology acceleration in Forth Industrial Revolution
– PT Bank Mandiri Persero TBK has witnessed rapid integration of technology during Covid-19 in the industry. As one of the leading players in the industry, PT Bank Mandiri Persero TBK needs to keep up with the evolution of technology in the 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK prominent markets.
Consumer confidence and its impact on PT Bank Mandiri Persero TBK 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 industry and other sectors.
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.
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. PT Bank Mandiri Persero TBK will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– PT Bank Mandiri Persero TBK 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 industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for PT Bank Mandiri Persero TBK in industry. The 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.
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 PT Bank Mandiri Persero TBK business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of PT Bank Mandiri Persero TBK
– 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 PT Bank Mandiri Persero TBK.
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 PT Bank Mandiri Persero TBK in the sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. PT Bank Mandiri Persero TBK can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of PT Bank Mandiri Persero TBK Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK 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 PT Bank Mandiri Persero TBK needs to make to build a sustainable competitive advantage.
