PT Media Nusantara Citra TBK (PTMEY) SWOT Analysis / TOWS Matrix / MBA Resources
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for PT Media Nusantara Citra TBK (United States)
Based on various researches at Oak Spring University , PT Media Nusantara Citra TBK is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , there is backlash against globalization, wage bills are increasing, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs,
increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of PT Media Nusantara Citra TBK
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that PT Media Nusantara Citra TBK can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the PT Media Nusantara Citra TBK, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which PT Media Nusantara Citra 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 Media Nusantara Citra TBK can be done for the following purposes –
1. Strategic planning of PT Media Nusantara Citra TBK
2. Improving business portfolio management of PT Media Nusantara Citra 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 Media Nusantara Citra TBK
Strengths of PT Media Nusantara Citra TBK | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of PT Media Nusantara Citra TBK are -
Analytics focus
– PT Media Nusantara Citra 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.
Superior customer experience
– The customer experience strategy of PT Media Nusantara Citra TBK in industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in
– PT Media Nusantara Citra 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 Media Nusantara Citra TBK in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– PT Media Nusantara Citra 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 Media Nusantara Citra TBK have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in industry
- digital transformation varies from industry to industry. For PT Media Nusantara Citra TBK digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. PT Media Nusantara Citra TBK 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
– PT Media Nusantara Citra TBK is present in almost all the verticals within the industry. This has provided PT Media Nusantara Citra 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.
High switching costs
– The high switching costs that PT Media Nusantara Citra TBK 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.
Training and development
– PT Media Nusantara Citra 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 Media Nusantara Citra 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 Media Nusantara Citra TBK is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at PT Media Nusantara Citra TBK emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– PT Media Nusantara Citra TBK has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – PT Media Nusantara Citra 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.
Cross disciplinary teams
– Horizontal connected teams at the PT Media Nusantara Citra 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.
Successful track record of launching new products
– PT Media Nusantara Citra TBK has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. PT Media Nusantara Citra TBK 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.
Weaknesses of PT Media Nusantara Citra TBK | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PT Media Nusantara Citra TBK are -
Ability to respond to the competition
– As the decision making is very deliberative at PT Media Nusantara Citra TBK, in the dynamic environment of industry it has struggled to respond to the nimble upstart competition. PT Media Nusantara Citra TBK has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of PT Media Nusantara Citra TBK is dominated by functional specialists. It is not different from other players in the industry, but PT Media Nusantara Citra TBK needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help PT Media Nusantara Citra TBK to focus more on services in the industry rather than just following the product oriented approach.
Employees’ less understanding of PT Media Nusantara Citra TBK strategy
– From the outside it seems that the employees of PT Media Nusantara Citra 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 Media Nusantara Citra 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.
Workers concerns about automation
– As automation is fast increasing in the industry, PT Media Nusantara Citra TBK 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.
High cash cycle compare to competitors
PT Media Nusantara Citra TBK has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 PT Media Nusantara Citra TBK supply chain. Even after few cautionary changes, PT Media Nusantara Citra TBK is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left PT Media Nusantara Citra TBK vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, PT Media Nusantara Citra 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 Media Nusantara Citra TBK lucrative customers.
Products dominated business model
– Even though PT Media Nusantara Citra TBK has some of the most successful models in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. PT Media Nusantara Citra TBK should strive to include more intangible value offerings along with its core products and services.
High dependence on PT Media Nusantara Citra TBK ‘s star products
– The top 2 products and services of PT Media Nusantara Citra 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 Media Nusantara Citra TBK has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, PT Media Nusantara Citra TBK is slow explore the new channels of communication. These new channels of communication can help PT Media Nusantara Citra TBK to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
PT Media Nusantara Citra TBK Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of PT Media Nusantara Citra TBK are -
Using analytics as competitive advantage
– PT Media Nusantara Citra 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 Media Nusantara Citra TBK to build a competitive advantage using analytics. The analytics driven competitive advantage can help PT Media Nusantara Citra 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 Media Nusantara Citra 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.
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 Media Nusantara Citra 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 Media Nusantara Citra 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for PT Media Nusantara Citra 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.
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 Media Nusantara Citra TBK in the industry. Now PT Media Nusantara Citra TBK can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– PT Media Nusantara Citra 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.
Better consumer reach
– The expansion of the 5G network will help PT Media Nusantara Citra TBK to increase its market reach. PT Media Nusantara Citra TBK 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.
Building a culture of innovation
– managers at PT Media Nusantara Citra 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, PT Media Nusantara Citra TBK is facing challenges because of the dominance of functional experts in the organization. PT Media Nusantara Citra 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 Media Nusantara Citra TBK can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, PT Media Nusantara Citra TBK 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 PT Media Nusantara Citra TBK to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 PT Media Nusantara Citra TBK 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.
Loyalty marketing
– PT Media Nusantara Citra TBK 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.
Threats PT Media Nusantara Citra TBK External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of PT Media Nusantara Citra TBK are -
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 Media Nusantara Citra TBK in the sector and impact the bottomline of the organization.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of PT Media Nusantara Citra TBK.
Regulatory challenges
– PT Media Nusantara Citra TBK 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 industry regulations.
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.
Shortening product life cycle
– it is one of the major threat that PT Media Nusantara Citra TBK is facing in sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, PT Media Nusantara Citra 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 Media Nusantara Citra TBK prominent markets.
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 Media Nusantara Citra TBK business can come under increasing regulations regarding data privacy, data security, etc.
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. PT Media Nusantara Citra TBK needs to understand the core reasons impacting the industry. This will help it in building a better workplace.
Consumer confidence and its impact on PT Media Nusantara Citra 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.
Increasing wage structure of PT Media Nusantara Citra 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 Media Nusantara Citra TBK.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, PT Media Nusantara Citra TBK may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of sector.
Stagnating economy with rate increase
– PT Media Nusantara Citra 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.
High dependence on third party suppliers
– PT Media Nusantara Citra TBK 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.
Weighted SWOT Analysis of PT Media Nusantara Citra TBK Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at PT Media Nusantara Citra 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 Media Nusantara Citra 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 Media Nusantara Citra 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 Media Nusantara Citra 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 Media Nusantara Citra TBK needs to make to build a sustainable competitive advantage.
