SWOT Analysis of Wardah Cosmetics
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ScribdTranslationsSWOT Analysis of Wardah Cosmetics
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ScribdTranslationsCHAPTER II
RESULTS AND DISCUSSION
Based on research conducted at PT. Paragon Technology and Innovation
(Wardah), the analysis method used is SWOT (Strength, Weakness, Opportunity,
The SWOT (Strength, Weakness, Opportunity, and Threat) analysis itself consists of 2 methods;
1. SAPAnalysis
is a means to create a systematic evaluation of the advantages of the strategy
important companies for the company within the internal environment. In this SAP Analysis
Analysis of strengths and weaknesses is essential. Here are the results of the calculations.
Internal factors/SAP can be seen as follows:
Bobot X
Internal strength indicator Weight Rating
Rating
Wardah products are Halal certified 0.100 3.95 0.395
Wardah products have a long shelf life when
applied 0.102 3.7 0.377
Wardah products have a high-quality reputation. 0.102 3.65 0.372
Wardah products are very complete. 0.102 3.35 0.342
Wardah product prices are affordable 0.101 3.05 0.308
The price of Wardah products is in accordance with the benefits they provide.
obtained 0.098 3.25 0.319
The price is in accordance with the quality of Wardah products.
0.098 3.1 0.304
Internal weakness indicator
The packaging of Wardah products is less appealing.
0.073 2.3 0.168
Wardah brand products are less known. 0.085 2.55 0.217
Wardah products are only aimed at women because
carrying the Halal theme 0.076 2.1 0.160
The promotion of Wardah products is relatively slow. 0.061 2.5 0.153
Total 1 3.1135
Source: processed primary data
Based on the calculation of internal factors, it can be explained that the competitive position of PT. Paragon
Technology and Innovation (Wardah) is in a strong position at 3.1135 as shown in
The interval class in table 1. The company can act fairly freely without jeopardizing its position.
long term, can maintain a long-term position quite safely even in the face of competitors
actively participate.
2. EOTP Analysis
EOTP analysis is divided into 2 parts: external elements of opportunity and internal elements of threat. Result
the calculation of both probabilities can be seen as follows:
A. Opportunity Indicator
Value
Opportunity Indicator Weight Scale
Weighed
The Halal label of Wardah products has
additional value compared to other products 0.288 3.85 1,0888
Wardah is very familiar among children.
youth, especially the Muslim women
0.262 3.95 1.0349
The possibility of development is quite large.
because it carries Halal 0.265 3.5 0.9275
the community's need for products that
man increases 0.185 3.9 0.7215
Total 1 3.7927
Source: Processed Primary Data
Based on the calculation of external factor opportunities, it can be explained that the competitive position of PT.
Paragon Technology and Innovation (Wardah) is the value of EOE (Environment Opportunity Element)
as much as 3.7927.
B. Threat Indicator
Value
Threat indicator Robot Scale
Weighed
Many cosmetics are more affordable
and has better quality than
Wardah products 0.253 3.1 0.784
Society still many which
doubting the quality of Wardah products 0.235 2.8 0.658
Many competitors in the field
cosmetics 0.204 2.3 0.469
competitor products are more complete
0.308 3.35 1,032
Total 1 2,943
Source: Processed Primary Data
Based on the calculation of external factors, it can be explained that the competitive position of PT.
Paragon Technology and Innovation (Wardah) refers to the value (Environment Threat Element (ETE)
2,943
Based on the analysis results of PT. Paragon Technology and Innovation (Wardah) on the business position
speculative. This speculative business unit is a business that has a chance of success, but
the risk of failure is very high. If this business succeeds, it will gain profit.
very promising, but on the contrary, if it fails it will have fatal consequences.
A. SWOT Analysis
Based on its main analytical objective, namely SWOT analysis, which is an analysis where
Various factors are systematically identified to formulate the organization's strategy.
This analysis can be conducted based on 4 criteria such as strength, weakness, opportunity, threats.
Kekuatan
Based on the analytical strengths of PT. Paragon Technology And Innovation (Wardah),
the competition that will be held is as follows:
The Halal label makes Wardah a trusted cosmetic brand for Muslim women in Indonesia.
The Halal label gives Wardah a wide market share because in Indonesia
the majority of the population is Muslim
The products are becoming more innovative and varied to meet market needs.
Easily found because it has several outlets close to the market
Affordable and varied prices accompanied by varied quality as well.
Having many enthusiasts starting from young women and older women.
Weakness
So far, Wardah products are oriented towards the women's segment.
Unattractive product packaging
The growth of product sales is slow, making it easy to be sidelined by new competitors.
Product variation increases production costs.
Opportunity
Based on the success opportunities analysis of PT. Paragon Technology And Innovation (Wardah)
As analyzed using EOTP, it is as follows:
The three principles of Wardah products make this product familiar among young people, especially.
muslimah
The Halal label carried by Wardah has added value compared to other cosmetics.
4. Threats
A new cosmetic product appears with similar quality at a more affordable price.
Consumer purchasing power for high-end cosmetics is increasing, making Wardah easier.
shift its segment.
Many competitor products in the cosmetics field
SWOT Matrix Position
ETOP Business Effort Effort Effort
SAP ideal adult speculative serious
Dominate I I I I
Strong I I I C
Aman I I C
Survive I C D D
Weak C D D D
Lost hope D D D D
Source: Processed Primary Data
In the SWOT matrix above, the analysis of SAP and ETOP PT. Paragon Technology And
Innovation (Wardah) is in a strong internal position and an external position at
speculative effort. Thus, the company PT. Paragon Technology and Innovation (Wardah)
being in an investment position, which is a position of a company that has alternative strategies
or growth strategy.
B. Application of SWOT Analysis Strategy
SW
Strengths Weakness
OT
SO Strategy WO Strategy
utilizing all The WO strategy aims
the strength to seize and to fix
taking advantage of opportunities internal weaknesses
The greatest opportunity. SO strategy by utilizing
using strength external opportunities.
internal company for
taking advantage of opportunities
external
Strategy ST WT Strategy
This strategy uses The WT strategy aims
the strength that is possessed to reduce
companies to address internal weaknesses
threat. ST strategy by avoiding
TREAT
using power external threat.
internal company for
to avoid or reduce
impact of external threats.
Common questions
Powered by AIThe Halal certification provides Wardah with a trustworthy image among Muslim women in Indonesia, offering a significant market advantage as the majority of the population is Muslim . This label grants Wardah a competitive edge by making its products more appealing to Muslim consumers compared to non-Halal certified products .
Wardah's current market positioning, strong internally due to brand strength and trust but speculative externally, affects its financial viability by promising substantial growth potential if managed effectively. This requires careful strategic investments in market expansion and innovation, although financial risk is significant due to competitive pressures and market volatility .
Against growing competition, Wardah should implement ST strategies by leveraging its brand strength and trusted Halal certification to differentiate from competitors. Investing in innovation to create unique value propositions, enhancing customer engagement through digital marketing, and expanding distribution channels to improve accessibility can also fortify its market position .
Consumer trust plays a crucial role by providing Wardah with a competitive advantage through its Halal certification, which reassures Muslim consumers of the product's compliance with religious norms. This trust facilitates market penetration and consumer loyalty, helping Wardah maintain a favorable position despite the presence of numerous competitors .
Wardah can expand beyond its current female and Muslim-focused demographics by diversifying its product line to include men’s personal care products and non-Muslim skin care solutions. Capitalizing on the growing demand for Halal-certified products and increasing brand visibility through targeted marketing and collaborations could open new market segments .
The speculative effort classification indicates that while Wardah holds a strong internal position, its external environment poses high risk and high potential reward. This necessitates cautious strategic decision-making, balancing between potential growth opportunities and the substantial risk of failure. The company must strategically invest in market penetration and brand enhancement to maximize success probability while vigilantly managing resources .
Wardah faces risks such as price competition and quality perceptions from numerous competitors offering similar or superior products at competitive pricing. Strategically, Wardah can mitigate these risks by reinforcing brand trust through its Halal certification, improving product quality, enhancing packaging, and employing aggressive marketing to reinforce its unique value proposition .
Wardah's pricing strategy, which offers affordability and aligns price with perceived value, can be leveraged to enhance competitiveness. By maintaining its focus on delivering quality products at affordable prices, Wardah can attract cost-sensitive consumers while potentially expanding its market share against competitors with higher-priced offerings .
Packaging design is a significant weakness for Wardah, as stated in the SWOT analysis. The current packaging is deemed unattractive, which may detract from its market appeal despite other strengths like affordability and quality. Improving packaging could enhance the product's attractiveness and potentially increase market share .
Wardah should use the WO strategy to focus on fixing internal weaknesses by leveraging opportunities, such as enhancing product packaging and improving promotional efforts. For external threats, Wardah should employ the ST strategy, utilizing its strengths, like brand trust and market share, to mitigate the impact of cheaper competitor products and market saturation .