Competition in Japanese Financial Markets--2002 (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of Competition in Japanese Financial Markets--2002 (Abridged)
In early 2002, Japan, the world's largest economy, had been mired in a decade-long recession. A range of stimulus packages had failed to work their magic. The "Big Bang" financial deregulation reforms announced in 1998 had not quite produced the economic boom that the government had anticipated. Japan struggled to find its place in the increasingly global 21st century. Japan's commercial banks, once the largest in the world, struggled under the weight of their nonperforming loans. Japan's investment banks--the likes of Nomura--remained powerful behemoths. But they had scaled back their global ambitions and were in danger of being eclipsed in their own backyard by a range of foreign financial intermediaries. Meanwhile, the terrorist attack on the United States on September 11, 2001, accelerated a U.S. economic recession and raised the level of uncertainty in the global business environment across the board. It also contributed to the global investment banking industry's worst slowdown since the 1970s, with large firms recording worldwide slumps in revenues and profits of between 40% and 50%.
Swot Analysis of "Competition in Japanese Financial Markets--2002 (Abridged)" written by Tarun Khanna includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Japan's Struggled facing as an external strategic factors. Some of the topics covered in Competition in Japanese Financial Markets--2002 (Abridged) case study are - Strategic Management Strategies, Strategic planning and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Competition in Japanese Financial Markets--2002 (Abridged) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, technology disruption, there is backlash against globalization, wage bills are increasing, supply chains are disrupted by pandemic , increasing commodity prices,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Competition in Japanese Financial Markets--2002 (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competition in Japanese Financial Markets--2002 (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Japan's Struggled, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Japan's Struggled 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 Competition in Japanese Financial Markets--2002 (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Competition in Japanese Financial Markets--2002 (Abridged) case study
2. Improving business portfolio management of Japan's Struggled
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Japan's Struggled
Strengths Competition in Japanese Financial Markets--2002 (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Japan's Struggled in Competition in Japanese Financial Markets--2002 (Abridged) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Japan's Struggled in the sector have low bargaining power. Competition in Japanese Financial Markets--2002 (Abridged) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Japan's Struggled to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Japan's Struggled 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.
Diverse revenue streams
– Japan's Struggled is present in almost all the verticals within the industry. This has provided firm in Competition in Japanese Financial Markets--2002 (Abridged) case study 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.
Ability to recruit top talent
– Japan's Struggled is one of the leading recruiters in the industry. Managers in the Competition in Japanese Financial Markets--2002 (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Japan's Struggled digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Japan's Struggled 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.
High brand equity
– Japan's Struggled has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Japan's Struggled to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Competition in Japanese Financial Markets--2002 (Abridged) Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
Highly skilled collaborators
– Japan's Struggled has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Competition in Japanese Financial Markets--2002 (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Japan's Struggled is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Japan's Struggled
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Japan's Struggled does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Japan's Struggled 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 Japan's Struggled is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Competition in Japanese Financial Markets--2002 (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Japan's Struggled has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competition in Japanese Financial Markets--2002 (Abridged) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Competition in Japanese Financial Markets--2002 (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competition in Japanese Financial Markets--2002 (Abridged) are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Competition in Japanese Financial Markets--2002 (Abridged), in the dynamic environment Japan's Struggled has struggled to respond to the nimble upstart competition. Japan's Struggled has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Competition in Japanese Financial Markets--2002 (Abridged) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Japan's Struggled 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Tarun Khanna suggests that, Japan's Struggled 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.
Lack of clear differentiation of Japan's Struggled products
– To increase the profitability and margins on the products, Japan's Struggled needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Competition in Japanese Financial Markets--2002 (Abridged), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. 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.
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 Japan's Struggled supply chain. Even after few cautionary changes mentioned in the HBR case study - Competition in Japanese Financial Markets--2002 (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Japan's Struggled vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Japan's Struggled 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.
Capital Spending Reduction
– Even during the low interest decade, Japan's Struggled 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 industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Competition in Japanese Financial Markets--2002 (Abridged) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Japan's Struggled has relatively successful track record of launching new products.
High cash cycle compare to competitors
Japan's Struggled 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.
Slow to strategic competitive environment developments
– As Competition in Japanese Financial Markets--2002 (Abridged) HBR case study mentions - Japan's Struggled 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.
Opportunities Competition in Japanese Financial Markets--2002 (Abridged) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Competition in Japanese Financial Markets--2002 (Abridged) are -
Using analytics as competitive advantage
– Japan's Struggled has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Competition in Japanese Financial Markets--2002 (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Japan's Struggled to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Japan's Struggled is facing challenges because of the dominance of functional experts in the organization. Competition in Japanese Financial Markets--2002 (Abridged) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Japan's Struggled in the consumer business. Now Japan's Struggled can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Japan's Struggled 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Japan's Struggled 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. Japan's Struggled 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.
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 Japan's Struggled 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Japan's Struggled can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Japan's Struggled can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Japan's Struggled 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 Japan's Struggled to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Japan's Struggled 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, as suggested in case study, Competition in Japanese Financial Markets--2002 (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Leveraging digital technologies
– Japan's Struggled 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Japan's Struggled can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Japan's Struggled can use these opportunities to build new business models that can help the communities that Japan's Struggled operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Competition in Japanese Financial Markets--2002 (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competition in Japanese Financial Markets--2002 (Abridged) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Japan's Struggled 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 prominent markets illustrated in HBR case study Competition in Japanese Financial Markets--2002 (Abridged) .
High dependence on third party suppliers
– Japan's Struggled 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.
Technology acceleration in Forth Industrial Revolution
– Japan's Struggled has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Japan's Struggled needs to keep up with the evolution of technology in the Strategy & Execution 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.
Shortening product life cycle
– it is one of the major threat that Japan's Struggled is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Japan's Struggled in the Strategy & Execution sector and impact the bottomline of the organization.
Environmental challenges
– Japan's Struggled 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. Japan's Struggled can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Japan's Struggled 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 Strategy & Execution industry regulations.
Consumer confidence and its impact on Japan's Struggled 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 the industry and other sectors.
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. Japan's Struggled 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.
Increasing wage structure of Japan's Struggled
– 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 Japan's Struggled.
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.
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 Japan's Struggled business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Japan's Struggled 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 Competition in Japanese Financial Markets--2002 (Abridged) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Competition in Japanese Financial Markets--2002 (Abridged) 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 the case study Competition in Japanese Financial Markets--2002 (Abridged) 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 the Harvard case study Competition in Japanese Financial Markets--2002 (Abridged) 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 Competition in Japanese Financial Markets--2002 (Abridged) is 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 Japan's Struggled needs to make to build a sustainable competitive advantage.