Kyocera Corp.: The Amoeba Management System SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Kyocera Corp.: The Amoeba Management System
Describes Kyocera's unusual approach to profit centers. The firm's basic units of operation are profit centers called "amoebas," which are sales or manufacturing units with full responsibility for their planning, decision making, and administration. Amoebas are expected to find ways to improve production and lower costs, reflecting the belief of Kyocera's founder that profits are generated during the manufacturing process.
Swot Analysis of "Kyocera Corp.: The Amoeba Management System" written by Robin Cooper includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Amoebas Kyocera's facing as an external strategic factors. Some of the topics covered in Kyocera Corp.: The Amoeba Management System case study are - Strategic Management Strategies, Financial management, Organizational structure, Pricing and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Kyocera Corp.: The Amoeba Management System casestudy better are - – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Kyocera Corp.: The Amoeba Management System
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kyocera Corp.: The Amoeba Management System case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Amoebas Kyocera's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Amoebas Kyocera's 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 Kyocera Corp.: The Amoeba Management System can be done for the following purposes –
1. Strategic planning using facts provided in Kyocera Corp.: The Amoeba Management System case study
2. Improving business portfolio management of Amoebas Kyocera's
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Amoebas Kyocera's
Strengths Kyocera Corp.: The Amoeba Management System | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Amoebas Kyocera's in Kyocera Corp.: The Amoeba Management System Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Kyocera Corp.: The Amoeba Management System 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Amoebas Kyocera's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Amoebas Kyocera's 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.
Cross disciplinary teams
– Horizontal connected teams at the Amoebas Kyocera's 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 Finance & Accounting field
– Amoebas Kyocera's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Amoebas Kyocera's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Amoebas Kyocera's 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)
– Amoebas Kyocera's has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Kyocera Corp.: The Amoeba Management System - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Amoebas Kyocera's 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 Kyocera Corp.: The Amoeba Management System HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Amoebas Kyocera's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Amoebas Kyocera's 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
– Amoebas Kyocera's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Amoebas Kyocera's 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.
Superior customer experience
– The customer experience strategy of Amoebas Kyocera's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Amoebas Kyocera's is one of the most innovative firm in sector. Manager in Kyocera Corp.: The Amoeba Management System Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Amoebas Kyocera's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Amoebas Kyocera's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Kyocera Corp.: The Amoeba Management System | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kyocera Corp.: The Amoeba Management System are -
Slow to strategic competitive environment developments
– As Kyocera Corp.: The Amoeba Management System HBR case study mentions - Amoebas Kyocera's 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.
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 Amoebas Kyocera's supply chain. Even after few cautionary changes mentioned in the HBR case study - Kyocera Corp.: The Amoeba Management System, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Amoebas Kyocera's vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Amoebas Kyocera's has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Amoebas Kyocera's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kyocera Corp.: The Amoeba Management System can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Amoebas Kyocera's 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.
Aligning sales with marketing
– It come across in the case study Kyocera Corp.: The Amoeba Management System that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Kyocera Corp.: The Amoeba Management System can leverage the sales team experience to cultivate customer relationships as Amoebas Kyocera's is planning to shift buying processes online.
High cash cycle compare to competitors
Amoebas Kyocera's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Amoebas Kyocera's 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.
Increasing silos among functional specialists
– The organizational structure of Amoebas Kyocera's is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Amoebas Kyocera's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Amoebas Kyocera's to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Amoebas Kyocera's, firm in the HBR case study Kyocera Corp.: The Amoeba Management System needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Amoebas Kyocera's 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.
Opportunities Kyocera Corp.: The Amoeba Management System | 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 Kyocera Corp.: The Amoeba Management System are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Amoebas Kyocera's 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, Kyocera Corp.: The Amoeba Management System, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Amoebas Kyocera's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kyocera Corp.: The Amoeba Management System suggest that firm 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.
Using analytics as competitive advantage
– Amoebas Kyocera's 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 Kyocera Corp.: The Amoeba Management System - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Amoebas Kyocera's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Amoebas Kyocera's can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Amoebas Kyocera's 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 Finance & Accounting industry, but it has also influenced the consumer preferences. Amoebas Kyocera's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Amoebas Kyocera's can develop new processes and procedures in Finance & Accounting 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 Amoebas Kyocera's has opened avenues for new revenue streams for the organization in the industry. This can help Amoebas Kyocera's to build a more holistic ecosystem as suggested in the Kyocera Corp.: The Amoeba Management System case study. Amoebas Kyocera's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Amoebas Kyocera's to increase its market reach. Amoebas Kyocera's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Amoebas Kyocera's 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 Amoebas Kyocera's to hire the very best people irrespective of their geographical location.
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. Amoebas Kyocera's 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 Amoebas Kyocera's 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Amoebas Kyocera's 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. Amoebas Kyocera's 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.
Threats Kyocera Corp.: The Amoeba Management System External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kyocera Corp.: The Amoeba Management System are -
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Amoebas Kyocera's in the Finance & Accounting industry. The Finance & Accounting 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.
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. Amoebas Kyocera's 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.
Consumer confidence and its impact on Amoebas Kyocera's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Amoebas Kyocera's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Amoebas Kyocera's is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Amoebas Kyocera's has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Amoebas Kyocera's needs to keep up with the evolution of technology in the Finance & Accounting 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.
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 Amoebas Kyocera's.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Amoebas Kyocera's 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 Kyocera Corp.: The Amoeba Management System .
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 Amoebas Kyocera's in the Finance & Accounting sector and impact the bottomline 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 Amoebas Kyocera's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Amoebas Kyocera's
– 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 Amoebas Kyocera's.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Amoebas Kyocera's 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 Kyocera Corp.: The Amoeba Management System 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 Kyocera Corp.: The Amoeba Management System 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 Kyocera Corp.: The Amoeba Management System 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 Kyocera Corp.: The Amoeba Management System 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 Kyocera Corp.: The Amoeba Management System 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 Amoebas Kyocera's needs to make to build a sustainable competitive advantage.