Recruit Japan: Harnessing Data to Create Value (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Recruit Japan: Harnessing Data to Create Value (Abridged)
Recruit Holdings, Japan's largest staffing firm and a leading marketing media company started out in the early 1960s as an advertising company publishing magazines for jobseekers. It scaled up over the following decades to add business verticals such as real estate, bridal, travel, beauty salons and restaurants. Spurred by the internet revolution in the early 2000s, Recruit launched job boards and websites for its diverse media businesses while also moving content online by digitizing many of its popular magazines. In the early 2010s, it transitioned into becoming a service provider with the launch of a number of web-based platforms that allowed SMEs to digitize several key activities, such as point-of-sale registers, reservations and payments. By 2015 Recruit's digital platforms had gained significant popularity and the company was generating enormous amounts of online data on types of transactions, end-user behaviors and SME business characteristics. It also held significant deep offline data that resided within the sales team. However, the platforms and the data was specific to individual businesses. Recruit began to push for a unified backbone platform that would cut across all businesses with vertically stacked integrated solutions. It also established an artificial intelligence (AI) research laboratory in Silicon Valley. The mandate was to apply the latest technologies in data analytics, machine learning and AI to achieve breakthrough innovation. At the same time, Recruit harbored global aspirations and embarked on international expansion, mainly through acquisitions. Its goal was to become the world's largest staffing firm by 2020 and the largest media company by 2030. Could Recruit replicate its business model successfully overseas? Could it leverage its people and technological platforms to transform itself into a truly global internet corporation? Could it cannibalize its existing businesses through data-driven innovations to leapfrog into the future?
Authors :: Howard H. Yu, Thomas W. Malnight, Ivy Buche
Swot Analysis of "Recruit Japan: Harnessing Data to Create Value (Abridged)" written by Howard H. Yu, Thomas W. Malnight, Ivy Buche includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Recruit Platforms facing as an external strategic factors. Some of the topics covered in Recruit Japan: Harnessing Data to Create Value (Abridged) case study are - Strategic Management Strategies, Innovation, IT, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the Recruit Japan: Harnessing Data to Create Value (Abridged) casestudy better are - – increasing commodity prices, increasing energy prices, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, there is backlash against globalization,
supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Recruit Japan: Harnessing Data to Create Value (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Recruit Japan: Harnessing Data to Create Value (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Recruit Platforms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Recruit Platforms 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 Recruit Japan: Harnessing Data to Create Value (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Recruit Japan: Harnessing Data to Create Value (Abridged) case study
2. Improving business portfolio management of Recruit Platforms
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Recruit Platforms
Strengths Recruit Japan: Harnessing Data to Create Value (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Recruit Platforms in Recruit Japan: Harnessing Data to Create Value (Abridged) Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Recruit Japan: Harnessing Data to Create Value (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.
Innovation driven organization
– Recruit Platforms is one of the most innovative firm in sector. Manager in Recruit Japan: Harnessing Data to Create Value (Abridged) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Technology & Operations industry
– Recruit Japan: Harnessing Data to Create Value (Abridged) firm has clearly differentiated products in the market place. This has enabled Recruit Platforms to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Recruit Platforms to invest into research and development (R&D) and innovation.
Ability to lead change in Technology & Operations field
– Recruit Platforms 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 Recruit Platforms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Recruit Platforms digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Recruit Platforms 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.
Effective Research and Development (R&D)
– Recruit Platforms 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 Recruit Japan: Harnessing Data to Create Value (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Recruit Platforms
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Recruit Platforms does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Recruit Platforms is one of the leading recruiters in the industry. Managers in the Recruit Japan: Harnessing Data to Create Value (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.
Strong track record of project management
– Recruit Platforms is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Recruit Platforms 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 Recruit Japan: Harnessing Data to Create Value (Abridged) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Recruit Platforms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Recruit Platforms 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.
Cross disciplinary teams
– Horizontal connected teams at the Recruit Platforms 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.
Weaknesses Recruit Japan: Harnessing Data to Create Value (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Recruit Japan: Harnessing Data to Create Value (Abridged) are -
Need for greater diversity
– Recruit Platforms 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.
Products dominated business model
– Even though Recruit Platforms has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Recruit Japan: Harnessing Data to Create Value (Abridged) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Recruit Platforms 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Recruit Platforms 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.
No frontier risks strategy
– After analyzing the HBR case study Recruit Japan: Harnessing Data to Create Value (Abridged), it seems that company is thinking about the frontier risks that can impact Technology & Operations 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 operating costs
– Compare to the competitors, firm in the HBR case study Recruit Japan: Harnessing Data to Create Value (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 Recruit Platforms 's lucrative customers.
Slow to strategic competitive environment developments
– As Recruit Japan: Harnessing Data to Create Value (Abridged) HBR case study mentions - Recruit Platforms 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 bargaining power of channel partners
– Because of the regulatory requirements, Howard H. Yu, Thomas W. Malnight, Ivy Buche suggests that, Recruit Platforms 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.
Capital Spending Reduction
– Even during the low interest decade, Recruit Platforms 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.
Low market penetration in new markets
– Outside its home market of Recruit Platforms, firm in the HBR case study Recruit Japan: Harnessing Data to Create Value (Abridged) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Recruit Platforms supply chain. Even after few cautionary changes mentioned in the HBR case study - Recruit Japan: Harnessing Data to Create Value (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Recruit Platforms vulnerable to further global disruptions in South East Asia.
Opportunities Recruit Japan: Harnessing Data to Create Value (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 Recruit Japan: Harnessing Data to Create Value (Abridged) are -
Learning at scale
– Online learning technologies has now opened space for Recruit Platforms 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Recruit Platforms 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, Recruit Japan: Harnessing Data to Create Value (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.
Creating value in data economy
– The success of analytics program of Recruit Platforms has opened avenues for new revenue streams for the organization in the industry. This can help Recruit Platforms to build a more holistic ecosystem as suggested in the Recruit Japan: Harnessing Data to Create Value (Abridged) case study. Recruit Platforms 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 Recruit Platforms to increase its market reach. Recruit Platforms 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.
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 Recruit Platforms 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.
Using analytics as competitive advantage
– Recruit Platforms 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 Recruit Japan: Harnessing Data to Create Value (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Recruit Platforms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Recruit Platforms can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Loyalty marketing
– Recruit Platforms 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.
Leveraging digital technologies
– Recruit Platforms 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.
Developing new processes and practices
– Recruit Platforms can develop new processes and procedures in Technology & Operations 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Recruit Platforms can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Recruit Platforms can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Recruit Japan: Harnessing Data to Create Value (Abridged) 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.
Building a culture of innovation
– managers at Recruit Platforms 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 Technology & Operations segment.
Threats Recruit Japan: Harnessing Data to Create Value (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Recruit Japan: Harnessing Data to Create Value (Abridged) are -
Stagnating economy with rate increase
– Recruit Platforms 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 field.
Regulatory challenges
– Recruit Platforms 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 Technology & Operations industry regulations.
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.
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 Recruit Platforms business can come under increasing regulations regarding data privacy, data security, etc.
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. Recruit Platforms 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.
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 Recruit Platforms.
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. Recruit Platforms needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Recruit Platforms 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. Recruit Platforms can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Shortening product life cycle
– it is one of the major threat that Recruit Platforms is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Recruit Japan: Harnessing Data to Create Value (Abridged), Recruit Platforms may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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.
Increasing wage structure of Recruit Platforms
– 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 Recruit Platforms.
High dependence on third party suppliers
– Recruit Platforms 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 Recruit Japan: Harnessing Data to Create Value (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 Recruit Japan: Harnessing Data to Create Value (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 Recruit Japan: Harnessing Data to Create Value (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 Recruit Japan: Harnessing Data to Create Value (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 Recruit Japan: Harnessing Data to Create Value (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 Recruit Platforms needs to make to build a sustainable competitive advantage.