AKB48: Going Global? (A), Japanese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of AKB48: Going Global? (A), Japanese Version
After a remarkable success in Japan, the producer of the Japanese female singing group AKB48 evaluates market opportunities overseas for his artistic creation. This case introduces the business model behind the AKB48 concept and allows students to identify what geographic market - China, Indonesia, Taiwan, The Philippines, Thailand or South Korea - is more suitable for AKB48's first move overseas. During the discussion, students also identify the geographic limits of a product and what changes, if any, should be done to adapt it to a chosen market. Given high levels of piracy in the music industry, students are not only able to explore the value creation aspects of AKB48 but also the value capture features of its business model.
Authors :: Juan Alcacer, Kotaro Sasamoto, Tee Chayakul, Mayuka Yamazaki
Topics :: Strategy & Execution
Tags :: Business models, Growth strategy, International business, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "AKB48: Going Global? (A), Japanese Version" written by Juan Alcacer, Kotaro Sasamoto, Tee Chayakul, Mayuka Yamazaki includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Akb48 Geographic facing as an external strategic factors. Some of the topics covered in AKB48: Going Global? (A), Japanese Version case study are - Strategic Management Strategies, Business models, Growth strategy, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the AKB48: Going Global? (A), Japanese Version casestudy better are - – technology disruption, there is backlash against globalization, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices,
challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of AKB48: Going Global? (A), Japanese Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AKB48: Going Global? (A), Japanese Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Akb48 Geographic, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version can be done for the following purposes –
1. Strategic planning using facts provided in AKB48: Going Global? (A), Japanese Version case study
2. Improving business portfolio management of Akb48 Geographic
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 Akb48 Geographic
Strengths AKB48: Going Global? (A), Japanese Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Akb48 Geographic in AKB48: Going Global? (A), Japanese Version Harvard Business Review case study are -
Innovation driven organization
– Akb48 Geographic is one of the most innovative firm in sector. Manager in AKB48: Going Global? (A), Japanese Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Akb48 Geographic 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 suggested by Juan Alcacer, Kotaro Sasamoto, Tee Chayakul, Mayuka Yamazaki can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Strong track record of project management
– Akb48 Geographic 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)
– Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– AKB48: Going Global? (A), Japanese Version firm has clearly differentiated products in the market place. This has enabled Akb48 Geographic to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Akb48 Geographic to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Akb48 Geographic has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Akb48 Geographic 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.
Training and development
– Akb48 Geographic has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AKB48: Going Global? (A), Japanese Version 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.
Highly skilled collaborators
– Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Akb48 Geographic is present in almost all the verticals within the industry. This has provided firm in AKB48: Going Global? (A), Japanese Version 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.
High brand equity
– Akb48 Geographic has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Akb48 Geographic to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Akb48 Geographic 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Akb48 Geographic digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Akb48 Geographic 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.
Weaknesses AKB48: Going Global? (A), Japanese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AKB48: Going Global? (A), Japanese Version are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the AKB48: Going Global? (A), Japanese Version 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 Akb48 Geographic has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study AKB48: Going Global? (A), Japanese Version 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 AKB48: Going Global? (A), Japanese Version can leverage the sales team experience to cultivate customer relationships as Akb48 Geographic is planning to shift buying processes online.
Need for greater diversity
– Akb48 Geographic 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study AKB48: Going Global? (A), Japanese Version, is just above the industry average. Akb48 Geographic needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Interest costs
– Compare to the competition, Akb48 Geographic 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.
High cash cycle compare to competitors
Akb48 Geographic 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Akb48 Geographic is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study AKB48: Going Global? (A), Japanese Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study AKB48: Going Global? (A), Japanese Version, in the dynamic environment Akb48 Geographic has struggled to respond to the nimble upstart competition. Akb48 Geographic 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 Akb48 Geographic is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Akb48 Geographic needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Akb48 Geographic to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study AKB48: Going Global? (A), Japanese Version, it seems that the employees of Akb48 Geographic 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 operating costs
– Compare to the competitors, firm in the HBR case study AKB48: Going Global? (A), Japanese Version 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 Akb48 Geographic 's lucrative customers.
Opportunities AKB48: Going Global? (A), Japanese Version | 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 AKB48: Going Global? (A), Japanese Version are -
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. Akb48 Geographic can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Akb48 Geographic 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.
Learning at scale
– Online learning technologies has now opened space for Akb48 Geographic 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.
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 Akb48 Geographic in the consumer business. Now Akb48 Geographic can target international markets with far fewer capital restrictions requirements than the existing system.
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. Akb48 Geographic 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. Akb48 Geographic 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.
Developing new processes and practices
– Akb48 Geographic can develop new processes and procedures in Strategy & Execution 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.
Better consumer reach
– The expansion of the 5G network will help Akb48 Geographic to increase its market reach. Akb48 Geographic 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.
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. Akb48 Geographic can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Akb48 Geographic 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 Akb48 Geographic to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Akb48 Geographic is facing challenges because of the dominance of functional experts in the organization. AKB48: Going Global? (A), Japanese Version 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.
Buying journey improvements
– Akb48 Geographic can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. AKB48: Going Global? (A), Japanese Version 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
– Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Akb48 Geographic to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AKB48: Going Global? (A), Japanese Version are -
High dependence on third party suppliers
– Akb48 Geographic 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.
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. Akb48 Geographic can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Akb48 Geographic 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Akb48 Geographic 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 AKB48: Going Global? (A), Japanese Version .
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.
Environmental challenges
– Akb48 Geographic 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. Akb48 Geographic can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Akb48 Geographic in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Increasing wage structure of Akb48 Geographic
– 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 Akb48 Geographic.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Akb48 Geographic in the Strategy & Execution industry. The Strategy & Execution 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AKB48: Going Global? (A), Japanese Version, Akb48 Geographic may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Akb48 Geographic with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Akb48 Geographic needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of AKB48: Going Global? (A), Japanese Version 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 AKB48: Going Global? (A), Japanese Version 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 AKB48: Going Global? (A), Japanese Version 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 AKB48: Going Global? (A), Japanese Version 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 AKB48: Going Global? (A), Japanese Version 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 Akb48 Geographic needs to make to build a sustainable competitive advantage.
