AKB48: Going Global? (B), Japanese Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of AKB48: Going Global? (B), 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, 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? (B), Japanese Version" written by Juan Alcacer, 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? (B), 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? (B), Japanese Version casestudy better are - – increasing transportation and logistics costs, there is backlash against globalization, geopolitical disruptions, increasing energy prices, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, etc

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Introduction to SWOT Analysis of AKB48: Going Global? (B), 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? (B), 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of AKB48: Going Global? (B), Japanese Version can be done for the following purposes –
1. Strategic planning using facts provided in AKB48: Going Global? (B), 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

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Strengths AKB48: Going Global? (B), 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? (B), Japanese Version Harvard Business Review case study are -

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.

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? (B), 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.

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? (B), 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.

Cross disciplinary teams

– Horizontal connected teams at the Akb48 Geographic 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.

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.

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, 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.

Low bargaining power of suppliers

– Suppliers of Akb48 Geographic in the sector have low bargaining power. AKB48: Going Global? (B), Japanese Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Akb48 Geographic to manage not only supply disruptions but also source products at highly competitive prices.

Operational resilience

– The operational resilience strategy in the AKB48: Going Global? (B), Japanese Version 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 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.

Ability to recruit top talent

– Akb48 Geographic is one of the leading recruiters in the industry. Managers in the AKB48: Going Global? (B), Japanese Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

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.

Superior customer experience

– The customer experience strategy of Akb48 Geographic in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

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Weaknesses AKB48: Going Global? (B), Japanese Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of AKB48: Going Global? (B), Japanese Version are -

Skills based hiring

– The stress on hiring functional specialists at Akb48 Geographic 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.

Workers concerns about automation

– As automation is fast increasing in the segment, Akb48 Geographic 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.

Slow decision making process

– As mentioned earlier in the report, Akb48 Geographic has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Akb48 Geographic even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the AKB48: Going Global? (B), 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.

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? (B), 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.

High operating costs

– Compare to the competitors, firm in the HBR case study AKB48: Going Global? (B), 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.

Slow to strategic competitive environment developments

– As AKB48: Going Global? (B), Japanese Version HBR case study mentions - Akb48 Geographic 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 Akb48 Geographic supply chain. Even after few cautionary changes mentioned in the HBR case study - AKB48: Going Global? (B), Japanese Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Akb48 Geographic vulnerable to further global disruptions in South East Asia.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study AKB48: Going Global? (B), 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.

Capital Spending Reduction

– Even during the low interest decade, Akb48 Geographic 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.

Products dominated business model

– Even though Akb48 Geographic 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 - AKB48: Going Global? (B), Japanese Version should strive to include more intangible value offerings along with its core products and services.

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Opportunities AKB48: Going Global? (B), 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? (B), Japanese Version are -

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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Akb48 Geographic can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Low interest rates

– Even though inflation is raising its head in most developed economies, Akb48 Geographic 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.

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.

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? (B), 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.

Creating value in data economy

– The success of analytics program of Akb48 Geographic has opened avenues for new revenue streams for the organization in the industry. This can help Akb48 Geographic to build a more holistic ecosystem as suggested in the AKB48: Going Global? (B), Japanese Version case study. Akb48 Geographic can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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? (B), 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.

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.

Manufacturing automation

– Akb48 Geographic 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 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.

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.

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.

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Threats AKB48: Going Global? (B), 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? (B), Japanese Version are -

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.

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.

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.

Stagnating economy with rate increase

– Akb48 Geographic 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.

Technology acceleration in Forth Industrial Revolution

– Akb48 Geographic has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Akb48 Geographic 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.

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.

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.

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.

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.

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 Akb48 Geographic 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. Akb48 Geographic 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 Akb48 Geographic.

Shortening product life cycle

– it is one of the major threat that Akb48 Geographic is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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Weighted SWOT Analysis of AKB48: Going Global? (B), 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? (B), 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? (B), 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? (B), 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? (B), 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.

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