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Mazda Motor Corporation: Surviving by Partnering with the Giants SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Mazda Motor Corporation: Surviving by Partnering with the Giants


For 30 years, Mazda Motor Corporation (Mazda) partnered with Ford Motor Company (Ford), helping Ford in small-car engineering and lean manufacturing in exchange for finance and marketing know-how; however, this alliance was terminated due to the global financial crisis in 2008. In 2015, Mazda entered into another long-term partnership to share technologies and cope with cost pressures-this time with Toyota Motor Corporation (Toyota). According to its 2016 Structural Reform Plan, Mazda aimed to achieve a global sales volume of 1.65 million units, an operating income ratio of at least 7 per cent, an equity ratio of at least 45 per cent, and a dividend payout ratio of at least 20 per cent by 2019. Given the highly competitive domestic and global automotive markets, to what extent could the partnership with Toyota and the Structural Reform Plan allow Mazda to achieve these goals? Would Mazda need to make any changes to its competitive strategies to keep the company driving forward? Wiboon Kittilaksanawong is affiliated with Saitama University. The authors Tae Kyung Lee and Andrew Jiro Poplawski are affiliated with Nagoya University of Commerce & Business.

Authors :: Wiboon Kittilaksanawong, Tae Kyung Lee, Andrew Jiro Poplawski

Topics :: Global Business

Tags :: Financial markets, Innovation, Joint ventures, Managing people, Reorganization, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Mazda Motor Corporation: Surviving by Partnering with the Giants" written by Wiboon Kittilaksanawong, Tae Kyung Lee, Andrew Jiro Poplawski includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mazda Motor facing as an external strategic factors. Some of the topics covered in Mazda Motor Corporation: Surviving by Partnering with the Giants case study are - Strategic Management Strategies, Financial markets, Innovation, Joint ventures, Managing people, Reorganization and Global Business.


Some of the macro environment factors that can be used to understand the Mazda Motor Corporation: Surviving by Partnering with the Giants casestudy better are - – geopolitical disruptions, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, technology disruption, etc



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Introduction to SWOT Analysis of Mazda Motor Corporation: Surviving by Partnering with the Giants


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mazda Motor Corporation: Surviving by Partnering with the Giants case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mazda Motor, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants can be done for the following purposes –
1. Strategic planning using facts provided in Mazda Motor Corporation: Surviving by Partnering with the Giants case study
2. Improving business portfolio management of Mazda Motor
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mazda Motor




Strengths Mazda Motor Corporation: Surviving by Partnering with the Giants | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Mazda Motor in Mazda Motor Corporation: Surviving by Partnering with the Giants Harvard Business Review case study are -

Innovation driven organization

– Mazda Motor is one of the most innovative firm in sector. Manager in Mazda Motor Corporation: Surviving by Partnering with the Giants Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Diverse revenue streams

– Mazda Motor is present in almost all the verticals within the industry. This has provided firm in Mazda Motor Corporation: Surviving by Partnering with the Giants 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.

Effective Research and Development (R&D)

– Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Analytics focus

– Mazda Motor 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 Wiboon Kittilaksanawong, Tae Kyung Lee, Andrew Jiro Poplawski 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 Mazda Motor in the sector have low bargaining power. Mazda Motor Corporation: Surviving by Partnering with the Giants has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mazda Motor to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Mazda Motor 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.

Training and development

– Mazda Motor has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mazda Motor Corporation: Surviving by Partnering with the Giants 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.

Sustainable margins compare to other players in Global Business industry

– Mazda Motor Corporation: Surviving by Partnering with the Giants firm has clearly differentiated products in the market place. This has enabled Mazda Motor to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mazda Motor to invest into research and development (R&D) and innovation.

Ability to recruit top talent

– Mazda Motor is one of the leading recruiters in the industry. Managers in the Mazda Motor Corporation: Surviving by Partnering with the Giants are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Ability to lead change in Global Business field

– Mazda Motor 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 Mazda Motor in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

– Mazda Motor has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mazda Motor 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.

Highly skilled collaborators

– Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.






Weaknesses Mazda Motor Corporation: Surviving by Partnering with the Giants | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Mazda Motor Corporation: Surviving by Partnering with the Giants are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mazda Motor is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mazda Motor Corporation: Surviving by Partnering with the Giants can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Increasing silos among functional specialists

– The organizational structure of Mazda Motor is dominated by functional specialists. It is not different from other players in the Global Business segment. Mazda Motor needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mazda Motor to focus more on services rather than just following the product oriented approach.

High cash cycle compare to competitors

Mazda Motor 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, Mazda Motor 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.

Aligning sales with marketing

– It come across in the case study Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor Corporation: Surviving by Partnering with the Giants can leverage the sales team experience to cultivate customer relationships as Mazda Motor is planning to shift buying processes online.

High operating costs

– Compare to the competitors, firm in the HBR case study Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor 's lucrative customers.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Mazda Motor Corporation: Surviving by Partnering with the Giants, it seems that the employees of Mazda Motor 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, Mazda Motor 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Mazda Motor Corporation: Surviving by Partnering with the Giants, in the dynamic environment Mazda Motor has struggled to respond to the nimble upstart competition. Mazda Motor has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Skills based hiring

– The stress on hiring functional specialists at Mazda Motor 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.

Lack of clear differentiation of Mazda Motor products

– To increase the profitability and margins on the products, Mazda Motor needs to provide more differentiated products than what it is currently offering in the marketplace.




Opportunities Mazda Motor Corporation: Surviving by Partnering with the Giants | 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 Mazda Motor Corporation: Surviving by Partnering with the Giants are -

Creating value in data economy

– The success of analytics program of Mazda Motor has opened avenues for new revenue streams for the organization in the industry. This can help Mazda Motor to build a more holistic ecosystem as suggested in the Mazda Motor Corporation: Surviving by Partnering with the Giants case study. Mazda Motor can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mazda Motor 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.

Using analytics as competitive advantage

– Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mazda Motor to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Mazda Motor can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Mazda Motor in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.

Building a culture of innovation

– managers at Mazda Motor 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 Global Business segment.

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 Mazda Motor 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.

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 Mazda Motor in the consumer business. Now Mazda Motor can target international markets with far fewer capital restrictions requirements than the existing system.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Mazda Motor 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, Mazda Motor Corporation: Surviving by Partnering with the Giants, 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

– Mazda Motor can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mazda Motor Corporation: Surviving by Partnering with the Giants 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.

Manufacturing automation

– Mazda Motor can use the latest technology developments to improve its manufacturing and designing process in Global Business 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 Mazda Motor 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 Mazda Motor to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

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




Threats Mazda Motor Corporation: Surviving by Partnering with the Giants External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Mazda Motor Corporation: Surviving by Partnering with the Giants are -

Technology acceleration in Forth Industrial Revolution

– Mazda Motor has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Mazda Motor needs to keep up with the evolution of technology in the Global Business 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.

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. Mazda Motor 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.

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.

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 Mazda Motor in the Global Business sector and impact the bottomline 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 Mazda Motor in the Global Business industry. The Global Business 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 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. Mazda Motor needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mazda Motor with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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

– Mazda Motor 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

– Mazda Motor 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 Global Business industry regulations.

Shortening product life cycle

– it is one of the major threat that Mazda Motor is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants .

High dependence on third party suppliers

– Mazda Motor 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 Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor Corporation: Surviving by Partnering with the Giants 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 Mazda Motor needs to make to build a sustainable competitive advantage.



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