P&G Japan: The SK-II Globalization Project, Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of P&G Japan: The SK-II Globalization Project, Video
Paolo de Cesare and A.G. Lafley review the strategic and organizational challenges they face in deciding whether to make the prestigious Japanese beauty product, SK-II, a global brand. In a three-part videotaped interview, they discuss the challenges, reveal the decision, and outline key lessons for Procter & Gamble.
Swot Analysis of "P&G Japan: The SK-II Globalization Project, Video" written by Christopher A. Bartlett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sk Ii facing as an external strategic factors. Some of the topics covered in P&G Japan: The SK-II Globalization Project, Video case study are - Strategic Management Strategies, Globalization, Marketing, Organizational structure, Product development, Strategy execution and Global Business.
Some of the macro environment factors that can be used to understand the P&G Japan: The SK-II Globalization Project, Video casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, wage bills are increasing, there is backlash against globalization, talent flight as more people leaving formal jobs,
increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of P&G Japan: The SK-II Globalization Project, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in P&G Japan: The SK-II Globalization Project, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sk Ii, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sk Ii 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 P&G Japan: The SK-II Globalization Project, Video can be done for the following purposes –
1. Strategic planning using facts provided in P&G Japan: The SK-II Globalization Project, Video case study
2. Improving business portfolio management of Sk Ii
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 Sk Ii
Strengths P&G Japan: The SK-II Globalization Project, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sk Ii in P&G Japan: The SK-II Globalization Project, Video Harvard Business Review case study are -
High brand equity
– Sk Ii has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sk Ii to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Sk Ii is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Sk Ii has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in P&G Japan: The SK-II Globalization Project, Video 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
– Sk Ii 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 P&G Japan: The SK-II Globalization Project, Video HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Sk Ii is present in almost all the verticals within the industry. This has provided firm in P&G Japan: The SK-II Globalization Project, Video 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 switching costs
– The high switching costs that Sk Ii 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.
Low bargaining power of suppliers
– Suppliers of Sk Ii in the sector have low bargaining power. P&G Japan: The SK-II Globalization Project, Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Sk Ii to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Sk Ii is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Sk Ii is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in P&G Japan: The SK-II Globalization Project, Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Sk Ii is one of the leading recruiters in the industry. Managers in the P&G Japan: The SK-II Globalization Project, Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Sk Ii are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Global Business field
– Sk Ii 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 Sk Ii in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Sk Ii is one of the most innovative firm in sector. Manager in P&G Japan: The SK-II Globalization Project, Video Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses P&G Japan: The SK-II Globalization Project, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of P&G Japan: The SK-II Globalization Project, Video are -
High operating costs
– Compare to the competitors, firm in the HBR case study P&G Japan: The SK-II Globalization Project, Video 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 Sk Ii 's lucrative customers.
Slow to strategic competitive environment developments
– As P&G Japan: The SK-II Globalization Project, Video HBR case study mentions - Sk Ii 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.
No frontier risks strategy
– After analyzing the HBR case study P&G Japan: The SK-II Globalization Project, Video, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study P&G Japan: The SK-II Globalization Project, Video, in the dynamic environment Sk Ii has struggled to respond to the nimble upstart competition. Sk Ii has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Sk Ii supply chain. Even after few cautionary changes mentioned in the HBR case study - P&G Japan: The SK-II Globalization Project, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sk Ii vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Sk Ii 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.
Increasing silos among functional specialists
– The organizational structure of Sk Ii is dominated by functional specialists. It is not different from other players in the Global Business segment. Sk Ii needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Sk Ii to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study P&G Japan: The SK-II Globalization Project, Video 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 P&G Japan: The SK-II Globalization Project, Video can leverage the sales team experience to cultivate customer relationships as Sk Ii is planning to shift buying processes online.
Lack of clear differentiation of Sk Ii products
– To increase the profitability and margins on the products, Sk Ii needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Sk Ii 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Sk Ii is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study P&G Japan: The SK-II Globalization Project, Video can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities P&G Japan: The SK-II Globalization Project, Video | 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 P&G Japan: The SK-II Globalization Project, Video are -
Better consumer reach
– The expansion of the 5G network will help Sk Ii to increase its market reach. Sk Ii will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Sk Ii 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 Sk Ii to hire the very best people irrespective of their geographical location.
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 Sk Ii in the consumer business. Now Sk Ii can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Sk Ii 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 Sk Ii 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sk Ii can use these opportunities to build new business models that can help the communities that Sk Ii operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Sk Ii can develop new processes and procedures in Global Business 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.
Using analytics as competitive advantage
– Sk Ii 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 P&G Japan: The SK-II Globalization Project, Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Sk Ii to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Sk Ii 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.
Creating value in data economy
– The success of analytics program of Sk Ii has opened avenues for new revenue streams for the organization in the industry. This can help Sk Ii to build a more holistic ecosystem as suggested in the P&G Japan: The SK-II Globalization Project, Video case study. Sk Ii can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Sk Ii 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.
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. Sk Ii can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Sk Ii 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.
Threats P&G Japan: The SK-II Globalization Project, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study P&G Japan: The SK-II Globalization Project, Video are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sk Ii 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.
Stagnating economy with rate increase
– Sk Ii 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sk Ii 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 P&G Japan: The SK-II Globalization Project, Video .
Technology acceleration in Forth Industrial Revolution
– Sk Ii has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Sk Ii 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Sk Ii with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Sk Ii.
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.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sk Ii can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Sk Ii 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. Sk Ii can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Sk Ii business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Sk Ii is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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. Sk Ii 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study P&G Japan: The SK-II Globalization Project, Video, Sk Ii may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Weighted SWOT Analysis of P&G Japan: The SK-II Globalization Project, Video 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 P&G Japan: The SK-II Globalization Project, Video 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 P&G Japan: The SK-II Globalization Project, Video 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 P&G Japan: The SK-II Globalization Project, Video 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 P&G Japan: The SK-II Globalization Project, Video 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 Sk Ii needs to make to build a sustainable competitive advantage.
