China Versus Japan: On the Verge of a Trade War SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of China Versus Japan: On the Verge of a Trade War
In April 2001, Japan curbed imports on three Chinese farm products--fresh shiitake mushrooms, rushes for grass mats, and Chinese onions. In retaliation, in June 2001 China imposed a 100% punitive tariff on imports of three Japanese export products--motor vehicles, mobile phones, and air conditioners. Japan was accused of violating WTO rules. The dispute was subsequently resolved, but given that China was not a WTO member at the time of the dispute, the dispute generated a lot of controversy regarding trade safeguard measures. Introduces students to the WTO dispute settlement mechanism and compares it to the old GATT system, and highlights the role of political interest groups in trade policy. Questions whether Japan had a case for citing their safeguard measures or was it just protecting its powerful shiitake mushroom farmers. In addition, questions whether WTO membership would in turn protect China from trade disputes such as this one.
Swot Analysis of "China Versus Japan: On the Verge of a Trade War" written by Carola Ramon-Berjano, Ka-Fu Wong, Hitomi Iizaka includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wto Dispute facing as an external strategic factors. Some of the topics covered in China Versus Japan: On the Verge of a Trade War case study are - Strategic Management Strategies, Policy and Global Business.
Some of the macro environment factors that can be used to understand the China Versus Japan: On the Verge of a Trade War casestudy better are - – digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, wage bills are increasing, increasing government debt because of Covid-19 spendings, geopolitical disruptions,
increasing household debt because of falling income levels, technology disruption, etc
Introduction to SWOT Analysis of China Versus Japan: On the Verge of a Trade War
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in China Versus Japan: On the Verge of a Trade War case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wto Dispute, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wto Dispute 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 China Versus Japan: On the Verge of a Trade War can be done for the following purposes –
1. Strategic planning using facts provided in China Versus Japan: On the Verge of a Trade War case study
2. Improving business portfolio management of Wto Dispute
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 Wto Dispute
Strengths China Versus Japan: On the Verge of a Trade War | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wto Dispute in China Versus Japan: On the Verge of a Trade War Harvard Business Review case study are -
Organizational Resilience of Wto Dispute
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wto Dispute does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Wto Dispute is one of the leading recruiters in the industry. Managers in the China Versus Japan: On the Verge of a Trade War 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
– Wto Dispute has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wto Dispute to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Wto Dispute is present in almost all the verticals within the industry. This has provided firm in China Versus Japan: On the Verge of a Trade War 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.
Highly skilled collaborators
– Wto Dispute 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 China Versus Japan: On the Verge of a Trade War HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Wto Dispute 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 China Versus Japan: On the Verge of a Trade War - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Wto Dispute is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Global Business industry
– China Versus Japan: On the Verge of a Trade War firm has clearly differentiated products in the market place. This has enabled Wto Dispute to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Wto Dispute to invest into research and development (R&D) and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Wto Dispute digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Wto Dispute 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.
Analytics focus
– Wto Dispute 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 Carola Ramon-Berjano, Ka-Fu Wong, Hitomi Iizaka 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.
Operational resilience
– The operational resilience strategy in the China Versus Japan: On the Verge of a Trade War 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.
High switching costs
– The high switching costs that Wto Dispute 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.
Weaknesses China Versus Japan: On the Verge of a Trade War | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of China Versus Japan: On the Verge of a Trade War are -
Increasing silos among functional specialists
– The organizational structure of Wto Dispute is dominated by functional specialists. It is not different from other players in the Global Business segment. Wto Dispute needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Wto Dispute to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Wto Dispute products
– To increase the profitability and margins on the products, Wto Dispute needs to provide more differentiated products than what it is currently offering in the marketplace.
Skills based hiring
– The stress on hiring functional specialists at Wto Dispute 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.
High operating costs
– Compare to the competitors, firm in the HBR case study China Versus Japan: On the Verge of a Trade War 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 Wto Dispute 's lucrative customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Carola Ramon-Berjano, Ka-Fu Wong, Hitomi Iizaka suggests that, Wto Dispute is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Wto Dispute is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study China Versus Japan: On the Verge of a Trade War can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Wto Dispute 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. Wto Dispute 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.
Capital Spending Reduction
– Even during the low interest decade, Wto Dispute has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Low market penetration in new markets
– Outside its home market of Wto Dispute, firm in the HBR case study China Versus Japan: On the Verge of a Trade War needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study China Versus Japan: On the Verge of a Trade War, is just above the industry average. Wto Dispute 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.
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 Wto Dispute supply chain. Even after few cautionary changes mentioned in the HBR case study - China Versus Japan: On the Verge of a Trade War, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wto Dispute vulnerable to further global disruptions in South East Asia.
Opportunities China Versus Japan: On the Verge of a Trade War | 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 China Versus Japan: On the Verge of a Trade War are -
Leveraging digital technologies
– Wto Dispute 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.
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 Wto Dispute 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.
Building a culture of innovation
– managers at Wto Dispute 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.
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 Wto Dispute in the consumer business. Now Wto Dispute can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wto Dispute is facing challenges because of the dominance of functional experts in the organization. China Versus Japan: On the Verge of a Trade War 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wto Dispute 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, China Versus Japan: On the Verge of a Trade War, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Wto Dispute 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 Wto Dispute to hire the very best people irrespective of their geographical location.
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. Wto Dispute can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Wto Dispute 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.
Learning at scale
– Online learning technologies has now opened space for Wto Dispute 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 Wto Dispute to increase its market reach. Wto Dispute 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Wto Dispute 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. Wto Dispute 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
– Wto Dispute 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.
Threats China Versus Japan: On the Verge of a Trade War External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study China Versus Japan: On the Verge of a Trade War are -
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 Wto Dispute.
Regulatory challenges
– Wto Dispute 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.
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. Wto Dispute needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing wage structure of Wto Dispute
– 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 Wto Dispute.
Environmental challenges
– Wto Dispute 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. Wto Dispute can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Stagnating economy with rate increase
– Wto Dispute 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Wto Dispute business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wto Dispute with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Wto Dispute 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wto Dispute 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 China Versus Japan: On the Verge of a Trade War .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study China Versus Japan: On the Verge of a Trade War, Wto Dispute 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 .
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.
Weighted SWOT Analysis of China Versus Japan: On the Verge of a Trade War 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 China Versus Japan: On the Verge of a Trade War 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 China Versus Japan: On the Verge of a Trade War 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 China Versus Japan: On the Verge of a Trade War 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 China Versus Japan: On the Verge of a Trade War 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 Wto Dispute needs to make to build a sustainable competitive advantage.
