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Takahiko Naraki, The Three Million Yen Entrepreneur SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Takahiko Naraki, The Three Million Yen Entrepreneur


Takahiko Naraki is a young entrepreneur in Japan who is trying to make his Internet-based business model work in the challenging Tokyo business world and must make a key decision: whether and how to expand his business. Discusses the work-life balance of entrepreneurs in general and this one Japanese entrepreneur in particular. Also introduces aspects of the Japanese entrepreneurial environment, including the importance of networking, the business laws regulating entrepreneurial activity, social perceptions of entrepreneurship, and the capital market for small companies in Japan.

Authors :: Eric A. Morse, Jason Inch

Topics :: Innovation & Entrepreneurship

Tags :: Growth strategy, Marketing, Networking, Work-life balance, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Takahiko Naraki, The Three Million Yen Entrepreneur" written by Eric A. Morse, Jason Inch includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Naraki Takahiko facing as an external strategic factors. Some of the topics covered in Takahiko Naraki, The Three Million Yen Entrepreneur case study are - Strategic Management Strategies, Growth strategy, Marketing, Networking, Work-life balance and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the Takahiko Naraki, The Three Million Yen Entrepreneur casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, geopolitical disruptions, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, etc



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Introduction to SWOT Analysis of Takahiko Naraki, The Three Million Yen Entrepreneur


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




Strengths Takahiko Naraki, The Three Million Yen Entrepreneur | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Naraki Takahiko in Takahiko Naraki, The Three Million Yen Entrepreneur Harvard Business Review case study are -

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Takahiko Naraki, The Three Million Yen Entrepreneur firm has clearly differentiated products in the market place. This has enabled Naraki Takahiko to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Naraki Takahiko to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Naraki Takahiko 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 Takahiko Naraki, The Three Million Yen Entrepreneur - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Cross disciplinary teams

– Horizontal connected teams at the Naraki Takahiko 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.

Low bargaining power of suppliers

– Suppliers of Naraki Takahiko in the sector have low bargaining power. Takahiko Naraki, The Three Million Yen Entrepreneur has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Naraki Takahiko to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Naraki Takahiko 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.

Analytics focus

– Naraki Takahiko 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 Eric A. Morse, Jason Inch 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.

Highly skilled collaborators

– Naraki Takahiko 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 Takahiko Naraki, The Three Million Yen Entrepreneur HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Successful track record of launching new products

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

High brand equity

– Naraki Takahiko has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Naraki Takahiko to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to lead change in Innovation & Entrepreneurship field

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

Operational resilience

– The operational resilience strategy in the Takahiko Naraki, The Three Million Yen Entrepreneur 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.

Training and development

– Naraki Takahiko has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Takahiko Naraki, The Three Million Yen Entrepreneur 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.






Weaknesses Takahiko Naraki, The Three Million Yen Entrepreneur | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Takahiko Naraki, The Three Million Yen Entrepreneur are -

Increasing silos among functional specialists

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

Interest costs

– Compare to the competition, Naraki Takahiko has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Takahiko Naraki, The Three Million Yen Entrepreneur, is just above the industry average. Naraki Takahiko 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.

Slow to strategic competitive environment developments

– As Takahiko Naraki, The Three Million Yen Entrepreneur HBR case study mentions - Naraki Takahiko 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Takahiko Naraki, The Three Million Yen Entrepreneur, in the dynamic environment Naraki Takahiko has struggled to respond to the nimble upstart competition. Naraki Takahiko has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Takahiko Naraki, The Three Million Yen Entrepreneur, it seems that the employees of Naraki Takahiko 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.

Low market penetration in new markets

– Outside its home market of Naraki Takahiko, firm in the HBR case study Takahiko Naraki, The Three Million Yen Entrepreneur needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Need for greater diversity

– Naraki Takahiko has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

No frontier risks strategy

– After analyzing the HBR case study Takahiko Naraki, The Three Million Yen Entrepreneur, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Naraki Takahiko is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Takahiko Naraki, The Three Million Yen Entrepreneur 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, Naraki Takahiko 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. Naraki Takahiko 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.




Opportunities Takahiko Naraki, The Three Million Yen Entrepreneur | 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 Takahiko Naraki, The Three Million Yen Entrepreneur are -

Learning at scale

– Online learning technologies has now opened space for Naraki Takahiko 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.

Developing new processes and practices

– Naraki Takahiko can develop new processes and procedures in Innovation & Entrepreneurship 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Naraki Takahiko 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, Takahiko Naraki, The Three Million Yen Entrepreneur, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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 Naraki Takahiko 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, Naraki Takahiko can use these opportunities to build new business models that can help the communities that Naraki Takahiko operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Using analytics as competitive advantage

– Naraki Takahiko 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 Takahiko Naraki, The Three Million Yen Entrepreneur - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Naraki Takahiko to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Buying journey improvements

– Naraki Takahiko can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Takahiko Naraki, The Three Million Yen Entrepreneur 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.

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

Creating value in data economy

– The success of analytics program of Naraki Takahiko has opened avenues for new revenue streams for the organization in the industry. This can help Naraki Takahiko to build a more holistic ecosystem as suggested in the Takahiko Naraki, The Three Million Yen Entrepreneur case study. Naraki Takahiko can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Naraki Takahiko in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Low interest rates

– Even though inflation is raising its head in most developed economies, Naraki Takahiko 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.

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. Naraki Takahiko can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Better consumer reach

– The expansion of the 5G network will help Naraki Takahiko to increase its market reach. Naraki Takahiko 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.




Threats Takahiko Naraki, The Three Million Yen Entrepreneur External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Takahiko Naraki, The Three Million Yen Entrepreneur are -

Regulatory challenges

– Naraki Takahiko 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 Innovation & Entrepreneurship industry regulations.

High dependence on third party suppliers

– Naraki Takahiko 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.

Technology acceleration in Forth Industrial Revolution

– Naraki Takahiko has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Naraki Takahiko needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.

Consumer confidence and its impact on Naraki Takahiko 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.

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 Naraki Takahiko business can come under increasing regulations regarding data privacy, data security, etc.

Increasing wage structure of Naraki Takahiko

– 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 Naraki Takahiko.

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. Naraki Takahiko needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

Stagnating economy with rate increase

– Naraki Takahiko 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Naraki Takahiko in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Naraki Takahiko 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 Takahiko Naraki, The Three Million Yen Entrepreneur .

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 Naraki Takahiko.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Takahiko Naraki, The Three Million Yen Entrepreneur, Naraki Takahiko may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .




Weighted SWOT Analysis of Takahiko Naraki, The Three Million Yen Entrepreneur 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 Takahiko Naraki, The Three Million Yen Entrepreneur 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 Takahiko Naraki, The Three Million Yen Entrepreneur 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 Takahiko Naraki, The Three Million Yen Entrepreneur 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 Takahiko Naraki, The Three Million Yen Entrepreneur 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 Naraki Takahiko needs to make to build a sustainable competitive advantage.



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