Language and Globalization: "Englishnization" at Rakuten (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Language and Globalization: "Englishnization" at Rakuten (A)
Hiroshi Mikitani, the CEO of Rakuten, (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization - a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. Mikitani's goal is not only to ensure the success of the organization, but also to break down linguistic and cultural boundaries in Japanese society. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization, the continued global rise of his organization, and even the future of Japan.
Swot Analysis of "Language and Globalization: "Englishnization" at Rakuten (A)" written by Tsedal Neeley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Englishnization Mikitani facing as an external strategic factors. Some of the topics covered in Language and Globalization: "Englishnization" at Rakuten (A) case study are - Strategic Management Strategies, Communication, Disruptive innovation, Globalization, Internet, Leadership, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Language and Globalization: "Englishnization" at Rakuten (A) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, central banks are concerned over increasing inflation,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Language and Globalization: "Englishnization" at Rakuten (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Language and Globalization: "Englishnization" at Rakuten (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Englishnization Mikitani, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Englishnization Mikitani 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 Language and Globalization: "Englishnization" at Rakuten (A) can be done for the following purposes –
1. Strategic planning using facts provided in Language and Globalization: "Englishnization" at Rakuten (A) case study
2. Improving business portfolio management of Englishnization Mikitani
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Englishnization Mikitani
Strengths Language and Globalization: "Englishnization" at Rakuten (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Englishnization Mikitani in Language and Globalization: "Englishnization" at Rakuten (A) Harvard Business Review case study are -
Strong track record of project management
– Englishnization Mikitani is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Englishnization Mikitani
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Englishnization Mikitani does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Englishnization Mikitani has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Englishnization Mikitani 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.
Diverse revenue streams
– Englishnization Mikitani is present in almost all the verticals within the industry. This has provided firm in Language and Globalization: "Englishnization" at Rakuten (A) 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.
Ability to lead change in Leadership & Managing People field
– Englishnization Mikitani 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 Englishnization Mikitani in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Englishnization Mikitani digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Englishnization Mikitani 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.
Operational resilience
– The operational resilience strategy in the Language and Globalization: "Englishnization" at Rakuten (A) 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
– Englishnization Mikitani has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Language and Globalization: "Englishnization" at Rakuten (A) 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.
High brand equity
– Englishnization Mikitani has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Englishnization Mikitani to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Englishnization Mikitani in the sector have low bargaining power. Language and Globalization: "Englishnization" at Rakuten (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Englishnization Mikitani to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Leadership & Managing People industry
– Language and Globalization: "Englishnization" at Rakuten (A) firm has clearly differentiated products in the market place. This has enabled Englishnization Mikitani to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Englishnization Mikitani to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Englishnization Mikitani is one of the leading recruiters in the industry. Managers in the Language and Globalization: "Englishnization" at Rakuten (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Language and Globalization: "Englishnization" at Rakuten (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Language and Globalization: "Englishnization" at Rakuten (A) are -
Increasing silos among functional specialists
– The organizational structure of Englishnization Mikitani is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Englishnization Mikitani needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Englishnization Mikitani to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Language and Globalization: "Englishnization" at Rakuten (A), in the dynamic environment Englishnization Mikitani has struggled to respond to the nimble upstart competition. Englishnization Mikitani has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Language and Globalization: "Englishnization" at Rakuten (A), it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Capital Spending Reduction
– Even during the low interest decade, Englishnization Mikitani 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Language and Globalization: "Englishnization" at Rakuten (A) 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 Englishnization Mikitani 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Englishnization Mikitani 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.
Skills based hiring
– The stress on hiring functional specialists at Englishnization Mikitani 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Language and Globalization: "Englishnization" at Rakuten (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Englishnization Mikitani has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Language and Globalization: "Englishnization" at Rakuten (A), it seems that the employees of Englishnization Mikitani 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.
Need for greater diversity
– Englishnization Mikitani 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.
Interest costs
– Compare to the competition, Englishnization Mikitani 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.
Opportunities Language and Globalization: "Englishnization" at Rakuten (A) | 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 Language and Globalization: "Englishnization" at Rakuten (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Englishnization Mikitani 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, Language and Globalization: "Englishnization" at Rakuten (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Englishnization Mikitani 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. Englishnization Mikitani 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.
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 Englishnization Mikitani 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 Englishnization Mikitani 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 Leadership & Managing People segment.
Buying journey improvements
– Englishnization Mikitani can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Language and Globalization: "Englishnization" at Rakuten (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Englishnization Mikitani can use these opportunities to build new business models that can help the communities that Englishnization Mikitani operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Englishnization Mikitani 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 Englishnization Mikitani to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Englishnization Mikitani 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 Language and Globalization: "Englishnization" at Rakuten (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Englishnization Mikitani to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Englishnization Mikitani can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Englishnization Mikitani to increase its market reach. Englishnization Mikitani 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Englishnization Mikitani 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.
Learning at scale
– Online learning technologies has now opened space for Englishnization Mikitani 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.
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 Englishnization Mikitani in the consumer business. Now Englishnization Mikitani can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Language and Globalization: "Englishnization" at Rakuten (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Language and Globalization: "Englishnization" at Rakuten (A) are -
Environmental challenges
– Englishnization Mikitani 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. Englishnization Mikitani can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Englishnization Mikitani
– 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 Englishnization Mikitani.
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 Englishnization Mikitani.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Englishnization Mikitani in the Leadership & Managing People industry. The Leadership & Managing People 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.
Technology acceleration in Forth Industrial Revolution
– Englishnization Mikitani has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Englishnization Mikitani needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Englishnization Mikitani can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Englishnization Mikitani can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology 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.
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. Englishnization Mikitani 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Englishnization Mikitani with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Englishnization Mikitani 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 Leadership & Managing People industry regulations.
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 Englishnization Mikitani business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Language and Globalization: "Englishnization" at Rakuten (A) 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 Language and Globalization: "Englishnization" at Rakuten (A) 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 Language and Globalization: "Englishnization" at Rakuten (A) 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 Language and Globalization: "Englishnization" at Rakuten (A) 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 Language and Globalization: "Englishnization" at Rakuten (A) 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 Englishnization Mikitani needs to make to build a sustainable competitive advantage.
