Based on various researches at Oak Spring University , Asahi Songwon Colors Lucky is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, there is backlash against globalization, cloud computing is disrupting traditional business models,
geopolitical disruptions, wage bills are increasing, etc
Introduction to SWOT Analysis of Asahi Songwon Colors Lucky
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Asahi Songwon Colors Lucky can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Asahi Songwon Colors Lucky, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky can be done for the following purposes –
1. Strategic planning of Asahi Songwon Colors Lucky
2. Improving business portfolio management of Asahi Songwon Colors Lucky
3. Assessing feasibility of the new initiative in India
4. Making a Chemical Manufacturing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Asahi Songwon Colors Lucky
Strengths of Asahi Songwon Colors Lucky | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Asahi Songwon Colors Lucky are -
Ability to recruit top talent
– Asahi Songwon Colors Lucky is one of the leading players in the Chemical Manufacturing industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Asahi Songwon Colors Lucky has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Asahi Songwon Colors Lucky 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.
Organizational Resilience of Asahi Songwon Colors Lucky
– The covid-19 pandemic has put organizational resilience at the centre of everthing Asahi Songwon Colors Lucky does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Asahi Songwon Colors Lucky 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.
Superior customer experience
– The customer experience strategy of Asahi Songwon Colors Lucky in Chemical Manufacturing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Asahi Songwon Colors Lucky in the Basic Materials sector have low bargaining power. Asahi Songwon Colors Lucky has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Asahi Songwon Colors Lucky to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Asahi Songwon Colors Lucky 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.
Operational resilience
– The operational resilience strategy of Asahi Songwon Colors Lucky comprises – understanding the underlying the factors in the Chemical Manufacturing 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.
Innovation driven organization
– Asahi Songwon Colors Lucky is one of the most innovative firm in Chemical Manufacturing sector.
Training and development
– Asahi Songwon Colors Lucky has one of the best training and development program in Basic Materials industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Diverse revenue streams
– Asahi Songwon Colors Lucky is present in almost all the verticals within the Chemical Manufacturing industry. This has provided Asahi Songwon Colors Lucky a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Effective Research and Development (R&D)
– Asahi Songwon Colors Lucky has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Asahi Songwon Colors Lucky staying ahead in the Chemical Manufacturing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses of Asahi Songwon Colors Lucky | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Asahi Songwon Colors Lucky are -
Slow decision making process
– As mentioned earlier in the report, Asahi Songwon Colors Lucky has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Chemical Manufacturing industry over the last five years. Asahi Songwon Colors Lucky 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.
Ability to respond to the competition
– As the decision making is very deliberative at Asahi Songwon Colors Lucky, in the dynamic environment of Chemical Manufacturing industry it has struggled to respond to the nimble upstart competition. Asahi Songwon Colors Lucky has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– From the outside it seems that Asahi Songwon Colors Lucky needs to have more collaboration between its sales team and marketing team. Sales professionals in the Chemical Manufacturing industry have deep experience in developing customer relationships. Marketing department at Asahi Songwon Colors Lucky can leverage the sales team experience to cultivate customer relationships as Asahi Songwon Colors Lucky is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Asahi Songwon Colors Lucky is dominated by functional specialists. It is not different from other players in the Chemical Manufacturing industry, but Asahi Songwon Colors Lucky needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Asahi Songwon Colors Lucky to focus more on services in the Chemical Manufacturing industry rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of India, Asahi Songwon Colors Lucky needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on Asahi Songwon Colors Lucky ‘s star products
– The top 2 products and services of Asahi Songwon Colors Lucky still accounts for major business revenue. This dependence on star products in Chemical Manufacturing industry has resulted into insufficient focus on developing new products, even though Asahi Songwon Colors Lucky has relatively successful track record of launching new products.
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 Asahi Songwon Colors Lucky supply chain. Even after few cautionary changes, Asahi Songwon Colors Lucky is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Asahi Songwon Colors Lucky vulnerable to further global disruptions in South East Asia.
Employees’ less understanding of Asahi Songwon Colors Lucky strategy
– From the outside it seems that the employees of Asahi Songwon Colors Lucky 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Asahi Songwon Colors Lucky is slow explore the new channels of communication. These new channels of communication can help Asahi Songwon Colors Lucky to provide better information regarding Chemical Manufacturing products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee of Asahi Songwon Colors Lucky is just above the Chemical Manufacturing industry average. It 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.
Lack of clear differentiation of Asahi Songwon Colors Lucky products
– To increase the profitability and margins on the products, Asahi Songwon Colors Lucky needs to provide more differentiated products than what it is currently offering in the marketplace.
Asahi Songwon Colors Lucky Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Asahi Songwon Colors Lucky are -
Creating value in data economy
– The success of analytics program of Asahi Songwon Colors Lucky has opened avenues for new revenue streams for the organization in Chemical Manufacturing industry. This can help Asahi Songwon Colors Lucky to build a more holistic ecosystem for Asahi Songwon Colors Lucky products in the Chemical Manufacturing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions in Chemical Manufacturing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Asahi Songwon Colors Lucky in the Chemical Manufacturing industry. Now Asahi Songwon Colors Lucky can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Asahi Songwon Colors Lucky can develop new processes and procedures in Chemical Manufacturing 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Asahi Songwon Colors Lucky can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Using analytics as competitive advantage
– Asahi Songwon Colors Lucky has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Chemical Manufacturing sector. This continuous investment in analytics has enabled Asahi Songwon Colors Lucky to build a competitive advantage using analytics. The analytics driven competitive advantage can help Asahi Songwon Colors Lucky to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Asahi Songwon Colors Lucky is facing challenges because of the dominance of functional experts in the organization. Asahi Songwon Colors Lucky can utilize new technology in the field of Chemical Manufacturing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Asahi Songwon Colors Lucky to increase its market reach. Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Asahi Songwon Colors Lucky 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 Chemical Manufacturing industry.
Manufacturing automation
– Asahi Songwon Colors Lucky can use the latest technology developments to improve its manufacturing and designing process in Chemical Manufacturing sector. 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Asahi Songwon Colors Lucky can use these opportunities to build new business models that can help the communities that Asahi Songwon Colors Lucky operates in. Secondly it can use opportunities from government spending in Chemical Manufacturing sector.
Learning at scale
– Online learning technologies has now opened space for Asahi Songwon Colors Lucky 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.
Loyalty marketing
– Asahi Songwon Colors Lucky 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.
Threats Asahi Songwon Colors Lucky External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Asahi Songwon Colors Lucky are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Chemical Manufacturing industry are lowering. It can presents Asahi Songwon Colors Lucky with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Chemical Manufacturing sector.
Shortening product life cycle
– it is one of the major threat that Asahi Songwon Colors Lucky is facing in Chemical Manufacturing 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. Asahi Songwon Colors Lucky 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Asahi Songwon Colors Lucky in the Chemical Manufacturing sector and impact the bottomline of the organization.
Environmental challenges
– Asahi Songwon Colors Lucky 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. Asahi Songwon Colors Lucky can take advantage of this fund but it will also bring new competitors in the Chemical Manufacturing industry.
Regulatory challenges
– Asahi Songwon Colors Lucky 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 Chemical Manufacturing industry regulations.
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 Asahi Songwon Colors Lucky business can come under increasing regulations regarding data privacy, data security, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Asahi Songwon Colors Lucky may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Chemical Manufacturing sector.
Easy access to finance
– Easy access to finance in Chemical Manufacturing industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Asahi Songwon Colors Lucky can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Asahi Songwon Colors Lucky 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.
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 Asahi Songwon Colors Lucky.
Consumer confidence and its impact on Asahi Songwon Colors Lucky 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 Chemical Manufacturing industry and other sectors.
Weighted SWOT Analysis of Asahi Songwon Colors Lucky Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky 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 Asahi Songwon Colors Lucky needs to make to build a sustainable competitive advantage.