Resona Holdings, Inc. (8308) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Resona Holdings, Inc. (Japan)

Based on various researches at Oak Spring University , Resona Holdings, Inc. is operating in a macro-environment that has been destablized by – challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, technology disruption, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, geopolitical disruptions, etc

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Introduction to SWOT Analysis of Resona Holdings, Inc.

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Resona Holdings, Inc. can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Resona Holdings, Inc., and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Resona Holdings, Inc. 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Resona Holdings, Inc. can be done for the following purposes –
1. Strategic planning of Resona Holdings, Inc.
2. Improving business portfolio management of Resona Holdings, Inc.
3. Assessing feasibility of the new initiative in Japan
4. Making a Money Center Banks sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Resona Holdings, Inc.

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Strengths of Resona Holdings, Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Resona Holdings, Inc. are -

Ability to recruit top talent

– Resona Holdings, Inc. is one of the leading players in the Money Center Banks industry in Japan. It is in a position to attract the best talent available in Japan. The firm has a robust talent identification program that helps in identifying the brightest.

Cross disciplinary teams

– Horizontal connected teams at the Resona Holdings, Inc. are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Ability to lead change in Money Center Banks

– Resona Holdings, Inc. is one of the leading players in the Money Center Banks industry in Japan. Over the years it has not only transformed the business landscape in the Money Center Banks industry in Japan but also across the existing markets. The ability to lead change has enabled Resona Holdings, Inc. in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Successful track record of launching new products

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

– Resona Holdings, Inc. is present in almost all the verticals within the Money Center Banks industry. This has provided Resona Holdings, Inc. 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)

– Resona Holdings, Inc. has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Resona Holdings, Inc. staying ahead in the Money Center Banks industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Learning organization

- Resona Holdings, Inc. is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Resona Holdings, Inc. is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Resona Holdings, Inc. emphasize – knowledge, initiative, and innovation.

Sustainable margins compare to other players in Money Center Banks industry

– Resona Holdings, Inc. has clearly differentiated products in the market place. This has enabled Resona Holdings, Inc. to fetch slight price premium compare to the competitors in the Money Center Banks industry. The sustainable margins have also helped Resona Holdings, Inc. to invest into research and development (R&D) and innovation.

High brand equity

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

Training and development

– Resona Holdings, Inc. has one of the best training and development program in Financial 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.

Low bargaining power of suppliers

– Suppliers of Resona Holdings, Inc. in the Financial sector have low bargaining power. Resona Holdings, Inc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Resona Holdings, Inc. to manage not only supply disruptions but also source products at highly competitive prices.

Highly skilled collaborators

– Resona Holdings, Inc. has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Money Center Banks industry. Secondly the value chain collaborators of Resona Holdings, Inc. have helped the firm to develop new products and bring them quickly to the marketplace.

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Weaknesses of Resona Holdings, Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Resona Holdings, Inc. are -

Employees’ less understanding of Resona Holdings, Inc. strategy

– From the outside it seems that the employees of Resona Holdings, Inc. 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.

Increasing silos among functional specialists

– The organizational structure of Resona Holdings, Inc. is dominated by functional specialists. It is not different from other players in the Money Center Banks industry, but Resona Holdings, Inc. needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Resona Holdings, Inc. to focus more on services in the Money Center Banks industry rather than just following the product oriented approach.

Low market penetration in new markets

– Outside its home market of Japan, Resona Holdings, Inc. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

No frontier risks strategy

– From the 10K / annual statement of Resona Holdings, Inc., it seems that company is thinking out the frontier risks that can impact Money Center Banks industry. 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.

High dependence on Resona Holdings, Inc. ‘s star products

– The top 2 products and services of Resona Holdings, Inc. still accounts for major business revenue. This dependence on star products in Money Center Banks industry has resulted into insufficient focus on developing new products, even though Resona Holdings, Inc. has relatively successful track record of launching new products.

High cash cycle compare to competitors

Resona Holdings, Inc. has a high cash cycle compare to other players in the Money Center Banks industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Skills based hiring in Money Center Banks industry

– The stress on hiring functional specialists at Resona Holdings, Inc. 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 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 Resona Holdings, Inc. supply chain. Even after few cautionary changes, Resona Holdings, Inc. is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Resona Holdings, Inc. vulnerable to further global disruptions in South East Asia.

High bargaining power of channel partners in Money Center Banks industry

– because of the regulatory requirements in Japan, Resona Holdings, Inc. 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 Money Center Banks industry.

Products dominated business model

– Even though Resona Holdings, Inc. has some of the most successful models in the Money Center Banks industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Resona Holdings, Inc. should strive to include more intangible value offerings along with its core products and services.

Lack of clear differentiation of Resona Holdings, Inc. products

– To increase the profitability and margins on the products, Resona Holdings, Inc. needs to provide more differentiated products than what it is currently offering in the marketplace.

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Resona Holdings, Inc. Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Resona Holdings, Inc. are -

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Resona Holdings, Inc. 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 Resona Holdings, Inc. to hire the very best people irrespective of their geographical location.

Better consumer reach

– The expansion of the 5G network will help Resona Holdings, Inc. to increase its market reach. Resona Holdings, Inc. 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.

Creating value in data economy

– The success of analytics program of Resona Holdings, Inc. has opened avenues for new revenue streams for the organization in Money Center Banks industry. This can help Resona Holdings, Inc. to build a more holistic ecosystem for Resona Holdings, Inc. products in the Money Center Banks industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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. Resona Holdings, Inc. can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Using analytics as competitive advantage

– Resona Holdings, Inc. has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Money Center Banks sector. This continuous investment in analytics has enabled Resona Holdings, Inc. to build a competitive advantage using analytics. The analytics driven competitive advantage can help Resona Holdings, Inc. to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Manufacturing automation

– Resona Holdings, Inc. can use the latest technology developments to improve its manufacturing and designing process in Money Center Banks 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, Resona Holdings, Inc. can use these opportunities to build new business models that can help the communities that Resona Holdings, Inc. operates in. Secondly it can use opportunities from government spending in Money Center Banks sector.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Resona Holdings, Inc. 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 Resona Holdings, Inc. to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Developing new processes and practices

– Resona Holdings, Inc. can develop new processes and procedures in Money Center Banks 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.

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 Resona Holdings, Inc. 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.

Leveraging digital technologies

– Resona Holdings, Inc. 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.

Building a culture of innovation

– managers at Resona Holdings, Inc. 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 Money Center Banks industry.

Use of Bitcoin and other crypto currencies for transactions in Money Center Banks industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Resona Holdings, Inc. in the Money Center Banks industry. Now Resona Holdings, Inc. can target international markets with far fewer capital restrictions requirements than the existing system.

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Threats Resona Holdings, Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Resona Holdings, Inc. are -

Environmental challenges

– Resona Holdings, Inc. 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. Resona Holdings, Inc. can take advantage of this fund but it will also bring new competitors in the Money Center Banks industry.

Stagnating economy with rate increase

– Resona Holdings, Inc. 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 Money Center Banks industry.

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. Resona Holdings, Inc. 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.

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.

Shortening product life cycle

– it is one of the major threat that Resona Holdings, Inc. is facing in Money Center Banks sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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, Resona Holdings, Inc. may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Money Center Banks sector.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Resona Holdings, Inc. 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 Resona Holdings, Inc. prominent markets.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Money Center Banks industry are lowering. It can presents Resona Holdings, Inc. with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Money Center Banks sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Resona Holdings, Inc. in Money Center Banks industry. The Money Center Banks 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.

Regulatory challenges

– Resona Holdings, Inc. 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 Money Center Banks industry regulations.

Technology acceleration in Forth Industrial Revolution

– Resona Holdings, Inc. has witnessed rapid integration of technology during Covid-19 in the Money Center Banks industry. As one of the leading players in the industry, Resona Holdings, Inc. needs to keep up with the evolution of technology in the Money Center Banks 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.

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. Resona Holdings, Inc. needs to understand the core reasons impacting the Money Center Banks industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of Resona Holdings, Inc. Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Resona Holdings, Inc. 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 Resona Holdings, Inc. 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 Resona Holdings, Inc. 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 Resona Holdings, Inc. 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 Resona Holdings, Inc. needs to make to build a sustainable competitive advantage.

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