Mitsui Chemicals, Inc. (4183) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Mitsui Chemicals, Inc. (Japan)

Based on various researches at Oak Spring University , Mitsui Chemicals, Inc. is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, technology disruption, wage bills are increasing, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc

---

---

---

---

Introduction to SWOT Analysis of Mitsui Chemicals, Inc.

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

---

SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

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

---

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

The strengths of Mitsui Chemicals, Inc. are -

Ability to recruit top talent

– Mitsui Chemicals, Inc. is one of the leading players in the Chemical Manufacturing 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.

Organizational Resilience of Mitsui Chemicals, Inc.

– The covid-19 pandemic has put organizational resilience at the centre of everthing Mitsui Chemicals, Inc. does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Sustainable margins compare to other players in Chemical Manufacturing industry

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

Ability to lead change in Chemical Manufacturing

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

Highly skilled collaborators

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

Analytics focus

– Mitsui Chemicals, Inc. 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 Chemical Manufacturing industry. The technology infrastructure of Japan is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Successful track record of launching new products

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

Digital Transformation in Chemical Manufacturing industry

- digital transformation varies from industry to industry. For Mitsui Chemicals, Inc. digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mitsui Chemicals, Inc. 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.

Innovation driven organization

– Mitsui Chemicals, Inc. is one of the most innovative firm in Chemical Manufacturing sector.

Low bargaining power of suppliers

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

High brand equity

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

Training and development

– Mitsui Chemicals, Inc. 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.

---

---

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

The weaknesses of Mitsui Chemicals, Inc. are -

No frontier risks strategy

– From the 10K / annual statement of Mitsui Chemicals, Inc., it seems that company is thinking out the frontier risks that can impact Chemical Manufacturing 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.

Lack of clear differentiation of Mitsui Chemicals, Inc. products

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

High bargaining power of channel partners in Chemical Manufacturing industry

– because of the regulatory requirements in Japan, Mitsui Chemicals, 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 Chemical Manufacturing industry.

Employees’ less understanding of Mitsui Chemicals, Inc. strategy

– From the outside it seems that the employees of Mitsui Chemicals, 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.

Low market penetration in new markets

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

Ability to respond to the competition

– As the decision making is very deliberative at Mitsui Chemicals, Inc., in the dynamic environment of Chemical Manufacturing industry it has struggled to respond to the nimble upstart competition. Mitsui Chemicals, Inc. has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Increasing silos among functional specialists

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

Slow to strategic competitive environment developments

– As Mitsui Chemicals, Inc. is one of the leading players in the Chemical Manufacturing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Chemical Manufacturing industry in last five years.

Aligning sales with marketing

– From the outside it seems that Mitsui Chemicals, Inc. 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 Mitsui Chemicals, Inc. can leverage the sales team experience to cultivate customer relationships as Mitsui Chemicals, Inc. is planning to shift buying processes online.

High cash cycle compare to competitors

Mitsui Chemicals, Inc. has a high cash cycle compare to other players in the Chemical Manufacturing industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Capital Spending Reduction

– Even during the low interest decade, Mitsui Chemicals, Inc. 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 Chemical Manufacturing industry using digital technology.

---

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

The opportunities of Mitsui Chemicals, Inc. are -

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Mitsui Chemicals, Inc. can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mitsui Chemicals, Inc. can use these opportunities to build new business models that can help the communities that Mitsui Chemicals, Inc. operates in. Secondly it can use opportunities from government spending in Chemical Manufacturing sector.

Developing new processes and practices

– Mitsui Chemicals, Inc. 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.

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 Mitsui Chemicals, Inc. in the Chemical Manufacturing industry. Now Mitsui Chemicals, Inc. can target international markets with far fewer capital restrictions requirements than the existing system.

Loyalty marketing

– Mitsui Chemicals, Inc. 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Mitsui Chemicals, Inc. 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.

Manufacturing automation

– Mitsui Chemicals, Inc. 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.

Leveraging digital technologies

– Mitsui Chemicals, 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.

Buying journey improvements

– Mitsui Chemicals, Inc. can improve the customer journey of consumers in the Chemical Manufacturing industry by using analytics and artificial intelligence. It 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.

Remote work and new talent hiring opportunities

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

Using analytics as competitive advantage

– Mitsui Chemicals, Inc. 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 Mitsui Chemicals, Inc. to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mitsui Chemicals, Inc. 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 Chemical Manufacturing industry, but it has also influenced the consumer preferences. Mitsui Chemicals, Inc. can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Learning at scale

– Online learning technologies has now opened space for Mitsui Chemicals, Inc. 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.

---

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

The threats of Mitsui Chemicals, Inc. are -

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. Mitsui Chemicals, Inc. needs to understand the core reasons impacting the Chemical Manufacturing industry. This will help it in building a better workplace.

Environmental challenges

– Mitsui Chemicals, 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. Mitsui Chemicals, Inc. can take advantage of this fund but it will also bring new competitors in the Chemical Manufacturing industry.

Consumer confidence and its impact on Mitsui Chemicals, Inc. 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.

Regulatory challenges

– Mitsui Chemicals, 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 Chemical Manufacturing industry regulations.

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. Mitsui Chemicals, Inc. can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Mitsui Chemicals, 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 Mitsui Chemicals, Inc. prominent markets.

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 Mitsui Chemicals, Inc..

Stagnating economy with rate increase

– Mitsui Chemicals, 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 Chemical Manufacturing industry.

Shortening product life cycle

– it is one of the major threat that Mitsui Chemicals, Inc. is facing in Chemical Manufacturing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Mitsui Chemicals, 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 Chemical Manufacturing sector.

Barriers of entry lowering

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

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 Mitsui Chemicals, Inc. business can come under increasing regulations regarding data privacy, data security, etc.

Increasing wage structure of Mitsui Chemicals, Inc.

– 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 Mitsui Chemicals, Inc..

---

Weighted SWOT Analysis of Mitsui Chemicals, Inc. Template, Example

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

--- ---