MatsumotoKiyoshi Holdings Co (3088) SWOT Analysis / TOWS Matrix / MBA Resources
Retail (Drugs)
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for MatsumotoKiyoshi Holdings Co (Japan)
Based on various researches at Oak Spring University , MatsumotoKiyoshi Holdings Co is operating in a macro-environment that has been destablized by – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, there is backlash against globalization, technology disruption, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, geopolitical disruptions, etc
Introduction to SWOT Analysis of MatsumotoKiyoshi Holdings Co
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that MatsumotoKiyoshi Holdings Co can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the MatsumotoKiyoshi Holdings Co, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co can be done for the following purposes –
1. Strategic planning of MatsumotoKiyoshi Holdings Co
2. Improving business portfolio management of MatsumotoKiyoshi Holdings Co
3. Assessing feasibility of the new initiative in Japan
4. Making a Retail (Drugs) sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of MatsumotoKiyoshi Holdings Co
Strengths of MatsumotoKiyoshi Holdings Co | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of MatsumotoKiyoshi Holdings Co are -
Analytics focus
– MatsumotoKiyoshi Holdings Co 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 Retail (Drugs) 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.
Learning organization
- MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at MatsumotoKiyoshi Holdings Co emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– MatsumotoKiyoshi Holdings Co has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Retail (Drugs) industry. Secondly the value chain collaborators of MatsumotoKiyoshi Holdings Co have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Retail (Drugs) industry
– MatsumotoKiyoshi Holdings Co has clearly differentiated products in the market place. This has enabled MatsumotoKiyoshi Holdings Co to fetch slight price premium compare to the competitors in the Retail (Drugs) industry. The sustainable margins have also helped MatsumotoKiyoshi Holdings Co to invest into research and development (R&D) and innovation.
Organizational Resilience of MatsumotoKiyoshi Holdings Co
– The covid-19 pandemic has put organizational resilience at the centre of everthing MatsumotoKiyoshi Holdings Co does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– MatsumotoKiyoshi Holdings Co is one of the most innovative firm in Retail (Drugs) sector.
Low bargaining power of suppliers
– Suppliers of MatsumotoKiyoshi Holdings Co in the Services sector have low bargaining power. MatsumotoKiyoshi Holdings Co has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps MatsumotoKiyoshi Holdings Co to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– MatsumotoKiyoshi Holdings Co has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled MatsumotoKiyoshi Holdings Co to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of MatsumotoKiyoshi Holdings Co in Retail (Drugs) industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management in the Retail (Drugs) industry
– MatsumotoKiyoshi Holdings Co is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy of MatsumotoKiyoshi Holdings Co comprises – understanding the underlying the factors in the Retail (Drugs) 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.
Successful track record of launching new products
– MatsumotoKiyoshi Holdings Co has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. MatsumotoKiyoshi Holdings Co 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.
Weaknesses of MatsumotoKiyoshi Holdings Co | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of MatsumotoKiyoshi Holdings Co are -
No frontier risks strategy
– From the 10K / annual statement of MatsumotoKiyoshi Holdings Co, it seems that company is thinking out the frontier risks that can impact Retail (Drugs) 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 bargaining power of channel partners in Retail (Drugs) industry
– because of the regulatory requirements in Japan, MatsumotoKiyoshi Holdings Co 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 Retail (Drugs) industry.
Products dominated business model
– Even though MatsumotoKiyoshi Holdings Co has some of the most successful models in the Retail (Drugs) industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. MatsumotoKiyoshi Holdings Co should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Japan, MatsumotoKiyoshi Holdings Co needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, MatsumotoKiyoshi Holdings Co 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.
High dependence on MatsumotoKiyoshi Holdings Co ‘s star products
– The top 2 products and services of MatsumotoKiyoshi Holdings Co still accounts for major business revenue. This dependence on star products in Retail (Drugs) industry has resulted into insufficient focus on developing new products, even though MatsumotoKiyoshi Holdings Co has relatively successful track record of launching new products.
Lack of clear differentiation of MatsumotoKiyoshi Holdings Co products
– To increase the profitability and margins on the products, MatsumotoKiyoshi Holdings Co needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the Retail (Drugs) industry, MatsumotoKiyoshi Holdings Co 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.
Compensation and incentives
– The revenue per employee of MatsumotoKiyoshi Holdings Co is just above the Retail (Drugs) 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.
Slow to strategic competitive environment developments
– As MatsumotoKiyoshi Holdings Co is one of the leading players in the Retail (Drugs) industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Retail (Drugs) industry in last five years.
Employees’ less understanding of MatsumotoKiyoshi Holdings Co strategy
– From the outside it seems that the employees of MatsumotoKiyoshi Holdings Co 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.
MatsumotoKiyoshi Holdings Co Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of MatsumotoKiyoshi Holdings Co are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, MatsumotoKiyoshi Holdings Co can use these opportunities to build new business models that can help the communities that MatsumotoKiyoshi Holdings Co operates in. Secondly it can use opportunities from government spending in Retail (Drugs) sector.
Creating value in data economy
– The success of analytics program of MatsumotoKiyoshi Holdings Co has opened avenues for new revenue streams for the organization in Retail (Drugs) industry. This can help MatsumotoKiyoshi Holdings Co to build a more holistic ecosystem for MatsumotoKiyoshi Holdings Co products in the Retail (Drugs) industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– MatsumotoKiyoshi Holdings Co 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.
Developing new processes and practices
– MatsumotoKiyoshi Holdings Co can develop new processes and procedures in Retail (Drugs) 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Retail (Drugs) industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. MatsumotoKiyoshi Holdings Co 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. MatsumotoKiyoshi Holdings Co 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, MatsumotoKiyoshi Holdings Co is facing challenges because of the dominance of functional experts in the organization. MatsumotoKiyoshi Holdings Co can utilize new technology in the field of Retail (Drugs) industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– MatsumotoKiyoshi Holdings Co has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Retail (Drugs) sector. This continuous investment in analytics has enabled MatsumotoKiyoshi Holdings Co to build a competitive advantage using analytics. The analytics driven competitive advantage can help MatsumotoKiyoshi Holdings Co to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. MatsumotoKiyoshi Holdings Co can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 MatsumotoKiyoshi Holdings Co 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.
Use of Bitcoin and other crypto currencies for transactions in Retail (Drugs) industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for MatsumotoKiyoshi Holdings Co in the Retail (Drugs) industry. Now MatsumotoKiyoshi Holdings Co can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co to hire the very best people irrespective of their geographical location.
Buying journey improvements
– MatsumotoKiyoshi Holdings Co can improve the customer journey of consumers in the Retail (Drugs) 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.
Threats MatsumotoKiyoshi Holdings Co External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of MatsumotoKiyoshi Holdings Co are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Retail (Drugs) industry are lowering. It can presents MatsumotoKiyoshi Holdings Co with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Retail (Drugs) sector.
Technology acceleration in Forth Industrial Revolution
– MatsumotoKiyoshi Holdings Co has witnessed rapid integration of technology during Covid-19 in the Retail (Drugs) industry. As one of the leading players in the industry, MatsumotoKiyoshi Holdings Co needs to keep up with the evolution of technology in the Retail (Drugs) 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.
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. MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co is facing in Retail (Drugs) sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Retail (Drugs) industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. MatsumotoKiyoshi Holdings Co can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 MatsumotoKiyoshi Holdings Co in the Retail (Drugs) sector and impact the bottomline of the organization.
Environmental challenges
– MatsumotoKiyoshi Holdings Co 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. MatsumotoKiyoshi Holdings Co can take advantage of this fund but it will also bring new competitors in the Retail (Drugs) industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co prominent markets.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for MatsumotoKiyoshi Holdings Co in Retail (Drugs) industry. The Retail (Drugs) 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.
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 MatsumotoKiyoshi Holdings Co business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– MatsumotoKiyoshi Holdings Co 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 Retail (Drugs) industry regulations.
High dependence on third party suppliers
– MatsumotoKiyoshi Holdings Co 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.
Weighted SWOT Analysis of MatsumotoKiyoshi Holdings Co Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co 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 MatsumotoKiyoshi Holdings Co needs to make to build a sustainable competitive advantage.