SKY Perfect JSAT Holdings Inc. (9412) SWOT Analysis / TOWS Matrix / MBA Resources
Broadcasting & Cable TV
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for SKY Perfect JSAT Holdings Inc. (Japan)
Based on various researches at Oak Spring University , SKY Perfect JSAT Holdings Inc. is operating in a macro-environment that has been destablized by – increasing energy prices, there is increasing trade war between United States & China, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, technology disruption, geopolitical disruptions, talent flight as more people leaving formal jobs,
supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of SKY Perfect JSAT Holdings Inc.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that SKY Perfect JSAT Holdings Inc. can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the SKY Perfect JSAT Holdings Inc., and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which SKY Perfect JSAT 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of SKY Perfect JSAT Holdings Inc. can be done for the following purposes –
1. Strategic planning of SKY Perfect JSAT Holdings Inc.
2. Improving business portfolio management of SKY Perfect JSAT Holdings Inc.
3. Assessing feasibility of the new initiative in Japan
4. Making a Broadcasting & Cable TV sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of SKY Perfect JSAT Holdings Inc.
Strengths of SKY Perfect JSAT Holdings Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of SKY Perfect JSAT Holdings Inc. are -
Superior customer experience
– The customer experience strategy of SKY Perfect JSAT Holdings Inc. in Broadcasting & Cable TV industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– SKY Perfect JSAT 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 Broadcasting & Cable TV industry. Secondly the value chain collaborators of SKY Perfect JSAT Holdings Inc. have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– SKY Perfect JSAT Holdings Inc. has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled SKY Perfect JSAT Holdings Inc. to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that SKY Perfect JSAT Holdings Inc. 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.
Effective Research and Development (R&D)
– SKY Perfect JSAT Holdings Inc. has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – SKY Perfect JSAT Holdings Inc. staying ahead in the Broadcasting & Cable TV industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy of SKY Perfect JSAT Holdings Inc. comprises – understanding the underlying the factors in the Broadcasting & Cable TV 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.
Sustainable margins compare to other players in Broadcasting & Cable TV industry
– SKY Perfect JSAT Holdings Inc. has clearly differentiated products in the market place. This has enabled SKY Perfect JSAT Holdings Inc. to fetch slight price premium compare to the competitors in the Broadcasting & Cable TV industry. The sustainable margins have also helped SKY Perfect JSAT Holdings Inc. to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– SKY Perfect JSAT Holdings Inc. has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. SKY Perfect JSAT 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.
Analytics focus
– SKY Perfect JSAT Holdings 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 Broadcasting & Cable TV 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.
Ability to recruit top talent
– SKY Perfect JSAT Holdings Inc. is one of the leading players in the Broadcasting & Cable TV 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.
Diverse revenue streams
– SKY Perfect JSAT Holdings Inc. is present in almost all the verticals within the Broadcasting & Cable TV industry. This has provided SKY Perfect JSAT 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.
Learning organization
- SKY Perfect JSAT 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 SKY Perfect JSAT Holdings Inc. is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at SKY Perfect JSAT Holdings Inc. emphasize – knowledge, initiative, and innovation.
Weaknesses of SKY Perfect JSAT Holdings Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SKY Perfect JSAT Holdings Inc. are -
Compensation and incentives
– The revenue per employee of SKY Perfect JSAT Holdings Inc. is just above the Broadcasting & Cable TV 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.
No frontier risks strategy
– From the 10K / annual statement of SKY Perfect JSAT Holdings Inc., it seems that company is thinking out the frontier risks that can impact Broadcasting & Cable TV 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 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 SKY Perfect JSAT Holdings Inc. supply chain. Even after few cautionary changes, SKY Perfect JSAT Holdings Inc. is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left SKY Perfect JSAT Holdings Inc. vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, SKY Perfect JSAT Holdings 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 Broadcasting & Cable TV industry using digital technology.
Interest costs
– Compare to the competition, SKY Perfect JSAT Holdings Inc. 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 SKY Perfect JSAT Holdings Inc. ‘s star products
– The top 2 products and services of SKY Perfect JSAT Holdings Inc. still accounts for major business revenue. This dependence on star products in Broadcasting & Cable TV industry has resulted into insufficient focus on developing new products, even though SKY Perfect JSAT Holdings Inc. has relatively successful track record of launching new products.
Aligning sales with marketing
– From the outside it seems that SKY Perfect JSAT Holdings Inc. needs to have more collaboration between its sales team and marketing team. Sales professionals in the Broadcasting & Cable TV industry have deep experience in developing customer relationships. Marketing department at SKY Perfect JSAT Holdings Inc. can leverage the sales team experience to cultivate customer relationships as SKY Perfect JSAT Holdings Inc. is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, SKY Perfect JSAT Holdings Inc. has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Broadcasting & Cable TV industry over the last five years. SKY Perfect JSAT Holdings Inc. 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.
Lack of clear differentiation of SKY Perfect JSAT Holdings Inc. products
– To increase the profitability and margins on the products, SKY Perfect JSAT Holdings Inc. needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though SKY Perfect JSAT Holdings Inc. has some of the most successful models in the Broadcasting & Cable TV industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. SKY Perfect JSAT Holdings Inc. 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, SKY Perfect JSAT Holdings Inc. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
SKY Perfect JSAT Holdings Inc. Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of SKY Perfect JSAT Holdings Inc. are -
Loyalty marketing
– SKY Perfect JSAT Holdings 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.
Use of Bitcoin and other crypto currencies for transactions in Broadcasting & Cable TV industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for SKY Perfect JSAT Holdings Inc. in the Broadcasting & Cable TV industry. Now SKY Perfect JSAT Holdings Inc. can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at SKY Perfect JSAT 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 Broadcasting & Cable TV industry.
Developing new processes and practices
– SKY Perfect JSAT Holdings Inc. can develop new processes and procedures in Broadcasting & Cable TV 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects SKY Perfect JSAT Holdings Inc. can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, SKY Perfect JSAT Holdings Inc. is facing challenges because of the dominance of functional experts in the organization. SKY Perfect JSAT Holdings Inc. can utilize new technology in the field of Broadcasting & Cable TV industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Broadcasting & Cable TV industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. SKY Perfect JSAT Holdings Inc. 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. SKY Perfect JSAT Holdings Inc. 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.
Manufacturing automation
– SKY Perfect JSAT Holdings Inc. can use the latest technology developments to improve its manufacturing and designing process in Broadcasting & Cable TV 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.
Using analytics as competitive advantage
– SKY Perfect JSAT Holdings Inc. has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Broadcasting & Cable TV sector. This continuous investment in analytics has enabled SKY Perfect JSAT Holdings Inc. to build a competitive advantage using analytics. The analytics driven competitive advantage can help SKY Perfect JSAT Holdings Inc. to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. SKY Perfect JSAT Holdings Inc. can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, SKY Perfect JSAT 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 SKY Perfect JSAT 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Broadcasting & Cable TV industry, but it has also influenced the consumer preferences. SKY Perfect JSAT Holdings Inc. can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– SKY Perfect JSAT 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.
Threats SKY Perfect JSAT Holdings Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of SKY Perfect JSAT Holdings Inc. are -
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.
Regulatory challenges
– SKY Perfect JSAT 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 Broadcasting & Cable TV industry regulations.
Stagnating economy with rate increase
– SKY Perfect JSAT 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 Broadcasting & Cable TV industry.
Environmental challenges
– SKY Perfect JSAT 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. SKY Perfect JSAT Holdings Inc. can take advantage of this fund but it will also bring new competitors in the Broadcasting & Cable TV industry.
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. SKY Perfect JSAT Holdings Inc. needs to understand the core reasons impacting the Broadcasting & Cable TV industry. This will help it in building a better workplace.
High dependence on third party suppliers
– SKY Perfect JSAT Holdings Inc. 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for SKY Perfect JSAT Holdings Inc. in Broadcasting & Cable TV industry. The Broadcasting & Cable TV 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.
Increasing wage structure of SKY Perfect JSAT Holdings 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 SKY Perfect JSAT Holdings Inc..
Technology acceleration in Forth Industrial Revolution
– SKY Perfect JSAT Holdings Inc. has witnessed rapid integration of technology during Covid-19 in the Broadcasting & Cable TV industry. As one of the leading players in the industry, SKY Perfect JSAT Holdings Inc. needs to keep up with the evolution of technology in the Broadcasting & Cable TV sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Easy access to finance
– Easy access to finance in Broadcasting & Cable TV industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. SKY Perfect JSAT Holdings Inc. can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Broadcasting & Cable TV industry are lowering. It can presents SKY Perfect JSAT Holdings Inc. with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Broadcasting & Cable TV sector.
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.
Consumer confidence and its impact on SKY Perfect JSAT Holdings 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 Broadcasting & Cable TV industry and other sectors.
Weighted SWOT Analysis of SKY Perfect JSAT Holdings Inc. Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at SKY Perfect JSAT 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 SKY Perfect JSAT 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 SKY Perfect JSAT 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 SKY Perfect JSAT 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 SKY Perfect JSAT Holdings Inc. needs to make to build a sustainable competitive advantage.