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Asunaro Aoki Construction Co (1865) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Asunaro Aoki Construction Co (Japan)


Based on various researches at Oak Spring University , Asunaro Aoki Construction Co is operating in a macro-environment that has been destablized by – increasing energy prices, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc



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Introduction to SWOT Analysis of Asunaro Aoki Construction Co


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Asunaro Aoki Construction Co can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Asunaro Aoki Construction Co, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Asunaro Aoki Construction 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 Asunaro Aoki Construction Co can be done for the following purposes –
1. Strategic planning of Asunaro Aoki Construction Co
2. Improving business portfolio management of Asunaro Aoki Construction Co
3. Assessing feasibility of the new initiative in Japan
4. Making a Construction Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Asunaro Aoki Construction Co




Strengths of Asunaro Aoki Construction Co | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Asunaro Aoki Construction Co are -

Low bargaining power of suppliers

– Suppliers of Asunaro Aoki Construction Co in the Capital Goods sector have low bargaining power. Asunaro Aoki Construction Co has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Asunaro Aoki Construction Co to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Asunaro Aoki Construction Co 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.

Analytics focus

– Asunaro Aoki Construction 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 Construction Services 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.

Innovation driven organization

– Asunaro Aoki Construction Co is one of the most innovative firm in Construction Services sector.

Effective Research and Development (R&D)

– Asunaro Aoki Construction Co has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Asunaro Aoki Construction Co staying ahead in the Construction Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

High brand equity

– Asunaro Aoki Construction Co has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Asunaro Aoki Construction Co to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Learning organization

- Asunaro Aoki Construction 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 Asunaro Aoki Construction Co is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Asunaro Aoki Construction Co emphasize – knowledge, initiative, and innovation.

Sustainable margins compare to other players in Construction Services industry

– Asunaro Aoki Construction Co has clearly differentiated products in the market place. This has enabled Asunaro Aoki Construction Co to fetch slight price premium compare to the competitors in the Construction Services industry. The sustainable margins have also helped Asunaro Aoki Construction Co to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Asunaro Aoki Construction Co has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Asunaro Aoki Construction 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.

Ability to recruit top talent

– Asunaro Aoki Construction Co is one of the leading players in the Construction Services 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.

Ability to lead change in Construction Services

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

Strong track record of project management in the Construction Services industry

– Asunaro Aoki Construction 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.






Weaknesses of Asunaro Aoki Construction Co | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Asunaro Aoki Construction Co are -

Slow decision making process

– As mentioned earlier in the report, Asunaro Aoki Construction Co has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Construction Services industry over the last five years. Asunaro Aoki Construction Co 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.

Low market penetration in new markets

– Outside its home market of Japan, Asunaro Aoki Construction Co needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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 Asunaro Aoki Construction Co supply chain. Even after few cautionary changes, Asunaro Aoki Construction Co is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Asunaro Aoki Construction Co vulnerable to further global disruptions in South East Asia.

Skills based hiring in Construction Services industry

– The stress on hiring functional specialists at Asunaro Aoki Construction Co 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.

Products dominated business model

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

Capital Spending Reduction

– Even during the low interest decade, Asunaro Aoki Construction Co 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 Construction Services industry using digital technology.

High operating costs

– Compare to the competitors, Asunaro Aoki Construction Co has high operating costs in the Construction Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Asunaro Aoki Construction Co lucrative customers.

High dependence on Asunaro Aoki Construction Co ‘s star products

– The top 2 products and services of Asunaro Aoki Construction Co still accounts for major business revenue. This dependence on star products in Construction Services industry has resulted into insufficient focus on developing new products, even though Asunaro Aoki Construction Co has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Asunaro Aoki Construction Co is one of the leading players in the Construction Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Construction Services industry in last five years.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Asunaro Aoki Construction Co is slow explore the new channels of communication. These new channels of communication can help Asunaro Aoki Construction Co to provide better information regarding Construction Services products and services. It can also build an online community to further reach out to potential customers.

Employees’ less understanding of Asunaro Aoki Construction Co strategy

– From the outside it seems that the employees of Asunaro Aoki Construction 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.




Asunaro Aoki Construction Co Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Asunaro Aoki Construction Co are -

Using analytics as competitive advantage

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

Creating value in data economy

– The success of analytics program of Asunaro Aoki Construction Co has opened avenues for new revenue streams for the organization in Construction Services industry. This can help Asunaro Aoki Construction Co to build a more holistic ecosystem for Asunaro Aoki Construction Co products in the Construction Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Developing new processes and practices

– Asunaro Aoki Construction Co can develop new processes and procedures in Construction Services 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Asunaro Aoki Construction 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 Asunaro Aoki Construction Co to hire the very best people irrespective of their geographical location.

Building a culture of innovation

– managers at Asunaro Aoki Construction Co 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 Construction Services industry.

Buying journey improvements

– Asunaro Aoki Construction Co can improve the customer journey of consumers in the Construction Services 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Asunaro Aoki Construction Co can use these opportunities to build new business models that can help the communities that Asunaro Aoki Construction Co operates in. Secondly it can use opportunities from government spending in Construction Services sector.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Asunaro Aoki Construction Co in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Construction Services industry, and it will provide faster access to the consumers.

Learning at scale

– Online learning technologies has now opened space for Asunaro Aoki Construction Co 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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Construction Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Asunaro Aoki Construction 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. Asunaro Aoki Construction 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Asunaro Aoki Construction Co 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.

Better consumer reach

– The expansion of the 5G network will help Asunaro Aoki Construction Co to increase its market reach. Asunaro Aoki Construction Co 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.

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. Asunaro Aoki Construction Co can explore opportunities that can attract volunteers and are consistent with its mission and vision.




Threats Asunaro Aoki Construction Co External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Asunaro Aoki Construction Co are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Asunaro Aoki Construction Co in Construction Services industry. The Construction Services 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.

Shortening product life cycle

– it is one of the major threat that Asunaro Aoki Construction Co is facing in Construction Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– Asunaro Aoki Construction Co has witnessed rapid integration of technology during Covid-19 in the Construction Services industry. As one of the leading players in the industry, Asunaro Aoki Construction Co needs to keep up with the evolution of technology in the Construction Services 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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Asunaro Aoki Construction 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 Asunaro Aoki Construction Co prominent markets.

Stagnating economy with rate increase

– Asunaro Aoki Construction Co 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 Construction Services industry.

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 Asunaro Aoki Construction Co in the Construction Services sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Asunaro Aoki Construction 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.

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. Asunaro Aoki Construction 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Asunaro Aoki Construction Co may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Construction Services 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.

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 Asunaro Aoki Construction Co business can come under increasing regulations regarding data privacy, data security, etc.

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 Asunaro Aoki Construction Co.




Weighted SWOT Analysis of Asunaro Aoki Construction Co Template, Example


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



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