SWOT Analysis / TOWS Matrix for Suido Kiko Kaisha (Japan)
Based on various researches at Oak Spring University , Suido Kiko Kaisha is operating in a macro-environment that has been destablized by – increasing energy prices, cloud computing is disrupting traditional business models, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, technology disruption,
increasing transportation and logistics costs, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Suido Kiko Kaisha
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Suido Kiko Kaisha can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Suido Kiko Kaisha, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Suido Kiko Kaisha 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 Suido Kiko Kaisha can be done for the following purposes –
1. Strategic planning of Suido Kiko Kaisha
2. Improving business portfolio management of Suido Kiko Kaisha
3. Assessing feasibility of the new initiative in Japan
4. Making a Waste Management Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Suido Kiko Kaisha
Strengths of Suido Kiko Kaisha | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Suido Kiko Kaisha are -
Learning organization
- Suido Kiko Kaisha 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 Suido Kiko Kaisha is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Suido Kiko Kaisha emphasize – knowledge, initiative, and innovation.
Analytics focus
– Suido Kiko Kaisha 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 Waste Management 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
– Suido Kiko Kaisha is one of the most innovative firm in Waste Management Services sector.
Cross disciplinary teams
– Horizontal connected teams at the Suido Kiko Kaisha are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Low bargaining power of suppliers
– Suppliers of Suido Kiko Kaisha in the Services sector have low bargaining power. Suido Kiko Kaisha has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Suido Kiko Kaisha to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Waste Management Services
– Suido Kiko Kaisha is one of the leading players in the Waste Management Services industry in Japan. Over the years it has not only transformed the business landscape in the Waste Management Services industry in Japan but also across the existing markets. The ability to lead change has enabled Suido Kiko Kaisha in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Waste Management Services industry
- digital transformation varies from industry to industry. For Suido Kiko Kaisha digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Suido Kiko Kaisha 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.
Training and development
– Suido Kiko Kaisha has one of the best training and development program in Services 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.
Successful track record of launching new products
– Suido Kiko Kaisha has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Suido Kiko Kaisha 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.
Effective Research and Development (R&D)
– Suido Kiko Kaisha has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Suido Kiko Kaisha staying ahead in the Waste Management Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Suido Kiko Kaisha in Waste Management Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Waste Management Services industry
– Suido Kiko Kaisha has clearly differentiated products in the market place. This has enabled Suido Kiko Kaisha to fetch slight price premium compare to the competitors in the Waste Management Services industry. The sustainable margins have also helped Suido Kiko Kaisha to invest into research and development (R&D) and innovation.
Weaknesses of Suido Kiko Kaisha | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Suido Kiko Kaisha are -
High bargaining power of channel partners in Waste Management Services industry
– because of the regulatory requirements in Japan, Suido Kiko Kaisha 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 Waste Management Services industry.
Increasing silos among functional specialists
– The organizational structure of Suido Kiko Kaisha is dominated by functional specialists. It is not different from other players in the Waste Management Services industry, but Suido Kiko Kaisha needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Suido Kiko Kaisha to focus more on services in the Waste Management Services industry rather than just following the product oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Suido Kiko Kaisha supply chain. Even after few cautionary changes, Suido Kiko Kaisha is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Suido Kiko Kaisha vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Suido Kiko Kaisha is slow explore the new channels of communication. These new channels of communication can help Suido Kiko Kaisha to provide better information regarding Waste Management Services products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Suido Kiko Kaisha has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring in Waste Management Services industry
– The stress on hiring functional specialists at Suido Kiko Kaisha has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, Suido Kiko Kaisha has high operating costs in the Waste Management Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Suido Kiko Kaisha lucrative customers.
Lack of clear differentiation of Suido Kiko Kaisha products
– To increase the profitability and margins on the products, Suido Kiko Kaisha needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ less understanding of Suido Kiko Kaisha strategy
– From the outside it seems that the employees of Suido Kiko Kaisha 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, Suido Kiko Kaisha needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Suido Kiko Kaisha 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.
Suido Kiko Kaisha Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Suido Kiko Kaisha are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Waste Management Services industry, but it has also influenced the consumer preferences. Suido Kiko Kaisha can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Suido Kiko Kaisha is facing challenges because of the dominance of functional experts in the organization. Suido Kiko Kaisha can utilize new technology in the field of Waste Management Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Suido Kiko Kaisha 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 Suido Kiko Kaisha to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Suido Kiko Kaisha 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, Suido Kiko Kaisha 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.
Buying journey improvements
– Suido Kiko Kaisha can improve the customer journey of consumers in the Waste Management 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.
Use of Bitcoin and other crypto currencies for transactions in Waste Management Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Suido Kiko Kaisha in the Waste Management Services industry. Now Suido Kiko Kaisha can target international markets with far fewer capital restrictions requirements than the existing system.
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 Suido Kiko Kaisha 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Suido Kiko Kaisha can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Suido Kiko Kaisha has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Waste Management Services sector. This continuous investment in analytics has enabled Suido Kiko Kaisha to build a competitive advantage using analytics. The analytics driven competitive advantage can help Suido Kiko Kaisha to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Suido Kiko Kaisha 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.
Developing new processes and practices
– Suido Kiko Kaisha can develop new processes and procedures in Waste Management 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Suido Kiko Kaisha can use these opportunities to build new business models that can help the communities that Suido Kiko Kaisha operates in. Secondly it can use opportunities from government spending in Waste Management Services sector.
Threats Suido Kiko Kaisha External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Suido Kiko Kaisha 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.
Increasing wage structure of Suido Kiko Kaisha
– 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 Suido Kiko Kaisha.
Stagnating economy with rate increase
– Suido Kiko Kaisha 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 Waste Management Services industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Suido Kiko Kaisha 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.
Consumer confidence and its impact on Suido Kiko Kaisha 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 Waste Management Services industry and other sectors.
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. Suido Kiko Kaisha needs to understand the core reasons impacting the Waste Management Services industry. This will help it in building a better workplace.
Regulatory challenges
– Suido Kiko Kaisha 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 Waste Management Services industry regulations.
Technology acceleration in Forth Industrial Revolution
– Suido Kiko Kaisha has witnessed rapid integration of technology during Covid-19 in the Waste Management Services industry. As one of the leading players in the industry, Suido Kiko Kaisha needs to keep up with the evolution of technology in the Waste Management 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.
Easy access to finance
– Easy access to finance in Waste Management Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Suido Kiko Kaisha can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Suido Kiko Kaisha.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Suido Kiko Kaisha in Waste Management Services industry. The Waste Management 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Suido Kiko Kaisha may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Waste Management 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.
Weighted SWOT Analysis of Suido Kiko Kaisha Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Suido Kiko Kaisha 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 Suido Kiko Kaisha 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 Suido Kiko Kaisha 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 Suido Kiko Kaisha 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 Suido Kiko Kaisha needs to make to build a sustainable competitive advantage.