Hoden Seimitsu Kako Kenkyusho (6469) SWOT Analysis / TOWS Matrix / MBA Resources
Misc. Capital Goods
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Hoden Seimitsu Kako Kenkyusho (Japan)
Based on various researches at Oak Spring University , Hoden Seimitsu Kako Kenkyusho is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, increasing commodity prices, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Hoden Seimitsu Kako Kenkyusho
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Hoden Seimitsu Kako Kenkyusho can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hoden Seimitsu Kako Kenkyusho, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho can be done for the following purposes –
1. Strategic planning of Hoden Seimitsu Kako Kenkyusho
2. Improving business portfolio management of Hoden Seimitsu Kako Kenkyusho
3. Assessing feasibility of the new initiative in Japan
4. Making a Misc. Capital Goods sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hoden Seimitsu Kako Kenkyusho
Strengths of Hoden Seimitsu Kako Kenkyusho | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hoden Seimitsu Kako Kenkyusho are -
Organizational Resilience of Hoden Seimitsu Kako Kenkyusho
– The covid-19 pandemic has put organizational resilience at the centre of everthing Hoden Seimitsu Kako Kenkyusho does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Hoden Seimitsu Kako Kenkyusho has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hoden Seimitsu Kako Kenkyusho to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Hoden Seimitsu Kako Kenkyusho has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Hoden Seimitsu Kako Kenkyusho staying ahead in the Misc. Capital Goods industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Hoden Seimitsu Kako Kenkyusho has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Capital Goods industry. Secondly the value chain collaborators of Hoden Seimitsu Kako Kenkyusho have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Hoden Seimitsu Kako Kenkyusho is one of the most innovative firm in Misc. Capital Goods sector.
Strong track record of project management in the Misc. Capital Goods industry
– Hoden Seimitsu Kako Kenkyusho is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Hoden Seimitsu Kako Kenkyusho is present in almost all the verticals within the Misc. Capital Goods industry. This has provided Hoden Seimitsu Kako Kenkyusho 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.
Ability to lead change in Misc. Capital Goods
– Hoden Seimitsu Kako Kenkyusho is one of the leading players in the Misc. Capital Goods industry in Japan. Over the years it has not only transformed the business landscape in the Misc. Capital Goods industry in Japan but also across the existing markets. The ability to lead change has enabled Hoden Seimitsu Kako Kenkyusho in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Hoden Seimitsu Kako Kenkyusho 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.
Operational resilience
– The operational resilience strategy of Hoden Seimitsu Kako Kenkyusho comprises – understanding the underlying the factors in the Misc. Capital Goods 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.
Low bargaining power of suppliers
– Suppliers of Hoden Seimitsu Kako Kenkyusho in the Capital Goods sector have low bargaining power. Hoden Seimitsu Kako Kenkyusho has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hoden Seimitsu Kako Kenkyusho to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Misc. Capital Goods industry
- digital transformation varies from industry to industry. For Hoden Seimitsu Kako Kenkyusho digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hoden Seimitsu Kako Kenkyusho 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.
Weaknesses of Hoden Seimitsu Kako Kenkyusho | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Hoden Seimitsu Kako Kenkyusho are -
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 Hoden Seimitsu Kako Kenkyusho supply chain. Even after few cautionary changes, Hoden Seimitsu Kako Kenkyusho is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hoden Seimitsu Kako Kenkyusho vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Hoden Seimitsu Kako Kenkyusho is one of the leading players in the Misc. Capital Goods industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Misc. Capital Goods industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Hoden Seimitsu Kako Kenkyusho is dominated by functional specialists. It is not different from other players in the Misc. Capital Goods industry, but Hoden Seimitsu Kako Kenkyusho needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hoden Seimitsu Kako Kenkyusho to focus more on services in the Misc. Capital Goods industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Hoden Seimitsu Kako Kenkyusho is just above the Misc. Capital Goods 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.
Workers concerns about automation
– As automation is fast increasing in the Misc. Capital Goods industry, Hoden Seimitsu Kako Kenkyusho 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.
No frontier risks strategy
– From the 10K / annual statement of Hoden Seimitsu Kako Kenkyusho, it seems that company is thinking out the frontier risks that can impact Misc. Capital Goods industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Hoden Seimitsu Kako Kenkyusho products
– To increase the profitability and margins on the products, Hoden Seimitsu Kako Kenkyusho needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Hoden Seimitsu Kako Kenkyusho 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.
Products dominated business model
– Even though Hoden Seimitsu Kako Kenkyusho has some of the most successful models in the Misc. Capital Goods industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Hoden Seimitsu Kako Kenkyusho should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hoden Seimitsu Kako Kenkyusho is slow explore the new channels of communication. These new channels of communication can help Hoden Seimitsu Kako Kenkyusho to provide better information regarding Misc. Capital Goods products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Hoden Seimitsu Kako Kenkyusho has a high cash cycle compare to other players in the Misc. Capital Goods industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Hoden Seimitsu Kako Kenkyusho Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Hoden Seimitsu Kako Kenkyusho are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Hoden Seimitsu Kako Kenkyusho 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hoden Seimitsu Kako Kenkyusho in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Capital Goods industry, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Hoden Seimitsu Kako Kenkyusho to increase its market reach. Hoden Seimitsu Kako Kenkyusho 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Capital Goods industry, but it has also influenced the consumer preferences. Hoden Seimitsu Kako Kenkyusho can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Hoden Seimitsu Kako Kenkyusho 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.
Use of Bitcoin and other crypto currencies for transactions in Misc. Capital Goods industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hoden Seimitsu Kako Kenkyusho in the Misc. Capital Goods industry. Now Hoden Seimitsu Kako Kenkyusho can target international markets with far fewer capital restrictions requirements than the existing system.
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. Hoden Seimitsu Kako Kenkyusho can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Hoden Seimitsu Kako Kenkyusho can develop new processes and procedures in Misc. Capital Goods 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.
Creating value in data economy
– The success of analytics program of Hoden Seimitsu Kako Kenkyusho has opened avenues for new revenue streams for the organization in Misc. Capital Goods industry. This can help Hoden Seimitsu Kako Kenkyusho to build a more holistic ecosystem for Hoden Seimitsu Kako Kenkyusho products in the Misc. Capital Goods industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Hoden Seimitsu Kako Kenkyusho has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Misc. Capital Goods sector. This continuous investment in analytics has enabled Hoden Seimitsu Kako Kenkyusho to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hoden Seimitsu Kako Kenkyusho to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hoden Seimitsu Kako Kenkyusho can use these opportunities to build new business models that can help the communities that Hoden Seimitsu Kako Kenkyusho operates in. Secondly it can use opportunities from government spending in Misc. Capital Goods sector.
Leveraging digital technologies
– Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Hoden Seimitsu Kako Kenkyusho are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Hoden Seimitsu Kako Kenkyusho may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Capital Goods sector.
Technology acceleration in Forth Industrial Revolution
– Hoden Seimitsu Kako Kenkyusho has witnessed rapid integration of technology during Covid-19 in the Misc. Capital Goods industry. As one of the leading players in the industry, Hoden Seimitsu Kako Kenkyusho needs to keep up with the evolution of technology in the Misc. Capital Goods 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.
Regulatory challenges
– Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry regulations.
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 Hoden Seimitsu Kako Kenkyusho.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho prominent markets.
High dependence on third party suppliers
– Hoden Seimitsu Kako Kenkyusho 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.
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. Hoden Seimitsu Kako Kenkyusho needs to understand the core reasons impacting the Misc. Capital Goods industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry.
Environmental challenges
– Hoden Seimitsu Kako Kenkyusho 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. Hoden Seimitsu Kako Kenkyusho can take advantage of this fund but it will also bring new competitors in the Misc. Capital Goods industry.
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.
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. Hoden Seimitsu Kako Kenkyusho 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.
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 Hoden Seimitsu Kako Kenkyusho business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Hoden Seimitsu Kako Kenkyusho Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho needs to make to build a sustainable competitive advantage.