Hoden Seimitsu Kako Kenkyusho (6469) SWOT Analysis / TOWS Matrix / 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 commodity prices, there is increasing trade war between United States & China, there is backlash against globalization, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, etc

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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.

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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

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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 -

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.

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.

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.

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.

Analytics focus

– Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods 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.

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.

Sustainable margins compare to other players in Misc. Capital Goods industry

– Hoden Seimitsu Kako Kenkyusho has clearly differentiated products in the market place. This has enabled Hoden Seimitsu Kako Kenkyusho to fetch slight price premium compare to the competitors in the Misc. Capital Goods industry. The sustainable margins have also helped Hoden Seimitsu Kako Kenkyusho to invest into research and development (R&D) and innovation.

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.

Successful track record of launching new products

– Hoden Seimitsu Kako Kenkyusho has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hoden Seimitsu Kako Kenkyusho 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.

Innovation driven organization

– Hoden Seimitsu Kako Kenkyusho is one of the most innovative firm in Misc. Capital Goods sector.

Cross disciplinary teams

– Horizontal connected teams at the Hoden Seimitsu Kako Kenkyusho 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.

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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 -

Low market penetration in new markets

– Outside its home market of Japan, Hoden Seimitsu Kako Kenkyusho 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 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.

High bargaining power of channel partners in Misc. Capital Goods industry

– because of the regulatory requirements in Japan, Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry.

Slow decision making process

– As mentioned earlier in the report, Hoden Seimitsu Kako Kenkyusho has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Capital Goods industry over the last five years. Hoden Seimitsu Kako Kenkyusho 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.

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.

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.

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.

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.

Capital Spending Reduction

– Even during the low interest decade, Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry using digital technology.

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.

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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 -

Loyalty marketing

– Hoden Seimitsu Kako Kenkyusho 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.

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.

Buying journey improvements

– Hoden Seimitsu Kako Kenkyusho can improve the customer journey of consumers in the Misc. Capital Goods 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 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.

Building a culture of innovation

– managers at Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho to hire the very best people irrespective of their geographical location.

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.

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.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Hoden Seimitsu Kako Kenkyusho is facing challenges because of the dominance of functional experts in the organization. Hoden Seimitsu Kako Kenkyusho can utilize new technology in the field of Misc. Capital Goods 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, 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.

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.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Misc. Capital Goods industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hoden Seimitsu Kako Kenkyusho 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. Hoden Seimitsu Kako Kenkyusho 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.

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.

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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 -

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.

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 Hoden Seimitsu Kako Kenkyusho in the Misc. Capital Goods sector and impact the bottomline of the organization.

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.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Shortening product life cycle

– it is one of the major threat that Hoden Seimitsu Kako Kenkyusho is facing in Misc. Capital Goods sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing wage structure of Hoden Seimitsu Kako Kenkyusho

– 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 Hoden Seimitsu Kako Kenkyusho.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Hoden Seimitsu Kako Kenkyusho in Misc. Capital Goods industry. The Misc. Capital Goods 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.

Consumer confidence and its impact on Hoden Seimitsu Kako Kenkyusho 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 Misc. Capital Goods industry and other sectors.

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.

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.

Easy access to finance

– Easy access to finance in Misc. Capital Goods industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hoden Seimitsu Kako Kenkyusho 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 Hoden Seimitsu Kako Kenkyusho.

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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.

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