SWOT Analysis / TOWS Matrix for Nakabohtec Corrosion Protecting (Japan)
Based on various researches at Oak Spring University , Nakabohtec Corrosion Protecting is operating in a macro-environment that has been destablized by – increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, there is backlash against globalization, increasing transportation and logistics costs, technology disruption, central banks are concerned over increasing inflation,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Nakabohtec Corrosion Protecting
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Nakabohtec Corrosion Protecting can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nakabohtec Corrosion Protecting, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting can be done for the following purposes –
1. Strategic planning of Nakabohtec Corrosion Protecting
2. Improving business portfolio management of Nakabohtec Corrosion Protecting
3. Assessing feasibility of the new initiative in Japan
4. Making a Business Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Nakabohtec Corrosion Protecting
Strengths of Nakabohtec Corrosion Protecting | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nakabohtec Corrosion Protecting are -
Ability to recruit top talent
– Nakabohtec Corrosion Protecting is one of the leading players in the Business 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.
Training and development
– Nakabohtec Corrosion Protecting 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.
Highly skilled collaborators
– Nakabohtec Corrosion Protecting has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Business Services industry. Secondly the value chain collaborators of Nakabohtec Corrosion Protecting have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy of Nakabohtec Corrosion Protecting comprises – understanding the underlying the factors in the Business Services 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.
Cross disciplinary teams
– Horizontal connected teams at the Nakabohtec Corrosion Protecting 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.
Innovation driven organization
– Nakabohtec Corrosion Protecting is one of the most innovative firm in Business Services sector.
Analytics focus
– Nakabohtec Corrosion Protecting 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 Business 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.
High brand equity
– Nakabohtec Corrosion Protecting has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nakabohtec Corrosion Protecting to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Nakabohtec Corrosion Protecting emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Nakabohtec Corrosion Protecting in the Services sector have low bargaining power. Nakabohtec Corrosion Protecting has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nakabohtec Corrosion Protecting to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Nakabohtec Corrosion Protecting in Business Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Nakabohtec Corrosion Protecting is present in almost all the verticals within the Business Services industry. This has provided Nakabohtec Corrosion Protecting 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.
Weaknesses of Nakabohtec Corrosion Protecting | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Nakabohtec Corrosion Protecting are -
Skills based hiring in Business Services industry
– The stress on hiring functional specialists at Nakabohtec Corrosion Protecting 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 dependence on Nakabohtec Corrosion Protecting ‘s star products
– The top 2 products and services of Nakabohtec Corrosion Protecting still accounts for major business revenue. This dependence on star products in Business Services industry has resulted into insufficient focus on developing new products, even though Nakabohtec Corrosion Protecting has relatively successful track record of launching new products.
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 Nakabohtec Corrosion Protecting supply chain. Even after few cautionary changes, Nakabohtec Corrosion Protecting is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Nakabohtec Corrosion Protecting vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Nakabohtec Corrosion Protecting is dominated by functional specialists. It is not different from other players in the Business Services industry, but Nakabohtec Corrosion Protecting needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Nakabohtec Corrosion Protecting to focus more on services in the Business Services industry rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee of Nakabohtec Corrosion Protecting is just above the Business Services 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 Business Services industry, Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting, it seems that company is thinking out the frontier risks that can impact Business Services 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.
Low market penetration in new markets
– Outside its home market of Japan, Nakabohtec Corrosion Protecting needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners in Business Services industry
– because of the regulatory requirements in Japan, Nakabohtec Corrosion Protecting 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 Business Services industry.
Interest costs
– Compare to the competition, Nakabohtec Corrosion Protecting 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.
Aligning sales with marketing
– From the outside it seems that Nakabohtec Corrosion Protecting needs to have more collaboration between its sales team and marketing team. Sales professionals in the Business Services industry have deep experience in developing customer relationships. Marketing department at Nakabohtec Corrosion Protecting can leverage the sales team experience to cultivate customer relationships as Nakabohtec Corrosion Protecting is planning to shift buying processes online.
Nakabohtec Corrosion Protecting Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Nakabohtec Corrosion Protecting are -
Buying journey improvements
– Nakabohtec Corrosion Protecting can improve the customer journey of consumers in the Business 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.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Business Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Nakabohtec Corrosion Protecting 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. Nakabohtec Corrosion Protecting 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.
Creating value in data economy
– The success of analytics program of Nakabohtec Corrosion Protecting has opened avenues for new revenue streams for the organization in Business Services industry. This can help Nakabohtec Corrosion Protecting to build a more holistic ecosystem for Nakabohtec Corrosion Protecting products in the Business Services industry by providing – data insight services, data privacy related products, data based consulting services, etc.
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 Nakabohtec Corrosion Protecting 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.
Learning at scale
– Online learning technologies has now opened space for Nakabohtec Corrosion Protecting 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.
Leveraging digital technologies
– Nakabohtec Corrosion Protecting 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Business Services industry, but it has also influenced the consumer preferences. Nakabohtec Corrosion Protecting 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, Nakabohtec Corrosion Protecting is facing challenges because of the dominance of functional experts in the organization. Nakabohtec Corrosion Protecting can utilize new technology in the field of Business Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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, Nakabohtec Corrosion Protecting can use these opportunities to build new business models that can help the communities that Nakabohtec Corrosion Protecting operates in. Secondly it can use opportunities from government spending in Business Services sector.
Developing new processes and practices
– Nakabohtec Corrosion Protecting can develop new processes and procedures in Business 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.
Using analytics as competitive advantage
– Nakabohtec Corrosion Protecting has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Business Services sector. This continuous investment in analytics has enabled Nakabohtec Corrosion Protecting to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nakabohtec Corrosion Protecting to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Nakabohtec Corrosion Protecting 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.
Threats Nakabohtec Corrosion Protecting External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Nakabohtec Corrosion Protecting are -
High dependence on third party suppliers
– Nakabohtec Corrosion Protecting 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.
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 Nakabohtec Corrosion Protecting.
Easy access to finance
– Easy access to finance in Business Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Nakabohtec Corrosion Protecting can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Nakabohtec Corrosion Protecting needs to understand the core reasons impacting the Business Services industry. This will help it in building a better workplace.
Increasing wage structure of Nakabohtec Corrosion Protecting
– 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 Nakabohtec Corrosion Protecting.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nakabohtec Corrosion Protecting in Business Services industry. The Business 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, Nakabohtec Corrosion Protecting may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Business Services sector.
Regulatory challenges
– Nakabohtec Corrosion Protecting 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 Business Services industry regulations.
Stagnating economy with rate increase
– Nakabohtec Corrosion Protecting 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 Business Services industry.
Shortening product life cycle
– it is one of the major threat that Nakabohtec Corrosion Protecting is facing in Business Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Nakabohtec Corrosion Protecting 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 Business Services industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Nakabohtec Corrosion Protecting has witnessed rapid integration of technology during Covid-19 in the Business Services industry. As one of the leading players in the industry, Nakabohtec Corrosion Protecting needs to keep up with the evolution of technology in the Business 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.
Weighted SWOT Analysis of Nakabohtec Corrosion Protecting Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting 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 Nakabohtec Corrosion Protecting needs to make to build a sustainable competitive advantage.