SWOT Analysis / TOWS Matrix for Kawase Computer Supplies (Japan)
Based on various researches at Oak Spring University , Kawase Computer Supplies is operating in a macro-environment that has been destablized by – increasing household debt because of falling income levels, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, technology disruption, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing government debt because of Covid-19 spendings,
geopolitical disruptions, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Kawase Computer Supplies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Kawase Computer Supplies can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kawase Computer Supplies, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kawase Computer Supplies 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 Kawase Computer Supplies can be done for the following purposes –
1. Strategic planning of Kawase Computer Supplies
2. Improving business portfolio management of Kawase Computer Supplies
3. Assessing feasibility of the new initiative in Japan
4. Making a Printing Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kawase Computer Supplies
Strengths of Kawase Computer Supplies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kawase Computer Supplies are -
Analytics focus
– Kawase Computer Supplies 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 Printing 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.
Highly skilled collaborators
– Kawase Computer Supplies has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Printing Services industry. Secondly the value chain collaborators of Kawase Computer Supplies have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Kawase Computer Supplies is present in almost all the verticals within the Printing Services industry. This has provided Kawase Computer Supplies 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.
Digital Transformation in Printing Services industry
- digital transformation varies from industry to industry. For Kawase Computer Supplies digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kawase Computer Supplies 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.
Low bargaining power of suppliers
– Suppliers of Kawase Computer Supplies in the Services sector have low bargaining power. Kawase Computer Supplies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kawase Computer Supplies to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Printing Services industry
– Kawase Computer Supplies has clearly differentiated products in the market place. This has enabled Kawase Computer Supplies to fetch slight price premium compare to the competitors in the Printing Services industry. The sustainable margins have also helped Kawase Computer Supplies to invest into research and development (R&D) and innovation.
Learning organization
- Kawase Computer Supplies 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 Kawase Computer Supplies is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Kawase Computer Supplies emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Kawase Computer Supplies 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.
High brand equity
– Kawase Computer Supplies has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kawase Computer Supplies to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Printing Services
– Kawase Computer Supplies is one of the leading players in the Printing Services industry in Japan. Over the years it has not only transformed the business landscape in the Printing Services industry in Japan but also across the existing markets. The ability to lead change has enabled Kawase Computer Supplies in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Kawase Computer Supplies
– The covid-19 pandemic has put organizational resilience at the centre of everthing Kawase Computer Supplies does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy of Kawase Computer Supplies comprises – understanding the underlying the factors in the Printing 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.
Weaknesses of Kawase Computer Supplies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kawase Computer Supplies are -
Employees’ less understanding of Kawase Computer Supplies strategy
– From the outside it seems that the employees of Kawase Computer Supplies 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kawase Computer Supplies is slow explore the new channels of communication. These new channels of communication can help Kawase Computer Supplies to provide better information regarding Printing Services products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Kawase Computer Supplies, in the dynamic environment of Printing Services industry it has struggled to respond to the nimble upstart competition. Kawase Computer Supplies has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Kawase Computer Supplies is dominated by functional specialists. It is not different from other players in the Printing Services industry, but Kawase Computer Supplies needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kawase Computer Supplies to focus more on services in the Printing Services industry rather than just following the product oriented approach.
Products dominated business model
– Even though Kawase Computer Supplies has some of the most successful models in the Printing Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Kawase Computer Supplies 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 Printing Services industry, Kawase Computer Supplies 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 Kawase Computer Supplies, it seems that company is thinking out the frontier risks that can impact Printing 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.
High bargaining power of channel partners in Printing Services industry
– because of the regulatory requirements in Japan, Kawase Computer Supplies 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 Printing Services industry.
High operating costs
– Compare to the competitors, Kawase Computer Supplies has high operating costs in the Printing Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Kawase Computer Supplies lucrative customers.
High cash cycle compare to competitors
Kawase Computer Supplies has a high cash cycle compare to other players in the Printing Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Kawase Computer Supplies products
– To increase the profitability and margins on the products, Kawase Computer Supplies needs to provide more differentiated products than what it is currently offering in the marketplace.
Kawase Computer Supplies Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Kawase Computer Supplies are -
Using analytics as competitive advantage
– Kawase Computer Supplies has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Printing Services sector. This continuous investment in analytics has enabled Kawase Computer Supplies to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kawase Computer Supplies to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Kawase Computer Supplies can use the latest technology developments to improve its manufacturing and designing process in Printing Services sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kawase Computer Supplies 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.
Creating value in data economy
– The success of analytics program of Kawase Computer Supplies has opened avenues for new revenue streams for the organization in Printing Services industry. This can help Kawase Computer Supplies to build a more holistic ecosystem for Kawase Computer Supplies products in the Printing Services industry by providing – data insight services, data privacy related products, data based consulting services, 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, Kawase Computer Supplies can use these opportunities to build new business models that can help the communities that Kawase Computer Supplies operates in. Secondly it can use opportunities from government spending in Printing Services sector.
Buying journey improvements
– Kawase Computer Supplies can improve the customer journey of consumers in the Printing 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kawase Computer Supplies can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Printing Services industry, but it has also influenced the consumer preferences. Kawase Computer Supplies can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Kawase Computer Supplies 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.
Use of Bitcoin and other crypto currencies for transactions in Printing Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Kawase Computer Supplies in the Printing Services industry. Now Kawase Computer Supplies can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Kawase Computer Supplies 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.
Building a culture of innovation
– managers at Kawase Computer Supplies 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 Printing Services industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Printing Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kawase Computer Supplies 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. Kawase Computer Supplies 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.
Threats Kawase Computer Supplies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Kawase Computer Supplies are -
Shortening product life cycle
– it is one of the major threat that Kawase Computer Supplies is facing in Printing Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Kawase Computer Supplies 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 Printing Services industry and other sectors.
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 Kawase Computer Supplies business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Kawase Computer Supplies.
Increasing wage structure of Kawase Computer Supplies
– 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 Kawase Computer Supplies.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kawase Computer Supplies in Printing Services industry. The Printing 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.
Easy access to finance
– Easy access to finance in Printing Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Kawase Computer Supplies can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Kawase Computer Supplies 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 Printing Services industry.
Technology acceleration in Forth Industrial Revolution
– Kawase Computer Supplies has witnessed rapid integration of technology during Covid-19 in the Printing Services industry. As one of the leading players in the industry, Kawase Computer Supplies needs to keep up with the evolution of technology in the Printing 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.
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.
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. Kawase Computer Supplies 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.
Regulatory challenges
– Kawase Computer Supplies 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 Printing Services industry regulations.
Environmental challenges
– Kawase Computer Supplies 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. Kawase Computer Supplies can take advantage of this fund but it will also bring new competitors in the Printing Services industry.
Weighted SWOT Analysis of Kawase Computer Supplies Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Kawase Computer Supplies 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 Kawase Computer Supplies 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 Kawase Computer Supplies 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 Kawase Computer Supplies 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 Kawase Computer Supplies needs to make to build a sustainable competitive advantage.
