CC Japan Income and Growth Trust PL (CCJI) SWOT Analysis / TOWS Matrix / MBA Resources
Investment Services
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for CC Japan Income and Growth Trust PL (United Kingdom)
Based on various researches at Oak Spring University , CC Japan Income and Growth Trust PL is operating in a macro-environment that has been destablized by – customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, wage bills are increasing,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of CC Japan Income and Growth Trust PL
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that CC Japan Income and Growth Trust PL can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the CC Japan Income and Growth Trust PL, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL can be done for the following purposes –
1. Strategic planning of CC Japan Income and Growth Trust PL
2. Improving business portfolio management of CC Japan Income and Growth Trust PL
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Investment Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of CC Japan Income and Growth Trust PL
Strengths of CC Japan Income and Growth Trust PL | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of CC Japan Income and Growth Trust PL are -
Ability to recruit top talent
– CC Japan Income and Growth Trust PL is one of the leading players in the Investment Services industry in United Kingdom. It is in a position to attract the best talent available in United Kingdom. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the CC Japan Income and Growth Trust PL 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.
Sustainable margins compare to other players in Investment Services industry
– CC Japan Income and Growth Trust PL has clearly differentiated products in the market place. This has enabled CC Japan Income and Growth Trust PL to fetch slight price premium compare to the competitors in the Investment Services industry. The sustainable margins have also helped CC Japan Income and Growth Trust PL to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of CC Japan Income and Growth Trust PL in Investment Services industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– CC Japan Income and Growth Trust PL has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. CC Japan Income and Growth Trust PL 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.
Analytics focus
– CC Japan Income and Growth Trust PL 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 Investment Services industry. The technology infrastructure of United Kingdom 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 switching costs
– The high switching costs that CC Japan Income and Growth Trust PL 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.
Digital Transformation in Investment Services industry
- digital transformation varies from industry to industry. For CC Japan Income and Growth Trust PL digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. CC Japan Income and Growth Trust PL 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.
Innovation driven organization
– CC Japan Income and Growth Trust PL is one of the most innovative firm in Investment Services sector.
Highly skilled collaborators
– CC Japan Income and Growth Trust PL has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Investment Services industry. Secondly the value chain collaborators of CC Japan Income and Growth Trust PL have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management in the Investment Services industry
– CC Japan Income and Growth Trust PL is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of CC Japan Income and Growth Trust PL
– The covid-19 pandemic has put organizational resilience at the centre of everthing CC Japan Income and Growth Trust PL does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses of CC Japan Income and Growth Trust PL | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of CC Japan Income and Growth Trust PL are -
Compensation and incentives
– The revenue per employee of CC Japan Income and Growth Trust PL is just above the Investment 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 Investment Services industry, CC Japan Income and Growth Trust PL 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.
Lack of clear differentiation of CC Japan Income and Growth Trust PL products
– To increase the profitability and margins on the products, CC Japan Income and Growth Trust PL needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, CC Japan Income and Growth Trust PL has high operating costs in the Investment Services industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract CC Japan Income and Growth Trust PL lucrative customers.
High dependence on CC Japan Income and Growth Trust PL ‘s star products
– The top 2 products and services of CC Japan Income and Growth Trust PL still accounts for major business revenue. This dependence on star products in Investment Services industry has resulted into insufficient focus on developing new products, even though CC Japan Income and Growth Trust PL has relatively successful track record of launching new products.
Need for greater diversity
– CC Japan Income and Growth Trust PL has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 CC Japan Income and Growth Trust PL supply chain. Even after few cautionary changes, CC Japan Income and Growth Trust PL is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left CC Japan Income and Growth Trust PL vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– From the outside it seems that CC Japan Income and Growth Trust PL needs to have more collaboration between its sales team and marketing team. Sales professionals in the Investment Services industry have deep experience in developing customer relationships. Marketing department at CC Japan Income and Growth Trust PL can leverage the sales team experience to cultivate customer relationships as CC Japan Income and Growth Trust PL is planning to shift buying processes online.
Employees’ less understanding of CC Japan Income and Growth Trust PL strategy
– From the outside it seems that the employees of CC Japan Income and Growth Trust PL 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.
Ability to respond to the competition
– As the decision making is very deliberative at CC Japan Income and Growth Trust PL, in the dynamic environment of Investment Services industry it has struggled to respond to the nimble upstart competition. CC Japan Income and Growth Trust PL has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, CC Japan Income and Growth Trust PL is slow explore the new channels of communication. These new channels of communication can help CC Japan Income and Growth Trust PL to provide better information regarding Investment Services products and services. It can also build an online community to further reach out to potential customers.
CC Japan Income and Growth Trust PL Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of CC Japan Income and Growth Trust PL are -
Learning at scale
– Online learning technologies has now opened space for CC Japan Income and Growth Trust PL 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– CC Japan Income and Growth Trust PL can use the latest technology developments to improve its manufacturing and designing process in Investment 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, CC Japan Income and Growth Trust PL is facing challenges because of the dominance of functional experts in the organization. CC Japan Income and Growth Trust PL can utilize new technology in the field of Investment Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– CC Japan Income and Growth Trust PL has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Investment Services sector. This continuous investment in analytics has enabled CC Japan Income and Growth Trust PL to build a competitive advantage using analytics. The analytics driven competitive advantage can help CC Japan Income and Growth Trust PL to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 CC Japan Income and Growth Trust PL 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, CC Japan Income and Growth Trust PL can use these opportunities to build new business models that can help the communities that CC Japan Income and Growth Trust PL operates in. Secondly it can use opportunities from government spending in Investment Services sector.
Building a culture of innovation
– managers at CC Japan Income and Growth Trust PL 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 Investment Services industry.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Investment Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. CC Japan Income and Growth Trust PL 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. CC Japan Income and Growth Trust PL 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.
Use of Bitcoin and other crypto currencies for transactions in Investment Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for CC Japan Income and Growth Trust PL in the Investment Services industry. Now CC Japan Income and Growth Trust PL 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. CC Japan Income and Growth Trust PL can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, CC Japan Income and Growth Trust PL 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL to hire the very best people irrespective of their geographical location.
Threats CC Japan Income and Growth Trust PL External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of CC Japan Income and Growth Trust PL are -
Stagnating economy with rate increase
– CC Japan Income and Growth Trust PL 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 Investment Services 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.
High dependence on third party suppliers
– CC Japan Income and Growth Trust PL 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.
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.
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 CC Japan Income and Growth Trust PL.
Easy access to finance
– Easy access to finance in Investment Services industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. CC Japan Income and Growth Trust PL can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on CC Japan Income and Growth Trust PL 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 Investment Services industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for CC Japan Income and Growth Trust PL in Investment Services industry. The Investment 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.
Environmental challenges
– CC Japan Income and Growth Trust PL 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. CC Japan Income and Growth Trust PL can take advantage of this fund but it will also bring new competitors in the Investment Services industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, CC Japan Income and Growth Trust PL may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Investment Services sector.
Increasing wage structure of CC Japan Income and Growth Trust PL
– 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 CC Japan Income and Growth Trust PL.
Shortening product life cycle
– it is one of the major threat that CC Japan Income and Growth Trust PL is facing in Investment Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. CC Japan Income and Growth Trust PL 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.
Weighted SWOT Analysis of CC Japan Income and Growth Trust PL Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL needs to make to build a sustainable competitive advantage.