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, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, geopolitical disruptions, there is increasing trade war between United States & China,
increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, 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 -
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.
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.
Operational resilience
– The operational resilience strategy of CC Japan Income and Growth Trust PL comprises – understanding the underlying the factors in the Investment 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.
Innovation driven organization
– CC Japan Income and Growth Trust PL is one of the most innovative firm in Investment Services sector.
Diverse revenue streams
– CC Japan Income and Growth Trust PL is present in almost all the verticals within the Investment Services industry. This has provided CC Japan Income and Growth Trust PL 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.
Training and development
– CC Japan Income and Growth Trust PL has one of the best training and development program in Financial 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.
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.
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.
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.
Ability to lead change in Investment Services
– CC Japan Income and Growth Trust PL is one of the leading players in the Investment Services industry in United Kingdom. Over the years it has not only transformed the business landscape in the Investment Services industry in United Kingdom but also across the existing markets. The ability to lead change has enabled CC Japan Income and Growth Trust PL in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– CC Japan Income and Growth Trust PL has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – CC Japan Income and Growth Trust PL staying ahead in the Investment Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of CC Japan Income and Growth Trust PL in the Financial sector have low bargaining power. CC Japan Income and Growth Trust PL has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps CC Japan Income and Growth Trust PL to manage not only supply disruptions but also source products at highly competitive prices.
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 -
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.
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.
Products dominated business model
– Even though CC Japan Income and Growth Trust PL has some of the most successful models in the Investment Services industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. CC Japan Income and Growth Trust PL should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of CC Japan Income and Growth Trust PL is dominated by functional specialists. It is not different from other players in the Investment Services industry, but CC Japan Income and Growth Trust PL needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help CC Japan Income and Growth Trust PL to focus more on services in the Investment Services industry rather than just following the product oriented approach.
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.
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.
Slow to strategic competitive environment developments
– As CC Japan Income and Growth Trust PL is one of the leading players in the Investment Services industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Investment Services industry in last five years.
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.
Low market penetration in new markets
– Outside its home market of United Kingdom, CC Japan Income and Growth Trust PL needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
CC Japan Income and Growth Trust PL has a high cash cycle compare to other players in the Investment 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.
No frontier risks strategy
– From the 10K / annual statement of CC Japan Income and Growth Trust PL, it seems that company is thinking out the frontier risks that can impact Investment 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.
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 -
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.
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.
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.
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.
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.
Leveraging digital technologies
– CC Japan Income and Growth Trust PL 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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for CC Japan Income and Growth Trust PL in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Investment Services industry, and it will provide faster access to the consumers.
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.
Developing new processes and practices
– CC Japan Income and Growth Trust PL can develop new processes and procedures in Investment 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Investment Services industry, but it has also influenced the consumer preferences. CC Japan Income and Growth Trust PL can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 -
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.
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.
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.
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. CC Japan Income and Growth Trust PL needs to understand the core reasons impacting the Investment Services industry. This will help it in building a better workplace.
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 CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL.
Technology acceleration in Forth Industrial Revolution
– CC Japan Income and Growth Trust PL has witnessed rapid integration of technology during Covid-19 in the Investment Services industry. As one of the leading players in the industry, CC Japan Income and Growth Trust PL needs to keep up with the evolution of technology in the Investment 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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, CC Japan Income and Growth Trust PL 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 CC Japan Income and Growth Trust PL prominent markets.
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.
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 CC Japan Income and Growth Trust PL in the Investment Services sector and impact the bottomline of the organization.
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.
