The company started its operations in the year 1983; today it is a well-developed company with promising prospects. The company embarks in the supply of home appliances and non-electronic devices to the various markets that it serves (Yamada et al. 2013, p. 0450). The markets are subject to a stiff competition which should be encountered with strategic policies that will help the company realize its objectives. It has to be able to make significant profits, and for it to dominate the market, the management must carry out a SWOT analysis to be able to come up with informed decisions.
A SWOT analysis will help it identify its opportunities, strengths, weaknesses and lastly its threats. Identifying opportunities and the strengths of the company will contribute to developing policies to make enough of the possibilities and the advantages that it has. In the context of the threats and the weaknesses of the company, the SWOT will enable the company to devise ways of reducing the effect of their shortcomings so that they can survive in the market that has aggressive rivals that are eager to bring their business down. SWOT analysis is the doorway to the achievement of the vision and the goals of the company.
|
Strength |
Details |
Chance of future Change |
Degree of Significance / Importance |
|
· Competent staff that are highly motivated · The leading electronics retail shop in Japan(profits of 58.1 billion Yen) · Availability of other Incomes · Efficiency in Mergers and Acquisitions |
-It is important to have competent staff that is self-driven so that a company can deliver quality goods and services. -Also, leading a market is significant because of the benefit of winning most of the customers and thus increased profits. – Mergers and acquisitions will aid creating a synergy while the availability of other incomes will add the earnings of the company and thus it will be able to run smoothly. |
3/5 3/5 3/5 3/5 |
2/5. 2/5 2/5 2/5 |
|
Weaknesses · R&D is lower than it is expected · Inferior customer relationships · Over diversification in brands |
-The company has participated in research and development, but it is not yet up to the level that was stipulated in the objectives of the company (Edging ton and Hayter 2013, p. 23). – Inferior customer relationships can be tied to the fact that the needs and the wants of the customers have not been studied in depth. |
3/5 3/5 |
3/5 3/5 |
|
Opportunities · Development of the market for the electronic appliances · Improvement in the internet sales |
-If the opportunities are worked on, then the company will stand a chance to command a large market (Glowik 2016, p. 33).If a new market is developed, the sales figure will improve to the better as well as marketing through the internet. -Internet sales will attract a lot of customers thus imperative in the making of profits |
3/5 3/5 |
2/5 4/5 |
|
Threats · Increase in Consumption Tax · Stiff Competition |
-The increase in consumption tax as a result of legislation will reduce the number of customers that are willing to purchase the goods and services of Yamada company (Nishi 2015, p. 20). Stiff competition is as a result from the dominance of other powerful companies such as Apple that offer the same commodities and have a large number of loyal customers(Belderbos, 2014). |
2/5 1/5 |
4/5 4/5 |
The market size of electronics users in approximated to be 32.8 million a figure that earns the country millions of US dollars. The large market has necessitated the growth of the company which is guaranteed of sales from a large number of consumers. The electronic market is dominated by very powerful competitors such as the Apple Company that dominates a large part of the market (Solomon 2014, p. 34). The market leaders pose a significant threat to the stability of the company. The competitors are much diversified and have been in the business for a much extended period. The marketing strategies of the competitors are much higher, and some of the strategies that they are adopting now cannot be managed by the company as per now. For instance, the marketing strategy of Apple Company of pricing their products so highly cannot be implemented by the business which has loyal customers that are used to the affordable prices and thus escalating the prices at once can lead to tremendous losses. (Edging ton and Hayter 2013, p. 650). The market concentration in Japan is intensive with most of the electric companies having 50% of the market shares. This is due to the country adopting advanced technologies. The distribution of electronics in the market most of the time is through the company stores and marketing is usually done through the internet (Castley 2016, p 20)
The SWOT table indicates the strengths, the weaknesses, the threats and the opportunities that are there in the company. To begin with, the company has competent employees with an importance level of moderate and a rating of 2. It is a clear indication that the company is efficient in its operations to a great extent. Limited modifications need to be involved. The other strength suggests the company being a leading retail company in Japan. The score is a one because of the repercussions that come with leading a market (Belderbos 2014, p. 89).
Because the company engages in the distribution of the electronic products, reuse services, and non-electronic products, it has been able to report very high incomes due to various alternative sources of revenue that it has. And thus for this case, the rating of the company on this strength is 2, and the importance of the strength is moderate. Conversely, the company has a rating of 3 in the context of efficiency in mergers and acquisitions; the company can increase its market share especially when it was merged with Nihon Densen Company. The mergers have created synergy thus it is of a very high importance (Nishi 2015, p. 33.).
The weaknesses of the company involve poor customer relations and the over diversification of brands (Winston and Weinstein 2016, p .35). Having too many brands is a weakness to an extent because of the divided attention that it poses to the company. Also, the company does not have well-developed customer relation systems that help to offer the best services to its clients.
The opportunities that are in the market involve the ability of the company to develop a market for the newly developed products (Hirai et al. 2015, p. 480). It is a great advantage to the enterprise because of the ability to acquire more profits after venturing into an idea. The other opportunities include an improvement in the tastes and preferences of the customers to reusable items. And also adjustments in the tastes and preferences of the consumers (Freund and Moran 2017, p. 23).The changes in the tastes and the preferences of the customers give an opportunity for the company to venture into new ideas in the bid to correspond with the client needs and values. The two opportunities both have a small importance and a rating of 1, and thus they are not included in the SWOT table. Lastly, on the possibilities, there is an improvement in the sales via the internet that is not only cost saving but convenient to the company.
The threats of the company include the increased consumer taxes that have made the products of the company to be expensive. Also, the company has the threat of stiff competition from other market players like Apple Company and Kojima. The two threats are of a moderate importance and thus a rating of 2. The last threat is in the legislation of the environment conservation act that will make the company adjust to the new recommendations that may be costly. The rating of the risk is I and its importance magnitude is low It is not hence included in the SWOT table.
The target market for the company is the middle income earning individuals. The electronic and the non-electronic appliances are meant for the population that can afford the facilities because most of the products require energy to run (Miyazaki 2016, p. 20). Also, the target population also encompasses of students because of the books that the company sells in the various retailer shops. The products manufactured by the organization are meant to suit the diverse needs of the customers.
The adopting of technology and information systems has made most of the individuals to see the need of being part of the revolution (Baker 2014, p. 23). The company is aware of the expectations of the target group. And thus, in the bid to satisfy the needs, the company has ensured that the desired population always accesses the commodities in time as and when they require them. The prices of the products are reasonable making the company report more sales in the short run. The middle-class income earners are the major focus of the enterprise.
The company understands that this group does not have a lot to spend yet they still require using the commodities. It is because of this thought that the company saw that it was good if it engaged in the repair and the reselling of the already used products as part of its operations. The target population now has a lot of varieties to choose from in electronics and non-electronics (Akai et al. 2016, p. 22). It is also important to note that the target population is spread throughout Japan. For the company to be able to make profits from its target population, it has invested its resources in online marketing. Its target market is always fed with information about the products and the services of the company. Also, the company has created an avenue where customers can buy their commodities via their website. The company aims at retaining most of its clients and being customer centric.
The company should engage in the sale of clothes for all the categories for individuals; ranging from children, women, and Men. The clothes should be affordable so the target population that majorly encompasses of middle-class income earners. It is evident that if a retail store becomes a one-stop shop, then a lot of customers will be retained because of the variety of services that the company will be providing. The competitive edge of the company will improve because of the several services that it offers to the target population (Glowik 2016, p. 65).
It is also important for the company to make sure that the clothes supply is constant. Also, the clothes should be those of a higher quality so that the target population can find a reason to purchase them. It is imperative for the product to meet the values of the customers. The culture of the Japanese people should be incorporated in the decision-making process (Horaguchi and Shimokawa 2013, p. 43). The clothes thus should blend with the values of the target population. The expectations of the target populations must be actualized. For instance, if the customers expect the clothes to be of a particular texture then the company must ensure that the clothes merge with the client expectations. It must also make sure that it practices total customer experience.
The client should be allowed to purchase the new product for instance through the internet of by the use of credit cards. The new product should be relevant in every perspective. If the clothes are like any other clothes from another store, then the target market of the company will not be moved to get the clothes at the company’s stores. The clothes should be promoted on the internet so that the customers are conversant with the available products. It is also important for it to make sure that it avails the clothes nearer for the client. When the company introduces a new product in the market will lead to new opportunities that can make it can venture in to realize its strategic goals. The new product will make the company more diversified.
The new product will ensure that the potential customers acquire quality clothes that will suit the culture and their lifestyle. The customers will be able to purchase the clothes at an affordable price. The customers will earn the value of their money back when they purchase the clothes from the store. The company is customer centric, and thus the customer needs are always a priority to the enterprise.
The product is fit for the market in all perspectives. To begin with, the product will create more opportunities for the company. The fact that the product is new it will automatically fetch a new market. The new market may be well developed than the already existing market regarding the tastes and preferences of the consumers. It is also important to note that the opportunities will make the company to have a competitive edge in the market (Menikpura et al. 2014, p. 185). The new product is thus important for the company.
To add on, the company has to invest in the new product because of the strengths that it has. The presence of competent employees will help in the promoting of the product on the internet. With the qualified staff, sales will be rejuvenated, and thus the company will perform. It is also important for the organization to engage in the selling of the clothes so as to reduce the threat of consumer taxes that being imposed on the products already in the market. The reduction of the user taxes will make the products more affordable to the customers. Lastly, on the weakness of the company on inferior customer relation, the company will reduce it through ensuring that it engages in total consumer experience, which will promote more interactions with the customers.
|
Segment |
Description |
Demographic |
Geographic |
Behavioral |
Psychographic |
Segment Attractiveness |
|
Budget sensitive Customers |
These are customers that are not interested with a luxurious life style but are keen on how they spend their money. They are still sensitive on the quality of products |
Individuals that are between the ages of 1- 60 years of age. The target customers are for all genders The social class that is targeted is the middle class income earners |
The company targets customers from all the Japan through its various stores in the country. Goods can be purchased also through the internet via the company’s website (Baker 2014, p. 34). |
Customers that are fond of living a comfortable lifestyle and buy various gadgets to suit their needs (Solomon 2014, p. 45). The company also targets customers that base their purchases on the price levels. |
The company targets customers that are time averse that is they are conversant with the trends in lifestyle and always want to be part of it. |
The market segment is the most attractive because it forms the majority of the customers of Yamada. The market segment is the largest in size. |
|
Customers Driven by quality goods and services. |
These are customers that are fond of quality products that are offered in the market ranging from the electronic and the non electronic appliances. |
Adults ranging from the ages of 17-55years. The customers are majorly middle and high income earners. |
Customers that reside in the urban or suburb areas of the country. |
Customers that buy good that are highly priced because they associate them with quality. And customers that are loyal to the Yamada products. |
The major targets are customers that are trendy and time conscious. |
The segment is attractive because it fetches a lot of profits because of its nature where individuals buy commodities to showcase their class and thus they will always purchase the products every time (Winston and Weinstein 2016,p. 56). |
References
Akai, K, Kodama, K and Nishino, N 2016, ‘A Survey of Business Models in Japanese Restaurant and Retail Industries,’ In Serviceology for Designing the Future, (pp. 3-22). Springer Japan.
Baker, M 2014, Marketing strategy and management, Palgrave Macmillan.
Belderbos, R 2014, ‘The role of investment in Europe in the globalization strategy of Japanese electronics firms,’ Japanese Firms in Europe: A Global Perspective, pp.89.
Castley, R, 2016. Korea’s economic miracle: The crucial role of Japan, Springer.
Edging ton, DW and Hayter, R 2013, ‘Globalization and Regional Headquarters: Japanese Electronics Firms in the ASEAN Region,’ Annals of the Association of American Geographers, vol.103, no.3, pp.647-668.
Glowik, M 2016, Market Entry Strategies: Internationalization Theories, Concepts, and Cases of Asian High-Technology Firms: Haier, Hon Hai Precision, Lenovo, LG Electronics,
Panasonic, Samsung, Sharp, Sony, TCL, Xiaomi. Walter de Gruyter GmbH & Co KG. Freund, C and Moran, T 2017, Multinational Investors as Export Superstars: How Emerging- Market Governments Can Reshape Comparative Advantage.
Horaguchi, H and Shimokawa, K 2013, Japanese foreign direct investment and the East Asian industrial system: Case studies from the automobile and electronics industries, Springer Science & Business Media.
Hirai, H, Kondo, N, Sasaki, R, Iwamuro, S, Masuno, K, Ohtsuka, R, Miura, H, and Sakata, K 2015, ‘Distance to retail stores and risk of being homebound among older adults in a City severely affected by the 2011 Great East Japan Earthquake,’ Age and ageing, Vol.44, no, 3, pp.478-484.
Menikpura, S, Santo, A, and Hotta, Y 2014, ‘Assessing the climate co-benefits from waste Electrical and electronic equipment (WEEE) recycling in Japan’ Journal of Cleaner Production, Vol.74, pp.183-190.
Miyazaki, K 2016, Building Competences in the firm: Lessons from Japanese and European Optoelectronics, Springer.
Nishi, T 2015, ‘Corporate diversification and board composition in Japanese electronics Corporations,’ International Journal of Business and Management, vol.3, no .2, pp.27- 44.
Ozcan, P, and Santos, F 2015, ‘The market that never was: Turf wars and failed alliances in Mobile payments,’ Strategic Management Journal, vol.36, no.10, pp.1486-1512.
Solomon, M 2014, Consumer Behavior: Buying, having, and being (Vol. 10), Englewood Cliffs, NJ: Prentice-Hall.
Winston, W, and Weinstein, A 2016, Defining your market: winning strategies for high-tech, Industrial and service firms. Routledge.
Yamada, N, Ijiro, T, Goto, W, Okamoto, K, Dobashi, K, and Shiobara, T 2013, ‘June. Development of silicone-encapsulated CPV module based on LED package technology,’
In Photovoltaic Specialists Conference (PVSC), 2013 IEEE 39th (pp. 0493-0496). IEEE.
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