Profitability - Establish Brand - Wide Product Line - Large Capital - Liquidity Weaknesses - Many levelled distribution channel - Non-Keiretsu - Reliant on Import - High Leverage Opportunities - Emerging Market - Free Trade - E-commerce - Changing Age Structure - Population Growth SO Strategic - Expansion - New Product - Globalisation WO Strategic - E-commerce venture - Vertical Integration - Diversification Threats - Increase Power of Buyer - Intensifying Competition - Country Risk - Forex Fluctuation ST Strategic - E-commerce - Superior Products - Lower Cost/Price - Vertical Integrate WT Strategic - Hedging - Acquisition/Mergers - Strategic Alliance - Divest/Turnaround Table 1: SWOT Analysis Strategies Now that we have seen Kao Corporation’s SWOT Analysis, we can now relates the 4 different elements together to form effective strategies for the company. Table 1 shows the key factors in each element, strength, weaknesses, opportunity and threats. Basically the strength and weaknesses makes up the company’s internal environment. The external environment on the other hand, consists of opportunities and threats. Internal environment is controllable by the firm where as the external environment depend on factors such as politics, economic, social and technology. By using the combining internal and external environment, we can obtain a basis for strategy formulation. The following are some of the strategy that we can formulate using SWOT analysis. SO Strategies As discussed earlier, there are many Big Emerging markets, particular in the Asian region, which are developing countries. These developing countries are experiencing population and economic growth. Thus, these markets are great opportunities for Kao to expand its market share. Moreover, with the newly born countries such as Slovenia due to the fall of communism, Kao can expand its operations into these markets. Kao has the capital and with its well-established brand nam...
