Rakuten SWOT Analysis 2022 – Rakuten Group, Inc.

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Rakuten SWOT Analysis Analyzes, Rakuten, Inc. is a multinational e-commerce company based in Tokyo, Japan. Founded in 1997 with the launch of the business-to-business-to-consumer (B2B2C) marketplace Rakuten Ichiba, the company established itself as a leading online retailer in the country. Through its subsidiaries operating worldwide, Rakuten is involved in communications services, financial technology, and video distribution services, among others.

          Did You Know? Rakuten is also referred to as “the Amazon of Japan”.

Rakuten was first introduced in 1997 in Japan as an e-commerce site, and in the twenty years since, it has expanded its presence internationally with the innovation and entrepreneurship that has driven the business since its founding.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Rakuten.

Rakuten At A Glance – Rakuten SWOT Analysis

Company: Rakuten Group, Inc.
Founders: Hiroshi Mikitani
Year of establishment: 7 February 1997
CEO: Hiroshi Mikitani
Headquarters: Setagaya City, Tokyo, Japan
Employees (Dec 2020): 18,364
Ticker Symbol: RKUNY
Type: Public
Annual Revenue (Dec 2020): US$13.6 Billion
Profit net income (Dec 2020): US$9 Billion

Products & Services: E-commerce | Travel | Digital content | Fintech | Credit cards | Banking | Securities | Insurance | Electronic money | Smartphone app |  Payments | Communications | Mobile carrier service | Professional sports

Company Website: global.rakuten.com

Top Rakuten Competitors 

Competitors: Amazon | eBay | MyTime | Target | Macy’s | Walmart | Alibaba | Dillard’s

Rakuten SWOT Analysis – SWOT Analysis Of Rakuten

SWOT Analysis Of Rakuten analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Rakuten SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Rakuten SWOT Analysis. Below Is The Detailed SWOT Analysis Of Rakuten.

Rakuten Strengths – Rakuten SWOT Analysis

  • The presence of the geographical area in various areas can be one of the main strengths of the company. It affects the reach of the company to the market it is targeting and makes it easy to reach.
  • The extensive product range could enable the company to increase its customer base, and offset the loss in one product line while gaining from the others.
  • An online presence that is strong on social networks and efficient management of social media can increase the impact of positive E-WOM and help build relations with customers.
  • A healthy financial situation and a strong financial well-being can enable the company to invest further.
  • Access to suppliers who supply raw materials at lower prices can boost overall effectiveness.
  • The advantages of being located can boost the position of the company in many ways, like lower costs, better access to customers, or a better image of the brand.
  • A well-designed and effectively integrated IT infrastructure can increase the efficiency of the operation and enhance awareness of the most recent market developments.
  • A committed and skilled human capital can be a potent competitive advantage especially in the case of businesses that are service-oriented.
  • The quality of products and services is a major factor in the brand’s reputation and enhances Rakuten’s efficiency in a competitive market.
  • Diversity in the workplace can act as a significant business advantage in particular when the company plans to work in an international market.
  • The vertical and/or horizontal integration could increase control of the whole value chain, resulting in a better access to raw materials and speedy delivery of products to the customer.
  • An organization may have distinct intellectual property rights which could make its product offerings distinct and unique and extremely difficult for competitors to copy.

Rakuten Weaknesses – Rakuten SWOT Analysis 

  • The organization could face critique from environmentalists for its ineffective waste management practices and its inability to incorporate sustainability into its the business processes.
  • The business may suffer from inefficiency due to inefficient methods of managing inventory. A lack of inventory or an overstocked stock could lead to
  • The lack of cash or the insufficient current assets negatively impact the liquidity situation and impedes overall business performance.
  • A lack of funds for the promotion and marketing actions of the company hampers its ability to grow their customer base and encourage a repeat purchases.
  • A lower investment in research and development process could affect the performance of the business because of a lack of local and international market information.
  • Inability to recognize the needs and expectations of customers can results in an ineffective process of strategic planning and decision-making process. This is a weakness that means the business might not be able determine the improvement-seeking areas of the product/service mix.
  • The pricing strategy used by the company may not be viewed as reasonable when compared with the product’s or service’s attributes. This suggests the need to review price strategy.
  • Poor customer service (such as poor customer complaints handling) can cause negative publicity about the company, which can affect the business’s growth.
  • The decision-making process in Rakuten is a lengthy process and causes expensive delays in introducing new products into the market.
  • Poor management of projects can internalize weaknesses that hinder the organization’s ability to establish new branches or to expand the range of products.
  • A lack of commitment from the organization and high turnover among employees could raise costs for recruitment and lower the efficiency of your organization.
  • Stress at work, and consequently lower morale of workers makes the workforce less productive.
  • A mismatch between an organization’s management style and its goals can render the business organization unfocused.
  • Organizational culture can be an important internal weakness when it doesn’t align with the goals of the business/strategic objectives. For instance, the principal goal of the selected company is to introduce novel and exciting products on the marketplace. However, there is the risk-averse mindset that is prevalent in the corporate culture that prevents employees from thinking innovatively.

Rakuten Opportunities – Rakuten SWOT Analysis

  • The rapid growth of the number of people, and especially in the current or potential segments of the customer is an excellent opportunity for growth for the business organization.
  • The evolving needs of the customer as well as preferences, tastes and tastes could be a source of opportunity for businesses if it has a solid understanding of the market.
  • The development of innovative technologies that aid in the manufacturing and distribution process can be utilized to incorporate the latest innovations into the business processes. Technology integration that is advanced can lower costs, boost efficiency, and lead to rapid introduction of new products.
  • Increase in the customer’s disposable income as well as the growth of the customer base of the wealthy could be an opportunity to launch new high-end goods.
  • A reduction in rate of interest makes finance and fund raising at a lower cost more affordable for the business organization.
  • Customers might begin to prefer more innovative products and services due to changing preferences.
  • The rising popularity of e-commerce as well as the use of social media as marketing channels may be an excellent opportunity for Rakuten should it be able to create a strong online presence across various social media sites.
  • The development of new markets and new niches offer the opportunity to expand product lines and business opportunities.
  • The eroding boundaries and increasing global connectivity allows the company to expand into the international market, target the customers with geographically dispersed bases and improve profits.
  • The support offered by the government as well as other policies designed to improve the business environment sustainable is a positive external environmental aspect for Rakuten.
  • A change in the customer’s standard of living and lifestyle will mean greater spending on consumer products and services and more opportunities to promote the purchase.

Rakuten Threats – Rakuten SWOT Analysis

  • The evolving regulatory framework as well as the new regulations pose a serious risk to Rakuten. This means that compliance with legal requirements more difficult and complicated for the business organization. Failure to meet the new regulations can lead to expensive legal proceedings.
  • The shortage of skilled workers in the marketplace can make it challenging for an organization to find people with the appropriate skill set.
  • The growing number of direct and indirect competitors impacts the ability of an organization to maintain and increase the number of customers it serves.
  • The economic downturn can affect the performance of businesses when they directly affect consumers’ spending patterns and buying power.
  • The rising cost of inflation raises production costs and can impact the company’s profitability.
  • The increasing trend towards sustainability in the environment can be a significant risk when products or services offered do not meet the environmental standards. They are subject to negative press and criticism from environmentalists. It also affects the image of the brand in a highly competitive market.
  • The rise of globalization forces organizations to transcend national borders and tackle the cultural diversity that could cause harm when the company is not equipped with cultural ability.

This is the SWOT report that Rakuten has done. Please let us know if you have additional suggestions to add.


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