Japan Post Holdings SWOT and PESTLE Analysis

Strength

1. Being a state-owned company, it is involved in multiple businesses like postal, logistics, finance, banking etc.: Japan post holdings is a state-owned company of the Japanese government which has operations in various sectors like postal, logistics, finance, banking etc. with its presence in multiple sectors the company is able to generate huge revenues and continuous cash flows. This helps the company to protect its market share and to enter into new markets. Within 14 years of its establishment in 2006 the company was able to clock revenue of 10,991 crores USD in 2021 which shows the gains that the company was able to achieve. The series of fundings by the Ministry of Finance of the Japan government helped the company to stay afloat despite huge competition from the private players. The trust of the Japanese people in the public sector institutions is also an added advantage.

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Weakness

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Opportunity

1. Development of AI, telematics and ML helps in leveraging the resources and increase revenues: Recent developments in the fields of artificial intelligence and machine learning is one of the major opportunities available to the company to leverage its resources and capabilities to improve the operations by monitoring the past data and predicting the future. The rise in the income levels of the people also leads to higher consumption causing higher demand and need for better logistics and supply chain management eventually. Automation is one another major asset which may help in increasing the efficiency of operations with less cost because even though it requires high capital costs, operating and maintenance costs are less which will be profitable in future. Japan Post Holdings will work to review delivery areas and delivery routes using telematics, allocate staff and vehicles based on item numbers, optimise delivery routes, and employ robotics to automate tasks that currently require a lot of human labour and physical space in post offices (unmanned transport vehicles, piece-picking robots, etc.). Additionally, they will work on the actual implementation of automated delivery, etc., utilising drones, delivery robots, and autonomous vehicles.

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Environmental changes have led to focus more on use of ecofriendly packages and reduce pollution: Recent climatic changes and global warming forced not only the governments but also the corporates all over the world to look into environmentally sustainable ways of operations causing less harm to nature. We have seen recent fires in Amazon rainforest and Australia leading to huge deforestation and loss of biodiversity. It's time for companies to reduce their carbon footprint and use ecofriendly products in their day-to-day operations which may increase the costs. Also, Japan is one of the most earthquake prone areas in the world. So, providing better insurance facilities and banking systems is a tough task because it may cause reduction in the profits of the company. So, the company should focus on other entities such as logistics and postal services to generate revenues.