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Ajinomoto SWOT & PESTLE Analysis

ID : 52673453| May 2020| 14 pages

COMPANY PROFILE -Ajinomoto

Business Sector :FMCG, Food Industry

Operating Geography :Japan, Asia, Global

About Ajinomoto :

Ajinomoto Co. Inc. is a Japanese food and biotechnology corporation which manufactures and distributes seasonings, cooking oils, frozen foods, beverages, sweeteners, amino acids and pharmaceuticals. The company’s headquarters are located in Chuo, Tokyo. The company’s star ingredient was discovered by Kikunae Ikeda at the University of Tokyo in 1908, with the help of his two brothers¬ who were involved in the extraction of Iodine from seaweed to produce the renowned substance commercially. They commenced the marketing of “AJI-NO-MOTO,” which translated to ‘essence of taste’. The company invests a higher percentage of its sales on research compared to its peers, reflecting its fascination for fine chemical and pharma products. Ajinomoto Co. announced their partnership with the Tokyo 2020 Organizing Committee of the Olympic and Paralympics to include coffee beans and Instant coffee powder to the list of products. Ajinomoto is entitled to market as an Official Partner. Ajinomoto has won several remarkable awards including Global Environment Awards and Accelerate Japan 2019 Awards.

Ajinomoto Co. Inc’s Unique Selling Proposition or USP lies in being the world’s first and largest producer of monosodium glutamate (MSG) and is one of Japan’s largest food- processing companies. Ajinomoto’s mission statement reads, “Eat Well, Live Well.”

Ajinomoto Revenue :


1127 billion Yen – FY ending 31st March 2019
1114 billion Yen - FY ending 31st March 2018

Competitive Analysis of Ajinomoto

SWOT
PESTLE
The SWOT analysis for Ajinomoto is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Leading edge bioscience and fine chemical technologies
2. Reorganized research and development structure to respond to changing market
3. Brand recognition and highest market share of Japan Food Products.
4. Aggressive campaigning to promote use
Decreasing business profit of frozen foods and coffee products.
OpportunitiesThreats
1. Implementing digital transformation to reformulate growth strategy.
2. Moving into asset light management.
3. Introducing menu specific seasonings in emerging countries.
4. Increasing sales of Ajinomoto Build up Film with arrival of IoT.
5. Expanding pharmaceutical custom manufacturing business.
1. Growing negative rumors regarding Umami and MSG
2. Presence of numerous competitors with low entry barriers
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Ajinomoto

Strength

1. Leading edge bioscience and fine chemical technologies.The Ajionomoto Group has been trying to expand the business in health care by applying its leading-edge bioscience and fine chemical technologies. With these technologies, it aims to build environmentally friendly and mild to skin products in the personal care segment. In the health and nutrition segment, it builds health value products based on amino acid benefits. It also works towards disease risk assessment based on amino acid balance and concentration in blood. In healthcare ingredients, it originally formulates amino acids. It also develops protein materials for regenerative medicines. It also provides high value-added contract manufacturing services based on proprietary technologies. With the power of the technology that it excels in, it aims to strengthen its pharmaceutical custom manufacturing business.

2. Reorganized research and development structure to respond to changing market. In April 2019, Ajinomoto reorganized its R&D structure which helped the Group to quickly respond to rapidly changing market environment. This new structure enables the company to create value even more linked to business which will help in fundamentally research product development and industrialization and hence contribute to sustainable growth. The company reorganized its research in new fields and introduced technological support functions from the Institute for Innovation into the Research Institute for Bioscience Products and Fine Chemicals (BF), Institute of Food Sciences and Technologies (FOOD), Information System Planning Department, and Production & Technology Administration Center. The Group will also collaborate with external organizations to strengthen the reach and value of their R&D. The Japanese food major, also accelerates its research and development through various technologies integrated so as to provide value to customers quickly.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

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Major Competitors :

  • CAMPUS
  • Kikkoman
  • Unilever
  • Mane
  • PureCircle
  • Flavorx

Major Brands :

  • AJI-NO-MOTO
  • HON-DASHI
  • Cook Do
  • Blendy
  • Knorr
  • Gvoza
  • Aji Mayo
  • CRISPY FRY
  • TAIPEI
  • VONO
  • Masako
  • Birdy
  • Ajinimoto Build Up Firm
  • AjiPro
  • Glyna
  • aminoVITAL
SWOT & PESTLE (combined)
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Check Out Analysis of Other Relevant Companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Ajinomoto Analysis Report

1. Ajinomoto Group Integrated Report 2019 - ajinomoto.co.jp/company/en/ir/library/annual/main/08/teaserItems1/0/linkList/0/link/Integrated%20Report%202019_E.pdf
2. Ajinomoto : Thailand approves almost $1 billion of foreign investment amid U.S.-China tensions - https://www.marketscreener.com/AJINOMOTO-CO-INC-6491152/news/Ajinomoto-Thailand-approves-almost-1-billion-of-foreign-investment-amid-U-S-China-tensions-29234781/
3. Everyone should know the harmful effects of Ajinimoto - https://atchayapathrafoods.com/harmful-effects-ajinomoto/
4. Amino Acids Market Analysis By Product - https://www.grandviewresearch.com/industry-analysis/amino-acids-market
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Ajinomoto SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Ajinomoto SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/ajinomoto/ [Accessed 28 May, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

Ajinomoto SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.

Copyright of Ajinomoto SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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