COMPANY PROFILE -Itochu
Business Sector :Trading – Chemicals, Textiles, Metals and Minerals, Machineries, IT, Financial services, Food, General Products and Realty
Operating Geography :Japan, Asia, Global
About Itochu :
Itochu is a Japanese Corporation based in Japanese districts like Umeda, Kita-Ku, Osaka and Ayoyama, Minato, Tokyo. It was originally known in English as C. Itoh & Co. until the year 1992. In 1858, shortly after Japan opened to foreign trade, Itochu started as a wholesaling company of linen. Itochu is one of the largest Japanese general trading company and is headquartered in Kita-Ku, Osaka, Minato and Tokyo. The company has ranked #1 on popular employers ranking for college graduates in the year 2019 and 2020. It specializes in major operational sectors like textiles, metals, food, machinery, energy, chemicals, construction materials and real estate.
Itochu has been ranked on the 72nd position globally for the year 2020 with a revenue of $100,522 and an employee strength of 151,430. The Ministry of Environment's 1st ESG Finance Awards acknowledged Itochu with a bronze award in the Environmentally Sustainable Company Category. It was the only trading company among all the other ESG companies to win this award.
Itochu’s USP or Unique Selling Point lies in being one of Japan’s largest sogo shosha (general trading company) which has carved out a niche based on sheer success of its business operations and its formidable textiles business in China. Itochu’s mission statement reads “I am One with Infinite Missions” which according to them is the thought behind the words "Sampo-yoshi". They say that each and every individual shall work efficiently in order to deliver "what is required to the right person and in the right manner". In Japanese, “yoshi” means “good”, and “sampo” means three sides, and these three sides consist of
(1) the seller (“urite”), (2) the buyer (“kaite”) and (3) society (“seken”). “Sampo-yoshi” is therefore: “urite-yoshi” (meaning “good for the seller”), “kaite-yoshi” (meaning “good for the buyer”) and “seken-yoshi” (meaning “good for society”)
Itochu Revenue :
¥ 10362.6 billion - FY ending 31st March 2021 (y-o-y decline 5.60%)
¥ 10983.0 billion - FY ending 31st March 2020 (y-o-y decline 5.30%)
¥ 11600.5 billion - FY ending 31st March 2019
Competitive Analysis of Itochu
The SWOT analysis for Itochu is presented below in a matrix followed by the detailed analysis report
Strengths | Weaknesses |
1. Highly diversified business segmentation
2. Global presence across major sectors
3. Legacy of collaborations with various industry leaders
4. Known for transformative business model
5. Good capital management even in recession like situation
| 1. Lack of user friendliness in websites despite global presence
2. Lack of digital presence in various platforms
|
Opportunities | Threats |
1. Increase market share in India
2. Advent of Electric cars giving new paradigms of growth
3. Growth prospects in remote working and other technology solutions
4. Opportunity in the renewable energy solutions
5. Opportunity in Green Building solutions in real estate business
| 1. Japan’s aging population leading to shortfall of workforce in labour intensive industries |
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Detailed SWOT Analysis of Itochu
Strength
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Weakness
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Opportunity
1. Increase market share in India: Itochu has presence in all the renowned economies in the world. It is there in India running the logistics and LPG distribution business. Itochu has three working offices in India. Itochu group trades in Textile, retail, real estate and machineries. With the increase of FDI in retail industry to 51% in India, Itochu can have good opportunity to do business in the fasted growing economy in the world. China has been one of the largest importers to India. Due to political issues, Indian government is avoiding Chinese products in their system. Itochu's diversified business expertise could come in handy to increase business with India. It would a long journey but with sound and stable expansion policies, Itochu could enter the Indian market for trading and manufacturing.
The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.
Threats
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The PESTLE analysis for Itochu is presented below in a table followed by the detailed analysis report
Political | Economical |
1. US China Trade War bringing stagnation in business
2. Brexit making European business uncertain
| 1. Business disruptions due to Covid-19
2. Hiked Consumption Tax in Japan
|
Social | Technological |
1. Japan’s aging population leading to extended employment
2. Resolving social issues through diverse products and services
| 1. Itochu moving towards digital transformation |
Legal | Environmental |
1. Tightening regulations on the usage of personal data | 1. Solving environmental issues through business initiatives in renewable energy
2. Avoiding investment in coal powered power plants
|
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Detailed Pestle Analysis of Itochu
Political
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Economic
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Social
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Technological
1. Itochu moves towards digital transformation: Itochu has a transformative business model, which is not seen only in its business expansion but also within the organization. Itochu lagged behind in digitization of its systems a bit till 2018. Then in fast forward mode, it long shot project since 2002, of developing an in-house Data Lake was operational in 2018. It stores and analyses the data to help in business decision process. Itochu call its Data Lake next generation mission critical system. Added to that, Itochu launched the Smart Stores, which uses AI, cameras and electronic delivery system to increase efficiency and accuracy of work in retail and distribution segment. Itochu collaborated with AKQA in 2020 to begin its journey as solution provider in digital transformation assistance to Japanese companies. With its multidisciplinary approach towards IT, this Japanese conglomerate, is gaining market share in technological field and thus tuning with the changing times.
Legal
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Environmental
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Itochu SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Itochu Porter's Five Forces Analysis |
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Itochu Value Chain Analysis |
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Itochu Covid-19 Impact Analysis |
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Itochu Segmentation, Targeting and Positioning (STP) Analysis |
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Itochu Ansoff Matrix Analysis |
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References used in Itochu SWOT & PESTLE Analysis Report
1. The ITOCHU group respects the individual, society, and the future in its Commitment to the Global Good. - : https://www.itochu.co.jp/en/business/index.htmlpah
2. Japanese trading house ITOCHU announces coal exit - https://www.energylivenews.com/2019/02/16/japanese-trading-house-itochu-announces-coal-exit/?__cf_chl_jschl_tk__=pmd_4YX8kBVxMgK1rARN0xLXIj5AC.Gitb35dPIF817Hrk0-1630082504-0-gqNtZGzNAmWjcnBszQiRo
3. Annual Report2019(Online Ver.) - https://www.itochu.co.jp/en/ir/doc/annual_report/online2019/index.html
4. Itochu lifts stake in Chinese EV maker Singulato, may invest more: sources - https://www.reuters.com/article/us-china-singulato-electric-itochu/itochu-lifts-stake-in-chinese-ev-maker-singulato-may-invest-more-sources-idINKBN1WQ132?edition-redirect=in
5. ITOCHU Announces Construction and Demonstration of a Distributed Energy Resource Platform Linked with the Local Community - other technology solutions: https://www.itochu.co.jp/en/news/press/2020/200317.html
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Itochu SWOT and PESTLE analysis has been conducted by Tej Narayan Shaw from IISWBM, Kolkata and reviewed by senior analysts from Barakaat Consulting.
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