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Rakuten Inc. SWOT and PESTLE Analysis

ID : 52321953| Aug 2018

COMPANY PROFILE -Rakuten Inc.

Business Sector :Retail,Information Technology, Online Shopping, E-Commerce

Operating Geography :Asia, Global,Japan

About Rakuten Inc. :

Rakuten Inc. founded in 1997 and based in Tokyo is one of the world's largest e-commerce company as of 2017. It serves 1 billion customers in 29 countries and provides fintech, e-commerce and digital content services for online shopping. Its electronic commerce site Rakuten Ichiba provides the highest sales in Japan.It trades with the symbol TYO.

Rakuten Inc. Revenue :

¥855.9 billion as of 2017(Q3)

Competitive Analysis of Rakuten Inc.

SWOT
PESTLE
The SWOT analyses of Rakuten Inc. is presented below:
Strengths
Weaknesses
1. Use of Big Data & AI
2. Global Outlook
1. Volatility in products and services
Opportunities
Threats
1. Highly innovative industry
2. Opportunities to invest in thriving start-ups
1. Non-diversification in the industry
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Detailed SWOT Analysis of Rakuten Inc.

Strength

1. Use of Big Data & AI: Big data and the technological ability to analyze it effectively is one of Rakuten’s many strengths. Massive volumes of data are generated every minute. The group draws on this wealth of data to improve the online experience of all of its stakeholders. The organization is pioneering efforts in order to develop artificial intelligence (AI) solutions, which are sure to be used much more commonly in the future, to analyze and leverage big data accurately, efficiently and safely. The group is strengthening its development teams by hiring data scientists that specialize in big data, as well as assigning dedicated resources to AI. Since its inception, Rakuten’s many innovations have been guided by the passion for empowering people and society. The intelligent use of big data and AI represents personalization, which is the next level of empowerment. The group is creating tailored services that adapt to the varying needs and lifestyles of the customers.

2. Global Outlook: Rakuten has an open and fast changing corporate culture that sets and encourages the exchange of varied ideas. The company’s task force is made up of employees from more than 70 countries and regions. Other initiatives, such as the long-standing tradition of holding weekly meetings in order to share business strategies with all employees, and an open-plan office layout to encourage transparency and communication and a standard Group-wide video conferencing system, also help Rakuten’s diverse employees to share information and collaborate freely. By constantly improving and reviewing the internal organization and other operations, its systems are organised in order to encourage productivity open the prospects of new businesses. Rakuten prioritizes operational excellence and the strength of the employees of the organization to innovate. With its corporate culture that sets the trend to create new businesses and strengthens employees to take action, the Rakuten spirit of entrepreneurship increases their competitive strength which accelerates and motivates the company to develop a global outlook throughout all its employees.

Weakness

1. Volatility in products and services: The products and services that Rakuten offers suffer from the curse of change. If the services are not changed and tampered with on a regular basis the consumers are pertinent to ask something new from the organization and the company should be able to deliver to the promises or the consumer will move to the competitor. The advent of the internet has provided the company with increased opportunities to grow, and since it was one of the first E-commerce websites to go public, it stood the test of time and did not perish after the Dotcom bubble burst, nor was it much affected by the 2007-08 financial crises. The business of Rakuten in Japan was severely affected when Alibaba came to Japan and used their aggressive selling techniques to acquire a portion of the market. The company has to take measures so that such incidents do not repeat in the future.

Opportunity

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Threat

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Rakuten Inc. SWOT and PESTLE analysis has been conducted by Shikhar Mamgain and reviewed by senior analysts from Barakaat Consulting.

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

Rakuten Inc. SWOT and PESTLE Analysis
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