Question

What is Ricoh Canada Inc.’s situation? Prepare a SWOT analysis to analyze its internal strengths and weaknesses and its external opportunities and threats? How attractive are its specific market opportunities?

Answer 1

Ricoh Canada Inc. is primarily in the business of providing digital business services and printing solutions.

SWOT analysis -

Internal strengths

· Ricoh has developed a skilled talent pool by investing resources in employee training and development

· It has scaled up its operations by increasing automation of many of its activities.

· Over the past few years, it has successfully managed smaller mergers and acquisition

· It has developed customer loyalty.

· It has a strong dealer and distribution network.

· It has demonstrated success in product innovation.

Internal weaknesses

· There has been insufficient investment in research and development activities, compared to its competitors.

· It has been slow in developing innovative products.

· The company has not able to effectively meet the rising competition, as a result it has lost market share in certain segments.

· The inventory levels are high, which can be attributed to inadequate planning.

· It could not successfully integrate some of its larger mergers.

· It does not have an online selling program.

External opportunities

· It can develop new products in other segments due to its core competencies.

· The company has a good cash flow, which can be used to invest in new products.

· The new environmental policies gives the company an opportunity to invest and develop new products.

External threats

· The current economic downturn will affect company performance.

· It is exposed to multiple legal challenges as it is present in various markets with different laws and regulations.

· It is impacted by foreign exchange volatility due to its international operations.

· Increasing buyer preference for online purchase could threaten its existing business model.

· Increasing competition could be a threat.

· The rising trend towards nationalism in many countries could impact its international operations.

· It has to face rising cost pressures, for example increasing pay levels in certain countries.

· As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.

Today the world is grappling with economic uncertainties due to the corona virus pandemic.

As a result, its existing and potential customers are facing significant challenges. In such a global environment, the opportunities are not attractive, at least for the short term.