Description
SWOT ANALYSIS OF OBAYASHI CORPORATION
Obayashi Corporation
Parent Company
Obayashi Corporation
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
-
Presence across the entire vertical chain, providing solutions for USP planning design, construction, operations and maintenance
STP
Segment
Construction and engineering services
Construction services, engineering and urban development Target Group Predominantly Japan; also targets
Positioned as a company that is present across the vertical chain, that Positioning provides integrated solutions to its client
SWOT Analysis
1. Wide geographic presence helping maintain market leading position - has an extensive presence in Japan, North America, Asia, Europe and Middle East. 2. The company undertook various projects in North America such as Metro Gold Line Eastside Extension Project, Central Link Light Rail Beacon Hill Tunnel & Station, and Golden Gate Bridge Seismic Retrofit. 3. Comprehensive range of services providing better control over the whole process - The company provides solutions for various stages including planning design, construction, operations and maintenance. 4.Obayashi also handles the management of specialized tasks by collaborating with many vendors. The company's vertical integration provides it with better control over the whole process, which helps it in improving overall efficiency 5. It is among the top construction companies in Japan and is also Strength listed on Nikkei
1. Inability to arrest sales decline leading to erosion in net asset value Weakness 2. Limited geographic presence as it is restricted only to Japan
1. Focus on emerging economies - derives most of its revenues from Japan alone. Its presence in regions across the world provides it with a good opportunity to expand into the emerging economies, which are recouping faster than the developed ones. 2. Private finance initiative business - Obayashi has made a significant presence in the Japanese private finance initiative (PFI) business. Obayashi's first mover advantage and substantial number of projects would create an opportunity to generate more revenues. 3. Japanese recovery and reconstruction process, post the Fukushima Opportunity earthquake provides the company with a huge opportunity
1. Surge in raw material prices could affect margins - Increasing raw material prices would result in higher cement prices, which will decline the demand for cement and thus further deteriorate the construction activity affecting Obayashi's margins. 2. Shortage of skilled labor - the percentage of working-age population Threats in the country is expected to decrease
Competition
1. Sekisui House, Ltd. 2. Shimizu Corporation 3. Asahi Kasei Competitors 4. Kajima Corporation
doc_493321954.docx
SWOT ANALYSIS OF OBAYASHI CORPORATION
Obayashi Corporation
Parent Company
Obayashi Corporation
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
-
Presence across the entire vertical chain, providing solutions for USP planning design, construction, operations and maintenance
STP
Segment
Construction and engineering services
Construction services, engineering and urban development Target Group Predominantly Japan; also targets
Positioned as a company that is present across the vertical chain, that Positioning provides integrated solutions to its client
SWOT Analysis
1. Wide geographic presence helping maintain market leading position - has an extensive presence in Japan, North America, Asia, Europe and Middle East. 2. The company undertook various projects in North America such as Metro Gold Line Eastside Extension Project, Central Link Light Rail Beacon Hill Tunnel & Station, and Golden Gate Bridge Seismic Retrofit. 3. Comprehensive range of services providing better control over the whole process - The company provides solutions for various stages including planning design, construction, operations and maintenance. 4.Obayashi also handles the management of specialized tasks by collaborating with many vendors. The company's vertical integration provides it with better control over the whole process, which helps it in improving overall efficiency 5. It is among the top construction companies in Japan and is also Strength listed on Nikkei
1. Inability to arrest sales decline leading to erosion in net asset value Weakness 2. Limited geographic presence as it is restricted only to Japan
1. Focus on emerging economies - derives most of its revenues from Japan alone. Its presence in regions across the world provides it with a good opportunity to expand into the emerging economies, which are recouping faster than the developed ones. 2. Private finance initiative business - Obayashi has made a significant presence in the Japanese private finance initiative (PFI) business. Obayashi's first mover advantage and substantial number of projects would create an opportunity to generate more revenues. 3. Japanese recovery and reconstruction process, post the Fukushima Opportunity earthquake provides the company with a huge opportunity
1. Surge in raw material prices could affect margins - Increasing raw material prices would result in higher cement prices, which will decline the demand for cement and thus further deteriorate the construction activity affecting Obayashi's margins. 2. Shortage of skilled labor - the percentage of working-age population Threats in the country is expected to decrease
Competition
1. Sekisui House, Ltd. 2. Shimizu Corporation 3. Asahi Kasei Competitors 4. Kajima Corporation
doc_493321954.docx