SWOT Analysis of Ajinomoto Company

INTRODUCTION OF AJINOMOTO COMPANY
Ajinomoto company Malaysia :
https://www.ajinomoto.com.my/home/
Ajinomoto official : https://www.ajinomoto.com

Analysis of Strategic Factors (SWOT)
According to Gurel, (2017), SWOT Analysis is an instrument used for the
strategic management and strategic planning in the organizations. To build
organizational strategy and competitive strategy can use this analysis
effectively. Furthermore, SWOT analysis is significant with the situational
analysis that helps the managers to identify organizational and
environmental factors. The SWOT analysis consists of four components
include strengths, weaknesses, opportunities and threats of the company. In
addition, strengths and weaknesses are measured by the internal factors.
Meanwhile, the opportunities and threats are measured by the external
factors.
By using SWOT analysis the, the manager can classify what are the areas
that can be utilized such as strengths and opportunities. Indeed, the areas
that need to pay more attention on it such as weaknesses and threats. In the
process of identification, SWOT analysis can be done by comparing the
company with others competitors. Below is the SWOT analysis for Ajinomoto
company.
Strengths
S1: Established and well recognized
brand
S2: Market leader
S3: Strong brand loyal customer base
S4: Comprehensive production
technology
S5: High responsiveness to
customers
S6: Stakeholder engagement
Weaknesses
W1: Higher spending on advertising
W2: Focus is way too high in
seasonings business
Opportunities Threats

O1: Introduce new products to the
market and expand abroad
O2: Acquisitions of smaller brands
O3: Innovations in the existing
products
O4: Boosting demand in the Middle
East
O5: Globalization
O6: Marketing strategy
O7: Population growth
O8: Research and Development
(R&D)
T1: Natural Disasters
T2: Increase in labor cost
T3: Increase in customer’s
expectation
T4: Government policies
T5: Product substitution in
seasonings is high
T6: Low entry barrier
T7: Unpredictable economy
T8: Price wars with competitors
T9: Consumers don’t perceived it as
a “healthy products”
Strengths
Strengths are a positive side of the organization because the characteristics
and situations are more effective and efficient compared to their
competitors. Strengths all the internal factors of the company that help the
company in achieving for the success. The strengths of Ajinomoto company
are as below:
i. S1: Established and well recognized brand
Ajinomoto is an established and well recognized brand. The brand is popular
among all the generation of Baby Boomers until Gen Y. In addition,
Ajinomoto has started the business in Malaysia market since 1961 as
Ajinomoto (Malaysia) Berhad. The business specialization was in producing
Monosodium Glutamate (MSG). Malaysia is the first Japanese oriented
company that has set up. The brand is retail and industrial consumption.
Furthermore, the logo of Ajinomoto brand easy to recognize where the logo
is white and red. Usually people will call Ajinomoto whether in what type of

the food seasoning. The main Ajinomoto product is Umami seasoning that
has become the essential items in almost every household.
ii. S2: Market leader
Ajinomoto is a market leader in the food seasoning or Umami seasoning.
From the figure 1, we can see that the seasoning and processed food is the
highest sales in 2017. Ajinomoto is offering the niche or specific product and
help them to be a market leader in their business. They also had the retail
and industrial product that can be useful for the both parties. Over the past
50 years, Ajinomoto has been committed to improving and develop a wide
range of product to exceed the taste of Malaysia and industrial. Furthermore,
the brand also is well known and familiar with consumers.
Figure 1: Ajinomoto Group Business Expansion (Source: Corporate Summary
Ajinomoto Co., Inc. 2018)
iii. S4: Strong brand loyal customer base
The Ajinomoto brand is a strong name and its advantages for them to have a
loyal customer. Because the product is a household product and it’s easy for
them to have a customer. The customer will keep purchasing the product
because the product is needed to consume regularly. For example, for the
food seasoning is essential for certain housewife and also for the restaurant

chef to add to their dishes. They believed that the Ajinomoto brand can give
a good tastier for the cooking. Same goes to the Ajinomoto mission were to
contribute to the world’s food and wellness and to better lives in the future.
iv. S5: Comprehensive production technology
Ajinomoto was the world leading seasoning technologies. Because, the
seasoning technology by Ajinomoto based on two fundamental scientific
strengths. First, the strength in clarifying all of the factors that comprise food
satisfaction and center on taste, flavor and texture. Second, the strength in
integrating the customer needs and preferences by applying innovative,
original materials and blending technologies. Ajinomoto has also applied the
advance technology to discover new materials and findings to expand the
portfolio of enhancers or modifiers of umami, sweetness and other taste.
Currently, they focus on the development of ‘kokumi’ which will have a
unique taste-modifying profile. In addition, this company also has several
analyses in the production technology, including the taste analysis and
control technology, flavor analysis and control technology, and texture
analysis and control technology.
v. S6: High responsiveness to customers
Ajinomoto is concern about their stakeholder in the business. One of the
stakeholder is customers. The customer is a person who helps them in
generating revenue. Without customers the business is nothing. Ajinomoto
believes that if has a good relationship with the customer will help them
sustain in the business for a long term. There are some ways how the
Ajinomoto response to their customers or consumers. For example, they
provide the customer call center. This customer call center was functioning
to help customers easily reached them. Indeed, Ajinomoto implements this
Customer Call Center to improve customer satisfaction and has established
customer service teams at five food product companies in Japan which is
first, Ajinomoto Co., Inc. Second, Ajinomoto Frozen Foods Co., Inc. Third,

Ajinomoto General Foods. Fourth, Inc.; J-Oil Mills, Inc. and lastly, Yamaki Co.,
Ltd. Furthermore, the center also records and analyzes the “voice of the
customer” (VOC) daily and shares it with business divisions and product
development departments to enhance development of better products and
services.
vi. S7: Strong stakeholder engagement
Ajinomoto stakeholder comprises of a customer, shareholder, supplier,
employees, regulatory agencies and statutory bodies, and non-profit
organization. Ajinomoto strongly trusts that engaging stakeholders is helping
the company to achieve the sustainability goals.
Weaknesses
Weaknesses are the negative side of the organization because more
disadvantages compared to the competitors. It refers to the situations where
the currents existence and ability capacities of the organization are weaker
compared to the competitors. Weaknesses are to be alleviated in order to
reduce the negative impacts brought with them. The weaknesses of
Ajinomoto company are as below:
i. W1: Higher spending on advertising