Country Risk and Strategic Planning

Country Risk and Strategic Planning

Hybrid plane: SWOT

Define and clarify mission and objectives

At present, the technology required for developing a hybrid plane is not available. Many questions remain regarding the feasibility of the product, including the ability of a battery-propelled plane to be able to fly for long distances, fueled mainly via electricity. However, the need for this particular product is acute, given the rising cost of fuel and the need for effective air transportation. Further research and development is needed into the product, along with financial and technical support for R&D.

Strengths

Japan is a technologically forward-thinking society, and generated a number of the most innovative 'green' products of recent years, including the Toyota Prius. It is a society that prioritizes efficiency in transportation, given the small size of the nation and its relatively large population per square foot of territory. Japan's bullet trains are the envy of the world because of their speed and minimization of commute time and environmental impact. Japan's lack of oil reserves has stimulated creative thinking in the world of technology, enabling the nation's researchers think outside of the traditional gas-guzzling 'box.'

Weaknesses

Japan's economy has been severely impacted by the recent earthquake and tsunami, and the destroyed areas will take many years to rebuild. Japan is a land-poor society, which could inhibit the manufacture of large vehicles like planes, although the manufacture of the components of hybrid planes, such as the batteries may demand less land.

Opportunities

The increasing cost of fuel at present will generate new interest in alternative methods of propelling airplanes worldwide, including investors and corporations in Japan. Interest in investing in green technology has grown exponentially.

Threats

Traditionally, interest in environmental technology wanes once fuel prices go down in the short-term, raising the possibility that there may not be sustained financing for the project. A more severe downturn in the Japanese economy seems likely, given concerns about radiation and environmental damage.

Trends

'Green' is clearly a trend worldwide -- and the trend towards smaller, lighter, and more efficient has been a long-standing trend in Japan's corporate culture. There is also a long tradition of using efficient manufacturing techniques within the nation. Japan is the founder of the JIT (just-in-time) approach to manufacturing and places a strong emphasis on quality control (JIT, 2011, Investor Glossary).

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