ABB SWOT

ABB SWOT: CORPORATE SWOT ANALYSIS + PRODUCT SWOT ANALYSIS

ABB SWOT: CORPORATE SWOT ANALYSIS
Direct analytical framework to evaluate your organization

ABB
Tagline/ Slogan Power and productivity for a better world

Unique Selling Proposition
It helps customers to use electrical power effectively and to increase industrial productivity in a sustainable way

Segment
Power Products, Power Systems, Discrete Automation and Motion,Low Voltage Products and Process Automation

Target Group
Major public utilities, largest industrial and resources organisations

Positioning
ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact

Leading Product
Ability 800xA is marketed as a distributed control system, an electrical control system, a safety system and a collaboration enabler with capacity to improve engineering efficiency, operator performance and asset utilization.

Strengths
1. Huge installed customer base with long term contracts
2. Superior brand value has helped it in cross selling and gave a lot of aftermarket sale opportunities
3. ABB has resources all over the world and is geographically well spread
4. Significant portion of its revenue is from emerging markets which have a increasing demand for infrastructure
5. Well known for manufacturing consistent top quality products around the globe

Weaknesses
1.The management has a history of overpaying for acquisitions and not delivering synergies on previous deals
2.On the back of shortage of liquidity, the margin is not improving in the shorter term
3. Bad debts and Financial difficulties with customers have increased the debtor’s provisions affecting profit

Opportunities
1.Government initiatives in the infrastructure space will augment overall demand for power industry
2. It is financially strong with huge cash flows which will help in acquisitions, buybacks and dividends
3. Increase in demand for smart grids increase demand for any companies that manufacture, supply or build smart grid infrastructure
4. Additional regulation will increase the demand for companies in the environmental services industry

Threats
1. A bad outlook of the economy will affect the cash flows and growth of the economy
2. Governments are under pressure for cutting down the costs, which may slow down replacement sales and put overall sales at risk

end

Updated October 19 2018