Magna International SWOT Analysis, Competitors & USP
Published by MBA Skool Team, Last Updated: April 27, 2020
SWOT analysis of Magna International analyses the brand by its strengths, weaknesses, opportunities & threats. In Magna International SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Magna International to benchmark its business & performance as compared to the competitors. Magna International is one of the leading brands in the automobiles sector.
The article below lists the Magna International SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Magna International SWOT Analysis:
For Magna International, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
Magna International Strengths
The strengths of Magna International looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Magna International :
1. Parts supplier to the big 3 automobile firms – General Motors, Ford Motor Company and Chrysler 2. Vast product portfolio that can comprehensively supply parts for an entire vehicle. 3. Strong distribution B2B network and long term contracts with three of the world’s biggest automobile firms. 4. Economies of scale in production brings down cost.
5. Global presence in approx 30 countries.
6. B2B company well known among automobile manufacturers.
7. Over 130,000 people are employed with the company
Magna International Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Magna International SWOT Analysis:
1. Extensive product line makes focusing difficult and expensive. It is not the outright best in its different product lines. 2. Emergence of competing auto spares companies, each focusing on less products but making those products better.
Magna International Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Magna International SWOT Analysis:
1. Can market itself as a B2C company and supply spares and fittings to consumers. 2. Growing automobile segment in developing countries creates a lot of demand.
Magna International Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Magna International are as mentioned:
1. High labor costs in Japan driving up overall costs. 2. High interest rates limiting capital expenditures. 3. Threat of competitors getting contracts for better parts.
Magna International Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Magna International:
End-to-end design, testing, engineering and manufacture of all vehicle systems.
Magna International STP
All segments of automobile systems and parts.
Vehicle manufacturers who source the components to make their cars.
Comprehensive supplier of all parts required to produce a car.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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