Pratt & Whitney SWOT Analysis, Competitors & USP

Pratt & Whitney

Parent Company

United Technologies Corporation

Category

Commercial engines, Military engines and service operations

Sector

Heavy Equipment & Engineering

Tagline/ Slogan

It’s in our power.

USP

Its power engines serve more than 11,000 customers around the world.

Pratt & Whitney STP

Segment

Commercial, military aircraft engine requirements and services

Target Group

Passenger aircraft manufacturers and armed forces

Positioning

Positioned as the world leader in the design, production and servicing of aircraft engines

Pratt & Whitney SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Pratt & Whitney. Strengths are:

1. It is the top three provider in the aero engines market.
2. Customers include Boeing and Airbus
3. It is a part of United Technologies which is a deep pocketed conglomerate.
4. Hundreds of airlines are powered by its engines.

5. It is known for its world renowned manufacturing techniques and services.

6. Pratt & Whitney Canada is the leading producer in the world for helicopter engines and engines for private jets.

Weaknesses

Here are the weaknesses of Pratt & Whitney :

1.Manufacturers in the aero engines business work together in joint ventures and hence it is difficult to compete and differentiate  in the market
2. The cost of developing a new engine is very high at around $1 billion.
3. The markets are very limited in size with high competition.
4. . Its old aircraft engines provided to the military require a lot of regular servicing, maintenance and spare parts.

Opportunities

Following are the Opportunities of Pratt & Whitney :

1.High demand for passenger jets with engines being one third of the value of a new jet.
2. Expenditure on enhancing the military is at an all time high.
3. Launch of more efficient engines and technologically advanced engines can provide an edge over its competitors.

Threats

The threats of Pratt & Whitney are as mentioned :

1. List of competitors include established companies like GE and Rolls- Royce which have pushed Pratt and Whitney to a third position in the market.
2. Very high cost of manufacturing.

3. High competition pushes down the revenues.

Pratt & Whitney Competition

Competitors

Below are the 3 main Pratt & Whitney competitors :

1. GE General Electric
2. Rolls-Royce
3. CFM International