Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Cummins analyses the brand by its strengths, weaknesses, opportunities & threats. In Cummins 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 Cummins to benchmark its business & performance as compared to the competitors. Cummins is one of the leading brands in the heavy equipment & engineering sector.
The article below lists the Cummins SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Cummins SWOT Analysis:
For Cummins, 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.
The strengths of Cummins 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 Cummins :
1. Leading manufacturer of Diesel Engines 2. Consistent top line growth
3. Strong R&D facility and product pipeline
4.Also has entered into related businesses like filters, turbochargers, batteries etc
5. Significant presence in many developing countries
6. It has a strong workforce of over 40,000
7. Cummins has over 5,000 facilities in 197 countries and territories
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 Cummins SWOT Analysis:
1.Heavy dependence on few suppliers
2. Tough competition means limited market share
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 Cummins SWOT Analysis:
1.Opportunities in the Asian market 2.Rise in the demand for Diesel engines worldwide
3. Strategic joint ventures with Fluid companies, OEM’s etc. could pave the way for independent business units
4. Tightening of Emission standards
5. Growth in filtration market
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 Cummins are as mentioned:
1. Intense competitive pressure 2. Rising labor wages in the U.S.
3. Potential Currency exchange losses
There are several brands in the market which are competing for the same set of customers. Below are the top 4 competitors of Cummins:
Making people’s lives better by unleashing the power of Cummins
Provides end to end solutions when it comes to Engines
People and businesses who want Diesel engines and related technology around the world
Customers expecting top quality design, manufacture, distribution network, service and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.
Exceed expectations, consistently; Exceeding customer expectations by always being first to market with the best products
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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