Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of SKF analyses the brand by its strengths, weaknesses, opportunities & threats. In SKF 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 SKF to benchmark its business & performance as compared to the competitors. SKF is one of the leading brands in the industrial products and chemicals sector.
The article below lists the SKF SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the SKF SWOT Analysis:
For SKF, 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 SKF 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 SKF :
1. Consists of approximately 150 companies worldwide and has clients’ such as General Electric, Rolls – Royce plc, Pratt & Whitney
2. It has global certification to IS0 14001 (environmental management system), ISO 50001 (energy management) and OHSAS 18001 (health and safety) standards.
3. Largest bearing manufacturer in the world and has around 48,600 employees in 140 production and manufacturing sites
4. It has been listed as amongst the largest public companies in the world according to Forbes Global 2000 ranking
5. It has 15,000 worldwide distribution locations across 130 countries
6. It has a positive cash flow with net income of SEK 4.750 billion in 2014
7. It has an ability to continuously develop new technologies and use them to create products that offer competitive advantage to the customers
8. Invests heavily in R&D and has 18 technical centres around the world
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 SKF SWOT Analysis:
1. Local players who has more cultural and localized knowledge of the region than SKF and have greater accessibility to the customers 2. SKF has less global presence in tools and equipments of lubrication where the market is largely fragmented
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 SKF SWOT Analysis:
1. Portfolio diversification through mergers and acquisitions 2. Capturing more market share through growing technology and localized knowledge
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 SKF are as mentioned:
1. Fluctuating exchange rate and interest rate risks as due to its global presence the company has to transact in several foreign currencies 2. Fluctuations in raw material and component cost risk 3. Industrial disputes due to changing labor laws might impact the efficiency of the workers and SKF’s ability to meet customer demand
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of SKF:
Increased focus on developing services and products
Industrial, Automotive, Specialty Business
Improve efficiency and reduce energy losses
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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