Air Products and Chemicals Inc. SWOT Analysis, Competitors & USP

Air Products and Chemicals Inc. SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Air Products and Chemicals Inc., 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 Air Products and Chemicals Inc. to benchmark its business & performance as compared to the competitors, and make strategic improvements. Air Products and Chemicals Inc. is one of the leading brands in the industrial products and chemicals sector.

The article below lists the Air Products and Chemicals Inc. SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Air Products and Chemicals Inc. SWOT Analysis:

SWOT Analysis of Air Products and Chemicals Inc.

For Air Products and Chemicals Inc., 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.

Air Products and Chemicals Inc. Strengths

The strengths of Air Products and Chemicals Inc. 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 Air Products and Chemicals Inc. :

1. Wide customer base in diverse markets like merchant gases, tonnage gases, equipment & energy and electronics & performance materials.
2. Diversified geographic presence in more than 40 countries with an employee base of more than 40,000.
3. Steady growth in revenue & operating profit
4. Increasing liquidity through growing demands and sustained expansion in diverse territories.

5. Strengthening operational performance by driving increased productivity to the bottom line.

6. Strong solvency position as compared to the risks that Air Products is exposed to.

Air Products and Chemicals Inc. 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 Air Products and Chemicals Inc. SWOT Analysis:

1. Outstanding litigations and legal proceedings against environmental violations and labor unions have crippled the productivity and created business losses.
2. Substantial debt that has been repaid to some extent continues to look bleak on the company’s balance sheets

Air Products and Chemicals Inc. 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 Air Products and Chemicals Inc. SWOT Analysis:

1. Strategic acquisitions of Xebec Adsorption Inc.’s advanced adsorption technology and DuPont’s interest in DuPont Air Products Nano Materials LLC to gain 50 % share in DuPont’s industrial gases manufacturing units have created a big opportunity for Air Products to expand their business and create a wider stronghold.
2. Expansions in Europe, Russia, China, India & Japan and other emerging economies have resulted in new avenues for growth of the group.
3. Contracts with Exxon Mobil in order to increase energy efficiency and reduce CO2 emissions.

4. Increase in automobile sales in the US has created a strong demand by automobile companies for an increased supply of industrial gases.

5. Increase in global energy consumption has also resulted in an increase in the demand for industrial gases.

6. Positive outlook of the chemicals industry over the next decade is looking good for the company’s future growth.

Air Products and Chemicals Inc. 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 Air Products and Chemicals Inc. are as mentioned:

1. Strong competition, especially from Praxair
2. Risks associated with conducting business outside US, especially in the Middle East countries
3. Impact of natural disasters, such as Hurricane Katrina, have created doubts on plant & worker safety

4. Economic instability of the EU nations, is hampering the expansion & profitability of the company

5. Rising labor costs in the US have increased labor demands and strikes

6. Shortage of skilled labor is a big deterrent in the company’s growth.

Air Products and Chemicals Inc. Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Air Products and Chemicals Inc.:

1.Praxair Inc.
2. Airgas Inc.
3. Linde AG

Hence this concludes the Air Products and Chemicals Inc. SWOT analysis.

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About Air Products and Chemicals Inc.

Air Products and Chemicals Inc. Overview
Parent Company	Air Products and Chemicals Inc.
Category	Industrial gases/Specialty chemicals
Sector	Industrial Products and Chemicals
Tagline/ Slogan	We make the world more productive, energy efficient and sustainable
USP	The one & only integrated gases & chemicals company in the world, serving a multitude of diverse industries & businesses.
Air Products and Chemicals Inc. STP
Segmentation	Businesses looking for consistency & quality of products, with safety and responsibility towards the customers.
Target Market	Diverse businesses –adhesives, agriculture, chemicals, construction, energy, electronics, F&B, healthcare, mining, paints, minerals, personal care, pharmaceuticals, transportation, etc.
Positioning	Air Products touches the lives of consumers around the globe in positive ways every day.

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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