ADP SWOT Analysis, Competitors & USP

ADP

Parent Company

Automatic Data Processing, Inc.

Category

Business Process Outsourcing Services & HCM Solutions

Sector

IT & Technology

Tagline/ Slogan

The Business behind Business

USP

Integrated computing and business outsourcing solutions

ADP STP

Segment

Professional employer organizations and Dealer services

Target Group

Employers of All Sizes, Auto, Truck, Motorcycle, Marine and Recreational Vehicle Dealers

Positioning

Leader in HCM solutions which equips ADP with pricing power

ADP SWOT Analysis

Strengths

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

1. Market leader in HR services in North America, Europe, Latin America, and the Pacific Rim
2. A large portfolio of HR products and services for all types of industries 
3. Strong Year on Year growth of revenue in both

4. Serves over 600,000+ clients in over a 100 countries around the globe

5. High annual client retention rate and an average client contract of many years

6. The company has over 60,000 employees worldwide

7. Strong service portfolio includes Human resource, payroll, tax and benefits administration solutions from a single source

8. One of the few companies to receive a AAA credit rating

Weaknesses

Here are the weaknesses of ADP :

1. High competition means limited margins
2. Lack of geographic diversification as most its clients are based out of US

Opportunities

Following are the Opportunities of ADP :

1. Strong demand growth in cloud based systems
2. Demand for HR services have been increasing especially SaaS based
3. Mobile based application demand is on the rise, which ADP can take advantage of

Threats

The threats of ADP are as mentioned :

1. Online data privacy breach may lead to lead to litigations
2. More players are entering into the market with customized solutions
3. Intense competition in HCM solution market

ADP Competition

Competitors

Below are the 5 main ADP competitors :

1. Paychex, Inc.

2. Insperity, Inc.

3. TriNet Group, Inc

4. Reynolds and Reynolds Company

5. International Business Machines Corporation