Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Arrow Electronics analyses the brand by its strengths, weaknesses, opportunities & threats. In Arrow Electronics 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 Arrow Electronics to benchmark its business & performance as compared to the competitors. Arrow Electronics is one of the leading brands in the IT & Technology sector.
The article below lists the Arrow Electronics SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Arrow Electronics SWOT Analysis:
For Arrow Electronics, 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.
Arrow Electronics Strengths
The strengths of Arrow Electronics 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 Arrow Electronics :
1. Huge product portfolio – one of the broadest in its segment 2. High global presence – in about 80 countries and territories 3. Strong employee base, of about 16,000 employees worldwide 4. Customer base is huge– caters to over 1,00,000 customers across the globe
5. It is one of the most reputed electronics companies in the US
Arrow Electronics 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 Arrow Electronics SWOT Analysis:
1. Arrow largely relies on the demand of its products and services originating from the semiconductor
industry 2. The sale of its major products are cylical this means marked periods of boom and slump 3. Declining financial performance – with net profits dropping is a concern
Arrow Electronics 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 Arrow Electronics SWOT Analysis:
1.High focus on inorganic growth – through mergers and acquisitions enables the company to leverage on the strengths of the companies it acquires, some of which are – Redemtech and Global Link Technology 2. New distribution tie-ups, helping to increase penetration in newer areas – in August 2013, it tied up with Emerson Network Power’s Liebert infrastructure support products 3. Arrow signed a distribution agreement with KORE Telematics, a wireless services provider specializing in the machine-to-machine (M2M) communications market
Arrow Electronics 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 Arrow Electronics are as mentioned:
1. Intense competition, particularly with respect to prices,franchises, and product availability 2. Stringent laws that need to be complied with among them - EU Restriction of the Use of Certain Hazardous Substances and Waste Electrical and Electronic Equipment Directives, the EU REACH (chemical registration) Directive, the China law on Management Methods for Controlling Pollution by Electronic Information Products, and various other laws 3. Major revenues are generated from international businesses, this poses a threat as global fluctuations will greatly impact the company
Arrow Electronics Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 7 competitors of Arrow Electronics:
1. Ingram Micro Inc.
2. Tech Data Corporation
3. Avnet, Inc.
4. Flextronics International Ltd.
5. Jabil Circuit, Inc.
6. WESCO International, Inc
7. Future Electronics, Inc.
Hence this concludes the Arrow Electronics SWOT analysis.
Specialised services and expertise across the product lifecycle
Arrow Electronics STP
Electronic components and enterprise computing solutions
Corporates, electronics manufacturers, SMEs
Connecting customers to the right technology at the right place at the right time and at the right price.
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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