Arrow Electronics SWOT Analysis, USP & Competitors

Arrow Electronics

Parent Company

Arrow Electronics Inc.

Category

Electronics

Sector

IT & Technology

Tagline/ Slogan

USP

Specialised services and expertise across the product lifecycle

Arrow Electronics STP

Segment

Electronic components and enterprise computing solutions

Target Group

Corporates, electronics manufacturers, SMEs

Positioning

Connecting customers to the right technology at the right place at the right time and at the right price.

Arrow Electronics SWOT Analysis

Strengths

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

Weaknesses

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

Opportunities

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

Threats

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 Competition

Competitors

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.