Arrow Electronics SWOT Analysis

Arrow Electronics SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Arrow Electronics, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

Arrow Electronics is one of the leading brands in the IT & Technology sector. The article below lists the Arrow Electronics SWOT and includes its target market, segmentation, positioning & USP.

SWOT Analysis of Arrow Electronics

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.

A list of strengths is mostly the starting point in starting SWOT analysis. 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

Hence this concludes the Arrow Electronics SWOT analysis.

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About Arrow Electronics

Arrow Electronics Overview
Parent Company	Arrow Electronics Inc.
Category	Electronics
Sector	IT & Technology
Tagline/ Slogan	-
USP	Specialised services and expertise across the product lifecycle
Arrow Electronics STP
Segmentation	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.

 

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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