Skanska SWOT Analysis, Competitors & USP

Skanska Group

Construction Services

Real Estate and Construction

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Robust client base that includes many Fortune Global 500 companies and the United Nations

Based on geography – Europe, Africa, Asia, Australia, the Americas

Mainly targets businesses in Europe and the Americas

A company which focuses on providing sustainable solutions to its clients

Below are the Strengths in the SWOT Analysis of Skanska:

1. Strong market position in the global construction industry

Skanska – through acquisitions and diverse geographic presence
2. Geographic revenue spread reducing business risks - The company has operations in Sweden, Norway, Denmark, Finland, Estonia, Poland, the Czech Republic, Slovakia, Hungary, the US, the UK and Latin America. This protects the company from demand fluctuations in certain markets and regions, adds stability to revenues and reduces business risk
3. Robust client base imparts business stability - The international clients of the company include Boeing, Ericsson, Harvard, HCA, IKEA, ING, Nissan, Petrobras, Pfizer, Statoil, Hydro, Volvo, Rodamco and Wyeth. The United Nations (UN) has also commissioned Skanska for several assignments in different parts of the world through the years

4. Over 50,000 people form a part of the company

Here are the weaknesses in the Skanska SWOT Analysis:

1. Inability to generate positive cashflows - Skanska has been displaying inability to generate positive cashflows
2. Litigations tarnish Skanska's reputation - the Finnish Road

Administration and a number of municipalities have announced damage claims against Skanska due to the alleged collusive cartels

Following are the Opportunities in Skanska SWOT Analysis:

1. Focus on sustainability - Skanska has been emphasizing on leveraging its focus on sustainability. As part of its sustainability efforts, Skanska offered Sweden's first Swan-labeled residential buildings
2. Focus on expansion and execution of large infrastructure projects worldwide - Skanska's infrastructure division contributes only 0.2% of the total revenues. There is a huge untapped potential which could be exploited by Skanska
3. Strong order backlog - The company’s order backlog increased

The threats in the SWOT Analysis of Skanska are as mentioned:

1. Intense competition - Price competition is escalating, especially when it comes to small and medium-sized projects
2. Rising raw material prices - fluctuations in the price of crude oil and foreign exchange fluctuations will have their negative effect. This increase in the costs of key raw materials would bring in pricing pressures and the company will witness its margins getting thinned
3. The economic condition in the US has been weak. Skanska's bid to venture into the commercial development in the US may not be successful

Below are the top 4 competitors of Skanska:

1. Bechtel

2. NCC

3. Hochtief

4. Bilfinger Berger