Skanska SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Skanska, 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 Skanska to benchmark its business & performance as compared to the competitors, and make strategic improvements. Skanska is one of the leading brands in the real estate and construction sector.
The article below lists the Skanska SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Skanska SWOT Analysis:
In this article:
For Skanska, 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.
The strengths of Skanska 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 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
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 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
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 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 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 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
There are several brands in the market which are competing for the same set of customers. Below are the top 4 competitors of Skanska:
4. Bilfinger Berger
Hence this concludes the Skanska SWOT analysis.
Continue reading more about the brand/company.
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
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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