Skanska SWOT Analysis, USP & Competitors

Skanska

Parent Company

Skanska Group

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

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USP

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

Skanska STP

Segment

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

Target Group

Mainly targets businesses in Europe and the Americas

Positioning

A company which focuses on providing sustainable solutions to its clients

Skanska SWOT Analysis

Strengths

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

Weaknesses

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

Opportunities

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

Threats

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

Skanska Competition

Competitors

1. Bechtel

2. NCC

3. Hochtief

4. Bilfinger Berger