Published in Real Estate and Construction category by MBA Skool Team
Skanska is one of the leading brands in the real estate and construction sector. Skanska SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Skanska:
Strong market position in the global construction industry
Skanska – through acquisitions and diverse geographic presence
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
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
Over 50,000 people form a part of the company
Above are the strengths in the SWOT Analysis of Skanska. The strengths of Skanska looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Inability to generate positive cashflows - Skanska has been displaying inability to generate positive cashflows
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
These were the weaknesses in the Skanska SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
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
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
Strong order backlog - The company’s order backlog increased
Above we covered the opportunities in Skanska SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Intense competition - Price competition is escalating, especially when it comes to small and medium-sized projects
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
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
The threats in the SWOT Analysis of Skanska are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Skanska SWOT analysis.
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The table below gives the brand overview along with its target market, segmentation, positioning & USP
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
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