KONE SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of KONE, 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 KONE to benchmark its business & performance as compared to the competitors, and make strategic improvements. KONE is one of the leading brands in the real estate and construction sector.
The article below lists the KONE SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the KONE SWOT Analysis:
In this article:
For KONE, 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 KONE 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 KONE :
1. Alliance with Toshiba - helps KONE’s growth in the Asian markets with production collaborations for the Chinese markets and reduction in costs through joint research and development projects
2. Vast resources - Economies of scale reduce costs and raise barriers to entry reducing the threat of competition. Specialised staff and research and development keep the company at the forefront of technology strengthening the company and increasing its competitiveness
3. Strong brand/market leader - Its strong brand and leading market positions place the company in a stronger position and goes some lengths to guaranteeing future sales
4. Strong acquisition strategy – KONE believes in both inorganic and organic growth as key to its success. In 2002 KONE acquired over 20 companies mainly across Europe and Asia helping to strengthen 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 KONE SWOT Analysis:
1. Fluctuating exchange rates - This can be very apparent in the developing countries in which it operates such as the Asian markets
2. Reliance on Europe - Whilst the company has entered many markets around the world it is still very reliant on Europe, and more specifically Western Europe for the majority of sales
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 KONE SWOT Analysis:
1. Strong growth in Asia and Australia - Order intake increased in the Asia-Pacific area for elevators and escalators. These growth opportunities need to be taken advantage of by the company, especially with relative current stagnation in more developed markets
2. Strong R&D operations - KONE has vast R&D resources and continually looks to developing innovative new technologies
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 KONE are as mentioned:
1. Declining US Markets – the market for elevators and escalators is declining over the years in US, affecting KONE’s business
2. Strong competition - Many of KONE’s competitors are equal in size or bigger with as much or more resources and experience. Whilst barriers to entry are relatively hard the threat from existing companies is still a danger to KONE
3. Product Cannibalization - Whilst KONE spends and develops its R&D programs well in search of new technology innovations new markets are not always found. Often these new technological advancements succeed in taking away sales from other areas of the business creating the threat of product cannibalization
There are several brands in the market which are competing for the same set of customers. Below are the top 4 competitors of KONE:
1. ThyssenKrupp Group
2. Schindler Group
3. Otis Elevator Co.
4. Mitsubishi Elevator
Hence this concludes the KONE SWOT analysis.
Continue reading more about the brand/company.
Dedicated to people flow
Global leader in elevator and escalator industry
Based on Geography – Europe, Asia, the Americas, Africa, Australia
Based on business type
Predominantly Western European markets; meagre target market in other parts of the world
Targets businesses that require elevator and escalator solutions
A company that enables people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment
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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