KONE SWOT Analysis

Published in Real Estate and Construction category by MBA Skool Team

Here is a detailed SWOT analysis of KONE covering strengths, weaknesses, opportunities and threats.

KONE Strengths

  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

Above are the strengths in the SWOT Analysis of KONE. The strengths of KONE looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

KONE Weaknesses

  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

These were the weaknesses in the KONE SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

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KONE Opportunities

  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

Above we covered the opportunities in KONE SWOT Analysis. The opportunities for any brand can include prospects of future growth.

KONE Threats

  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

The threats in the SWOT Analysis of KONE are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

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Hence this concludes the KONE SWOT analysis.

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About KONE

The table below gives the brand overview along with its target market, segmentation, positioning & USP

KONE Overview
Parent Company

KONE Corporation

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

Dedicated to people flow

USP

Global leader in elevator and escalator industry

KONE STP
Segmentation

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

Based on business type

Target Market

Predominantly Western European markets; meagre target market in other parts of the world

Targets businesses that require elevator and escalator solutions

Positioning

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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