Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Hochtief analyses the brand by its strengths, weaknesses, opportunities & threats. In Hochtief SWOT Analysis, 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 Hochtief to benchmark its business & performance as compared to the competitors. Hochtief is one of the leading brands in the real estate and construction sector.
The article below lists the Hochtief SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Hochtief SWOT Analysis:
For Hochtief, 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 Hochtief 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 Hochtief :
1. Leading edge in construction industry through innovations - In total, HOCHTIEF's US subsidiary Turner has constructed 300 buildings using Building Information Modelling. The company’s Australian subsidiary Leighton installed a new warning system developed by its subsidiary Visionstream 2. Single point for all solutions - From design, financing and construction to operation, the company can complete the entire job whether it is infrastructure projects, real estate or facilities 3. Strong order backlog - HOCHTIEF is very strongly placed with many projects under execution and many more in the pipeline providing a continuous source of revenue in the near-to-medium term
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 Hochtief SWOT Analysis:
1. Leighton’s compliance with code of ethics seems to be a cause for concern – Hochtief is a majority stakeholder in Leighton, which in February 2012 announced that it had voluntarily reported to the Australian Federal Police (AFP) a possible breach of its Code of Ethics that, if substantiated, may contravene Australian laws 2. Weaknesses in operating expenses and investment management as its operating profit margin declined
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 Hochtief SWOT Analysis:
1. Growth in offshore wind farms - HOCHTIEF Offshore Development Solutions acquired the four offshore wind farms, North Sea Windpower 4-7 (NSWP 4-7), from project developer Enova 2. Exposure to high growth markets will boost revenues - India and the Gulf states are among the primary growth markets in which the company aims to develop business. The company was awarded new projects in both regions in 2011 and 2012
3. Contribution to geothermal energy - HOCHTIEF Concessions has two projects underway in this high-growth segment. This creates an opportunity for HOCHTIEF to expand the growing geothermal market
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 Hochtief are as mentioned:
1. Intense competition which could affect the company's earnings growth and market share - The competition is becoming increasingly intensive as project opportunities are fewer, while more and more companies are vying for them. Price competition is escalating, especially when it comes to small and medium-sized projects 2. Declining construction sector in the US - With the general economic
conditions in the US deteriorating and if it continues to display prolonged economic slowdown in the future, HOCHTIEF's revenue from this segment will be adversely affected
3. Rising input costs - HOCHTIEF will have to deal with an uptrend in raw material costs which will pressurize margins
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Hochtief:
Continuous innovation in the construction sector, helping them stay ahead of competition
Based on geography - Europe, the Americas, Australia, Asia, Africa
Based on project type - infrastructure projects, real estate and facilities
Targets projects predominantly in Europe, the Americas, Australia and Asia
Delivers integrated services covering life cycle of infrastructure projects, real estate and facilities
As a single point for all solutions – from financing and construction to operations
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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