Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Aker Solutions analyses the brand by its strengths, weaknesses, opportunities & threats. In Aker Solutions 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 Aker Solutions to benchmark its business & performance as compared to the competitors. Aker Solutions is one of the leading brands in the real estate and construction sector.
The article below lists the Aker Solutions SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Aker Solutions SWOT Analysis:
For Aker Solutions, 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.
Aker Solutions Strengths
The strengths of Aker Solutions 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 Aker Solutions :
1. Leading market position - confers economies of scale and enhances the brand image of the company
2. Diversified product portfolio and well balanced revenue stream –the company provides products and services to industries including oil and gas production, refining and chemicals, pharmaceuticals and
Biotechnology, and mining and metals. It operates through three businesses segments: product solutions; field life solutions; and engineering solutions. Revenues from the three segments are well balanced
3. Global presence - Aker is present in about 30 countries across major continents spanning Australia, Asia, Middle East, South America, Africa, North America, and Europe.
4. Over 20,000 employees are a part of the organisation
5. Based out of Norway, it is one the largest companies in the country
Aker Solutions Weaknesses
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 Aker Solutions SWOT Analysis:
1. Declining Order backlog can have a negative impact on its revenue growth and on investor confidence
2. Limited geographic reach as compared to other leading players in the industry
Aker Solutions Opportunities
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 Aker Solutions SWOT Analysis:
1. Strategic acquisitions - can help Aker in increasing its market penetration, expand its product lines, and improve its operational flexibility
2. New contracts across the globe which is a key market for the company. Aker collaborated with Murphy Sabah Oil to deliver a subsea production system for the Siakap North Petai deep water development. Aker has also won several other contracts across the globe, which will give the company scope to grow
Aker Solutions Threats
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 Aker Solutions are as mentioned:
1. Intense competition for new contracts - Since financial strength is a major factor in deciding the granting of a contract, the company may lose contracts to larger players. Intense competition may negatively impact the company's operations and its financial condition
2. Government regulations and environmental issues - Government regulations often limit access to potential markets and impose extensive requirements concerning environmental protection and pollution control.
3. Foreign exchange rate risks - Besides Norway, the company generates revenues from other European countries, and in Asian and North American currencies. Changing foreign currency exchange rates could have a material impact on the company’s earnings and cash flows.
Aker Solutions Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Aker Solutions:
Taking the next step in the global oil and gas success story
World leader in the design and supply of deck machinery and mooring systems for marine and offshore applications
Aker Solutions STP
Engineering and Construction services
Enterprises and corporates
Positioned as a company that brings together engineering and technologies for oil and gas drilling, field development and production
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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