Emerson Electric Company SWOT Analysis
Emerson Electric is one of the largest companies in US. The company was found more than a century back; in 1890. The nature of this business is manufacturing electrical equipments and providing engineering services. It has a wide coverage; it operates in about 150 countries and employs around 134000 people from across the globe. It has a hefty market share in the world electrical industry. It specializes in manufacturing electric motors, climate technologies, etc. Presently it is headquartered in Ferguson, MO, America. Surveys from 2011 shows that the company had annual revenue $24.22 Billions and assets, that were valued up to $23.86 Billions. This company is amongst the fortune 500 companies, which mean it is a competitive company of US.
Strengths of Emerson Electrical Company
Since this company has been established long time ago, it has the advantages of being famous and recognized throughout the world. Besides, its superior products, which are distinctive in nature, like climate technologies, etc. are manufactured by handful companies and this is the most important reason why it dominates the market and has less competition.
It has a highly developed distribution chain because of which, it is able to minimize losses and become cost effective. It has a large amount of revenues generating every year, and thus it is able to reinvest heavily into the business. Because of this it has a strong financial position. It has a wide variety of products that offer every thing, from the very basic to the very complicated. All these factors have led Emerson electrics into an extremely strong position
Weaknesses of Emerson Electrical Company
Though Emerson Electrical Company is a very strong business, it has some weaknesses. The foremost weakness is the high cost of R&D. Since the company is constantly looking for new innovation and technologies, it has to invest a huge sum of money into research and development. Secondly, Emerson uses highly technological machineries. To operate such machines, skilled workers are needed. Thereby a huge sum is also spent on training the staff. Therefore a lot of finance is used up in such expenses
Opportunities for Emerson Electrical Company
Threats for Emerson Electrical Company
The most important threat that Emerson is facing presently is the cheap availability of technology. In this economic recession people tend to spend less money on any thing. Thereby, the people would be more willing to buy equipments from cheap alternatives of Emerson. And obviously, China’s companies can prove to be a serious threat for Emerson in the international market.
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Emerson Electric Co. (EMR) – Financial and Strategic SWOT Analysis Review
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