SWOT Analysis of Agilent Technologies

Agilent Technologies (NYSE: A), or Agilent, is a global company that designs and manufactures equipment for measurement and evaluation. Agilent Technologies has a stock market capitalization of over 15 billion USD and the company’s headquarters are in Santa Clara, California, in the Silicon Valley region.

Many of Agilent’s predecessor product lines were developed by Hewlett-Packard, the American computing company founded in 1939. In 1999, the product lines not directly connected with computers, storage, and imaging were grouped into a separate company (Agilent), the stock of which was offered to the public in an initial public offering. The Agilent IPO may have been the largest in the history of Silicon Valley at the time.

The company thus created in 1999 was an $8 billion company with about 47,000 employees, manufacturing scientific instruments, semiconductors, optical networking devices, and electronic test equipment for telecom and wireless R&D and production.
Agilent Technologies SWOT Analysis

Strengths

• Agilent Technologies has a robust research and development arm, Agilent Laboratories or Agilent Labs, with active research in numerous areas including MEMS, nanotechnology, and life sciences

• HP labs were divided into two central labs when Agilent was carved out of HP in 1999. Both laboratories have had distinct success throughout the years including development in X-ray technology, traffic monitoring, and liquid chromatography and mass spectrometry.

• Agilent Technologies has an active investment group, Agilent Ventures, which invests in high-tech startup companies. Investments include MEMX, Infinera, and Telasics.

• Agilent has generated and offers comprehensive chemical databases. In January 2009 it announced the availability of a pesticide database covering 1600 compounds, with accurate mass information for each.

Weaknesses

• Agilent has a subtle assets ratio of 23% which is not good for the company in longer run.

• Company web operations are not strong enough to support the huge customer database.

• The recording system of the company is weak which should be a prime focus for improvement.

• Company’s internal environment is unstable which also serves as biggest weakness for company.

Opportunities

• Agilent announced a plan to divest its semiconductor test solutions business, composed of both the system-on-chip and memory test market areas.

• The company along with the University of California, Davis, announced that it would be establishing the Davis Millimeter Wave Research Center.

• Agilent announced it would increase its life sciences engagement through the acquisition of Halo Genomics, based in Uppsala, Sweden, which was involved in next-generation sequencing technology development.

• Agilent Technologies agreed to buy Dako, a Danish cancer diagnostics company, for $2.2 Billion, to expand its presence in life sciences industry.

Threats

• Changing technologies and pacing up with that is becoming a threat for the company.

• Customer base is huge while the company database management system is not that strong which brings a threat for bad management of customers in future.

• Worldwide economic crisis is bringing threats to the company.

References

Yahoo Finance. Agilent Technologies. (2012). Website: http://finance.yahoo.com/q?s=A Retrieved: 12th Nov, 2012.

Agilent Technologies. Company Information. (2012). Website:  http://www.agilent.com/about/companyinfo/index.html?cmpid=5012 Retrieved: 12th Nov, 2012.

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